EMBASSY BANCORP, INC., 10-Q filed on 11/14/2016
Quarterly Report
v3.5.0.2
Document And Entity Information - shares
9 Months Ended
Sep. 30, 2016
Nov. 04, 2016
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
Entity Registrant Name Embassy Bancorp, Inc.  
Entity Central Index Key 0001449794  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   7,424,267
v3.5.0.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
ASSETS    
Cash and due from banks $ 14,668 $ 12,459
Interest bearing demand deposits with banks 13,027 6,067
Federal funds sold 1,000 1,000
Cash and Cash Equivalents 28,695 19,526
Securities available for sale 90,037 77,253
Restricted investment in bank stock 538 2,178
Loans receivable, net of allowance for loan losses of $6,240 in 2016; $6,068 in 2015 749,945 684,047
Premises and equipment, net of accumulated depreciation 2,181 2,258
Bank owned life insurance 12,586 12,343
Accrued interest receivable 1,604 1,637
Other real estate owned 521 1,224
Other assets 3,207 3,572
Total Assets 889,314 804,038
Liabilities:    
Deposits: Non-interest bearing 107,080 89,959
Deposits: Interest bearing 694,679 570,307
Total deposits 801,759 660,266
Securities sold under agreements to repurchase 8,844 27,535
Short-term borrowings   39,306
Long-term borrowings   3,820
Accrued interest payable 718 462
Other liabilities 5,018 4,548
Total Liabilities 816,339 735,937
Stockholders' Equity:    
Common stock, $1 par value; authorized 20,000,000 shares; 2016 issued 7,433,257 shares; outstanding 7,424,267 shares; 2015 issued and outstanding 7,407,547 shares 7,433 7,408
Surplus 24,602 24,299
Retained earnings 39,475 35,158
Accumulated other comprehensive income 1,563 1,236
Treasury stock, at cost, 2016: 8,990 shares (98)  
Total Stockholders' Equity 72,975 68,101
Total Liabilities and Stockholders' Equity $ 889,314 $ 804,038
v3.5.0.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Consolidated Balance Sheets [Abstract]    
Loans and Leases Receivable, Allowance $ 6,240 $ 6,068
Common Stock, Par or Stated Value Per Share $ 1 $ 1
Common Stock, Shares Authorized 20,000,000 20,000,000
Common Stock, Shares, Issued 7,433,257 7,407,547
Common Stock, Shares, Outstanding 7,424,267 7,407,547
Treasury Stock, Shares 8,990  
v3.5.0.2
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
INTEREST INCOME        
Loans receivable, including fees $ 7,137 $ 6,736 $ 20,837 $ 19,363
Securities, taxable 205 198 605 612
Securities, non-taxable 295 296 864 903
Federal funds sold, and other 26 25 108 89
Interest on time deposits       1
Total Interest Income 7,663 7,255 22,414 20,968
INTEREST EXPENSE        
Deposits 1,004 732 2,823 2,099
Securities sold under agreements to repurchase 3 4 10 13
Short-term borrowings   53 31 96
Long-term borrowings   25 5 93
Total Interest Expense 1,007 814 2,869 2,301
Net Interest Income 6,656 6,441 19,545 18,667
Provision for Loan Losses 165 270 420 412
Net Interest Income after Provision for Loan Losses 6,491 6,171 19,125 18,255
OTHER INCOME        
Credit card processing fees 442 424 1,285 1,199
Other service fees 199 172 534 504
Bank owned life insurance 114 86 243 275
Gain on sale of securities, net 350 26 350 165
Gain (loss) on sale of other real estate owned (12) 7 3 14
Impairment on other real estate owned   (62) (80) (104)
Total Other Income 1,093 653 2,335 2,053
OTHER EXPENSES        
Salaries and employee benefits 2,000 1,684 5,921 5,143
Occupancy and equipment 671 597 2,027 1,820
Data processing 411 375 1,191 1,178
Credit card processing 415 405 1,213 1,152
Advertising and promotion 368 348 1,063 1,021
Professional fees 179 125 456 380
FDIC insurance 112 100 320 265
Insurance 16 13 44 40
Loan & real estate 70 71 180 197
Charitable contributions 155 143 541 494
Other real estate owned expenses 26 11 83 51
Other 338 314 1,011 873
Total Other Expenses 4,761 4,186 14,050 12,614
Income before Income Taxes 2,823 2,638 7,410 7,694
INCOME TAX EXPENSE 816 766 2,131 2,203
Net Income $ 2,007 $ 1,872 $ 5,279 $ 5,491
BASIC EARNINGS PER SHARE $ 0.27 $ 0.25 $ 0.71 $ 0.75
DILUTED EARNINGS PER SHARE 0.27 0.25 0.71 0.74
DIVIDENDS PER SHARE $ 0.13 $ 0.10 $ 0.13 $ 0.10
v3.5.0.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Consolidated Statements Of Comprehensive Income [Abstract]        
Net Income $ 2,007 $ 1,872 $ 5,279 $ 5,491
Change in Accumulated Other Comprehensive Income:        
Unrealized holding gain (loss) on securities available for sale (212) 487 845 (40)
Less: reclassification adjustment for realized gains [1],[2] (350) (26) (350) (165)
Total other comprehensive income (loss), before tax (562) 461 495 (205)
Income tax effect 191 (156) (168) 70
Net unrealized gain (loss) (371) 305 327 (135)
Other comprehensive gain (loss), net of tax (371) 305 327 (135)
Comprehensive Income $ 1,636 $ 2,177 $ 5,606 $ 5,356
[1] Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.
[2] Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.
v3.5.0.2
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Surplus [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Treasury Stock [Member]
Total
BALANCE-Beginning at Dec. 31, 2014 $ 7,358 $ 24,024 $ 28,485 $ 1,465   $ 61,332
Net income     5,491     5,491
Other comprehensive income, net of tax       (135)   (135)
Dividend declared     (736)     (736)
Compensation expense recognized on stock options   34       34
Common stock grants to directors 9 87       96
Shares issued under Dividend Reinvestment and Stock Purchase Plan 17 163       180
BALANCE-Ending at Sep. 30, 2015 7,384 24,308 33,240 1,330   66,262
BALANCE-Beginning at Dec. 31, 2015 7,408 24,299 35,158 1,236   68,101
Net income     5,279     5,279
Other comprehensive income, net of tax       327   327
Dividend declared     (962)     (962)
Compensation expense recognized on stock options   21       21
Common stock grants to directors 5 57       62
Compensation expense recognized on stock grants, net of unearned compensation expense of $211   34       34
Purchase treasury stock, 8,990 shares at $10.85 per share         $ (98) (98)
Shares issued under Dividend Reinvestment and Stock Purchase Plan 20 191       211
BALANCE-Ending at Sep. 30, 2016 $ 7,433 $ 24,602 $ 39,475 $ 1,563 $ (98) $ 72,975
v3.5.0.2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Consolidated Statements Of Stockholders' Equity [Abstract]    
Dividends declared per share $ 0.13 $ 0.10
Common stock grants to directors, shares 5,934 9,122
Unearned compensation expense $ 211  
Treasury stock, shares, acquired 8,990  
Purchased treasury stock, price per share $ 10.85  
Stock issued under Dividend Reinvestment and Stock Repurchase Plan 19,776 16,920
v3.5.0.2
Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 5,279 $ 5,491
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for Loan Losses 420 412
Amortization of deferred loan costs 93 29
Depreciation and amortization 557 450
Net amortization of investment security premiums and discounts 208 163
Stock compensation expense 55 34
Net realized gain on sale of other real estate owned (3) (14)
Impairment on other real estate owned 80 104
Income on bank owned life insurance (243) (250)
Net realized gain on sale of securities available for sale (350) (165)
Decrease (increase) in accrued interest receivable 33 (54)
Decrease (increase) in other assets 197 (182)
Increase in accrued interest payable 256 81
Increase in other liabilities 535 204
Net Cash Provided by Operating Activities 7,117 6,303
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of securities available for sale (28,506) (18,956)
Maturities, calls and principal repayments of securities available for sale 8,608 5,552
Proceeds from sales of securities available for sale 7,751 10,742
Net increase in loans (65,929) (74,999)
Net redemption (purchases) of restricted investment in bank stock 1,640 (2,155)
Net maturities of interest bearing time deposits   250
Proceeds from sale of other real estate owned 141 53
Purchases of premises and equipment (480) (397)
Net Cash Used in Investing Activities (76,775) (79,910)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 141,493 22,359
Net (decrease) increase in securities sold under agreements to repurchase (18,691) 2,457
(Decrease) increase in short-term borrowed funds (39,306) 47,420
Proceeds from long-term borrowed funds   6,000
Payments of long-term borrowed funds (3,820) (2,862)
Acquisition of treasury stock (98)  
Proceeds from Dividend Reinvestment Plan 211 180
Dividends paid (962) (736)
Net Cash Provided by Financing Activities 78,827 74,818
Net Increase (Decrease) in Cash and Cash Equivalents 9,169 1,211
CASH AND CASH EQUIVALENTS - BEGINNING 19,526 16,390
CASH AND CASH EQUIVALENTS - ENDING 28,695 17,601
SUPPLEMENTARY CASH FLOWS INFORMATION    
Interest paid 2,601 2,221
Income taxes paid 1,984 2,311
Other real estate sold through bank financing 523 58
Deferral of gain from sale of other real estate sold through bank financing 3 56
Other real estate acquired in settlement of loans $ 41 $ 518
v3.5.0.2
Basis Of Presentation
9 Months Ended
Sep. 30, 2016
Basis Of Presentation [Abstract]  
Basis Of Presentation

