VERMONT | 03-0283552 |
Common Stock, $2.00 par value | Nasdaq Stock Market | |||
(Title of class) | (Exchanges registered on) |
Large accelerated filer [ ] | Accelerated filer [ X ] |
Non-accelerated filer [ ] | Smaller reporting company [ X ] |
Emerging growth company [ ] |
Common Stock, $2 par value | 4,465,951 | shares |
PART II OTHER INFORMATION | |
September 30, 2018 | December 31, 2017 | |||||
(Unaudited) | ||||||
Assets | (Dollars in thousands) | |||||
Cash and due from banks | $ | 4,063 | $ | 3,857 | ||
Federal funds sold and overnight deposits | 9,837 | 34,651 | ||||
Cash and cash equivalents | 13,900 | 38,508 | ||||
Interest bearing deposits in banks | 9,747 | 9,352 | ||||
Investment securities available-for-sale | 71,536 | 65,439 | ||||
Investment securities held-to-maturity (fair value $999 thousand at December 31, 2017) | — | 1,000 | ||||
Other investments | 597 | — | ||||
Total investments | 72,133 | 66,439 | ||||
Loans held for sale | 7,457 | 7,947 | ||||
Loans | 636,239 | 586,615 | ||||
Allowance for loan losses | (5,610 | ) | (5,408 | ) | ||
Net deferred loan costs | 891 | 795 | ||||
Net loans | 631,520 | 582,002 | ||||
Accrued interest receivable | 2,570 | 2,500 | ||||
Premises and equipment, net | 15,747 | 14,255 | ||||
Core deposit intangible | 454 | 583 | ||||
Goodwill | 2,223 | 2,223 | ||||
Investment in real estate limited partnerships | 4,208 | 3,166 | ||||
Company-owned life insurance | 8,984 | 8,861 | ||||
Other assets | 10,715 | 9,995 | ||||
Total assets | $ | 779,658 | $ | 745,831 | ||
Liabilities and Stockholders’ Equity | ||||||
Liabilities | ||||||
Deposits | ||||||
Noninterest bearing | $ | 126,596 | $ | 127,824 | ||
Interest bearing | 407,965 | 418,621 | ||||
Time | 133,162 | 101,129 | ||||
Total deposits | 667,723 | 647,574 | ||||
Borrowed funds | 41,990 | 31,581 | ||||
Accrued interest and other liabilities | 9,168 | 8,015 | ||||
Total liabilities | 718,881 | 687,170 | ||||
Commitments and Contingencies | ||||||
Stockholders’ Equity | ||||||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares issued at September 30, 2018 and December 31, 2017 | 9,882 | 9,882 | ||||
Additional paid-in capital | 897 | 755 | ||||
Retained earnings | 60,686 | 57,197 | ||||
Treasury stock at cost; 475,015 shares at September 30, 2018 and 475,385 shares at December 31, 2017 | (4,076 | ) | (4,077 | ) | ||
Accumulated other comprehensive loss | (6,612 | ) | (5,096 | ) | ||
Total stockholders' equity | 60,777 | 58,661 | ||||
Total liabilities and stockholders' equity | $ | 779,658 | $ | 745,831 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
(Dollars in thousands, except per share data) | ||||||||||||
Interest and dividend income | ||||||||||||
Interest and fees on loans | $ | 7,482 | $ | 6,893 | $ | 21,855 | $ | 19,823 | ||||
Interest on debt securities: | ||||||||||||
Taxable | 321 | 250 | 918 | 741 | ||||||||
Tax exempt | 145 | 159 | 436 | 486 | ||||||||
Dividends | 65 | 42 | 160 | 114 | ||||||||
Interest on federal funds sold and overnight deposits | 26 | 15 | 88 | 64 | ||||||||
Interest on interest bearing deposits in banks | 56 | 38 | 152 | 109 | ||||||||
Total interest and dividend income | 8,095 | 7,397 | 23,609 | 21,337 | ||||||||
Interest expense | ||||||||||||
Interest on deposits | 842 | 453 | 1,949 | 1,271 | ||||||||
Interest on borrowed funds | 244 | 134 | 515 | 369 | ||||||||
Total interest expense | 1,086 | 587 | 2,464 | 1,640 | ||||||||
Net interest income | 7,009 | 6,810 | 21,145 | 19,697 | ||||||||
Provision for loan losses | 150 | 150 | 300 | 150 | ||||||||
Net interest income after provision for loan losses | 6,859 | 6,660 | 20,845 | 19,547 | ||||||||
Noninterest income | ||||||||||||
Trust income | 195 | 179 | 579 | 548 | ||||||||
Service fees | 1,568 | 1,553 | 4,538 | 4,444 | ||||||||
Net gains on sales of investment securities available-for-sale | — | 24 | — | 33 | ||||||||
Net gains on sales of loans held for sale | 596 | 657 | 1,322 | 1,762 | ||||||||
Other income | 93 | 93 | 636 | 285 | ||||||||
Total noninterest income | 2,452 | 2,506 | 7,075 | 7,072 | ||||||||
Noninterest expenses | ||||||||||||
Salaries and wages | 2,745 | 2,570 | 8,008 | 7,642 | ||||||||
Pension and employee benefits | 1,144 | 954 | 3,299 | 2,784 | ||||||||
Occupancy expense, net | 338 | 320 | 1,069 | 1,073 | ||||||||
Equipment expense | 528 | 532 | 1,574 | 1,589 | ||||||||
Other expenses | 1,792 | 1,565 | 5,050 | 4,665 | ||||||||
Total noninterest expenses | 6,547 | 5,941 | 19,000 | 17,753 | ||||||||
Income before provision for income taxes | 2,764 | 3,225 | 8,920 | 8,866 | ||||||||
Provision for income taxes | 453 | 855 | 1,412 | 2,339 | ||||||||
Net income | $ | 2,311 | $ | 2,370 | $ | 7,508 | $ | 6,527 | ||||
Earnings per common share | $ | 0.52 | $ | 0.53 | $ | 1.68 | $ | 1.46 | ||||
Weighted average number of common shares outstanding | 4,465,882 | 4,462,414 | 4,465,741 | 4,462,113 | ||||||||
Dividends per common share | $ | 0.30 | $ | 0.29 | $ | 0.90 | $ | 0.87 | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
(Dollars in thousands) | ||||||||||||
Net income | $ | 2,311 | $ | 2,370 | $ | 7,508 | $ | 6,527 | ||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Investment securities available-for-sale: | ||||||||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | (352 | ) | 46 | (1,516 | ) | 609 | ||||||
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | — | (16 | ) | — | (22 | ) | ||||||
Total other comprehensive (loss) income | (352 | ) | 30 | (1,516 | ) | 587 | ||||||
Total comprehensive income | $ | 1,959 | $ | 2,400 | $ | 5,992 | $ | 7,114 |
Common Stock | ||||||||||||||||||||
Shares, net of treasury | Amount | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive loss | Total stockholders’ equity | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Balances December 31, 2017 | 4,465,576 | $ | 9,882 | $ | 755 | $ | 57,197 | $ | (4,077 | ) | $ | (5,096 | ) | $ | 58,661 | |||||
Net income | — | — | — | 7,508 | — | — | 7,508 | |||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,516 | ) | (1,516 | ) | |||||||||||
Dividend reinvestment plan | 430 | — | 19 | — | 4 | — | 23 | |||||||||||||
Cash dividends declared ($0.90 per share) | — | — | — | (4,019 | ) | — | — | (4,019 | ) | |||||||||||
Stock based compensation expense | — | — | 123 | — | — | — | 123 | |||||||||||||
Purchase of treasury stock | (60 | ) | — | — | — | (3 | ) | — | (3 | ) | ||||||||||
Balances September 30, 2018 | 4,465,946 | $ | 9,882 | $ | 897 | $ | 60,686 | $ | (4,076 | ) | $ | (6,612 | ) | $ | 60,777 | |||||
Balances, December 31, 2016 | 4,462,135 | $ | 9,874 | $ | 620 | $ | 53,086 | $ | (4,022 | ) | $ | (3,279 | ) | $ | 56,279 | |||||
Net income | — | — | — | 6,527 | — | — | 6,527 | |||||||||||||
Other comprehensive income | — | — | — | — | — | 587 | 587 | |||||||||||||
Dividend reinvestment plan | 422 | — | 14 | — | 4 | — | 18 | |||||||||||||
Cash dividends declared ($0.87 per share) | — | — | — | (3,882 | ) | — | — | (3,882 | ) | |||||||||||
Stock based compensation expense | — | — | 102 | — | — | — | 102 | |||||||||||||
Exercise of stock options | 1,000 | 2 | 17 | — | — | — | 19 | |||||||||||||
Purchase of treasury stock | (1,040 | ) | — | — | — | (43 | ) | — | (43 | ) | ||||||||||
Balances, September 30, 2017 | 4,462,517 | $ | 9,876 | $ | 753 | $ | 55,731 | $ | (4,061 | ) | $ | (2,692 | ) | $ | 59,607 |
Nine Months Ended September 30, | ||||||
2018 | 2017 | |||||
Cash Flows From Operating Activities | (Dollars in thousands) | |||||
Net income | $ | 7,508 | $ | 6,527 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation | 886 | 914 | ||||
Provision for loan losses | 300 | 150 | ||||
Deferred income tax (credit) provision | (57 | ) | 226 | |||
Net amortization of investment securities | 294 | 314 | ||||
Equity in losses of limited partnerships | 428 | 471 | ||||
Stock based compensation expense | 123 | 102 | ||||
Net increase in unamortized loan costs | (96 | ) | (100 | ) | ||
Proceeds from sales of loans held for sale | 84,541 | 92,231 | ||||
Origination of loans held for sale | (82,729 | ) | (88,341 | ) | ||
Net gain on sales of loans held for sale | (1,322 | ) | (1,762 | ) | ||
Net (gain) loss on disposals of premises and equipment | (191 | ) | 13 | |||
Net gain on sales of investment securities available-for-sale | — | (33 | ) | |||
Net gain on sales of other real estate owned | (11 | ) | — | |||
(Increase) decrease in accrued interest receivable | (70 | ) | 63 | |||
Amortization of core deposit intangible | 129 | 129 | ||||
Increase in other assets | (258 | ) | (490 | ) | ||
Contribution to defined benefit pension plan | (850 | ) | (750 | ) | ||
Increase in other liabilities | 1,228 | 926 | ||||
Net cash provided by operating activities | 9,853 | 10,590 | ||||
Cash Flows From Investing Activities | ||||||
Interest bearing deposits in banks | ||||||
Proceeds from maturities and redemptions | 1,843 | 4,384 | ||||
Purchases | (2,238 | ) | (3,236 | ) | ||
Investment securities held-to-maturity | ||||||
Proceeds from maturities, calls and paydowns | 1,000 | — | ||||
Investment securities available-for-sale | ||||||
Proceeds from sales | — | 3,962 | ||||
Proceeds from maturities, calls and paydowns | 4,222 | 5,310 | ||||
Purchases | (13,053 | ) | (7,078 | ) | ||
Other investments | ||||||
Proceeds from sales | 44 | — | ||||
Purchases | (120 | ) | — | |||
Purchase of nonmarketable stock | (2,844 | ) | (518 | ) | ||
Redemption of nonmarketable stock | 2,376 | 541 | ||||
Net increase in loans | (49,739 | ) | (45,803 | ) | ||
Recoveries of loans charged off | 17 | 53 | ||||
Purchases of premises and equipment | (2,391 | ) | (646 | ) | ||
Proceeds from Company-owned life insurance death benefit | 307 | — | ||||
Investments in limited partnerships | (695 | ) | (438 | ) | ||
Proceeds from sales of premises and equipment | 204 | — | ||||
Proceeds from sales of other real estate owned | 47 | — | ||||
Net cash used in investing activities | (61,020 | ) | (43,469 | ) | ||
Cash Flows From Financing Activities | ||||||
Advances on long-term borrowings | 164,175 | 10,000 | ||||
Repayment of long-term debt | (156,940 | ) | (10,208 | ) | ||
Net increase in short-term borrowings outstanding | 3,174 | 1,133 | ||||
Net (decrease) increase in noninterest bearing deposits | (1,228 | ) | 6,819 | |||
Net (decrease) increase in interest bearing deposits | (10,656 | ) | 5,624 | |||
Net increase (decrease) in time deposits | 32,033 | (3,479 | ) | |||
Issuance of common stock | — | 19 | ||||
Purchase of treasury stock | (3 | ) | (43 | ) | ||
Dividends paid | (3,996 | ) | (3,864 | ) | ||
Net cash provided by financing activities | 26,559 | 6,001 | ||||
Net decrease in cash and cash equivalents | (24,608 | ) | (26,878 | ) | ||
Cash and cash equivalents | ||||||
Beginning of period | 38,508 | 39,275 | ||||
End of period | $ | 13,900 | $ | 12,397 | ||
Supplemental Disclosures of Cash Flow Information | ||||||
Interest paid | $ | 2,440 | $ | 1,648 | ||
Income taxes paid | $ | 1,350 | $ | 1,020 | ||
Dividends paid on Common Stock: | ||||||
Dividends declared | $ | 4,019 | $ | 3,882 | ||
Dividends reinvested | (23 | ) | (18 | ) | ||
$ | 3,996 | $ | 3,864 | |||
Note 1. | Basis of Presentation |
AFS: | Available-for-sale | IRS: | Internal Revenue Service |
ALCO: | Asset Liability Committee | MBS: | Mortgage-backed security |
ALL: | Allowance for loan losses | MSRs: | Mortgage servicing rights |
ASC: | Accounting Standards Codification | OAO: | Other assets owned |
ASU: | Accounting Standards Update | OCI: | Other comprehensive income (loss) |
Board: | Board of Directors | OFAC: | U.S. Office of Foreign Assets Control |
bp or bps: | Basis point(s) | OREO: | Other real estate owned |
Branch Acquisition: | The acquisition of three New Hampshire branches in May 2011 | OTTI: | Other-than-temporary impairment |
CDARS: | Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network | OTT: | Other-than-temporary |
Company: | Union Bankshares, Inc. and Subsidiary | Plan: | The Union Bank Pension Plan |
DRIP: | Dividend Reinvestment Plan | RD: | USDA Rural Development |
FASB: | Financial Accounting Standards Board | RSU: | Restricted Stock Unit |
FDIC: | Federal Deposit Insurance Corporation | SBA: | U.S. Small Business Administration |
FHA: | U.S. Federal Housing Administration | SEC: | U.S. Securities and Exchange Commission |
FHLB: | Federal Home Loan Bank of Boston | TDR: | Troubled-debt restructuring |
FRB: | Federal Reserve Board | Union: | Union Bank, the sole subsidiary of Union Bankshares, Inc |
FHLMC/Freddie Mac: | Federal Home Loan Mortgage Corporation | USDA: | U.S. Department of Agriculture |
GAAP: | Generally Accepted Accounting Principles in the United States | VA: | U.S. Veterans Administration |
HTM: | Held-to-maturity | 2008 ISO Plan: | 2008 Incentive Stock Option Plan of the Company |
HUD: | U.S. Department of Housing and Urban Development | 2014 Equity Plan: | 2014 Equity Incentive Plan |
ICS: | Insured Cash Sweeps of the Promontory Interfinancial Network | 2017 Annual Report | Annual Report of Form 10-K for the year ended December 31, 2017 |
2017 Tax Act: | Tax Cut and Jobs Act of 2017 |
(Dollars in thousands) | |||
2018 | $ | 42 | |
2019 | 171 | ||
2020 | 171 | ||
2021 | 70 | ||