Note 1 – Basis of Presentation

 

Embassy Bancorp, Inc. (the “Company”) is a Pennsylvania corporation organized in 2008 and registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended (the “BHC Act”). The Company was formed for purposes of acquiring Embassy Bank For The Lehigh Valley (the “Bank”) in connection with the reorganization of the Bank into a bank holding company structure, which was consummated on November 11, 2008.  Accordingly, the Company owns all of the capital stock of the Bank, giving the organization more flexibility in meeting its capital needs as the Company continues to grow. Embassy Holdings, LLC (the “LLC”) is a wholly-owned subsidiary of the Bank organized to engage in the holding of property acquired by the Bank in satisfaction of debts previously contracted.  As such, the consolidated financial statements contained herein include the accounts of the Company, the Bank and the LLC. All significant intercompany transactions and balances have been eliminated.



The Bank, which is the Company’s principal operating subsidiary, was originally incorporated as a Pennsylvania bank on May 11, 2001 and opened its doors on November 6, 2001. It was formed by a group of local business persons and professionals with significant prior experience in community banking in the Lehigh Valley area of Pennsylvania, the Bank’s primary market area.



The accompanying unaudited financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“US GAAP”) for interim financial information and in accordance with instructions for Form 10-Q and Rule 10-01 of the Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.



The consolidated financial statements presented in this report should be read in conjunction with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2015, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2016.  



In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after September 30, 2016 through the date these consolidated financial statements were issued.



Certain amounts in the 2015 financial statements may have been reclassified to conform to 2016 presentation. These reclassifications had no effect on 2015 net income.



v3.5.0.2
Summary Of Significant Accounting Policies
9 Months Ended
Sep. 30, 2016
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

Note 2 - Summary of Significant Accounting Policies



The significant accounting policies of the Company as applied in the interim financial statements presented are substantially the same as those followed on an annual basis as presented in the Company’s Form 10-K for the year ended December 31, 2015.

v3.5.0.2
Stockholders' Equity
9 Months Ended
Sep. 30, 2016
Stockholders' Equity [Abstract]  
Stockholders' Equity

Note 3 – Stockholders’ Equity

 

On November 11, 2008, the Company consummated its acquisition of Embassy Bank For The Lehigh Valley pursuant to a Plan of Merger and Reorganization dated April 18, 2008, pursuant to which the Bank was reorganized into a bank holding company structure. At the effective time of the reorganization, each share of common stock of Embassy Bank For The Lehigh Valley issued and outstanding was automatically converted into one share of Company common stock. The issuance of Company common stock in connection with the reorganization was exempt from registration pursuant to Section 3(a)(12) of the Securities Act of 1933, as amended.

v3.5.0.2
Stock Incentive Plan And Employee Stock Purchase Plan
9 Months Ended
Sep. 30, 2016
Stock Incentive Plan And Employee Stock Purchase Plan [Abstract]  
Stock Incentive Plan And Employee Stock Purchase Plan

Note 4 – Stock Incentive Plan and Employee Stock Purchase Plan



At the Company’s annual meeting on June 16, 2010, the shareholders approved the Embassy Bancorp, Inc. 2010 Stock Incentive Plan (the “SIP”).  The SIP authorizes the Board of Directors, or a committee authorized by the Board of Directors, to award a stock based incentive to (i) designated officers (including officers who are directors) and other designated employees at the Company and its subsidiaries, and (ii) non-employee members of the Board of Directors and advisors and consultants to the Company and its subsidiaries. The SIP provides for stock based incentives in the form of incentive stock options as provided in Section 422 of the Internal Revenue Code of 1986, non-qualified stock options, stock appreciation rights, restricted stock and deferred stock awards.  The term of the option, the amount of time for the option to vest after grant, if any, and other terms and limitations will be determined at the time of grant. Options granted under the SIP may not have an exercise period that is more than ten years from the time the option is granted. At inception, the aggregate number of shares available for issuance under the SIP was 500,000. The SIP provides for appropriate adjustments in the number and kind of shares available for grant or subject to outstanding awards under the SIP to avoid dilution in the event of merger, stock splits, stock dividends or other changes in the capitalization of the Company. The SIP expires on June 15, 2020. At September 30, 2016, there were 322,210 shares available for issuance under the SIP.  

The Company grants shares of restricted stock, under the SIP, to certain members of its Board of Directors as compensation for their services, in accordance with the Company’s Non-employee Directors Compensation program adopted in October 2010. The Company also grants restricted stock to certain officers under individual agreements with these officers. Some of these restricted stock awards vest immediately, while the remainder vest over three to nine service years. Management recognizes compensation expense for the fair value of the restricted stock awards on a straight-line basis over the requisite service period. Since inception of the plan and through the period ended September 30, 2016, there have been 65,774 awards granted. No awards were granted during the three months ended September 30, 2016 and 2015.  During the nine months ended September 30, 2016 and 2015 there were 5,934 and 9,122 awards granted, respectively. During the three and nine month months ended September 30, 2016 the Company recognized $12 thousand and $34 thousand, respectively, in compensation expense for the restricted stock awards.  There was no compensation expense recognized for the restricted stock awards during the three and nine months ended September 30, 2015.



In January 2014, February 2013 and February 2012, the Company granted stock options to purchase 29,663,  29,742 and 52,611 shares of stock to certain executive officers in accordance with their respective employment agreements. No stock options were granted in three and nine months ended September 30, 2016 and 2015. Stock compensation expense related to the prior grant of options was $6 thousand and $10 thousand for the three months ended September 30, 2016 and 2015, respectively. Stock compensation expense related to the prior grant of options was $21 thousand and $34 thousand for the nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016, approximately $7 thousand of unrecognized cost related to stock options granted in 2014 will be recognized over the next 0.30 years. The fair value of the options granted in 2014, 2013 and 2012 was determined with the following weighted average assumptions: dividend yield of 0%, risk free interest rate of 2.30%,  1.34% and 1.43%, respectively, expected life of 6.0 years, 6.0 years and 7.5 years, respectively, and expected volatility of 28.93%,  28.79% and 31.10%, respectively. The weighted average fair value of options granted in 2014, 2013 and 2012 was $2.46,  $2.14 and $2.56 per share, respectively.



On July 15, 2016, the Board of Directors of the Company ratified the implementation of the Embassy Bancorp, Inc. Employee Stock Purchase Plan. This plan was approved by the Company’s shareholders at the annual shareholders meeting held on June 16, 2016. Under the plan, each employee of the Company and its subsidiaries who is employed on an offering date and customarily is scheduled to work at least twenty (20) hours per week and more than five (5) months in a calendar year is eligible to participate. Embassy Bancorp, Inc. has authorized 350,000 shares of its common stock for the plan, which will commence January 1, 2017.

v3.5.0.2
Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2016
Other Comprehensive Income (Loss) [Abstract]  
Other Comprehensive Income (Loss)

Note 5 – Other Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss).

The components of other comprehensive income (loss), both before tax and net of tax, are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding (losses) gains on securities
   available for sale

 

$

(212)

 

$

72 

 

$

(140)

 

$

487 

 

$

(165)

 

$

322 

Reclassification adjustments for gains on securities
   transactions included in net income (A),(B)

 

 

(350)

 

 

119 

 

 

(231)

 

 

(26)

 

 

 

 

(17)

Total other comprehensive (loss) income

 

$

(562)

 

$

191 

 

$

(371)

 

$

461 

 

$

(156)

 

$

305 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) on securities
   available for sale

 

$

845 

 

$

(287)

 

$

558 

 

$

(40)

 

$

14 

 

$

(26)

Reclassification adjustments for gains on securities
   transactions included in net income (A),(B)

 

 

(350)

 

 

119 

 

 

(231)

 

 

(165)

 

 

56 

 

 

(109)

Total other comprehensive income (loss)

 

$

495 

 

$

(168)

 

$

327 

 

$

(205)

 

$

70 

 

$

(135)



A.

Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.

B.

Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.





A summary of the realized gains on securities available for sale, net of tax, for the three and nine months ended September 30, 2016 and 2015 are as follows:





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

September 30,



 

 

2016

 

 

2015



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

(350)

 

$

(26)

Income taxes

 

 

119 

 

 

Net of tax

 

$

(231)

 

$

(17)







 

 

 

 

 

 



 

 

 

 

 

 



 

Nine Months Ended



 

September 30,



 

 

2016

 

 

2015



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

(350)

 

$

(165)

Income taxes

 

 

119 

 

 

56 

Net of tax

 

$

(231)

 

$

(109)

A summary of the accumulated other comprehensive income, net of tax, is as follows:





















 

 

 



 

 

 



 

Securities



 

Available



 

for Sale

Three Months Ended September 30, 2016 and 2015

 

(In Thousands)

Balance June 30, 2016

 

$

1,934 

Other comprehensive loss before reclassifications

 

 

(140)

Amounts reclassified from accumulated other
   comprehensive income

 

 

(231)

Net other comprehensive loss during the period

 

 

(371)

Balance September 30, 2016

 

$

1,563 



 

 

 

Balance June 30, 2015

 

$

1,025 

Other comprehensive income before reclassifications

 

 

322 

Amounts reclassified from accumulated other
   comprehensive income

 

 

(17)

Net other comprehensive income during the period

 

 

305 

Balance September 30, 2015

 

$

1,330 



 

 

 



 

 

 



 

 

 

Nine Months Ended September 30, 2016 and 2015

 

 

 

Balance January 1, 2016

 

$

1,236 

Other comprehensive income before reclassifications

 

 

558 

Amounts reclassified from accumulated other
   comprehensive income

 

 

(231)

Net other comprehensive income during the period

 

 

327 

Balance September 30, 2016

 

$

1,563 



 

 

 

Balance January 1, 2015

 

$

1,465 

Other comprehensive loss before reclassifications

 

 

(26)

Amounts reclassified from accumulated other
   comprehensive income

 

 

(109)

Net other comprehensive loss during the period

 

 

(135)

Balance September 30, 2015

 

$

1,330 



 

 

 





v3.5.0.2
Basic And Diluted Earnings Per Share
9 Months Ended
Sep. 30, 2016
Basic And Diluted Earnings Per Share [Abstract]  
Basic And Diluted Earnings Per Share

Note 6 – Basic and Diluted Earnings per Share



Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period, as adjusted for stock dividends and splits. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

Nine Months Ended

 



 

 

September 30,

 

September 30,

 



 

 

2016

 

2015

 

2016

 

2015

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Dollars In Thousands, Except Per Share Data)

 



Net income

 

$

2,007 

 

$

1,872 

 

$

5,279 

 

$

5,491 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Weighted average shares outstanding

 

 

7,413,697 

 

 

7,367,057 

 

 

7,412,861 

 

 

7,366,267 

 



Dilutive effect of potential common shares, stock options

 

 

35,645 

 

 

32,392 

 

 

34,948 

 

 

31,189 

 



Diluted weighted average common shares outstanding

 

 

7,449,342 

 

 

7,399,449 

 

 

7,447,809 

 

 

7,397,456 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Basic earnings per share

 

$

0.27 

 

$

0.25 

 

$

0.71 

 

$

0.75 

 



Diluted earnings per share

 

$

0.27 

 

$

0.25 

 

$

0.71 

 

$

0.74 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no stock options not considered in computing diluted earnings per common share for the three and nine months ended September 30, 2016 and 2015.

v3.5.0.2
Guarantees
9 Months Ended
Sep. 30, 2016
Guarantees [Abstract]  
Guarantees

Note 7 – Guarantees



The Company, through the Bank, does not issue any guarantees that would require liability recognition or disclosure, other than its standby letters of credit and FHLBank of Pittsburgh (“FHLB”) deposit letters of credit. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued, have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Bank generally holds collateral and/or personal guarantees supporting these commitments. The Company had $4.1 million of standby letters of credit outstanding as of September 30, 2016. The approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $3.7 million. Management does not consider the current amount of the liability as of September 30, 2016 for guarantees under standby letters of credit issued to be material.



FHLB deposit letters of credit are standby letters of credit commitments issued by the Bank for the benefit of a third party (the “Beneficiary”), which secure public deposits in the Bank. FHLB deposit letters of credit are secured by qualifying assets of the Bank. The Company, through the Bank, had $4.5 million of FHLB deposit letters of credit outstanding as of September 30, 2016.  

v3.5.0.2
Short-Term And Long-Term Borrowings
9 Months Ended
Sep. 30, 2016
Short-Term And Long-Term Borrowings [Abstract]  
Short-Term And Long-Term Borrowings

Note 8 – Short-term and Long-term Borrowings



Securities sold under agreements to repurchase, federal funds purchased and FHLB short term advances generally represent overnight or less than twelve month borrowings. Long term advances from the FHLB are for periods of twelve months or more and are generally less than sixty months. The Bank has an agreement with the FHLB which allows for borrowings up to a percentage of qualifying assets. At September 30, 2016, the Bank had a maximum borrowing capacity for short-term and long-term advances of approximately $430.4 million.  This borrowing capacity with the FHLB includes a line of credit of $150.0 million. There were no short-term FHLB advances outstanding as of September 30, 2016 and $39.3 million were outstanding as of December 31, 2015. No long-term advances were outstanding with FHLB as of September 30, 2016 and $3.8 million were outstanding as of December 31, 2015. All FHLB borrowings are secured by qualifying assets of the Bank.



The Bank has a federal funds line of credit with the Atlantic Community Bankers Bank (“ACBB”) of $10.0 million, of which none was outstanding at September 30, 2016 and December 31, 2015. Advances from this line are unsecured.



The Company has a line of credit with Univest Bank and Trust Co. (“Univest”) totaling $4.0 million, of which none was outstanding at September 30, 2016 and December 31, 2015.  This line of credit is secured by 333,333 shares of Bank common stock.













v3.5.0.2
Securities Available For Sale
9 Months Ended
Sep. 30, 2016
Securities Available For Sale [Abstract]  
Securities Available For Sale

Note 9 – Securities Available For Sale



At September 30, 2016 and December 31, 2015, respectively, the amortized cost and approximate fair values of securities available-for-sale were as follows:



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Gross

 

Gross

 

 

 



Amortized

 

Unrealized

 

Unrealized

 

Fair



Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

September 30, 2016 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

33,620 

 

$

212 

 

$

(11)

 

$

33,821 

Municipal bonds

 

38,292 

 

 

1,995 

 

 

(58)

 

 

40,229 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

15,758 

 

 

229 

 

 

 -

 

 

15,987 

Total

$

87,670 

 

$

2,436 

 

$

(69)

 

$

90,037 



 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

34,676 

 

$

15 

 

$

(121)

 

$

34,570 

Municipal bonds

 

39,378 

 

 

1,970 

 

 

(144)

 

 

41,204 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

1,327 

 

 

152 

 

 

 -

 

 

1,479 

Total

$

75,381 

 

$

2,137 

 

$

(265)

 

$

77,253 





The amortized cost and fair value of securities as of September 30, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without any penalties.