Total | $ | 454 |
September 30, 2018 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
(Dollars in thousands) | ||||||||||||
Available-for-sale | ||||||||||||
Debt securities: | ||||||||||||
U.S. Government-sponsored enterprises | $ | 6,826 | $ | — | $ | (265 | ) | $ | 6,561 | |||
Agency mortgage-backed | 37,884 | — | (1,263 | ) | 36,621 | |||||||
State and political subdivisions | 24,715 | 93 | (734 | ) | 24,074 | |||||||
Corporate | 4,411 | 12 | (143 | ) | 4,280 | |||||||
Total | $ | 73,836 | $ | 105 | $ | (2,405 | ) | $ | 71,536 |
December 31, 2017 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
(Dollars in thousands) | ||||||||||||
Available-for-sale | ||||||||||||
Debt securities: | ||||||||||||
U.S. Government-sponsored enterprises | $ | 7,805 | $ | 12 | $ | (122 | ) | $ | 7,695 | |||
Agency mortgage-backed | 28,378 | 12 | (274 | ) | 28,116 | |||||||
State and political subdivisions | 24,704 | 249 | (239 | ) | 24,714 | |||||||
Corporate | 4,412 | 48 | (67 | ) | 4,393 | |||||||
Total debt securities | 65,299 | 321 | (702 | ) | 64,918 | |||||||
Mutual funds (1) | 521 | — | — | 521 | ||||||||
Total | $ | 65,820 | $ | 321 | $ | (702 | ) | $ | 65,439 | |||
Held-to-maturity | ||||||||||||
U.S. Government-sponsored enterprises | $ | 1,000 | $ | — | $ | (1 | ) | $ | 999 |
(1) | As of December 31, 2017, mutual funds were classified as AFS investment securities. Effective January 1, 2018, these investments were reclassified to other investments on the consolidated balance sheets as they are no longer eligible to be classified as AFS upon adoption of ASU No. 2016-01. |
Amortized Cost | Fair Value | |||||
Available-for-sale | (Dollars in thousands) | |||||
Due in one year or less | $ | 111 | $ | 112 | ||
Due from one to five years | 5,293 | 5,289 | ||||
Due from five to ten years | 16,348 | 15,865 | ||||
Due after ten years | 14,200 | 13,649 | ||||
35,952 | 34,915 | |||||
Agency mortgage-backed | 37,884 | 36,621 | ||||
Total debt securities available-for-sale | $ | 73,836 | $ | 71,536 |
September 30, 2018 | Less Than 12 Months | 12 Months and over | Total | |||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. Government- sponsored enterprises | 4 | $ | 2,144 | $ | (33 | ) | 11 | $ | 4,417 | $ | (232 | ) | 15 | $ | 6,561 | $ | (265 | ) | ||||||
Agency mortgage-backed | 39 | 29,164 | (856 | ) | 13 | 7,457 | (407 | ) | 52 | 36,621 | (1,263 | ) | ||||||||||||
State and political subdivisions | 25 | 8,974 | (137 | ) | 25 | 10,901 | (597 | ) | 50 | 19,875 | (734 | ) | ||||||||||||
Corporate | 5 | 2,463 | (47 | ) | 3 | 1,305 | (96 | ) | 8 | 3,768 | (143 | ) | ||||||||||||
Total | 73 | $ | 42,745 | $ | (1,073 | ) | 52 | $ | 24,080 | $ | (1,332 | ) | 125 | $ | 66,825 | $ | (2,405 | ) |
December 31, 2017 | Less Than 12 Months | 12 Months and over | Total | |||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. Government- sponsored enterprises | 3 | $ | 1,824 | $ | (7 | ) | 9 | $ | 4,374 | $ | (116 | ) | 12 | $ | 6,198 | $ | (123 | ) | ||||||
Agency mortgage-backed | 26 | 19,315 | (143 | ) | 7 | 5,222 | (131 | ) | 33 | 24,537 | (274 | ) | ||||||||||||
State and political subdivisions | 8 | 3,803 | (22 | ) | 18 | 7,899 | (217 | ) | 26 | 11,702 | (239 | ) | ||||||||||||
Corporate | 2 | 870 | (31 | ) | 2 | 964 | (36 | ) | 4 | 1,834 | (67 | ) | ||||||||||||
Total | 39 | $ | 25,812 | $ | (203 | ) | 36 | $ | 18,459 | $ | (500 | ) | 75 | $ | 44,271 | $ | (703 | ) |
• | The length of time, and extent to which, the fair value has been less than the amortized cost; |
• | Adverse conditions specifically related to the security, industry, or geographic area; |
• | The historical and implied volatility of the fair value of the security; |
• | The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; |
• | Failure of the issuer of the security to make scheduled interest or principal payments; |
• | Any changes to the rating of the security by a rating agency; |
• | Recoveries or additional declines in fair value subsequent to the balance sheet date; and |
• | The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
For The Three Months Ended September 30, 2017 | For The Nine Months Ended September 30, 2017 | |||||
(Dollars in thousands) | ||||||
Proceeds | $ | 2,517 | $ | 3,962 | ||
Gross gains | 24 | 56 | ||||
Gross losses | — | (23 | ) | |||
Net gains on sales of investment securities AFS | $ | 24 | $ | 33 |
September 30, 2018 | December 31, 2017 | |||||
(Dollars in thousands) | ||||||
Residential real estate | $ | 185,620 | $ | 178,999 | ||
Construction real estate | 54,076 | 42,935 | ||||
Commercial real estate | 272,266 | 254,291 | ||||
Commercial | 47,382 | 50,719 | ||||
Consumer | 3,367 | 3,894 | ||||
Municipal | 73,528 | 55,777 | ||||
Gross loans | 636,239 | 586,615 | ||||
Allowance for loan losses | (5,610 | ) | (5,408 | ) | ||
Net deferred loan costs | 891 | 795 | ||||
Net loans | $ | 631,520 | $ | 582,002 |
September 30, 2018 | Current | 30-59 Days | 60-89 Days | 90 Days and Over and Accruing | Nonaccrual | Total | ||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Residential real estate | $ | 183,758 | $ | 23 | $ | 823 | $ | 314 | $ | 702 | $ | 185,620 | ||||||
Construction real estate | 53,186 | 422 | 386 | 36 | 46 | 54,076 | ||||||||||||
Commercial real estate | 271,269 | — | 713 | — | 284 | 272,266 | ||||||||||||
Commercial | 47,329 | 9 | 7 | — | 37 | 47,382 | ||||||||||||
Consumer | 3,344 | 16 | 5 | 2 | — | 3,367 | ||||||||||||
Municipal | 73,528 | — | — | — | — | 73,528 | ||||||||||||
Total | $ | 632,414 | $ | 470 | $ | 1,934 | $ | 352 | $ | 1,069 | $ | 636,239 |
December 31, 2017 | Current | 30-59 Days | 60-89 Days | 90 Days and Over and Accruing | Nonaccrual | Total | ||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Residential real estate | $ | 173,914 | $ | 3,047 | $ | 750 | $ | 472 | $ | 816 | $ | 178,999 | ||||||
Construction real estate | 42,857 | — | — | 22 | 56 | 42,935 | ||||||||||||
Commercial real estate | 253,266 | 357 | 361 | — | 307 | 254,291 | ||||||||||||
Commercial | 50,675 | 21 | 11 | — | 12 | 50,719 | ||||||||||||
Consumer | 3,884 | 7 | 3 | — | — | 3,894 | ||||||||||||
Municipal | 55,777 | — | — | — | — | 55,777 | ||||||||||||
Total | $ | 580,373 | $ | 3,432 | $ | 1,125 | $ | 494 | $ | 1,191 | $ | 586,615 |
• | Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. |
• | Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. |
• | Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. |
• | Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. |
• | Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. |
• | Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. |
For The Three Months Ended September 30, 2018 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance, June 30, 2018 | $ | 1,375 | $ | 556 | $ | 2,855 | $ | 374 | $ | 26 | $ | 30 | $ | 337 | $ | 5,553 | ||||||||
Provision (credit) for loan losses | 133 | 46 | 21 | (10 | ) | (10 | ) | 51 | (81 | ) | 150 | |||||||||||||
Recoveries of amounts charged off | — | — | — | — | 13 | — | — | 13 | ||||||||||||||||
1,508 | 602 | 2,876 | 364 | 29 | 81 | 256 | 5,716 | |||||||||||||||||
Amounts charged off | (100 | ) | — | — | — | (6 | ) | — | — | (106 | ) | |||||||||||||
Balance, September 30, 2018 | $ | 1,408 | $ | 602 | $ | 2,876 | $ | 364 | $ | 23 | $ | 81 | $ | 256 | $ | 5,610 |
For The Three Months Ended September 30, 2017 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance, June 30, 2017 | $ | 1,387 | $ | 481 | $ | 2,753 | $ | 362 | $ | 24 | $ | 26 | $ | 135 | $ | 5,168 | ||||||||
Provision (credit) for loan losses | 56 | (76 | ) | 37 | (6 | ) | 3 | 39 | 97 | 150 | ||||||||||||||
Recoveries of amounts charged off | 36 | 3 | — | 3 | 1 | — | — | 43 | ||||||||||||||||
1,479 | 408 | 2,790 | 359 | 28 | 65 | 232 | 5,361 | |||||||||||||||||
Amounts charged off | (100 | ) | — | — | — | (2 | ) | — | — | (102 | ) | |||||||||||||
Balance, September 30, 2017 | $ | 1,379 | $ | 408 | $ | 2,790 | $ | 359 | $ | 26 | $ | 65 | $ | 232 | $ | 5,259 |
For The Nine Months Ended September 30, 2018 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 1,361 | $ | 488 | $ | 2,707 | $ | 395 | $ | 30 | $ | 64 | $ | 363 | $ | 5,408 | ||||||||
Provision (credit) for loan losses | 147 | 114 | 169 | (29 | ) | (11 | ) | 17 | (107 | ) | 300 | |||||||||||||
Recoveries of amounts charged off | — | — | — | — | 17 | — | — | 17 | ||||||||||||||||
1,508 | 602 | 2,876 | 366 | 36 | 81 | 256 | 5,725 | |||||||||||||||||
Amounts charged off | (100 | ) | — | — | (2 | ) | (13 | ) | — | — | (115 | ) | ||||||||||||
Balance, September 30, 2018 | $ | 1,408 | $ | 602 | $ | 2,876 | $ | 364 | $ | 23 | $ | 81 | $ | 256 | $ | 5,610 |
For The Nine Months Ended September 30, 2017 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Balance, December 31, 2016 | $ | 1,399 | $ | 391 | $ | 2,687 | $ | 342 | $ | 26 | $ | 40 | $ | 362 | $ | 5,247 | ||||||||
Provision (credit) for loan losses | 124 | 8 | 103 | 13 | 7 | 25 | (130 | ) | 150 | |||||||||||||||
Recoveries of amounts charged off | 38 | 9 | — | 4 | 2 | — | — | 53 | ||||||||||||||||
1,561 | 408 | 2,790 | 359 | 35 | 65 | 232 | 5,450 | |||||||||||||||||
Amounts charged off | (182 | ) | — | — | — | (9 | ) | — | — | (191 | ) | |||||||||||||
Balance, September 30, 2017 | $ | 1,379 | $ | 408 | $ | 2,790 | $ | 359 | $ | 26 | $ | 65 | $ | 232 | $ | 5,259 |
September 30, 2018 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 49 | $ | — | $ | 9 | $ | — | $ | — | $ | — | $ | — | $ | 58 | ||||||||
Collectively evaluated for impairment | 1,359 | 602 | 2,867 | 364 | 23 | 81 | 256 | 5,552 | ||||||||||||||||
Total allocated | $ | 1,408 | $ | 602 | $ | 2,876 | $ | 364 | $ | 23 | $ | 81 | $ | 256 | $ | 5,610 |
December 31, 2017 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 47 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 48 | ||||||||
Collectively evaluated for impairment | 1,314 | 488 | 2,706 | 395 | 30 | 64 | 363 | 5,360 | ||||||||||||||||
Total allocated | $ | 1,361 | $ | 488 | $ | 2,707 | $ | 395 | $ | 30 | $ | 64 | $ | 363 | $ | 5,408 |
September 30, 2018 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,688 | $ | 78 | $ | 2,318 | $ | 370 | $ | — | $ | — | $ | 4,454 | |||||||
Collectively evaluated for impairment | 183,932 | 53,998 | 269,948 | 47,012 | 3,367 | 73,528 | 631,785 | ||||||||||||||
Total | $ | 185,620 | $ | 54,076 | $ | 272,266 | $ | 47,382 | $ | 3,367 | $ | 73,528 | $ | 636,239 |
December 31, 2017 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,718 | $ | 82 | $ | 1,074 | $ | 378 | $ | — | $ | — | $ | 3,252 | |||||||
Collectively evaluated for impairment | 177,281 | 42,853 | 253,217 | 50,341 | 3,894 | 55,777 | 583,363 | ||||||||||||||
Total | $ | 178,999 | $ | 42,935 | $ | 254,291 | $ | 50,719 | $ | 3,894 | $ | 55,777 | $ | 586,615 |
September 30, 2018 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Pass | $ | 170,256 | $ | 42,065 | $ | 175,757 | $ | 33,609 | $ | 3,333 | $ | 73,528 | $ | 498,548 | |||||||
Satisfactory/Monitor | 12,606 | 11,886 | 93,125 | 12,946 | 33 | — | 130,596 | ||||||||||||||
Substandard | 2,758 | 125 | 3,384 | 827 | 1 | — | 7,095 | ||||||||||||||
Total | $ | 185,620 | $ | 54,076 | $ | 272,266 | $ | 47,382 | $ | 3,367 | $ | 73,528 | $ | 636,239 |
December 31, 2017 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Pass | $ | 164,733 | $ | 33,401 | $ | 177,388 | $ | 38,877 | $ | 3,859 | $ | 55,777 | $ | 474,035 | |||||||
Satisfactory/Monitor | 11,296 | 9,374 | 73,772 | 11,165 | 30 | — | 105,637 | ||||||||||||||
Substandard | 2,970 | 160 | 3,131 | 677 | 5 | — | 6,943 | ||||||||||||||
Total | $ | 178,999 | $ | 42,935 | $ | 254,291 | $ | 50,719 | $ | 3,894 | $ | 55,777 | $ | 586,615 |
As of September 30, 2018 | For The Three Months Ended September 30, 2018 | For The Nine Months Ended September 30, 2018 | |||||||||||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Residential real estate | $ | 231 | $ | 240 | $ | 49 | |||||||||||||||
Commercial real estate | 196 | 196 | 9 | ||||||||||||||||||
With an allowance recorded | 427 | 436 | 58 | ||||||||||||||||||
Residential real estate | 1,457 | 2,028 | — | ||||||||||||||||||
Construction real estate | 78 | 78 | — | ||||||||||||||||||
Commercial real estate | 2,122 | 2,210 | — | ||||||||||||||||||
Commercial | 370 | 370 | — | ||||||||||||||||||
With no allowance recorded | 4,027 | 4,686 | — | ||||||||||||||||||
Residential real estate | 1,688 | 2,268 | 49 | $ | 1,743 | $ | 17 | $ | 1,749 | $ | 46 | ||||||||||
Construction real estate | 78 | 78 | — | 79 | 1 | 80 | 3 | ||||||||||||||
Commercial real estate | 2,318 | 2,406 | 9 | 2,045 | 21 | 1,555 | 52 | ||||||||||||||
Commercial | 370 | 370 | — | 365 | 9 | 371 | 23 | ||||||||||||||
Total | $ | 4,454 | $ | 5,122 | $ | 58 | $ | 4,232 | $ | 48 | $ | 3,755 | $ | 124 |
(1) | Does not reflect government guaranties on impaired loans as of September 30, 2018 totaling $656 thousand. |
As of September 30, 2017 | For The Three Months Ended September 30, 2017 | For The Nine Months Ended September 30, 2017 | |||||||||||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Residential real estate | $ | 1,939 | $ | 2,478 | $ | 57 | $ | 1,855 | $ | 23 | $ | 1,684 | $ | 54 | |||||||
Construction real estate | 84 | 84 | — | 84 | 1 | 86 | 3 | ||||||||||||||