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Amortized

 

 

Fair

 



 

 

Cost

 

 

Value

 



 

 

 

 

 

 

 



 

(In Thousands)

 

Due in one year or less

 

$

9,182 

 

$

9,203 

 

Due after one year through five years

 

 

29,411 

 

 

29,752 

 

Due after five years through ten years

 

 

12,365 

 

 

13,102 

 

Due after ten years

 

 

20,954 

 

 

21,993 

 



 

 

71,912 

 

 

74,050 

 

U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential

 

 

15,758 

 

 

15,987 

 



 

$

87,670 

 

$

90,037 

 



 

 

 

 

 

 

 



Gross gains of $350 thousand were realized on the sales of securities for the three and nine months ended September 30, 2016. Gross gains of $26 thousand and $165 thousand were realized on the sales of securities for the three and nine months ended September 30, 2015. There were no gross losses on the sales of securities during the three and nine months ended September 30, 2016 and 2015.

 

Securities with a carrying value of $75.8 million and $64.9 million at September 30, 2016 and December 31, 2015, respectively, were subject to agreements to repurchase, pledged to secure public deposits, or pledged for other purposes required or permitted by law.

















The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015, respectively:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Less Than 12 Months

 

 

12 Months or More

 

 

Total



Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016 :

(In Thousands)

U.S. Government agency obligations

$

5,050 

 

$

(11)

 

$

 -

 

$

 -

 

$

5,050 

 

$

(11)

Municipal bonds

 

5,242 

 

 

(58)

 

 

 -

 

 

 -

 

 

5,242 

 

 

(58)

Total Temporarily Impaired Securities

$

10,292 

 

$

(69)

 

$

 -

 

$

 -

 

$

10,292 

 

$

(69)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015 :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

25,525 

 

$

(121)

 

$

 -

 

$

 -

 

$

25,525 

 

$

(121)

Municipal bonds

 

6,180 

 

 

(144)

 

 

 -

 

 

 -

 

 

6,180 

 

 

(144)

Total Temporarily Impaired Securities

$

31,705 

 

$

(265)

 

$

 -

 

$

 -

 

$

31,705 

 

$

(265)



The Company had sixteen (16) securities in an unrealized loss position at September 30, 2016. The unrealized losses are due only to market rate fluctuations. As of September 30, 2016, the Company either has the intent and ability to hold the securities until maturity or market price recovery, or believes that it is more likely than not that it will not be required to sell such securities.  Management believes that the unrealized loss only represents temporary impairment of the securities.  None of the individual losses are significant.

v3.5.0.2
Restricted Investment In Bank Stock
9 Months Ended
Sep. 30, 2016
Restricted Investment In Bank Stock [Abstract]  
Restricted Investments In Bank Stock

Note 10 – Restricted Investment in Bank Stock



Restricted investments in bank stock consist of FHLBank of Pittsburgh (“FHLB”) stock and Atlantic Community Bankers Bank (“ACBB”) stock.  The restricted stocks are carried at cost.  Federal law requires a member institution of the FHLB to hold stock of its district FHLB according to a predetermined formula.  The Bank had FHLB stock at a carrying value of $87 thousand and $2.2 million repurchased during the three and nine months ended September 30, 2016 and $428 thousand and $542 thousand were repurchased during the three and nine months ended September 30, 2015, respectively.  There were no stock purchases for the three months ending September 30, 2016 and $537 thousand were made during the nine months ended September 30, 2016. Stock purchases of $855 thousand and $2.7 million were made during the three and nine months ended September 30, 2015, respectively.  Dividend payments of $4 thousand and $45 thousand were received during the three and nine months ended September 30, 2016, respectively, and $22 thousand and $80 thousand were received during the three and nine months ended September 30, 2015, respectively.



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



Based upon its evaluation of the foregoing criteria, management believes no impairment charge is necessary related to the FHLB or ACBB stock as of September 30, 2016.



v3.5.0.2
Loans Receivable And Credit Quality
9 Months Ended
Sep. 30, 2016
Loans Receivable And Credit Quality [Abstract]  
Loans Receivable And Credit Quality

Note 11 – Loans Receivable and Credit Quality



The following table presents the composition of loans receivable at September 30, 2016 and December 31, 2015, respectively:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



September 30, 2016

 

December 31, 2015



 

 

Percentage of

 

 

 

Percentage of



Balance

 

total Loans

 

Balance

 

total Loans



 

 

 

 

 

 

 

 

 



 

(Dollars in Thousands)



 

 

 

 

 

 

 

 

 

Commercial real estate

$

300,172 

 

39.70% 

 

$

289,304 

 

41.92% 

Commercial construction

 

25,337 

 

3.35% 

 

 

17,786 

 

2.58% 

Commercial

 

36,231 

 

4.79% 

 

 

34,955 

 

5.06% 

Residential real estate

 

393,627 

 

52.06% 

 

 

347,316 

 

50.33% 

Consumer

 

707 

 

0.10% 

 

 

745 

 

0.11% 

Total loans

 

756,074 

 

100.00% 

 

 

690,106 

 

100.00% 

Unearned origination fees

 

111 

 

 

 

 

 

 

Allowance for loan losses

 

(6,240)

 

 

 

 

(6,068)

 

 



$

749,945 

 

 

 

$

684,047 

 

 





The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention (potential weaknesses), substandard (well defined weaknesses) and doubtful (full collection unlikely) within the Company's internal risk rating system as of September 30, 2016 and December 31, 2015, respectively:





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2016

 

(In Thousands)

Commercial real estate

$

293,992 

 

$

20 

 

$

6,160 

 

$

 -

 

$

300,172 

Commercial construction

 

25,022 

 

 

 -

 

 

315 

 

 

 -

 

 

25,337 

Commercial

 

36,131 

 

 

 -

 

 

100 

 

 

 -

 

 

36,231 

Residential real estate

 

392,699 

 

 

 -

 

 

928 

 

 

 -

 

 

393,627 

Consumer

 

707 

 

 

 -

 

 

 -

 

 

 -

 

 

707 

             Total

$

748,551 

 

$

20 

 

$

7,503 

 

$

 -

 

$

756,074 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

287,755 

 

$

 -

 

$

1,549 

 

$

 -

 

$

289,304 

Commercial construction

 

16,971 

 

 

 -

 

 

815 

 

 

 -

 

 

17,786 

Commercial

 

34,889 

 

 

66 

 

 

 -

 

 

 -

 

 

34,955 

Residential real estate

 

346,787 

 

 

 -

 

 

529 

 

 

 -

 

 

347,316 

Consumer

 

745 

 

 

 -

 

 

 -

 

 

 -

 

 

745 

             Total

$

687,147 

 

$

66 

 

$

2,893 

 

$

 -

 

$

690,106 





The following table summarizes information in regards to impaired loans by loan portfolio class as of September 30, 2016 and December 31, 2015, respectively:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Quarter to Date

 

Year to Date

 



 

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

 

Average Recorded Investment

 

Interest Income Recognized

 

Average Recorded Investment

 

Interest Income Recognized

 

 September 30, 2016

 

 

(In Thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

8,203 

 

$

8,507 

 

 

 

 

$

5,929 

 

$

152 

 

$

4,795 

 

$

189 

 

   Commercial construction

 

 

315 

 

 

315 

 

 

 

 

 

565 

 

 

 

 

690 

 

 

17 

 

   Commercial

 

 

100 

 

 

160 

 

 

 

 

 

50 

 

 

 

 

25 

 

 

 

   Residential real estate

 

 

1,061 

 

 

1,199 

 

 

 

 

 

931 

 

 

 

 

860 

 

 

12 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

   Commercial

 

 

252 

 

 

252 

 

 

45 

 

 

260 

 

 

 

 

274 

 

 

 

   Residential real estate

 

 

906 

 

 

906 

 

 

274 

 

 

1,010 

 

 

 -

 

 

920 

 

 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

8,203 

 

$

8,507 

 

$

 -

 

$

5,929 

 

$

152 

 

$

4,795 

 

$

189 

 

   Commercial construction

 

 

315 

 

 

315 

 

 

 -

 

 

565 

 

 

 

 

690 

 

 

17 

 

   Commercial

 

 

352 

 

 

412 

 

 

45 

 

 

310 

 

 

 

 

299 

 

 

10 

 

   Residential real estate

 

 

1,967 

 

 

2,105 

 

 

274 

 

 

1,941 

 