Commercial real estate | 1,484 | 1,560 | 4 | 1,626 | 18 | 2,200 | 72 | ||||||||||||||
Commercial | 393 | 393 | — | 400 | 7 | 412 | 19 | ||||||||||||||
Total | $ | 3,900 | $ | 4,515 | $ | 61 | $ | 3,965 | $ | 49 | $ | 4,382 | $ | 148 |
(1) | Does not reflect government guaranties on impaired loans as of September 30, 2017 totaling $564 thousand. |
December 31, 2017 | |||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | |||||||||
(Dollars in thousands) | |||||||||||
Residential real estate | $ | 238 | $ | 247 | $ | 47 | |||||
Commercial real estate | 137 | 141 | 1 | ||||||||
With an allowance recorded | 375 | 388 | 48 | ||||||||
Residential real estate | 1,480 | 1,983 | — | ||||||||
Construction real estate | 82 | 82 | — | ||||||||
Commercial real estate | 937 | 1,011 | — | ||||||||
Commercial | 378 | 378 | — | ||||||||
With no allowance recorded | 2,877 | 3,454 | — | ||||||||
Residential real estate | 1,718 | 2,230 | 47 | ||||||||
Construction real estate | 82 | 82 | — | ||||||||
Commercial real estate | 1,074 | 1,152 | 1 | ||||||||
Commercial | 378 | 378 | — | ||||||||
Total | $ | 3,252 | $ | 3,842 | $ | 48 |
(1) | Does not reflect government guaranties on impaired loans as of December 31, 2017 totaling $550 thousand. |
September 30, 2018 | December 31, 2017 | |||||||||
Number of Loans | Principal Balance | Number of Loans | Principal Balance | |||||||
(Dollars in thousands) | ||||||||||
Residential real estate | 26 | $ | 1,688 | 24 | $ | 1,718 | ||||
Construction real estate | 1 | 78 | 1 | 82 | ||||||
Commercial real estate | 9 | 1,191 | 10 | 1,074 | ||||||
Commercial | 4 | 358 | 2 | 378 | ||||||
Total | 40 | $ | 3,315 | 37 | $ | 3,252 |
New TDRs During the | New TDRs During the | |||||||||||||||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Residential real estate | 1 | $ | 80 | $ | 81 | 2 | $ | 176 | $ | 179 | ||||||
Commercial real estate | — | — | — | 1 | 204 | 204 | ||||||||||
Commercial | 1 | 18 | 18 | 2 | 31 | 31 |
New TDRs During the | New TDRs During the | |||||||||||||||
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Residential real estate | 3 | $ | 269 | $ | 276 | 9 | $ | 649 | $ | 673 | ||||||
Commercial real estate | 1 | 149 | 149 | 2 | 293 | 293 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
(Dollars in thousands) | ||||||||||||
Interest cost on projected benefit obligation | $ | 179 | $ | 172 | $ | 537 | $ | 516 | ||||
Expected return on plan assets | (161 | ) | (243 | ) | (483 | ) | (729 | ) | ||||
Amortization of net loss | 151 | 51 | 453 | 153 | ||||||||
Net periodic cost (benefit) | $ | 169 | $ | (20 | ) | $ | 507 | $ | (60 | ) |
Number of RSUs Granted | Weighted-Average Grant Date Fair Value | Number of Unvested RSUs | |||||
2015 Award | 5,445 | $ | 27.91 | 730 | |||
2016 Award | 3,569 | 45.45 | 2,026 | ||||
2017 Award | 3,225 | $ | 52.95 | 3,225 | |||
Total | 12,239 | 5,981 |
September 30, 2018 | December 31, 2017 | |||||
(Dollars in thousands) | ||||||
Net unrealized loss on investment securities available-for-sale | $ | (1,817 | ) | $ | (301 | ) |
Defined benefit pension plan net unrealized actuarial loss | (4,795 | ) | (4,795 | ) | ||
Total | $ | (6,612 | ) | $ | (5,096 | ) |
Three Months Ended | ||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||
Before-Tax Amount | Tax (Expense) Benefit (1) | Net-of-Tax Amount | Before-Tax Amount | Tax (Expense) Benefit (1) | Net-of-Tax Amount | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | $ | (446 | ) | $ | 94 | $ | (352 | ) | $ | 70 | $ | (24 | ) | $ | 46 | |||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | — | — | — | (24 | ) | 8 | (16 | ) | ||||||||||
Total other comprehensive (loss) income | $ | (446 | ) | $ | 94 | $ | (352 | ) | $ | 46 | $ | (16 | ) | $ | 30 |
Nine Months Ended | ||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||
Before-Tax Amount | Tax (Expense) Benefit (1) | Net-of-Tax Amount | Before-Tax Amount | Tax (Expense) Benefit (1) | Net-of-Tax Amount | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | $ | (1,920 | ) | $ | 404 | $ | (1,516 | ) | $ | 923 | $ | (314 | ) | $ | 609 | |||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | — | — | — | (33 | ) | 11 | (22 | ) | ||||||||||
Total other comprehensive (loss) income | $ | (1,920 | ) | $ | 404 | $ | (1,516 | ) | $ | 890 | $ | (303 | ) | $ | 587 |
(1) | Tax expense/benefit is calculated using a marginal tax rate of 21% and 34% for the three and nine months ended September 30, 2018 and 2017, respectively. |
Three Months Ended | Nine Months Ended | ||||||||||||
Reclassification Adjustment Description | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | Affected Line Item in Consolidated Statement of Income | ||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net gains on investment securities available-for-sale | $ | — | $ | (24 | ) | $ | — | $ | (33 | ) | Net gains on sales of investment securities available-for-sale | ||
Tax benefit (1) | — | 8 | — | 11 | Provision for income taxes | ||||||||
Total reclassifications | $ | — | $ | (16 | ) | $ | — | $ | (22 | ) | Net income |
(1) | Tax benefit is calculated using a marginal tax rate of 21% and 34% for the three and nine months ended September 30, 2018 and 2017, respectively. |
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
• | Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; |
• | Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Fair Value Measurements | ||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
September 30, 2018: | (Dollars in thousands) | |||||||||||
Debt securities AFS: | ||||||||||||
U.S. Government-sponsored enterprises | $ | 6,561 | $ | — | $ | 6,561 | $ | — | ||||
Agency mortgage-backed | 36,621 | — | 36,621 | — | ||||||||
State and political subdivisions | 24,074 | — | 24,074 | — | ||||||||
Corporate | 4,280 | — | 4,280 | — | ||||||||
Total debt securities | $ | 71,536 | $ | — | $ | 71,536 | $ | — | ||||
Other investments: | ||||||||||||
Mutual funds | $ | 597 | $ | 597 | $ | — | $ | — | ||||
December 31, 2017: | ||||||||||||
Debt securities AFS: | ||||||||||||
U.S. Government-sponsored enterprises | $ | 7,695 | $ | — | $ | 7,695 | $ | — | ||||
Agency mortgage-backed | 28,116 | — | 28,116 | — | ||||||||
State and political subdivisions | 24,714 | — | 24,714 | — | ||||||||
Corporate | 4,393 | — | 4,393 | — | ||||||||
Total debt securities | 64,918 | — | 64,918 | — | ||||||||
Mutual funds | 521 | 521 | — | — | ||||||||
Total | $ | 65,439 | $ | 521 | $ | 64,918 | $ | — |
September 30, 2018 | |||||||||||||||
Fair Value Measurements | |||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
(Dollars in thousands) | |||||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 13,900 | $ | 13,900 | $ | 13,900 | $ | — | $ | — | |||||
Interest bearing deposits in banks | 9,747 | 9,624 | — | 9,624 | — | ||||||||||
Investment securities | 72,133 | 72,133 | 597 | 71,536 | — | ||||||||||
Loans held for sale | 7,457 | 7,557 | — | 7,557 | — | ||||||||||
Loans, net | |||||||||||||||
Residential real estate | 184,472 | 181,685 | — | — | 181,685 | ||||||||||
Construction real estate | 53,550 | 53,432 | — | — | 53,432 | ||||||||||
Commercial real estate | 269,515 | 266,726 | — | — | 266,726 | ||||||||||
Commercial | 47,084 | 45,715 | — | — | 45,715 | ||||||||||
Consumer | 3,349 | 3,360 | — | — | 3,360 | ||||||||||
Municipal | 73,550 | 72,945 | — | — | 72,945 | ||||||||||
Accrued interest receivable | 2,570 | 2,570 | — | 415 | 2,155 | ||||||||||
Nonmarketable equity securities | 2,798 | N/A | N/A | N/A | N/A | ||||||||||
Financial liabilities | |||||||||||||||
Deposits | |||||||||||||||
Noninterest bearing | $ | 126,596 | $ | 126,596 | $ | 126,596 | $ | — | $ | — | |||||
Interest bearing | 407,965 | 407,965 | 407,965 | — | — | ||||||||||
Time | 133,162 | 131,370 | — | 131,370 | — | ||||||||||
Borrowed funds | |||||||||||||||
Short-term | 4,539 | 4,539 | 4,539 | — | — | ||||||||||
Long-term | 37,451 | 37,214 | — | 37,214 | — | ||||||||||
Accrued interest payable | 121 | 121 | — | 121 | — |
December 31, 2017 | |||||||||||||||
Fair Value Measurements | |||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
(Dollars in thousands) | |||||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 38,508 | $ | 38,508 | $ | 38,508 | $ | — | $ | — | |||||
Interest bearing deposits in banks | 9,352 | 9,333 | — | 9,333 | — | ||||||||||
Investment securities | 66,439 | 66,438 | 521 | 65,917 | — | ||||||||||
Loans held for sale | 7,947 | 8,111 | — | 8,111 | — | ||||||||||
Loans, net | |||||||||||||||
Residential real estate | 177,880 | 178,818 | — | — | 178,818 | ||||||||||
Construction real estate | 42,505 | 42,069 | — | — | 42,069 | ||||||||||
Commercial real estate | 251,566 | 248,746 | — | — | 248,746 | ||||||||||
Commercial | 50,393 | 49,132 | — | — | 49,132 | ||||||||||
Consumer | 3,869 | 3,919 | — | — | 3,919 | ||||||||||
Municipal | 55,789 | 55,778 | — | — | 55,778 | ||||||||||
Accrued interest receivable | 2,500 | 2,500 | — | 395 | 2,105 | ||||||||||
Nonmarketable equity securities | 2,331 | N/A | N/A | N/A | N/A | ||||||||||
Financial liabilities | |||||||||||||||
Deposits | |||||||||||||||
Noninterest bearing | $ | 127,824 | $ | 127,824 | $ | 127,824 | $ | — | $ | — | |||||
Interest bearing | 418,621 | 418,621 | 418,621 | — | — | ||||||||||
Time | 101,129 | 99,967 | — | 99,967 | — | ||||||||||
Borrowed funds | |||||||||||||||
Short-term | 1,365 | 1,364 | 1,364 | — | — | ||||||||||
Long-term | 30,216 | 29,039 | — | 29,039 | — | ||||||||||
Accrued interest payable | 97 | 97 | — | 97 | — |
• | General economic conditions and financial instability, either nationally, internationally, regionally or locally; |
• | Increased competitive pressures, including those from tax-advantaged credit unions and other financial service providers in our northern Vermont and New Hampshire market area or in the financial services industry generally, from increasing consolidation and integration of financial service providers, and from changes in technology and delivery systems; |
• | Interest rates change in a way that puts pressure on the Company's margins, or that results in lower fee income and lower gain on sale of real estate loans, or that increases our interest costs; |
• | Changes in laws or government rules, or the way in which courts or government agencies interpret or implement those laws or rules, that increase our costs of doing business or otherwise adversely affect our business; |
• | Further changes in federal or state tax policy; |
• | Changes in our level of nonperforming assets and charge-offs; |
• | Changes in depositor behavior resulting in movement of funds out of bank deposits and into the stock market or other higher-yielding investments; |
• | Changes in estimates of future reserve requirements based upon relevant regulatory and accounting requirements; |
• | Changes in information technology that require increased capital spending or that result in new or increased risks; |
• | Changes in consumer and business spending, borrowing and savings habits; |
• | Changes in accounting principles, including those governing the manner of estimating our credit risk and calculating our loan loss reserve; |
• | Changes affecting the calculation of the estimated amount of the contribution that will be required to settle our obligations in connection with termination of our defined benefit pension plan and the expected impact of such termination on our net income in 2018; |
• | Further changes to the regulations governing the calculation of the Company’s regulatory capital ratios; |
• | Increased competitive pressures affecting the ability of the Company to attract, develop and retain employees; |
• | Increased cybersecurity threats; and |
• | The effect of and changes in the United States monetary and fiscal policies, including interest rate policies and regulation of the money supply by the FRB. |
Three Months Ended or At September 30, | Nine Months Ended or At September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Return on average assets (1) | 1.20 | % | 1.35 | % | 1.34 | % | 1.27 | % | ||||
Return on average equity (1) | 15.30 | % | 16.08 | % | 16.86 | % | 15.10 | % | ||||
Net interest margin (1)(2) | 3.87 | % | 4.23 | % | 4.08 | % | 4.22 | % | ||||
Efficiency ratio (3) | 68.63 | % | 62.31 | % | 66.58 | % | 64.79 | % | ||||
Net interest spread (4) | 3.72 | % | 4.15 | % | 3.96 | % | 4.13 | % | ||||
Loan to deposit ratio | 96.40 | % | 96.37 | % | 96.40 | % | 96.37 | % | ||||
Net loan charge-offs to average loans not held for sale (1) | 0.06 | % | 0.04 | % | 0.02 | % | 0.05 | % | ||||
Allowance for loan losses to loans not held for sale | 0.88 | % | 0.91 | % | 0.88 | % | 0.91 | % | ||||
Nonperforming assets to total assets (5) | 0.18 | % | 0.32 | % | 0.18 | % | 0.32 | % | ||||
Equity to assets | 7.80 | % | 8.45 | % | 7.80 | % | 8.45 | % | ||||
Total capital to risk weighted assets | 13.63 | % | 13.37 | % | 13.63 | % | 13.37 | % | ||||
Book value per share | $ | 13.61 | $ | 13.36 | $ | 13.61 | $ | 13.36 | ||||
Earnings per share | $ | 0.52 | $ | 0.53 | $ | 1.68 | $ | 1.46 | ||||
Dividends paid per share | $ | 0.30 | $ | 0.29 | $ | 0.90 | $ | 0.87 | ||||
Dividend payout ratio (6) | 57.69 | % | 54.72 | % | 53.57 | % | 59.59 | % |
(1) | Annualized. |
(2) | The ratio of tax equivalent net interest income to average earning assets. See pages 32 and 33 for more information. |
(3) | The ratio of noninterest expense to tax equivalent net interest income and noninterest income, excluding securities gains (losses). |
(4) | The difference between the average yield on earning assets and the average rate paid on interest bearing liabilities. See pages 32 and 33 for more information. |
(5) | Nonperforming assets are loans or investment securities that are in nonaccrual or 90 or more days past due as well as OREO or OAO. |
(6) | Cash dividends declared and paid per share divided by consolidated net income per share. |
Three Months Ended September 30, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Average Assets: | ||||||||||||||||
Federal funds sold and overnight deposits | $ | 11,346 | $ | 26 | 0.88 | % | $ | 11,185 | $ | 15 | 0.53 | % | ||||
Interest bearing deposits in banks | 9,988 | 56 | 2.24 | % | 8,356 | 38 | 1.77 | % | ||||||||
Investment securities (1), (2) | 72,150 | 490 | 2.91 | % | 65,882 | 426 | 3.06 | % | ||||||||
Loans, net (1), (3) | 630,028 | 7,482 | 4.74 | % | 573,512 | 6,893 | 4.88 | % | ||||||||
Nonmarketable equity securities | 3,423 | 41 | 4.71 | % | 2,576 | 25 | 3.85 | % | ||||||||
Total interest earning assets (1) | 726,935 | 8,095 | 4.46 | % | 661,511 | 7,397 | 4.59 | % | ||||||||
Cash and due from banks | 4,682 | 4,408 | ||||||||||||||
Premises and equipment | 15,402 | 13,226 | ||||||||||||||
Other assets | 23,279 | 22,848 | ||||||||||||||
Total assets | $ | 770,298 | $ | 701,993 | ||||||||||||
Average Liabilities and Stockholders' Equity: | ||||||||||||||||
Interest bearing checking accounts | $ | 141,819 | 56 | 0.15 | % | $ | 146,505 | 55 | 0.15 | % | ||||||
Savings/money market accounts | 259,990 | 426 | 0.65 | % | 232,132 | 211 | 0.36 | % | ||||||||
Time deposits | 126,005 | 360 | 1.13 | % | 105,693 | 187 | 0.70 | % | ||||||||
Borrowed funds | 55,335 | 244 | 1.73 | % | 40,033 | 134 | 1.31 | % | ||||||||
Total interest bearing liabilities | 583,149 | 1,086 | 0.74 | % | 524,363 | 587 | 0.44 | % | ||||||||
Noninterest bearing deposits | 117,774 | 112,974 | ||||||||||||||
Other liabilities | 8,980 | 5,719 | ||||||||||||||
Total liabilities | 709,903 | 643,056 | ||||||||||||||
Stockholders' equity | 60,395 | 58,937 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 770,298 | $ | 701,993 | ||||||||||||
Net interest income | $ | 7,009 | $ | 6,810 | ||||||||||||
Net interest spread (1) | 3.72 | % | 4.15 | % | ||||||||||||
Net interest margin (1) | 3.87 | % | 4.23 | % |
Nine Months Ended September 30, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Average Balance | Interest Earned/ Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Average Assets: | ||||||||||||||||
Federal funds sold and overnight deposits | $ | 12,041 | $ | 88 | 0.96 | % | $ | 14,751 | $ | 64 | 0.57 | % | ||||
Interest bearing deposits in banks | 9,901 | 152 | 2.06 | % | 8,700 | 109 | 1.67 | % | ||||||||
Investment securities (1), (2) | 70,641 | 1,413 | 2.86 | % | 67,585 | 1,269 | 2.97 | % | ||||||||
Loans, net (1), (3) | 607,577 | 21,855 | 4.86 | % | 552,473 | 19,823 | 4.90 | % | ||||||||
Nonmarketable equity securities | 2,874 | 101 | 4.67 | % | 2,455 | 72 | 3.94 | % | ||||||||
Total interest earning assets (1) | 703,034 | 23,609 | 4.55 | % | 645,964 | 21,337 | 4.55 | % | ||||||||
Cash and due from banks | 4,259 | 4,199 | ||||||||||||||
Premises and equipment | 14,762 | 13,286 | ||||||||||||||
Other assets | 22,559 | 22,313 | ||||||||||||||
Total assets | $ | 744,614 | $ | 685,762 | ||||||||||||
Average Liabilities and Stockholders' Equity: | ||||||||||||||||
Interest bearing checking accounts | $ | 143,280 | 148 | 0.14 | % | $ | 144,961 | 136 | 0.13 | % | ||||||
Savings/money market accounts | 258,204 | 1,009 | 0.52 | % | 229,938 | 610 | 0.35 | % | ||||||||
Time deposits | 112,268 | 792 | 0.94 | % | 103,763 | 525 | 0.68 | % | ||||||||
Borrowed funds | 43,392 | 515 | 1.57 | % | 35,713 | 369 | 1.36 | % | ||||||||
Total interest bearing liabilities | 557,144 | 2,464 | 0.59 | % | 514,375 | 1,640 | 0.42 | % | ||||||||
Noninterest bearing deposits | 119,890 | 108,395 | ||||||||||||||
Other liabilities | 8,199 | 5,363 | ||||||||||||||
Total liabilities | 685,233 | 628,133 | ||||||||||||||
Stockholders' equity | 59,381 | 57,629 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 744,614 | $ | 685,762 | ||||||||||||
Net interest income | $ | 21,145 | $ | 19,697 | ||||||||||||
Net interest spread (1) | 3.96 | % | 4.13 | % | ||||||||||||
Net interest margin (1) | 4.08 | % | 4.22 | % |
(1) | Average yields reported on a tax equivalent basis using a marginal tax rate of 21% and 34% for the three and nine months ended September 30, 2018 and 2017, respectively. |
(2) | Average balances of investment securities are calculated on the amortized cost basis and include nonaccrual securities, if applicable. |
(3) | Includes loans held for sale as well as nonaccrual loans, unamortized costs and unamortized premiums and is net of the allowance for loan losses. |
For the Three Months Ended September 30, | For The Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
(Dollars in thousands) | ||||||||||||
Net interest income, as presented | $ | 7,009 | $ | 6,810 | $ | 21,145 | $ | 19,697 | ||||
Effect of tax-exempt interest | ||||||||||||
Investment securities | 35 | 77 | 103 | 235 | ||||||||
Loans | 44 | 168 | 214 | 431 | ||||||||
Net interest income, tax equivalent | $ | 7,088 | $ | 7,055 | $ | 21,462 | $ | 20,363 |
• | changes in volume (change in volume multiplied by prior rate); |
• | changes in rate (change in rate multiplied by prior volume); and |
• | total change in rate and volume. |
Three Months Ended September 30, 2018 Compared to Three Months Ended September 30, 2017 Increase/(Decrease) Due to Change In | Nine Months Ended September 30, 2018 Compared to Nine Months Ended September 30, 2017 Increase/(Decrease) Due to Change In | |||||||||||||||||
Volume (1) | Rate (1) | Net | Volume | Rate | Net | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Interest earning assets: | ||||||||||||||||||
Federal funds sold and overnight deposits | $ | 1 | $ | 10 | $ | 11 | $ | (14 | ) | $ | 38 | $ | 24 | |||||
Interest bearing deposits in banks | 7 | 11 | 18 | 16 | 27 | 43 | ||||||||||||
Investment securities | 90 | (26 | ) | 64 | 200 | (56 | ) | 144 | ||||||||||
Loans, net | 741 | (152 | ) | 589 | 2,109 | (77 | ) | 2,032 | ||||||||||
Nonmarketable equity securities | 9 | 7 | 16 | 14 | 15 | 29 | ||||||||||||
Total interest earning assets | $ | 848 | $ | (150 | ) | $ | 698 | $ | 2,325 | $ | (53 | ) | $ | 2,272 | ||||
Interest bearing liabilities: | ||||||||||||||||||
Interest bearing checking accounts | $ | (1 | ) | $ | 2 | $ | 1 | $ | (2 | ) | $ | 14 | $ | 12 | ||||
Savings/money market accounts | 29 | 186 | 215 | 82 | 317 | 399 | ||||||||||||
Time deposits | 41 | 132 | 173 | 47 | 220 | 267 | ||||||||||||
Borrowed funds | 59 | 51 | 110 | 86 | 60 | 146 | ||||||||||||
Total interest bearing liabilities | $ | 128 | $ | 371 | $ | 499 | $ | 213 | $ | 611 | $ | 824 | ||||||
Net change in net interest income | $ | 720 | $ | (521 | ) | $ | 199 | $ | 2,112 | $ | (664 | ) | $ | 1,448 |
(1) | Tax equivalent interest income is calculated using a marginal tax rate of 21% and 34% for the three and nine months ended September 30, 2018 and 2017, respectively. |
For The Three Months Ended September 30, | For The Nine Months Ended September 30, | |||||||||||||||||||||
2018 | 2017 | $ Variance | % Variance | 2018 | 2017 | $ Variance | % Variance | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Trust income | $ | 195 | $ | 179 | $ | 16 | 8.9 | $ | 579 | $ | 548 | $ | 31 | 5.7 | ||||||||
Service fees | 1,568 | 1,553 | 15 | 1.0 | 4,538 | 4,444 | 94 | 2.1 | ||||||||||||||
Net gains on sales of loans held for sale | 596 | 657 | (61 | ) | (9.3 | ) | 1,322 | 1,762 | (440 | ) | (25.0 | ) | ||||||||||
Income from Company-owned life insurance | 64 | 66 | (2 | ) | (3.0 | ) | 432 | 185 | 247 | 133.5 | ||||||||||||
Other income | 29 | 27 | 2 | 7.4 | 204 | 100 | 104 | 104.0 | ||||||||||||||
Net gains on sales of investment securities AFS | — | 24 | (24 | ) | (100.0 | ) | — | 33 | (33 | ) | (100.0 | ) | ||||||||||
Total noninterest income | $ | 2,452 | $ | 2,506 | $ | (54 | ) | (2.2 | ) | $ | 7,075 | $ | 7,072 | $ | 3 | — | ||||||
Percent of total income | 23.2 | % | 25.3 | % | 23.1 | % | 24.9 | % |
• | Service fees. Service fees increased $15 thousand and $94 thousand for the three and nine months ended September 30, 2018, respectively, compared to the same periods of 2017 due to an increase in loan servicing income of $25 thousand and $81 thousand, respectively, and ATM network income of $13 thousand and $29 thousand, respectively. The increases for the comparison periods were partially offset by a reduction in service charges on deposit accounts of $17 thousand and $27 thousand for the three and nine months ended September 30, 2018, respectively. |
• | Net gains on sales of loans held for sale. Continuing the Company's strategy to mitigate long-term interest rate risk, residential loans totaling $33.8 million and $83.2 million were sold for the three and nine months ended September 30, 2018, respectively, versus residential and commercial loan sales of $32.0 million and $90.6 million during the same periods in 2017. The decline in net gains on sales of real estate loans is primarily due to lower average premiums on sold loans between periods, reflecting a rising interest rate environment and lower volumes of loans sold for the nine months ended September 30, 2018 compared to the same period last year. |
• | Income from Company-owned life insurance. Proceeds from the death benefit on an insurance policy on the life of a former director resulted in $252 thousand of additional income during the first quarter of 2018. |
• | Other income. Other income was $204 thousand for the nine months ended September 30, 2018 compared to income of $100 thousand for the nine months ended September 30, 2017. The increase between the comparison periods is due primarily to the gain on the sale of a bank owned branch building of $191 thousand during the first quarter of 2018, partially offset by a decrease of $87 thousand in MSR income. The decrease in MSR income is due to lower volumes of loans sold for the nine months ended September 30, 2018. |
For The Three Months Ended September 30, | For The Nine Months Ended September 30, | |||||||||||||||||||||
2018 | 2017 | $ Variance | % Variance | 2018 | 2017 | $ Variance | % Variance | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Salaries and wages | $ | 2,745 | $ | 2,570 | $ | 175 | 6.8 | $ | 8,008 | $ | 7,642 | $ | 366 | 4.8 | ||||||||
Pension and employee benefits | 1,144 | 954 | 190 | 19.9 | 3,299 | 2,784 | 515 | 18.5 | ||||||||||||||
Occupancy expense, net | 338 | 320 | 18 | 5.6 | 1,069 | 1,073 | (4 | ) | (0.4 | ) | ||||||||||||
Equipment expense | 528 | 532 | (4 | ) | (0.8 | ) | 1,574 | 1,589 | (15 | ) | (0.9 | ) | ||||||||||
Legal and professional fees | 234 | 145 | 89 | 61.4 | 609 | 469 | 140 | 29.9 | ||||||||||||||
Other expenses | 1,558 | 1,420 | 138 | 9.7 | 4,441 | 4,196 | 245 | 5.8 | ||||||||||||||
Total noninterest expense | $ | 6,547 | $ | 5,941 | $ | 606 | 10.2 | $ | 19,000 | $ | 17,753 | $ | 1,247 | 7.0 |
• | Salaries and wages. Salaries and wages increased $175 thousand and $366 thousand for the three and nine months ended September 30, 2018, respectively, compared to the same periods of 2017 primarily due to normal salary increases, but also due to an increase in the number of full time equivalent employees from 190 at June 30, 2018 and September 30, 2017 to 194 as of September 30, 2018. |
• | Pension and employee benefits. Pension and employee benefits increased $190 thousand for the three months ended September 30, 2018 and $515 thousand for the nine months ended September 30, 2018 compared to the same periods in 2017, respectively. The increase for the three months ended September 30, 2018 is due to increases in pension expense of $190 thousand, payroll taxes of $14 thousand, and other employee benefits of $12 thousand, partially offset by a reduction in the Company's medical plan insurance expense of $25 thousand. The increase for the nine months ended September 30, 2018 is the result of increases in pension plan expense of $569 thousand, 401k contributions of $27 thousand, and payroll taxes of $23 thousand, partially offset by a reduction in the cost of the Company's medical plan of $123 thousand. The reduction in the Company's medical plan costs in 2018 reflects a $242 thousand plan credit due to favorable 2017 claims experience. A similar experience-based credit received in 2017 was $130 thousand. |
• | Legal and professional fees. Legal and professional fees increased $89 thousand for the three months ended September 30, 2018 and $140 thousand for the nine months ended September 30, 2018 compared to the same periods in 2017. During 2018, additional consultants were engaged to assist with internal audits, compensation and benefit analysis, and other advisory services that were not utilized in 2017. Also, legal fees incurred for loan and real estate transactions as well as other corporate matters increased for the three and nine months ended September 30, 2018. |