 

 

 

1,780 

 

 

16 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

$

10,837 

 

$

11,339 

 

$

319 

 

$

8,745 

 

$

168 

 

$

7,564 

 

$

232 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

3,644 

 

$

3,928 

 

 

 

 

 

 

 

 

 

 

$

3,672 

 

$

139 

 

   Commercial construction

 

 

815 

 

 

815 

 

 

 

 

 

 

 

 

 

 

 

1,096 

 

 

38 

 

   Commercial

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Residential real estate

 

 

758 

 

 

758 

 

 

 

 

 

 

 

 

 

 

 

1,029 

 

 

10 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

$

336 

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Commercial

 

 

321 

 

 

321 

 

 

115 

 

 

 

 

 

 

 

 

323 

 

 

10 

 

   Residential real estate

 

 

834 

 

 

834 

 

 

255 

 

 

 

 

 

 

 

 

878 

 

 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

3,644 

 

$

3,928 

 

$

 -

 

 

 

 

 

 

 

$

4,008 

 

$

139 

 

   Commercial construction

 

 

815 

 

 

815 

 

 

 -

 

 

 

 

 

 

 

 

1,096 

 

 

38 

 

   Commercial

 

 

321 

 

 

321 

 

 

115 

 

 

 

 

 

 

 

 

323 

 

 

10 

 

   Residential real estate

 

 

1,592 

 

 

1,592 

 

 

255 

 

 

 

 

 

 

 

 

1,907 

 

 

15 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 



 

$

6,372 

 

$

6,656 

 

$

370 

 

 

 

 

 

 

 

$

7,334 

 

$

202 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







The following table presents non-accrual loans by classes of the loan portfolio:





 

 

 

 

 

 



 

 

 

 

 

 



September 30, 2016

 

December 31, 2015

 



 

 

 

 

 

 



(In Thousands)

 

   Commercial real estate

$

180 

 

$

164 

 

   Commercial construction

 

 -

 

 

 -

 

   Commercial

 

100 

 

 

66 

 

   Residential real estate

 

717 

 

 

529 

 

   Consumer

 

 -

 

 

 -

 

       Total

$

997 

 

$

759 

 





The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due.  The following table presents the classes of the loan portfolio summarized by the past due status as of September 30, 2016 and December 31, 2015, respectively:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Greater

 

 

 

 

 

 

 

 

 

 

Loan



 

 

 

 

than

 

 

 

 

 

 

 

Receivables >



30-59 Days

 

60-89 Days

 

90 Days

 

Total

 

 

 

Total Loan

 

90 Days and



Past Due

 

Past Due

 

Past Due

 

Past Due

 

Current

 

Receivables

 

Accruing



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2016

(In Thousands)

Commercial real estate

$

 -

 

$

 -

 

$

180 

 

$

180 

 

$

299,992 

 

$

300,172 

 

$

 -

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

25,337 

 

 

25,337 

 

 

 -

Commercial

 

31 

 

 

 -

 

 

100 

 

 

131 

 

 

36,100 

 

 

36,231 

 

 

 -

Residential real estate

 

55 

 

 

156 

 

 

956 

 

 

1,167 

 

 

392,460 

 

 

393,627 

 

 

238 

Consumer

 

 -

 

 

 

 

 -

 

 

 

 

704 

 

 

707 

 

 

 -

             Total

$

86 

 

$

159 

 

$

1,236 

 

$

1,481 

 

$

754,593 

 

$

756,074 

 

$

238 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

219 

 

$

 -

 

$

164 

 

$

383 

 

$

288,921 

 

$

289,304 

 

$

 -

Commercial construction

 

500 

 

 

 -

 

 

 -

 

 

500 

 

 

17,286 

 

 

17,786 

 

 

 -

Commercial

 

 -

 

 

 -

 

 

66 

 

 

66 

 

 

34,889 

 

 

34,955 

 

 

 -

Residential real estate

 

159 

 

 

76 

 

 

529 

 

 

764 

 

 

346,552 

 

 

347,316 

 

 

 -

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

745 

 

 

745 

 

 

 -

             Total

$

878 

 

$

76 

 

$

759 

 

$

1,713 

 

$

688,393 

 

$

690,106 

 

$

 -





The following tables detail the activity in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Allowance for loan losses

(In Thousands)



Three Months Ending September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2016

$

2,178 

 

$

427 

 

$

418 

 

$

2,787 

 

$

30 

 

$

439 

 

$

6,279 



  Charge-offs

 

 -

 

 

 -

 

 

(75)

 

 

(129)

 

 

 -

 

 

 -

 

 

(204)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

22 

 

 

30 

 

 

20 

 

 

196 

 

 

(2)

 

 

(101)

 

 

165 



Ending Balance - September 30, 2016

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2015

$

2,132 

 

$

294 

 

$

402 

 

$

2,529 

 

$

29 

 

$

682 

 

$

6,068 



  Charge-offs

 

(35)

 

 

 -

 

 

(75)

 

 

(138)

 

 

 -

 

 

 -

 

 

(248)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

103 

 

 

163 

 

 

36 

 

 

463 

 

 

(1)

 

 

(344)

 

 

420 



Ending Balance - September 30, 2016

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ending September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2015

$

2,005 

 

$

333 

 

$

391 

 

$

2,417 

 

$

32 

 

$

522 

 

$

5,700 



  Charge-offs

 

(14)

 

 

 -

 

 

 -

 

 

(2)

 

 

 -

 

 

 -

 

 

(16)



  Recoveries

 

10 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

10 



  Provisions

 

212 

 

 

(67)

 

 

13 

 

 

91 

 

 

(6)

 

 

27 

 

 

270 



Ending Balance - September 30, 2015

$

2,213 

 

$

266 

 

$

404 

 

$

2,506 

 

$

26 

 

$

549 

 

$

5,964 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2014

$

1,704 

 

$

401 

 

$

407 

 

$

1,955 

 

$

22 

 

$

1,125 

 

$

5,614 



  Charge-offs

 

(60)

 

 

 -

 

 

 -

 

 

(12)

 

 

 -

 

 

 -

 

 

(72)



  Recoveries

 

10 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

10 



  Provisions

 

559 

 

 

(135)

 

 

(3)

 

 

563 

 

 

 

 

(576)

 

 

412 



Ending Balance - September 30, 2015

$

2,213 

 

$

266 

 

$

404 

 

$

2,506 

 

$

26 

 

$

549 

 

$

5,964 





The following tables represent the allocation for loan losses and the related loan portfolio disaggregated based on impairment methodology at September 30, 2016 and December 31, 2015:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

 September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

45 

 

$

274 

 

$

 -

 

$

 -

 

$

319 

Ending balance: collectively evaluated for impairment

$

2,200 

 

$

457 

 

$

318 

 

$

2,580 

 

$

28 

 

$

338 

 

$

5,921 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

300,172 

 

$

25,337 

 

$

36,231 

 

$

393,627 

 

$

707 

 

 

 

 

$

756,074 

Ending balance: individually evaluated  for impairment

$

8,203 

 

$

315 

 

$

352 

 

$

1,967 

 

$

 -

 

 

 

 

$

10,837 

Ending balance: collectively evaluated for impairment

$

291,969 

 

$

25,022 

 

$

35,879 

 

$

391,660 

 

$

707 

 

 

 

 

$

745,237 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

2,132 

 

$

294 

 

$

402 

 

$

2,529 

 

$

29 

 

$

682 

 

$

6,068 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

115 

 

$

255 

 

$

 -

 

$

 -

 

$

370 

Ending balance: collectively evaluated for impairment

$

2,132 

 

$

294 

 

$

287 

 

$

2,274 

 

$

29 

 

$

682 

 

$

5,698 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

289,304 

 

$

17,786 

 

$

34,955 

 

$

347,316 

 

$

745 

 

 

 

 

$

690,106 

Ending balance: individually evaluated  for impairment

$

3,644 

 

$

815 

 

$

321 

 

$

1,592 

 

$

 -

 

 

 

 

$

6,372 

Ending balance: collectively evaluated for impairment

$

285,660 

 

$

16,971 

 

$

34,634 

 

$

345,724 

 

$

745 

 

 

 

 

$

683,734 





Troubled Debt Restructurings



The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider, resulting in a modified loan which is then identified as troubled debt restructuring (“TDR”).  The Company may modify loans through rate reductions, extensions to maturity, interest only payments, or payment modifications to better coincide the timing of payments due under the modified terms with the expected timing of cash flows from the borrowers’ operations.  Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.  TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses.