• | Other expenses. Other expenses increased $138 thousand and $245 thousand for the three and nine months ended September 30, 2018, respectively, compared to the same periods of 2017. The change in the service provider during the first quarter of 2018 for Union's internet and mobile banking product to provide a more robust product with additional functionality resulted in an increase in electronic banking expenses of $31 thousand and $115 thousand for the three and nine months ended September 30, 2018, respectively, compared to the same periods in 2017. Board related expenses increased $19 thousand and $38 thousand for the three and nine month comparison periods, respectively, with the addition of one board member to the Company's and Union's boards during 2018. The increase during 2018 in ICS money market deposit accounts resulted in the ICS new account fee expense increasing $10 thousand and $31 thousand for the three and nine month comparison periods, respectively. The overall increase in deposit accounts during 2018 resulted in an increase in Vermont franchise tax expense of $10 thousand and $27 thousand for the three and nine month comparison periods, respectively. |
September 30, 2018 | December 31, 2017 | |||||||
Loan Class | Amount | Percent | Amount | Percent | ||||
(Dollars in thousands) | ||||||||
Residential real estate | $ | 185,620 | 28.8 | $ | 178,999 | 30.1 | ||
Construction real estate | 54,076 | 8.4 | 42,935 | 7.2 | ||||
Commercial real estate | 272,266 | 42.3 | 254,291 | 42.8 | ||||
Commercial | 47,382 | 7.4 | 50,719 | 8.5 | ||||
Consumer | 3,367 | 0.5 | 3,894 | 0.7 | ||||
Municipal | 73,528 | 11.4 | 55,777 | 9.4 | ||||
Loans held for sale | 7,457 | 1.2 | 7,947 | 1.3 | ||||
Total loans | 643,696 | 100.0 | 594,562 | 100.0 | ||||
Allowance for loan losses | (5,610 | ) | (5,408 | ) | ||||
Unamortized net loan costs | 891 | 795 | ||||||
Net loans and loans held for sale | $ | 638,977 | $ | 589,949 |
September 30, 2018 | December 31, 2017 | September 30, 2017 | |||||||
(Dollars in thousands) | |||||||||
Nonaccrual loans | $ | 1,069 | $ | 1,191 | $ | 2,029 | |||
Accruing loans 90+ days delinquent | 352 | 494 | 229 | ||||||
Total nonperforming loans (1) | 1,421 | 1,685 | 2,258 | ||||||
OREO | — | 36 | — | ||||||
Total nonperforming assets (1) | $ | 1,421 | $ | 1,721 | $ | 2,258 | |||
ALL to loans not held for sale | 0.88 | % | 0.92 | % | 0.91 | % | |||
ALL to nonperforming loans | 394.79 | % | 320.95 | % | 232.91 | % | |||
Nonperforming loans to total loans | 0.22 | % | 0.28 | % | 0.39 | % | |||
Nonperforming assets to total assets | 0.18 | % | 0.23 | % | 0.32 | % | |||
Delinquent loans (30 days to nonaccruing) to total loans | 0.59 | % | 1.05 | % | 0.64 | % | |||
Net charge-offs (annualized) to average loans not held for sale | 0.02 | % | 0.01 | % | 0.05 | % |
(1) | The Company had guarantees of U.S. or state government agencies on the above nonperforming loans totaling $121 thousand at September 30, 2018, $131 thousand at December 31, 2017, and $135 thousand at September 30, 2017. |
For the Three Months Ended September 30, | For The Nine Months Ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
(Dollars in thousands) | ||||||||||||
Balance at beginning of period | $ | 5,553 | $ | 5,168 | $ | 5,408 | $ | 5,247 | ||||
Charge-offs | (106 | ) | (102 | ) | (115 | ) | (191 | ) | ||||
Recoveries | 13 | 43 | 17 | 53 | ||||||||
Net charge-offs | (93 | ) | (59 | ) | (98 | ) | (138 | ) | ||||
Provision for loan losses | 150 | 150 | 300 | 150 | ||||||||
Balance at end of period | $ | 5,610 | $ | 5,259 | $ | 5,610 | $ | 5,259 |
September 30, 2018 | December 31, 2017 | |||||||
Amount | Percent | Amount | Percent | |||||
(Dollars in thousands) | ||||||||
Residential real estate | $ | 1,408 | 29.2 | $ | 1,361 | 30.5 | ||
Construction real estate | 602 | 8.5 | 488 | 7.3 | ||||
Commercial real estate | 2,876 | 42.8 | 2,707 | 43.4 | ||||
Commercial | 364 | 7.4 | 395 | 8.6 | ||||
Consumer | 23 | 0.5 | 30 | 0.7 | ||||
Municipal | 81 | 11.6 | 64 | 9.5 | ||||
Unallocated | 256 | — | 363 | — | ||||
Total | $ | 5,610 | 100.0 | $ | 5,408 | 100.0 |
Nine Months Ended September 30, 2018 | Nine Months Ended September 30, 2017 | |||||||||||
Average Amount | Percent of Total Deposits | Average Rate | Average Amount | Percent of Total Deposits | Average Rate | |||||||
(Dollars in thousands) | ||||||||||||
Nontime deposits: | ||||||||||||
Noninterest bearing deposits | $ | 119,890 | 18.9 | — | $ | 108,395 | 18.5 | — | ||||
Interest bearing checking accounts | 143,280 | 22.6 | 0.14 | % | 144,961 | 24.7 | 0.13 | % | ||||
Money market accounts | 153,921 | 24.3 | 0.77 | % | 131,008 | 22.3 | 0.51 | % | ||||
Savings accounts | 104,283 | 16.5 | 0.15 | % | 98,930 | 16.8 | 0.15 | % | ||||
Total nontime deposits | 521,374 | 82.3 | 0.30 | % | 483,294 | 82.3 | 0.21 | % | ||||
Time deposits: | ||||||||||||
Less than $100,000 | 63,249 | 10.0 | 0.82 | % | 61,787 | 10.5 | 0.65 | % | ||||
$100,000 and over | 49,019 | 7.7 | 1.10 | % | 41,976 | 7.2 | 0.72 | % | ||||
Total time deposits | 112,268 | 17.7 | 0.94 | % | 103,763 | 17.7 | 0.68 | % | ||||
Total deposits | $ | 633,642 | 100.0 | 0.41 | % | $ | 587,057 | 100.0 | 0.29 | % |
September 30, 2018 | December 31, 2017 | |||||
(Dollars in thousands) | ||||||
Within 3 months | $ | 21,578 | $ | 5,345 | ||
3 to 6 months | 9,132 | 9,752 | ||||
6 to 12 months | 14,757 | 13,737 | ||||
Over 12 months | 16,095 | 12,348 | ||||
$ | 61,562 | $ | 41,182 |
September 30, 2018 | December 31, 2017 | |||||
(Dollars in thousands) | ||||||
Commitments to originate loans | $ | 47,954 | $ | 25,394 | ||
Unused lines of credit | 100,884 | 85,906 | ||||
Standby and commercial letters of credit | 2,125 | 2,064 | ||||
Credit card arrangements | 1,303 | 1,326 | ||||
FHLB Mortgage Partnership Finance credit enhancement obligation, net | 643 | 640 | ||||
Commitment to purchase Jericho branch property | 1,550 | — | ||||
Commitment to purchase investment in a real estate limited partnership | — | 1,470 | ||||
Contract commitment for renovation projects | — | 662 | ||||
Total | $ | 154,459 | $ | 117,462 |
September 30, 2018 | |||
(Dollars in thousands) | |||
Operating lease commitments | $ | 602 | |
Contractual payments on borrowed funds (1) | 41,990 | ||
Deposits without stated maturity (1) (2) | 534,561 | ||
Certificates of deposit (1) (2) | 133,162 | ||
Deferred compensation payouts | 984 | ||
Total | $ | 711,299 |
(1) | The amounts exclude interest payable. |
(2) | While Union has a contractual obligation to depositors should they wish to withdraw all or some of the funds on deposit, management believes, based on historical analysis as well as current conditions in the financial markets, that the majority of these deposits will remain on deposit for the foreseeable future. |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||
As of September 30, 2018 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||
(Dollars in thousands) | |||||||||||||||
Company: | |||||||||||||||
Total capital to risk weighted assets | $ | 69,651 | 13.63 | % | $ | 40,881 | 8.00 | % | N/A | N/A | |||||
Tier I capital to risk weighted assets | 64,041 | 12.53 | % | 30,666 | 6.00 | % | N/A | N/A | |||||||
Common Equity Tier 1 to risk weighted assets | 64,041 | 12.53 | % | 23,000 | 4.50 | % | N/A | N/A | |||||||
Tier I capital to average assets | 64,041 | 8.36 | % | 30,642 | 4.00 | % | N/A | N/A | |||||||
Union: | |||||||||||||||
Total capital to risk weighted assets | $ | 69,870 | 13.70 | % | $ | 40,800 | 8.00 | % | $ | 51,000 | 10.00 | % | |||
Tier I capital to risk weighted assets | 64,260 | 12.60 | % | 30,600 | 6.00 | % | 40,800 | 8.00 | % | ||||||
Common Equity Tier 1 to risk weighted assets | 64,260 | 12.60 | % | 22,950 | 4.50 | % | 33,150 | 6.50 | % | ||||||
Tier I capital to average assets | 64,260 | 8.37 | % | 30,710 | 4.00 | % | 38,387 | 5.00 | % |
• | Current/Flat Rates: If rates remain at current levels net interest income is projected to trend steadily upwards as investments and loans replace/reprice upward at a faster pace than expected increases to funding costs. |
• | Rising Rates: Net interest income is anticipated to trend in line with the Current Rates scenario over the next 24 months as retail and wholesale term funding replacing into the elevated rate environment temporarily match improvements to asset yields. The degree of benefit of rising rates will depend on the pace and extent of market rate increases as well as the terminal slope of the yield curve as rates rise. |
• | Falling Rates: Net interest income is projected to trend downward in a falling rate scenario. Accelerated asset cash flow, driven by faster assumed mortgage related prepayment speeds, continues to adjust into lower rates with limited cost of funds relief. Continued utilization of floors on new loan volume will help to mitigate additional downward pressure on yields. |
Rate Change | Percent Change in Net Interest Income Limit | Percent Change in Net Interest Income | |||||
Up 300 basis points | (45.00 | )% | 12.2 | % | |||
Up 200 basis points | (30.00 | )% | 9.4 | % | |||
Down 200 basis points | (30.00 | )% | (9.9 | )% |
31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* |
101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 formatted in eXtensible Business Reporting Language (XBRL): (i) the unaudited consolidated balance sheets, (ii) the unaudited consolidated statements of income for the three and nine months ended September 30, 2018 and 2017, (iii) the unaudited consolidated statements of comprehensive income for the three and nine months ended September 30, 2018 and 2017, (iv) the unaudited consolidated statements of changes in stockholders' equity, (iv) the unaudited consolidated statements of cash flows and (v) related notes. |
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
Union Bankshares, Inc. | ||
November 8, 2018 | /s/ David S. Silverman | |
David S. Silverman | ||
Director, President and Chief Executive Officer | ||
November 8, 2018 | /s/ Karyn J. Hale | |
Karyn J. Hale | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |
101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 formatted in eXtensible Business Reporting Language (XBRL): (i) the unaudited consolidated balance sheets, (ii) the unaudited consolidated statements of income for the three and nine months ended September 30, 2018 and 2017, (iii) the unaudited consolidated statements of comprehensive income for the three and nine months ended September 30, 2018 and 2017, (iv) the unaudited consolidated statements of changes in stockholders' equity, (iv) the unaudited consolidated statements of cash flows and (v) related notes. |
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
1. | I have reviewed this quarterly report on Form 10-Q of Union Bankshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
/s/ David S. Silverman | |
David S. Silverman Director, President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Union Bankshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
/s/ Karyn J. Hale | |
Karyn J. Hale Chief Financial Officer (Principal Financial Officer) |
/s/ David S. Silverman | |
David S. Silverman Chief Executive Officer |
/s/ Karyn J. Hale | |
Karyn J. Hale Chief Financial Officer |
Document and Entity Information Document - shares |
9 Months Ended | |
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Sep. 30, 2018 |
Oct. 29, 2018 |
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Entity Information [Line Items] | ||
Entity Registrant Name | UNION BANKSHARES INC | |
Entity Central Index Key | 0000706863 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,465,951 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (September 30, 2018 Unaudited) Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets | ||
Investment securities held-to-maturity, fair value | $ 0 | $ 999 |
Stockholders' Equity | ||
Common stock, par value | $ 2.00 | $ 2.00 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,940,961 | 4,940,961 |
Treasury stock, shares | 475,015 | 475,385 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Net Income | $ 2,311 | $ 2,370 | $ 7,508 | $ 6,527 |
Investment securities available-for-sale: | ||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | (352) | 46 | (1,516) | 609 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | 0 | (16) | 0 | (22) |
Total other comprehensive (loss) income | (352) | 30 | (1,516) | 587 |
Total comprehensive income | $ 1,959 | $ 2,400 | $ 5,992 | $ 7,114 |
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Dividends per common share | $ 0.30 | $ 0.29 | $ 0.90 | $ 0.87 |
Basis of Presentation |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of September 30, 2018, and for the three and nine months ended September 30, 2018 and 2017, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (2017 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2017 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2018, or any future interim period. In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q.
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Legal Contingencies |
9 Months Ended |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies Disclosure [Text Block] | Legal Contingencies In the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations. |
Per Share Information |
9 Months Ended |
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Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Per Share Information Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of RSUs does not result in material dilution and is not included in the calculation. |
Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using a modified-retrospective transition method, as of January 1, 2018. The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance replaces most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, did not impact a majority of the Company’s revenues, including net interest income. The Company's assessment determined that no cumulative-effect adjustment to beginning stockholders' equity would be required under the modified retrospective transition method within the consolidated financial statements as there was no change in revenue recognition upon adoption of ASU No. 2014-09. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU became effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of the ASU did not have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. In July 2018, the FASB provided additional guidance on implementation of Topic 842 as well as an additional transition method. The ASU, including the updated guidance, is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements by reviewing its lease contracts. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company has established a CECL implementation team and developed a transition project plan. The team members have evaluated CECL implementation software providers and the Company has entered into an agreement with Sageworks. Historical data has been compiled and training on utilizing the software for the existing incurred loss model has been completed. Training is ongoing during 2018 surrounding CECL implementation and methodologies, including the running of parallel calculations throughout the year. This will facilitate the implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect the implementation to have a material effect on the Company's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Loss). This ASU was issued to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2017 Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the 2017 Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted for financial statements which have not yet been issued. The Company adopted the ASU for the December 31, 2017 consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance, which is a part of the FASB’s disclosure framework project to improve disclosure effectiveness, eliminates certain disclosure requirements for fair value measurements regarding the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities regarding changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. In addition, this guidance modifies certain requirements regarding the disclosure of transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of the ASU to have a material impact on the Company’s consolidated financial statements. |
Goodwill and Other Intangible Assets |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million. The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $43 thousand for the three months ended September 30, 2018 and 2017 and $129 thousand for the nine months ended September 30, 2018 and 2017. The amortization expense is included in other expenses on the consolidated statements of income and is deductible for tax purposes. As of September 30, 2018, the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows:
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities AFS and HTM investment securities as of the balance sheet dates consisted of the following:
____________________
There were no investment securities HTM at September 30, 2018. Investment securities AFS with a carrying amount of $3.7 million and $4.6 million at September 30, 2018 and December 31, 2017, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law. The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of September 30, 2018 were as follows:
Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary. As of September 30, 2018, other investments consisted of mutual funds with a fair value of $597 thousand, a cost basis of $477 thousand and unrealized gains of $120 thousand. Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists. A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover:
The Company has the ability to hold the investment securities that had unrealized losses at September 30, 2018 and December 31, 2017 for the foreseeable future and no declines were deemed by management to be OTT. There were no sales of AFS securities during the three and nine months ended September 30, 2018. The following table presents the proceeds, gross realized gains and gross realized losses from the sale of AFS securities for the three and nine months ended September 30, 2017.
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Loans |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivables [Text Block] | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. The composition of Net loans as of the balance sheet dates were as follows:
Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $165.9 million and $164.5 million were pledged as collateral for borrowings from the FHLB under a blanket lien at September 30, 2018 and December 31, 2017, respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows:
There was one residential real estate loan totaling $131 thousand in process of foreclosure at September 30, 2018. Aggregate interest on nonaccrual loans not recognized was $1.3 million as of September 30, 2018 and 2017, and $1.2 million as of December 31, 2017. |
Allowance for loan losses and credit quality |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Text Block] | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the third quarter of 2018. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows:
An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. Changes in the ALL, by class of loans, for the three and nine months ended September 30, 2018 and 2017 were as follows:
The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4/M Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates:
The following tables provide information with respect to impaired loans by class of loan as of and for the three and nine months ended September 30, 2018 and September 30, 2017:
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The following table provides information with respect to impaired loans by class of loan as of December 31, 2017:
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The following is a summary of TDR loans by class of loan as of the balance sheet dates:
The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans, that are restructured and meet established thresholds, are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The following tables provide new TDR activity for the three and nine months ended September 30, 2018 and 2017:
There were no TDR loans modified within the previous twelve months that had subsequently defaulted during the three and nine month periods ended September 30, 2018 or September 30, 2017. TDR loans are considered defaulted at 90 days past due. At September 30, 2018 and December 31, 2017, the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Defined Benefit Pension Plan |
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Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Benefit Pension Plan On October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. In order to settle the liabilities under the Plan, the Company offered participants the option to receive an annuity purchased from an insurance carrier, a lump-sum cash payment, or a direct rollover into a qualifying retirement plan. As of September 30, 2018, all participants had selected a payout option and as of October 11, 2018 an annuity provider had been selected. A cash contribution of $850 thousand was made to the Plan during the third quarter to cover lump-sum payments and annuity purchases. No additional contribution to the Plan is expected. The Company estimates that in addition to the net periodic pension cost of $507 thousand recognized as of September 30, 2018, an additional $3.2 million reduction in net income will be recorded in the fourth quarter of 2018 as a result of the Plan termination and settlement of Plan assets and liabilities. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by December 31, 2018. Once the process is complete, the Company will no longer have any remaining defined benefit pension plan obligations and thus no periodic pension expense. The Company's pension benefit obligation and net periodic benefit costs for the Plan are actuarially determined based on assumptions regarding the appropriate discount rate, current and expected future return on Plan assets, and anticipated mortality rates. Weighted average assumptions used to determine the net periodic pension cost (benefit) for the three and nine months ended September 30, 2018 and 2017 have remained consistent with assumptions disclosed in the Company's 2017 Annual Report. Net periodic pension cost (benefit) for the three and nine months ended September 30 consisted of the following components:
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Based Compensation The Company's current stock based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of September 30, 2018, there were outstanding grants under the plan of RSUs and incentive stock options. RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The general terms of the awards are described in the Company's 2017 Annual Report. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table presents a summary of the RSUs awarded in accordance with the 2015, 2016, and 2017 Award Plan Summaries, as of September 30, 2018:
Unrecognized compensation expense related to the unvested RSUs as of September 30, 2018 and September 30, 2017 was $71 thousand and $62 thousand, respectively. During the nine months ended September 30, 2018, a total of 2,645 contingent RSUs were provisionally granted in accordance with a 2018 Award Plan Summary. The estimated number of contingent RSUs provisionally granted was based on target performance-based payout amounts detailed in the 2018 Award Plan Summary approved by the Board of Directors and on the closing market price of the Company's stock on the March 21, 2018 provisional grant date ($53.95 per share). As with the 2015, 2016, and 2017 grants, one half is in the form of Time-Based RSUs and one-half is in the form of Performance-Based RSUs. The actual number of Time-Based RSUs granted (if any) will be determined as of the earned date of December 31, 2018, based on the closing market price of the Company's stock on that date, while the actual number of Performance-Based RSUs granted (if any) will be determined during the first quarter of 2019, based on actual 2018 performance. The contingent RSUs were granted on substantially the same terms and conditions as the RSUs granted under the previous annual Award Plan Summaries. As of September 30, 2018, the estimated unrecognized compensation expense related to the provisionally granted RSUs, based on the closing market price of the Company's stock on the provisional grant date of March 21, 2018, was $143 thousand. Stock options. As of September 30, 2018, 4,500 incentive stock options granted in December 2014 under the 2014 Equity Plan remained outstanding and exercisable and will expire in December 2021. There was no unrecognized compensation expense related to those options as of September 30, 2018. The estimated intrinsic value of those options was $131 thousand as of September 30, 2018. As of September 30, 2018, 3,000 incentive stock options granted under the 2008 ISO Plan remained outstanding and exercisable, with the last of such options expiring in December 2020. There was no unrecognized compensation expense related to those options as of September 30, 2018. The estimated intrinsic value of those options was $93 thousand as of September 30, 2018. |
Other Comprehensive Income (Loss) |
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Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Income (Loss) Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. As of the balance sheet dates, the components of Accumulated OCI, net of tax, were:
The following tables disclose the tax effects allocated to each component of OCI for the three and nine months ended September 30:
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The following table discloses information concerning reclassification adjustments from OCI for the three and nine months ended September 30, 2018 and 2017.
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Fair Value Measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement, as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are:
The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS: The Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds: Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. Assets measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017, segregated by fair value hierarchy level, are summarized below:
There were no transfers in or out of Levels 1 and 2 during the three and nine months ended September 30, 2018, nor were there any Level 3 assets at any time during either period. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as collateral-dependent impaired loans, HTM securities, MSRs and OREO, were not considered material at September 30, 2018 or December 31, 2017. The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825, Financial Instruments, requires disclosure of the estimated fair value of financial instruments. 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 estimates of future cash flows. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. The following methods and assumptions were used by the Company in estimating the fair value of its significant financial instruments: Cash and cash equivalents: The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets' fair values and are classified as Level 1. Interest bearing deposits in banks: Fair values for interest bearing deposits in banks are based on discounted present values of cash flows and are classified as Level 2. Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair value measurements consider observable data which may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds have been valued using unadjusted quoted prices from active markets. Investment securities are classified as Level 1 or Level 2 depending on availability of recent trade information. Loans held for sale: The fair value of loans held for sale is estimated based on quotes from third party vendors, resulting in a Level 2 classification. Loans: The fair values of loans are estimated for portfolios of loans with similar financial characteristics and segregated by loan class or segment. For variable-rate loan categories that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts adjusted for credit risk. The fair values for other loans (for example, fixed-rate residential, commercial real estate, and rental property mortgage loans as well as commercial and industrial loans) are estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future cash flows, future expected loss experience and risk characteristics. As of September 30, 2018, the Company implemented exit pricing valuation methodologies which incorporate a liquidity premium adjustment into the fair value estimate of all loan portfolios. This adjustment factors the costs/market inefficiencies associated with the sale of a financial instrument into the fair value estimate. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable. The fair value methods and assumptions that utilize unobservable inputs as defined by current accounting standards are classified as Level 3. Accrued interest receivable and payable: The carrying amounts of accrued interest approximate their fair values and are classified as Level 1, 2, or 3 in accordance with the classification of the related principal's valuation. Nonmarketable equity securities: It is not practical to determine the fair value of the nonmarketable securities, such as FHLB stock, due to restrictions placed on their transferability. Deposits: The fair values disclosed for noninterest bearing deposits and other interest bearing nontime deposits are, by definition, equal to the amount payable on demand at the reporting date, resulting in a Level 1 classification. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar deposits to a schedule of aggregated expected maturities on such deposits, resulting in a Level 2 classification. Borrowed funds: The fair values of the Company’s long-term debt are estimated using discounted cash flow analysis based on interest rates currently being offered on similar debt instruments, resulting in a Level 2 classification. The fair values of the Company’s short-term debt approximate the carrying amounts reported in the balance sheet, resulting in a Level 1 classification. Off-balance-sheet financial instruments: Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The only commitments to extend credit that are normally longer than one year in duration are the home equity lines whose interest rates are variable quarterly. The only fees collected for commitments are an annual fee on credit card arrangements and often a flat fee on commercial lines of credit and standby letters of credit. The fair value of off-balance-sheet financial instruments as of the balance sheet dates was not significant. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows:
The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. |
Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent events represent events or transactions occurring after the balance sheet date but before the financial statements are issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Events occurring subsequent to September 30, 2018 have been evaluated as to their potential impact to the consolidated financial statements. On October 17, 2018, the Company declared a regular quarterly cash dividend of $0.30 per share, payable November 8, 2018, to stockholders of record on October 29, 2018. As discussed in the Company's 2017 Annual Report, on October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. Management expects that the settlement of all assets and liabilities under the Plan will be complete by December 31, 2018. The Company expects to record $3.7 million in net pension termination expenses, $507 thousand of which has already been recognized in Employee Benefits on the Consolidated Income Statement for the nine months ended September 30, 2018, the remaining $3.2 million will be recognized during the fourth quarter of 2018. Once the process is complete, the Company will no longer have any remaining defined benefit pension plan obligations and thus no periodic pension expense in future periods. (See Note 9 of the Consolidated Financial Statements.) |
Basis of Presentation Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||
Basis of financial statement presentation [Policy Text Block] | The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of September 30, 2018, and for the three and nine months ended September 30, 2018 and 2017, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (2017 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2017 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2018, or any future interim period. |
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Earnings per common share [Policy Text Block] | Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of RSUs does not result in material dilution and is not included in the calculation. |
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Recent accounting pronouncements [Policy Text Block] | The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using a modified-retrospective transition method, as of January 1, 2018. The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance replaces most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, did not impact a majority of the Company’s revenues, including net interest income. The Company's assessment determined that no cumulative-effect adjustment to beginning stockholders' equity would be required under the modified retrospective transition method within the consolidated financial statements as there was no change in revenue recognition upon adoption of ASU No. 2014-09. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This ASU changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. The ASU also changes certain disclosure requirements and other aspects of GAAP, including a requirement for public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU became effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of the ASU did not have a material effect on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. In July 2018, the FASB provided additional guidance on implementation of Topic 842 as well as an additional transition method. The ASU, including the updated guidance, is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements by reviewing its lease contracts. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company has established a CECL implementation team and developed a transition project plan. The team members have evaluated CECL implementation software providers and the Company has entered into an agreement with Sageworks. Historical data has been compiled and training on utilizing the software for the existing incurred loss model has been completed. Training is ongoing during 2018 surrounding CECL implementation and methodologies, including the running of parallel calculations throughout the year. This will facilitate the implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect the implementation to have a material effect on the Company's consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Loss). This ASU was issued to allow a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2017 Tax Act. Consequently, the amendments eliminate the stranded tax effects resulting from the 2017 Tax Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the 2017 Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted for financial statements which have not yet been issued. The Company adopted the ASU for the December 31, 2017 consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance, which is a part of the FASB’s disclosure framework project to improve disclosure effectiveness, eliminates certain disclosure requirements for fair value measurements regarding the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities regarding changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. In addition, this guidance modifies certain requirements regarding the disclosure of transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of the ASU to have a material impact on the Company’s consolidated financial statements. |
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Intangible assets [Policy Text Block] | As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million. The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. |
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Investment securities [Policy Text Block] | The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists. A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover:
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Loans [Policy Text Block] | Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. |
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Allowance for loan losses [Policy Text Block] | The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the third quarter of 2018. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows:
An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. |
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Comprehensive income (loss) [Policy Text Block] | Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
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Fair value measurements [Policy Text Block] | The Company utilizes FASB ASC Topic 820, Fair Value Measurement, as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of September 30, 2018, the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows:
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale and held-to-maturity securities [Table Text Block] | AFS and HTM investment securities as of the balance sheet dates consisted of the following:
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Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of September 30, 2018 were as follows:
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Schedule of Unrealized Loss on Investments [Table Text Block] | Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
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Schedule of Realized Gain (Loss) [Table Text Block] | The following table presents the proceeds, gross realized gains and gross realized losses from the sale of AFS securities for the three and nine months ended September 30, 2017.
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Loans (Tables) |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Net Loans [Table Text Block] | The composition of Net loans as of the balance sheet dates were as follows:
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Past Due Financing Receivables [Table Text Block] | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows:
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Allowance for loan losses and credit quality (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Changes in the ALL, by class of loans, for the three and nine months ended September 30, 2018 and 2017 were as follows:
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Allocation of Allowance for Loan Losses by Impairment Methodology [Table Text Block] | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
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Allocation of Investment in Loans by Impairment Methodology [Table Text Block] | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
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Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates:
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Impaired Financing Receivables [Table Text Block] | The following tables provide information with respect to impaired loans by class of loan as of and for the three and nine months ended September 30, 2018 and September 30, 2017:
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The following table provides information with respect to impaired loans by class of loan as of December 31, 2017:
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Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following is a summary of TDR loans by class of loan as of the balance sheet dates:
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New Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables provide new TDR activity for the three and nine months ended September 30, 2018 and 2017:
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Defined Benefit Pension Plan (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Net periodic pension cost (benefit) for the three and nine months ended September 30 consisted of the following components:
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Stock Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | The following table presents a summary of the RSUs awarded in accordance with the 2015, 2016, and 2017 Award Plan Summaries, as of September 30, 2018:
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Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of the balance sheet dates, the components of Accumulated OCI, net of tax, were:
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Schedule of Comprehensive Income (Loss) [Table Text Block] | The following tables disclose the tax effects allocated to each component of OCI for the three and nine months ended September 30:
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table discloses information concerning reclassification adjustments from OCI for the three and nine months ended September 30, 2018 and 2017.