The Company identifies loans for potential restructure primarily through direct communication with the borrower and the evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports.  Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future.









The following table presents TDRs outstanding:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



September 30, 2016



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 



(In Thousands)

Commercial real estate

$

3,093 

 

$

 -

 

$

3,093 

Commercial construction

 

260 

 

 

 -

 

 

260 

Commercial

 

251 

 

 

 -

 

 

251 

Residential real estate

 

1,039 

 

 

 -

 

 

1,039 

Consumer

 

 -

 

 

 -

 

 

 -



$

4,643 

 

$

 -

 

$

4,643 



 

 

 

 

 

 

 

 



December 31, 2015



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 



(In Thousands)

Commercial real estate

$

3,145 

 

$

 -

 

$

3,145 

Commercial construction

 

260 

 

 

 -

 

 

260 

Commercial

 

255 

 

 

 -

 

 

255 

Residential real estate

 

1,063 

 

 

 -

 

 

1,063 

Consumer

 

 -

 

 

 -

 

 

 -



$

4,723 

 

$

 -

 

$

4,723 





As of September 30, 2016,  no available commitments were outstanding on TDRs.



There were no newly restructured loans that occurred during the three and nine months ended September 30, 2016 and 2015.



There were no loans that were modified and classified as a TDR within the prior twelve months that experienced a payment default (loans ninety days or more past due) during the three and nine months ended September 30, 2016 and 2015.

v3.5.0.2
Fair Value Measurements
9 Months Ended
Sep. 30, 2016
Fair Value Measurements [Abstract]  
Fair Value Measurements



Note 12 – Fair Value Measurements 



The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

Fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

ASC Topic 860 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 860 are as follows:



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 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 with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy utilized at September 30, 2016 and December 31, 2015, respectively, are as follows: 





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Level 1)

 

 

(Level 2)

 

 

 

 

 

 



 

 

Quoted

 

 

Significant

 

 

(Level 3)

 

 

 



 

 

Prices in Active

 

 

Other

 

 

Significant

 

 

 



 

 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 



Description

  Identical Assets

 

 Inputs

 

Inputs

 

Total



 

 

 

 

 

 

 

 

 

 

 

 



 

 

(In Thousands)



U.S. Government agency obligations

$

 -

 

$

33,821 

 

$

 -

 

$

33,821 



Municipal bonds

 

 -

 

 

40,229 

 

 

 -

 

 

40,229 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

15,987 

 

 

 -

 

 

15,987 



September 30, 2016 Securities available for sale

$

 -

 

$

90,037 

 

$

 -

 

$

90,037 



 

 

 

 

 

 

 

 

 

 

 

 



U.S. Government agency obligations

$

 -

 

$

34,570 

 

$

 -

 

$

34,570 



Municipal bonds

 

 -

 

 

41,204 

 

 

 -

 

 

41,204 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

1,479 

 

 

 -

 

 

1,479 



December 31, 2015 Securities available for sale

$

 -

 

$

77,253 

 

$

 -

 

$

77,253 



For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015, respectively, are as follows:





 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

(Level 1)

 

 

(Level 2)

 

 

 

 

 

 



 

Quoted

 

 

Significant

 

 

(Level 3)

 

 

 



 

Prices in Active

 

 

Other

 

 

Significant

 

 

 



 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 

Description

  Identical Assets

 

 Inputs

 

Inputs

 

Total



 

(In Thousands)

September 30, 2016 Impaired loans (1)

$

 -

 

$

 -

 

$

839 

 

$

839 

September 30, 2016 Impaired loans (2)

$

 -

 

$

 -

 

$

 -

 

$

 -

September 30, 2016 Other real estate owned (1)

$

 -

 

$

 -

 

$

521 

 

$

521 

December 31, 2015 Impaired loans (1)

$

 -

 

$

 -

 

$

785 

 

$

785 

December 31, 2015 Impaired loans (2)

$

 -

 

$

 -

 

$

 -

 

$

 -

December 31, 2015 Other real estate owned (1)

$

 -

 

$

 -

 

$

1,224 

 

$

1,224 



 

 

 

 

 

 

 

 

 

 

 

(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 input which

     are not identifiable.  Fair values may also include qualitative adjustments by management based on economic conditions and liquidation expenses.

(2) Fair Value determined using the debt service of the borrower.



Impaired loans are those that are accounted for under existing FASB guidance,  in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the

properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.



At September 30, 2016, of the impaired loans having an aggregate balance of $10.8 million, $9.7 million did not require a valuation allowance because the value of the collateral, including estimated selling costs, securing the loan was determined to meet or exceed the balance owed on the loan. Of the remaining $1.1 million in impaired loans, an aggregate valuation allowance of $319 thousand was required to reflect what was determined to be a shortfall in the value of the collateral as compared to the balance on such loans.

Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell.  Fair value is based upon independent market prices or appraised value of the property.  These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement.





The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Quantitative Information about Level 3 Fair Value Measurements

 

 Description

Fair Value
Estimate

 

Valuation Techniques

 

Unobservable Input

 

Range
(Weighted Average)

 



 

 

 

 

 

 

 

 

 



 

(Dollars In Thousands)

 

September 30, 2016:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

839 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-22.1%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -10.0%  (-7.8%)

 

 Other real estate owned

$

521 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 

December 31, 2015:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

785 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-25.0%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -7.5%  (-7.5%)

 

 Other real estate owned

$

1,224 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 



1.

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include Level 3 inputs which are not identifiable.

2.

Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal. The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.

3.

Appraisals and pending agreements of sale are adjusted by management for liquidation expenses.  The range and weighted average of liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.

4.

Fair value is determined by listings, letters of intent or third-party evaluations.



The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at September 30, 2016 and December 31, 2015:



Cash and Cash Equivalents (Carried at Cost)

The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values.

Interest Bearing Time Deposits (Carried at Cost)

Fair values for fixed-rate time certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. The Company generally purchases amounts below the insured limit, limiting the amount of credit risk on these time deposits.

Securities Available for Sale (Carried at Fair Value)

The fair value of securities available for sale are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices. For these securities, the Company obtains fair value measurements from an independent pricing service.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things.



Loans Receivable (Carried at Cost)

The fair values of loans, excluding impaired loans carried at fair value of collateral, are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, and projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Restricted Investment in Bank Stock (Carried at Cost)

The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities.

Accrued Interest Receivable and Payable (Carried at Cost)

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit Liabilities (Carried at Cost)

The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Securities Sold Under Agreements to Repurchase, Federal Funds Purchased and Short-Term Borrowings (Carried at Cost)

These borrowings are short term and the carrying amount approximates the fair value.

Long-Term Borrowings (Carried at Cost)

Fair values of FHLB and Univest advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB and Univest advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party.



Off-Balance Sheet Financial Instruments (Disclosed at Cost)



Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing.



The estimated fair values of the Company’s financial instruments were as follows at September 30, 2016 and December 31, 2015:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(Level 1)

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Quoted

 

 

(Level 2)

 

 

(Level 3)

 



 

 

 

 

 

 

 

 

Prices in Active

 

 

Significant Other

 

 

Significant

 



 

 

Carrying

 

 

Fair Value

 

 

Markets for

 

 

Observable

 

 

Unobservable

 



 

 

Amount

 

 

Estimate

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)

 

September 30, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

28,695 

 

$

28,695 

 

$

28,695 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

90,037 

 

 

90,037 

 

 

 -

 

 

90,037 

 

 

 -

 

Loans receivable, net of allowance

 

 

749,945 

 

 

765,272 

 

 

 -

 

 

 -

 

 

765,272 

 

Restricted investments in bank stock

 

 

538 

 

 

538 

 

 

 -

 

 

538 

 

 

 -

 

Accrued interest receivable

 

 

1,604 

 

 

1,604 

 

 

 -

 

 

1,604 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

801,759 

 

 

802,587 

 

 

 -

 

 

802,587 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

8,844 

 

 

8,843 

 

 

 -

 

 

8,843 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

718 

 

 

718 

 

 

 -

 

 

718 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,526 

 