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Fair Value Measurement (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017, segregated by fair value hierarchy level, are summarized below:
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Fair Values and Carrying Amounts, Significant Financial Instruments [Table Text Block] | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows:
|
Goodwill and Other Intangible Assets Core Deposit Intangible Amortization (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
2018 | $ 42 | |
2019 | 171 | |
2020 | 171 | |
2021 | 70 | |
Total | $ 454 | $ 583 |
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
May 27, 2011 |
|
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill at Acquisition | $ 2,200 | ||||
Core Deposit Intangible at Acquisition | $ 1,700 | ||||
Amortization of core deposit intangible | $ 43 | $ 43 | $ 129 | $ 129 |
Investment Securities Debt Securities by Contactual Maturity (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Available-for-sale Securities | |
Due in one year or less, Amortized Cost | $ 111 |
Due from one to five years, Amortized Cost | 5,293 |
Due from five to ten years, Amortized Cost | 16,348 |
Due after ten years, Amortized Cost | 14,200 |
Debt securities with single maturity date, Amortized Cost | 35,952 |
Agency mortgage-backed, Amortized Cost | 37,884 |
Total debt securities available-for-sale, Amortized Cost | 73,836 |
Due in one year or less, Fair Value | 112 |
Due from one to five years, Fair Value | 5,289 |
Due from five to ten years, Fair Value | 15,865 |
Due after ten years, Fair Value | 13,649 |
Debt securities with single maturity date, Fair Value | 34,915 |
Agency mortgage-backed, Fair Value | 36,621 |
Total debt securities available-for-sale, Fair Value | $ 71,536 |
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
Securities
|
Dec. 31, 2017
USD ($)
Securities
|
---|---|---|
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 39 | |
Less than 12 Months, Number of Securities | Securities | 73 | |
Less than 12 Months, Fair Value | $ 25,812 | |
Less than 12 Months, Fair Value | $ 42,745 | |
Less than 12 Months, Gross Unrealized Losses | $ (203) | |
Less than 12 Months, Gross Unrealized Losses | $ (1,073) | |
12 Months and over, Number of Securities | Securities | 52 | 36 |
12 Months and over, Fair Value | $ 24,080 | $ 18,459 |
12 Months and over, Gross Unrealized Losses | $ (1,332) | $ (500) |
Total, Number of Securities | Securities | 75 | |
Total, Number of Securities | Securities | 125 | |
Total, Fair Value | $ 44,271 | |
Total, Fair Value | $ 66,825 | |
Total, Gross Unrealized Losses | $ (703) | |
Total, Gross Unrealized Losses | $ (2,405) | |
US Government-sponsored enterprises [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 3 | |
Less than 12 Months, Number of Securities | Securities | 4 | |
Less than 12 Months, Fair Value | $ 1,824 | |
Less than 12 Months, Fair Value | $ 2,144 | |
Less than 12 Months, Gross Unrealized Losses | $ (7) | |
Less than 12 Months, Gross Unrealized Losses | $ (33) | |
12 Months and over, Number of Securities | Securities | 11 | 9 |
12 Months and over, Fair Value | $ 4,417 | $ 4,374 |
12 Months and over, Gross Unrealized Losses | $ (232) | $ (116) |
Total, Number of Securities | Securities | 12 | |
Total, Number of Securities | Securities | 15 | |
Total, Fair Value | $ 6,198 | |
Total, Fair Value | $ 6,561 | |
Total, Gross Unrealized Losses | $ (123) | |
Total, Gross Unrealized Losses | $ (265) | |
Agency mortgage-backed [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 39 | 26 |
Less than 12 Months, Fair Value | $ 29,164 | $ 19,315 |
Less than 12 Months, Gross Unrealized Losses | $ (856) | $ (143) |
12 Months and over, Number of Securities | Securities | 13 | 7 |
12 Months and over, Fair Value | $ 7,457 | $ 5,222 |
12 Months and over, Gross Unrealized Losses | $ (407) | $ (131) |
Total, Number of Securities | Securities | 52 | 33 |
Total, Fair Value | $ 36,621 | $ 24,537 |
Total, Gross Unrealized Losses | $ (1,263) | $ (274) |
State and political subdivisions [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 25 | 8 |
Less than 12 Months, Fair Value | $ 8,974 | $ 3,803 |
Less than 12 Months, Gross Unrealized Losses | $ (137) | $ (22) |
12 Months and over, Number of Securities | Securities | 25 | 18 |
12 Months and over, Fair Value | $ 10,901 | $ 7,899 |
12 Months and over, Gross Unrealized Losses | $ (597) | $ (217) |
Total, Number of Securities | Securities | 50 | 26 |
Total, Fair Value | $ 19,875 | $ 11,702 |
Total, Gross Unrealized Losses | $ (734) | $ (239) |
Corporate [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 5 | 2 |
Less than 12 Months, Fair Value | $ 2,463 | $ 870 |
Less than 12 Months, Gross Unrealized Losses | $ (47) | $ (31) |
12 Months and over, Number of Securities | Securities | 3 | 2 |
12 Months and over, Fair Value | $ 1,305 | $ 964 |
12 Months and over, Gross Unrealized Losses | $ (96) | $ (36) |
Total, Number of Securities | Securities | 8 | 4 |
Total, Fair Value | $ 3,768 | $ 1,834 |
Total, Gross Unrealized Losses | $ (143) | $ (67) |
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Available-for-sale Securities | ||||
Proceeds | $ 0 | $ 2,517 | $ 0 | $ 3,962 |
Gross gains | 0 | 24 | 0 | 56 |
Gross losses | 0 | 0 | 0 | (23) |
Net gains on sales of investment securities AFS | $ 0 | $ 24 | $ 0 | $ 33 |
Investment Securities Narrative Data (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Investment Securities | ||
Amortized Cost - HTM securities | $ 0 | $ 1,000 |
Investment securities pledged as collateral | 3,700 | 4,600 |
Other investments, mutual funds | 597 | 0 |
Other investments, mutual funds, cost basis | 477 | |
Unrealized gains on other investments, mutual funds | 120 | |
Other than temporary declines in investment securities | $ 0 | $ 0 |
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 636,239 | $ 586,615 | ||||
Allowance for loan losses | (5,610) | $ (5,553) | (5,408) | $ (5,259) | $ (5,168) | $ (5,247) |
Net deferred loan costs | 891 | 795 | ||||
Net loans | 631,520 | 582,002 | ||||
Residential Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 185,620 | 178,999 | ||||
Allowance for loan losses | (1,408) | (1,375) | (1,361) | (1,379) | (1,387) | (1,399) |
Construction Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 54,076 | 42,935 | ||||
Allowance for loan losses | (602) | (556) | (488) | (408) | (481) | (391) |
Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 272,266 | 254,291 | ||||
Allowance for loan losses | (2,876) | (2,855) | (2,707) | (2,790) | (2,753) | (2,687) |
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 47,382 | 50,719 | ||||
Allowance for loan losses | (364) | (374) | (395) | (359) | (362) | (342) |
Consumer [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 3,367 | 3,894 | ||||
Allowance for loan losses | (23) | (26) | (30) | (26) | (24) | (26) |
Municipal [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 73,528 | 55,777 | ||||
Allowance for loan losses | $ (81) | $ (30) | $ (64) | $ (65) | $ (26) | $ (40) |
Loans Past Due Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | $ 632,414 | $ 580,373 |
Loans, Nonaccrual | 1,069 | 1,191 |
Loans | 636,239 | 586,615 |
30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 470 | 3,432 |
60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 1,934 | 1,125 |
90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 352 | 494 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 183,758 | 173,914 |
Loans, Nonaccrual | 702 | 816 |
Loans | 185,620 | 178,999 |
Residential Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 23 | 3,047 |
Residential Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 823 | 750 |
Residential Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 314 | 472 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 53,186 | 42,857 |
Loans, Nonaccrual | 46 | 56 |
Loans | 54,076 | 42,935 |
Construction Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 422 | 0 |
Construction Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 386 | 0 |
Construction Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 36 | 22 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 271,269 | 253,266 |
Loans, Nonaccrual | 284 | 307 |
Loans | 272,266 | 254,291 |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 357 |
Commercial Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 713 | 361 |
Commercial Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 47,329 | 50,675 |
Loans, Nonaccrual | 37 | 12 |
Loans | 47,382 | 50,719 |
Commercial [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 9 | 21 |
Commercial [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 7 | 11 |
Commercial [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 3,344 | 3,884 |
Loans, Nonaccrual | 0 | 0 |
Loans | 3,367 | 3,894 |
Consumer [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 16 | 7 |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 5 | 3 |
Consumer [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 2 | 0 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 73,528 | 55,777 |
Loans, Nonaccrual | 0 | 0 |
Loans | 73,528 | 55,777 |
Municipal [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | $ 0 | $ 0 |
Loans Narrative Data (Details) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2018
USD ($)
loans
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans Pledged as Collateral | $ 165,900 | $ 164,500 | |
Number of residential real estate loans in process of foreclosure | loans | 1 | ||
Recorded investment in residential real estate loans in process of foreclosure | $ 131 | ||
Interest on nonaccrual loans not recognized | $ 1,300 | $ 1,300 | $ 1,200 |
Allowance for loan losses and credit quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | $ 5,553 | $ 5,168 | $ 5,408 | $ 5,247 |
Provision (credit) for loan losses | 150 | 150 | 300 | 150 |
Recoveries of amounts charged off | 13 | 43 | 17 | 53 |
Balance, before amounts charged off | 5,716 | 5,361 | 5,725 | 5,450 |
Amounts charged off | (106) | (102) | (115) | (191) |
Balance, End of Period | 5,610 | 5,259 | 5,610 | 5,259 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 1,375 | 1,387 | 1,361 | 1,399 |
Provision (credit) for loan losses | 133 | 56 | 147 | 124 |
Recoveries of amounts charged off | 0 | 36 | 0 | 38 |
Balance, before amounts charged off | 1,508 | 1,479 | 1,508 | 1,561 |
Amounts charged off | (100) | (100) | (100) | (182) |
Balance, End of Period | 1,408 | 1,379 | 1,408 | 1,379 |
Construction Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 556 | 481 | 488 | 391 |
Provision (credit) for loan losses | 46 | (76) | 114 | 8 |
Recoveries of amounts charged off | 0 | 3 | 0 | 9 |
Balance, before amounts charged off | 602 | 408 | 602 | 408 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 602 | 408 | 602 | 408 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 2,855 | 2,753 | 2,707 | 2,687 |
Provision (credit) for loan losses | 21 | 37 | 169 | 103 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 2,876 | 2,790 | 2,876 | 2,790 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 2,876 | 2,790 | 2,876 | 2,790 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 374 | 362 | 395 | 342 |
Provision (credit) for loan losses | (10) | (6) | (29) | 13 |
Recoveries of amounts charged off | 0 | 3 | 0 | 4 |
Balance, before amounts charged off | 364 | 359 | 366 | 359 |
Amounts charged off | 0 | 0 | (2) | 0 |
Balance, End of Period | 364 | 359 | 364 | 359 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 26 | 24 | 30 | 26 |
Provision (credit) for loan losses | (10) | 3 | (11) | 7 |
Recoveries of amounts charged off | 13 | 1 | 17 | 2 |
Balance, before amounts charged off | 29 | 28 | 36 | 35 |
Amounts charged off | (6) | (2) | (13) | (9) |
Balance, End of Period | 23 | 26 | 23 | 26 |
Municipal [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 30 | 26 | 64 | 40 |
Provision (credit) for loan losses | 51 | 39 | 17 | 25 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 81 | 65 | 81 | 65 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | 81 | 65 | 81 | 65 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance, Beginning of Period | 337 | 135 | 363 | 362 |
Provision (credit) for loan losses | (81) | 97 | (107) | (130) |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 256 | 232 | 256 | 232 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance, End of Period | $ 256 | $ 232 | $ 256 | $ 232 |
Allowance for loan losses and credit quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 58 | $ 48 | ||||
Collectively evaluated for impairment | 5,552 | 5,360 | ||||
Total allocated | 5,610 | $ 5,553 | 5,408 | $ 5,259 | $ 5,168 | $ 5,247 |
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 49 | 47 | ||||
Collectively evaluated for impairment | 1,359 | 1,314 | ||||
Total allocated | 1,408 | 1,375 | 1,361 | 1,379 | 1,387 | 1,399 |
Construction Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 602 | 488 | ||||
Total allocated | 602 | 556 | 488 | 408 | 481 | 391 |
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 9 | 1 | ||||
Collectively evaluated for impairment | 2,867 | 2,706 | ||||
Total allocated | 2,876 | 2,855 | 2,707 | 2,790 | 2,753 | 2,687 |
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 364 | 395 | ||||
Total allocated | 364 | 374 | 395 | 359 | 362 | 342 |
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 23 | 30 | ||||
Total allocated | 23 | 26 | 30 | 26 | 24 | 26 |
Municipal [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 81 | 64 | ||||
Total allocated | 81 | 30 | 64 | 65 | 26 | 40 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 256 | 363 | ||||
Total allocated | $ 256 | $ 337 | $ 363 | $ 232 | $ 135 | $ 362 |
Allowance for loan losses and credit quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 4,454 | $ 3,252 |
Collectively evaluated for impairment | 631,785 | 583,363 |
Total | 636,239 | 586,615 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,688 | 1,718 |
Collectively evaluated for impairment | 183,932 | 177,281 |
Total | 185,620 | 178,999 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 78 | 82 |
Collectively evaluated for impairment | 53,998 | 42,853 |
Total | 54,076 | 42,935 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 2,318 | 1,074 |
Collectively evaluated for impairment | 269,948 | 253,217 |
Total | 272,266 | 254,291 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 370 | 378 |
Collectively evaluated for impairment | 47,012 | 50,341 |
Total | 47,382 | 50,719 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,367 | 3,894 |
Total | 3,367 | 3,894 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 73,528 | 55,777 |
Total | $ 73,528 | $ 55,777 |
Allowance for loan losses and credit quality Loan Ratings by Class (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 636,239 | $ 586,615 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 498,548 | 474,035 |
Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 130,596 | 105,637 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,095 | 6,943 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 185,620 | 178,999 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 170,256 | 164,733 |
Residential Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,606 | 11,296 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,758 | 2,970 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 54,076 | 42,935 |
Construction Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 42,065 | 33,401 |
Construction Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,886 | 9,374 |
Construction Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 125 | 160 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 272,266 | 254,291 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 175,757 | 177,388 |
Commercial Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 93,125 | 73,772 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,384 | 3,131 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 47,382 | 50,719 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33,609 | 38,877 |
Commercial [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,946 | 11,165 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 827 | 677 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,367 | 3,894 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,333 | 3,859 |
Consumer [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33 | 30 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 5 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,528 | 55,777 |