$

19,527 

 

$

19,527 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

77,253 

 

 

77,253 

 

 

 -

 

 

77,253 

 

 

 -

 

Loans receivable, net of allowance

 

 

684,047 

 

 

688,645 

 

 

 -

 

 

 -

 

 

688,645 

 

Restricted investments in bank stock

 

 

2,178 

 

 

2,178 

 

 

 -

 

 

2,178 

 

 

 -

 

Accrued interest receivable

 

 

1,637 

 

 

1,637 

 

 

 -

 

 

1,637 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

660,266 

 

 

660,503 

 

 

 -

 

 

660,503 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

27,535 

 

 

27,529 

 

 

 -

 

 

27,529 

 

 

 -

 

Short-term borrowings

 

 

39,306 

 

 

39,273 

 

 

 -

 

 

39,273 

 

 

 -

 

Long-term borrowings

 

 

3,820 

 

 

3,740 

 

 

 -

 

 

 -

 

 

3,740 

 

Accrued interest payable

 

 

462 

 

 

462 

 

 

 -

 

 

462 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 





v3.5.0.2
Offsetting Assets And Liabilities
9 Months Ended
Sep. 30, 2016
Offsetting Assets And Liabilities [Abstract]  
Offsetting Assets And Liabilities

Note 13 – Offsetting Assets and Liabilities



The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities.  Under these arrangements, the Company may transfer legal ownership over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets.  As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities.  The obligation to repurchase the securities is reflected as a liability in the Company's consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements.



The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For private institution repurchase agreements, if the private institution counterparty were to default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement.



The following table presents the liabilities subject to an enforceable master netting arrangement or repurchase agreements as of September 30, 2016 and December 31, 2015:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Net Amounts

 

 

 

 

 

 

 

 

 



 

 

Gross

 

 

Gross Amounts

 

 

of Liabilities

 

 

 

 

 

 

 

 

 



 

 

Amounts of

 

 

Offset in the

 

 

Presented in the

 

 

 

 

 

Cash

 

 

 



 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Financial

 

 

Collateral

 

 

 



 

 

Liabilities

 

 

Balance Sheet

 

 

Balance Sheet

 

 

Instruments

 

 

Pledged

 

 

Net Amount



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(In Thousands)

September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

8,844 

 

$

 -

 

$

8,844 

 

$

(8,844)

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

27,535 

 

$

 -

 

$

27,535 

 

$

(27,535)

 

$

 -

 

$

 -



As of September 30, 2016 and December 31, 2015, the fair value of securities pledged was $12.8 million and $35.0 million, respectively.

v3.5.0.2
New Accounting Standards
9 Months Ended
Sep. 30, 2016
New Accounting Standards [Abstract]  
New Accounting Standards

Note 14 – New Accounting Standards



In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition. The ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year.  The new guidance will be effective for public companies for periods beginning after December 15, 2017 with private companies provided a one-year deferral until periods beginning after December 15, 2018. The ASU permits application of the new revenue recognition guidance to be applied using one of two retrospective application methods. The Company has not yet determined which application method it will use or the potential effects of the new standard on the financial statements, if any. The Company is currently assessing the impact this new standard will have on its consolidated financial statements.



In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will supersede the current lease requirements in Topic 840. The ASU requires lessees to recognize a right of use asset and related lease liability for all leases, with a limited exception for short-term leases. Leases will be classified as either finance or operating, with the classification affecting the pattern of expense recognition in the statement of income. Currently, leases are classified as either capital or operating, with only capital leases recognized on the balance sheet. The reporting of lease related expenses in the statements of operations and cash flows will be generally consistent with the current guidance. The new guidance will be effective for years beginning after December 15, 2018 for public companies and for years beginning after December 15, 2019 for private companies. Once effective, the standard will be applied using a modified retrospective transition method to the beginning of the earliest period presented. The Company is currently assessing the impact this new standard will have on its consolidated financial statements.



In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718).  This ASU was issued as part of FASB’s Simplification Initiative.  The areas for simplification in this Update include income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows for share-based payment transactions.  For public companies, this ASU will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  For all other entities, the amendments will be effective for annual periods beginning after December 31, 2017, and interim periods within annual periods beginning after December 15, 2018.  Early adoption is permitted.  The Company is currently assessing the impact this new standard will have on its consolidated financial statements.



In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities that are U.S. Securities and Exchange Commission filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements and results of operations.





v3.5.0.2
Basis Of Presentation (Policy)
9 Months Ended
Sep. 30, 2016
Basis Of Presentation [Abstract]  
Consolidation

Embassy Bancorp, Inc. (the “Company”) is a Pennsylvania corporation organized in 2008 and registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended (the “BHC Act”). The Company was formed for purposes of acquiring Embassy Bank For The Lehigh Valley (the “Bank”) in connection with the reorganization of the Bank into a bank holding company structure, which was consummated on November 11, 2008.  Accordingly, the Company owns all of the capital stock of the Bank, giving the organization more flexibility in meeting its capital needs as the Company continues to grow. Embassy Holdings, LLC (the “LLC”) is a wholly-owned subsidiary of the Bank organized to engage in the holding of property acquired by the Bank in satisfaction of debts previously contracted.  As such, the consolidated financial statements contained herein include the accounts of the Company, the Bank and the LLC. All significant intercompany transactions and balances have been eliminated.



The Bank, which is the Company’s principal operating subsidiary, was originally incorporated as a Pennsylvania bank on May 11, 2001 and opened its doors on November 6, 2001. It was formed by a group of local business persons and professionals with significant prior experience in community banking in the Lehigh Valley area of Pennsylvania, the Bank’s primary market area.



The accompanying unaudited financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“US GAAP”) for interim financial information and in accordance with instructions for Form 10-Q and Rule 10-01 of the Securities and Exchange Commission Regulation S-X. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

v3.5.0.2
Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 30, 2016
Other Comprehensive Income (Loss) [Abstract]  
Schedule Of Comprehensive Income (Loss)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding (losses) gains on securities
   available for sale

 

$

(212)

 

$

72 

 

$

(140)

 

$

487 

 

$

(165)

 

$

322 

Reclassification adjustments for gains on securities
   transactions included in net income (A),(B)

 

 

(350)

 

 

119 

 

 

(231)

 

 

(26)

 

 

 

 

(17)

Total other comprehensive (loss) income

 

$

(562)

 

$

191 

 

$

(371)

 

$

461 

 

$

(156)

 

$

305 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) on securities
   available for sale

 

$

845 

 

$

(287)

 

$

558 

 

$

(40)

 

$

14 

 

$

(26)

Reclassification adjustments for gains on securities
   transactions included in net income (A),(B)

 

 

(350)

 

 

119 

 

 

(231)

 

 

(165)

 

 

56 

 

 

(109)

Total other comprehensive income (loss)

 

$

495 

 

$

(168)

 

$

327 

 

$

(205)

 

$

70 

 

$

(135)



A.

Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.

B.

Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.





Schedule Of The Realized Gains On Securities Available For Sale, Net Of Tax







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

September 30,



 

 

2016

 

 

2015



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

(350)

 

$

(26)

Income taxes

 

 

119 

 

 

Net of tax

 

$

(231)

 

$

(17)







 

 

 

 

 

 



 

 

 

 

 

 



 

Nine Months Ended



 

September 30,



 

 

2016

 

 

2015



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

(350)

 

$

(165)

Income taxes

 

 

119 

 

 

56 

Net of tax

 

$

(231)

 

$

(109)



Schedule Of Accumulated Other Comprehensive Income





















 

 

 



 

 

 



 

Securities



 

Available



 

for Sale

Three Months Ended September 30, 2016 and 2015

 

(In Thousands)

Balance June 30, 2016

 

$

1,934 

Other comprehensive loss before reclassifications

 

 

(140)

Amounts reclassified from accumulated other
   comprehensive income

 

 

(231)

Net other comprehensive loss during the period

 

 

(371)

Balance September 30, 2016

 

$

1,563 



 

 

 

Balance June 30, 2015

 

$

1,025 

Other comprehensive income before reclassifications

 

 

322 

Amounts reclassified from accumulated other
   comprehensive income

 

 

(17)

Net other comprehensive income during the period

 

 

305 

Balance September 30, 2015

 

$

1,330 



 

 

 