Municipal [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,528 | 55,777 |
Municipal [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for loan losses and credit quality Impaired Loans by Class (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||
With an alowance recorded, Recorded Investment | $ 427 | $ 427 | $ 375 | |||||||||||||
With an allowance recorded, Principal Balance | 436 | 436 | 388 | |||||||||||||
Related Allowance | 58 | $ 61 | 58 | $ 61 | 48 | |||||||||||
With no allowance recorded, Recorded Investment | 4,027 | [1] | 4,027 | [1] | 2,877 | [2] | ||||||||||
With no allowance recorded, Principal Balance | 4,686 | [1] | 4,686 | [1] | 3,454 | [2] | ||||||||||
Total, Recorded Investment | 4,454 | [1] | 3,900 | [3] | 4,454 | [1] | 3,900 | [3] | 3,252 | [2] | ||||||
Total, Principal Balance | 5,122 | [1] | 4,515 | [3] | 5,122 | [1] | 4,515 | [3] | 3,842 | [2] | ||||||
Total, Average Recorded Investment | 4,232 | 3,965 | 3,755 | 4,382 | ||||||||||||
Total, Interest Income Recognized | 48 | 49 | 124 | 148 | ||||||||||||
Government Guarantees on Impaired Loans | 656 | 564 | 656 | 564 | 550 | |||||||||||
Residential Real Estate [Member] | ||||||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||
With an alowance recorded, Recorded Investment | 231 | 231 | 238 | |||||||||||||
With an allowance recorded, Principal Balance | 240 | 240 | 247 | |||||||||||||
Related Allowance | 49 | 57 | 49 | 57 | 47 | |||||||||||
With no allowance recorded, Recorded Investment | 1,457 | [1] | 1,457 | [1] | 1,480 | [2] | ||||||||||
With no allowance recorded, Principal Balance | 2,028 | [1] | 2,028 | [1] | 1,983 | [2] | ||||||||||
Total, Recorded Investment | 1,688 | [1] | 1,939 | [3] | 1,688 | [1] | 1,939 | [3] | 1,718 | [2] | ||||||
Total, Principal Balance | 2,268 | [1] | 2,478 | [3] | 2,268 | [1] | 2,478 | [3] | 2,230 | [2] | ||||||
Total, Average Recorded Investment | 1,743 | 1,855 | 1,749 | 1,684 | ||||||||||||
Total, Interest Income Recognized | 17 | 23 | 46 | 54 | ||||||||||||
Construction Real Estate [Member] | ||||||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||
Related Allowance | 0 | 0 | 0 | 0 | 0 | |||||||||||
With no allowance recorded, Recorded Investment | 78 | 78 | 82 | |||||||||||||
With no allowance recorded, Principal Balance | 78 | 78 | 82 | |||||||||||||
Total, Recorded Investment | 78 | 84 | 78 | 84 | 82 | |||||||||||
Total, Principal Balance | 78 | 84 | 78 | 84 | 82 | |||||||||||
Total, Average Recorded Investment | 79 | 84 | 80 | 86 | ||||||||||||
Total, Interest Income Recognized | 1 | 1 | 3 | 3 | ||||||||||||
Commercial Real Estate [Member] | ||||||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||
With an alowance recorded, Recorded Investment | 196 | 196 | 137 | |||||||||||||
With an allowance recorded, Principal Balance | 196 | 196 | 141 | |||||||||||||
Related Allowance | 9 | 4 | 9 | 4 | 1 | |||||||||||
With no allowance recorded, Recorded Investment | 2,122 | [1] | 2,122 | [1] | 937 | [2] | ||||||||||
With no allowance recorded, Principal Balance | 2,210 | [1] | 2,210 | [1] | 1,011 | [2] | ||||||||||
Total, Recorded Investment | 2,318 | [1] | 1,484 | [3] | 2,318 | [1] | 1,484 | [3] | 1,074 | [2] | ||||||
Total, Principal Balance | 2,406 | [1] | 1,560 | [3] | 2,406 | [1] | 1,560 | [3] | 1,152 | [2] | ||||||
Total, Average Recorded Investment | 2,045 | 1,626 | 1,555 | 2,200 | ||||||||||||
Total, Interest Income Recognized | 21 | 18 | 52 | 72 | ||||||||||||
Commercial [Member] | ||||||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||
Related Allowance | 0 | 0 | 0 | 0 | 0 | |||||||||||
With no allowance recorded, Recorded Investment | 370 | [1] | 370 | [1] | 378 | [2] | ||||||||||
With no allowance recorded, Principal Balance | 370 | [1] | 370 | [1] | 378 | [2] | ||||||||||
Total, Recorded Investment | 370 | [1] | 393 | [3] | 370 | [1] | 393 | [3] | 378 | [2] | ||||||
Total, Principal Balance | 370 | [1] | 393 | [3] | 370 | [1] | 393 | [3] | $ 378 | [2] | ||||||
Total, Average Recorded Investment | 365 | 400 | 371 | 412 | ||||||||||||
Total, Interest Income Recognized | $ 9 | $ 7 | $ 23 | $ 19 | ||||||||||||
|
Allowance for loan losses and credit quality Troubled Debt Restured Loans (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
loans
|
Dec. 31, 2017
USD ($)
loans
|
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 40 | 37 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 3,315 | $ 3,252 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 26 | 24 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,688 | $ 1,718 |
Construction Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 1 | 1 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 78 | $ 82 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 9 | 10 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,191 | $ 1,074 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 4 | 2 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 358 | $ 378 |
Allowance for loan losses and credit quality New Troubled Debt Restructured Loans (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
loans
|
Sep. 30, 2017
USD ($)
loans
|
Sep. 30, 2018
USD ($)
loans
|
Sep. 30, 2017
USD ($)
loans
|
|
Residential Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
New TDRs, Number of Loans | loans | 1 | 3 | 2 | 9 |
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 80 | $ 269 | $ 176 | $ 649 |
New TDRs, Post-Modification Outstanding Recorded Investment | $ 81 | $ 276 | $ 179 | $ 673 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
New TDRs, Number of Loans | loans | 0 | 1 | 1 | 2 |
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 0 | $ 149 | $ 204 | $ 293 |
New TDRs, Post-Modification Outstanding Recorded Investment | $ 0 | $ 149 | $ 204 | $ 293 |
Commercial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
New TDRs, Number of Loans | loans | 1 | 2 | ||
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 18 | $ 31 | ||
New TDRs, Post-Modification Outstanding Recorded Investment | $ 18 | $ 31 |
Allowance for loan losses and credit quality Narrative Data (Details) - loans |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | 0 | 0 | 0 | 0 |
Defined Benefit Pension Plan Net Periodic Pension Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost on projected benefit obligation | $ 179 | $ 172 | $ 537 | $ 516 |
Expected return on plan assets | (161) | (243) | (483) | (729) |
Amortization of net loss | 151 | 51 | 453 | 153 |
Net periodic cost (benefit) | $ 169 | $ (20) | $ 507 | $ (60) |
Defined Benefit Pension Plan Narrative Data (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Defined Benefit Plan [Abstract] | ||||
Cash contribution to Plan | $ 850,000 | $ 850,000 | ||
Estimated cash contribution to Plan at termination | 0 | 0 | ||
Net periodic pension cost | 169,000 | $ (20,000) | 507,000 | $ (60,000) |
Estimated future charge to earnings at termination of the Plan | $ 3,200,000 | $ 3,200,000 |
Stock Based Compensation RSUs Granted and Unvested (Details) - 2014 Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Mar. 21, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 12,239 | |
Weighted Average Grant Date Fair Value | $ 53.95 | |
Number of Unvested RSUs | 5,981 | |
2015 Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 5,445 | |
Weighted Average Grant Date Fair Value | $ 27.91 | |
Number of Unvested RSUs | 730 | |
2016 Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 3,569 | |
Weighted Average Grant Date Fair Value | $ 45.45 | |
Number of Unvested RSUs | 2,026 | |
2017 Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 3,225 | |
Weighted Average Grant Date Fair Value | $ 52.95 | |
Number of Unvested RSUs | 3,225 |
Stock Based Compensation Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands |
Sep. 30, 2018 |
Mar. 21, 2018 |
Sep. 30, 2017 |
---|---|---|---|
2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for equity awards | 50,000 | ||
Stock options outstanding | 4,500 | ||
Stock options exercisable | 4,500 | ||
Unrecognized compensation expense, stock options | $ 0 | ||
Intrinsic value of stock options | 131 | ||
2014 Equity Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, unvested RSUs | 71 | $ 62 | |
Contingent RSUs provisionally granted | 2,645 | ||
Grant date fair value | $ 53.95 | ||
Unrecognized compensation expense, contingent unvested RSUs | $ 143 | ||
2008 ISO Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 3,000 | ||
Stock options exercisable | 3,000 | ||
Unrecognized compensation expense, stock options | $ 0 | ||
Intrinsic value of stock options | $ 93 |
Other Comprehensive Income (Loss) Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Net unrealized loss on investment securities available-for-sale | $ (1,817) | $ (301) |
Defined benefit pension plan net unrealized actuarial loss | (4,795) | (4,795) |
Total | $ (6,612) | $ (5,096) |
Other Comprehensive Income (Loss) Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Other Comprehensive Income, before Tax [Abstract] | |||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale, Before Tax Amount | $ (446) | $ 70 | $ (1,920) | $ 923 | |||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | 0 | (24) | 0 | (33) | |||
Total other comprehensive (loss) income, Before Tax Amount | (446) | 46 | (1,920) | 890 | |||
Other Comprehensive Income, Tax [Abstract] | |||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale, Tax | [1] | 94 | (24) | 404 | (314) | ||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | [1] | 0 | 8 | 0 | 11 | ||
Total other comprehensive (loss) income, Tax | [1] | 94 | (16) | 404 | (303) | ||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | (352) | 46 | (1,516) | 609 | |||
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | 0 | (16) | 0 | (22) | |||
Total other comprehensive (loss) income, Net of Tax Amount | $ (352) | $ 30 | $ (1,516) | $ 587 | |||
|
Other Comprehensive Income (Loss) Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | $ 0 | $ (24) | $ 0 | $ (33) | ||
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | [1] | 0 | 8 | 0 | 11 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ (16) | $ 0 | $ (22) | ||
|
Fair Value Measurement Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 71,536 | $ 65,439 |
Other investments, mutual funds | 597 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 521 | |
Other investments, mutual funds | 597 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 64,918 | |
US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,561 | 7,695 |
US Government-sponsored enterprises [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,561 | 7,695 |
Agency mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 36,621 | 28,116 |
Agency mortgage-backed [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 36,621 | 28,116 |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 24,074 | 24,714 |
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 24,074 | 24,714 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,280 | 4,393 |
Corporate [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,280 | 4,393 |
Total debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 71,536 | 64,918 |
Total debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 71,536 | 64,918 |
Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 521 | |
Mutual funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 521 |
Fair Value Measurement Fair Values and Carrying Amounts, Significant Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 13,900 | $ 38,508 | $ 12,397 | $ 39,275 |
Interest bearing deposits in banks | 9,747 | 9,352 | ||
Investment securities | 72,133 | 66,439 | ||
Loans held for sale | 7,457 | 7,947 | ||
Loans, net | 636,239 | 586,615 | ||
Accrued interest receivable | 2,570 | 2,500 | ||
Deposits | ||||
Noninterest bearing | 126,596 | 127,824 | ||
Interest bearing | 407,965 | 418,621 | ||
Time | 133,162 | 101,129 | ||
Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 185,620 | 178,999 | ||
Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 54,076 | 42,935 | ||
Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 272,266 | 254,291 | ||
Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 47,382 | 50,719 | ||
Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,367 | 3,894 | ||
Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 73,528 | 55,777 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 13,900 | 38,508 | ||
Investment securities | 597 | 521 | ||
Deposits | ||||
Noninterest bearing | 126,596 | 127,824 | ||
Interest bearing | 407,965 | 418,621 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 4,539 | 1,364 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest bearing deposits in banks | 9,624 | 9,333 | ||
Investment securities | 71,536 | 65,917 | ||
Loans held for sale | 7,557 | 8,111 | ||
Accrued interest receivable | 415 | 395 | ||
Deposits | ||||
Time | 131,370 | 99,967 | ||
Borrowed funds [Abstract] | ||||
Long-term, Fair Value | 37,214 | 29,039 | ||
Accrued interest payable | 121 | 97 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accrued interest receivable | 2,155 | 2,105 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 181,685 | 178,818 | ||
Significant Unobservable Inputs (Level 3) [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 53,432 | 42,069 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 266,726 | 248,746 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 45,715 | 49,132 | ||
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,360 | 3,919 | ||
Significant Unobservable Inputs (Level 3) [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 72,945 | 55,778 | ||
Carrying Amount [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 13,900 | 38,508 | ||
Interest bearing deposits in banks | 9,747 | 9,352 | ||
Investment securities | 72,133 | 66,439 | ||
Loans held for sale | 7,457 | 7,947 | ||
Accrued interest receivable | 2,570 | 2,500 | ||
Nonmarketable equity securities | 2,798 | 2,331 | ||
Deposits | ||||
Noninterest bearing | 126,596 | 127,824 | ||
Interest bearing | 407,965 | 418,621 | ||
Time | 133,162 | 101,129 | ||
Borrowed funds [Abstract] | ||||
Short-term | 4,539 | 1,365 | ||
Long-term | 37,451 | 30,216 | ||
Accrued interest payable | 121 | 97 | ||
Carrying Amount [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 184,472 | 177,880 | ||
Carrying Amount [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 53,550 | 42,505 | ||
Carrying Amount [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 269,515 | 251,566 | ||
Carrying Amount [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 47,084 | 50,393 | ||
Carrying Amount [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,349 | 3,869 | ||
Carrying Amount [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 73,550 | 55,789 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 13,900 | 38,508 | ||
Interest bearing deposits in banks | 9,624 | 9,333 | ||
Investment securities | 72,133 | 66,438 | ||
Loans held for sale | 7,557 | 8,111 | ||
Accrued interest receivable | 2,570 | 2,500 | ||
Deposits | ||||
Noninterest bearing | 126,596 | 127,824 | ||
Interest bearing | 407,965 | 418,621 | ||
Time | 131,370 | 99,967 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 4,539 | 1,364 | ||
Long-term, Fair Value | 37,214 | 29,039 | ||
Accrued interest payable | 121 | 97 | ||
Estimated Fair Value [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 181,685 | 178,818 | ||
Estimated Fair Value [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 53,432 | 42,069 | ||
Estimated Fair Value [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 266,726 | 248,746 | ||
Estimated Fair Value [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 45,715 | 49,132 | ||
Estimated Fair Value [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,360 | 3,919 | ||
Estimated Fair Value [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | $ 72,945 | $ 55,778 |
Subsequent Events Narrative Data (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Subsequent Event [Line Items] | ||||
Estimated net pension termination expenses | $ 3,700,000 | $ 3,700,000 | ||
Net periodic pension cost | 169,000 | $ (20,000) | 507,000 | $ (60,000) |
Estimated future charge to earnings at termination of the Plan | $ 3,200,000 | $ 3,200,000 | ||
Dividend Declared [Member] | ||||
Subsequent Event [Line Items] | ||||
Declaration date, cash dividend | Oct. 17, 2018 | |||
Cash dividend declared, per share | $ 0.30 | |||
Payable date, cash dividend | Nov. 08, 2018 | |||
Record date, cash dividend | Oct. 29, 2018 |
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