 

 

 



 

 

 

Nine Months Ended September 30, 2016 and 2015

 

 

 

Balance January 1, 2016

 

$

1,236 

Other comprehensive income before reclassifications

 

 

558 

Amounts reclassified from accumulated other
   comprehensive income

 

 

(231)

Net other comprehensive income during the period

 

 

327 

Balance September 30, 2016

 

$

1,563 



 

 

 

Balance January 1, 2015

 

$

1,465 

Other comprehensive loss before reclassifications

 

 

(26)

Amounts reclassified from accumulated other
   comprehensive income

 

 

(109)

Net other comprehensive loss during the period

 

 

(135)

Balance September 30, 2015

 

$

1,330 



 

 

 



v3.5.0.2
Basic And Diluted Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2016
Basic And Diluted Earnings Per Share [Abstract]  
Earnings Per Share



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

Nine Months Ended

 



 

 

September 30,

 

September 30,

 



 

 

2016

 

2015

 

2016

 

2015

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Dollars In Thousands, Except Per Share Data)

 



Net income

 

$

2,007 

 

$

1,872 

 

$

5,279 

 

$

5,491 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Weighted average shares outstanding

 

 

7,413,697 

 

 

7,367,057 

 

 

7,412,861 

 

 

7,366,267 

 



Dilutive effect of potential common shares, stock options

 

 

35,645 

 

 

32,392 

 

 

34,948 

 

 

31,189 

 



Diluted weighted average common shares outstanding

 

 

7,449,342 

 

 

7,399,449 

 

 

7,447,809 

 

 

7,397,456 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Basic earnings per share

 

$

0.27 

 

$

0.25 

 

$

0.71 

 

$

0.75 

 



Diluted earnings per share

 

$

0.27 

 

$

0.25 

 

$

0.71 

 

$

0.74 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



v3.5.0.2
Securities Available For Sale (Tables)
9 Months Ended
Sep. 30, 2016
Securities Available For Sale [Abstract]  
Amortized Cost And Fair Values Of Securities Available-For-Sale



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

 

 

Gross

 

Gross

 

 

 



Amortized

 

Unrealized

 

Unrealized

 

Fair



Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

September 30, 2016 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

33,620 

 

$

212 

 

$

(11)

 

$

33,821 

Municipal bonds

 

38,292 

 

 

1,995 

 

 

(58)

 

 

40,229 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

15,758 

 

 

229 

 

 

 -

 

 

15,987 

Total

$

87,670 

 

$

2,436 

 

$

(69)

 

$

90,037 



 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

34,676 

 

$

15 

 

$

(121)

 

$

34,570 

Municipal bonds

 

39,378 

 

 

1,970 

 

 

(144)

 

 

41,204 

U.S. Government Sponsored Enterprise (GSE) -
   Mortgage-backed securities - residential

 

1,327 

 

 

152 

 

 

 -

 

 

1,479 

Total

$

75,381 

 

$

2,137 

 

$

(265)

 

$

77,253 



Securities Available-For-Sale By Contractual Maturity



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Amortized

 

 

Fair

 



 

 

Cost

 

 

Value

 



 

 

 

 

 

 

 



 

(In Thousands)

 

Due in one year or less

 

$

9,182 

 

$

9,203 

 

Due after one year through five years

 

 

29,411 

 

 

29,752 

 

Due after five years through ten years

 

 

12,365 

 

 

13,102 

 

Due after ten years

 

 

20,954 

 

 

21,993 

 



 

 

71,912 

 

 

74,050 

 

U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential

 

 

15,758 

 

 

15,987 

 



 

$

87,670 

 

$

90,037 

 



 

 

 

 

 

 

 



Investments' Gross Unrealized Losses And Fair Value



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Less Than 12 Months

 

 

12 Months or More

 

 

Total



Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016 :

(In Thousands)

U.S. Government agency obligations

$

5,050 

 

$

(11)

 

$

 -

 

$

 -

 

$

5,050 

 

$

(11)

Municipal bonds

 

5,242 

 

 

(58)

 

 

 -

 

 

 -

 

 

5,242 

 

 

(58)

Total Temporarily Impaired Securities

$

10,292 

 

$

(69)

 

$

 -

 

$

 -

 

$

10,292 

 

$

(69)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015 :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

25,525 

 

$

(121)

 

$

 -

 

$

 -

 

$

25,525 

 

$

(121)

Municipal bonds

 

6,180 

 

 

(144)

 

 

 -

 

 

 -

 

 

6,180 

 

 

(144)

Total Temporarily Impaired Securities

$

31,705 

 

$

(265)

 

$

 -

 

$

 -

 

$

31,705 

 

$

(265)



v3.5.0.2
Loans Receivable And Credit Quality (Tables)
9 Months Ended
Sep. 30, 2016
Loans Receivable And Credit Quality [Abstract]  
Composition Of Loans Receivable



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



September 30, 2016

 

December 31, 2015



 

 

Percentage of

 

 

 

Percentage of



Balance

 

total Loans

 

Balance

 

total Loans



 

 

 

 

 

 

 

 

 



 

(Dollars in Thousands)



 

 

 

 

 

 

 

 

 

Commercial real estate

$

300,172 

 

39.70% 

 

$

289,304 

 

41.92% 

Commercial construction

 

25,337 

 

3.35% 

 

 

17,786 

 

2.58% 

Commercial

 

36,231 

 

4.79% 

 

 

34,955 

 

5.06% 

Residential real estate

 

393,627 

 

52.06% 

 

 

347,316 

 

50.33% 

Consumer

 

707 

 

0.10% 

 

 

745 

 

0.11% 

Total loans

 

756,074 

 

100.00% 

 

 

690,106 

 

100.00% 

Unearned origination fees

 

111 

 

 

 

 

 

 

Allowance for loan losses

 

(6,240)

 

 

 

 

(6,068)

 

 



$

749,945 

 

 

 

$

684,047 

 

 



Schedule Of Loan Portfolio By Aggregate Risk Rating



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2016

 

(In Thousands)

Commercial real estate

$

293,992 

 

$

20 

 

$

6,160 

 

$

 -

 

$

300,172 

Commercial construction

 

25,022 

 

 

 -

 

 

315 

 

 

 -

 

 

25,337 

Commercial

 

36,131 

 

 

 -

 

 

100 

 

 

 -

 

 

36,231 

Residential real estate

 

392,699 

 

 

 -

 

 

928 

 

 

 -

 

 

393,627 

Consumer

 

707 

 

 

 -

 

 

 -

 

 

 -

 

 

707 

             Total

$

748,551 

 

$

20 

 

$

7,503 

 

$

 -

 

$

756,074 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

287,755 

 

$

 -

 

$

1,549 

 

$

 -

 

$

289,304 

Commercial construction

 

16,971 

 

 

 -

 

 

815 

 

 

 -

 

 

17,786 

Commercial

 

34,889 

 

 

66 

 

 

 -

 

 

 -

 

 

34,955 

Residential real estate

 

346,787 

 

 

 -

 

 

529 

 

 

 -

 

 

347,316 

Consumer

 

745 

 

 

 -

 

 

 -

 

 

 -

 

 

745 

             Total

$

687,147 

 

$

66 

 

$

2,893 

 

$

 -

 

$

690,106 



Schedule Of Impaired Loans





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Quarter to Date

 

Year to Date

 



 

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

 

Average Recorded Investment

 

Interest Income Recognized

 

Average Recorded Investment

 

Interest Income Recognized

 

 September 30, 2016

 

 

(In Thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

8,203 

 

$

8,507 

 

 

 

 

$

5,929 

 

$

152 

 

$

4,795 

 

$

189 

 

   Commercial construction

 

 

315 

 

 

315 

 

 

 

 

 

565 

 

 

 

 

690 

 

 

17 

 

   Commercial

 

 

100 

 

 

160 

 

 

 

 

 

50 

 

 

 

 

25 

 

 

 

   Residential real estate

 

 

1,061 

 

 

1,199 

 

 

 

 

 

931 

 

 

 

 

860 

 

 

12 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

   Commercial

 

 

252 

 

 

252 

 

 

45 

 

 

260 

 

 

 

 

274 

 

 

 

   Residential real estate

 

 

906 

 

 

906 

 

 

274 

 

 

1,010 

 

 

 -

 

 

920 

 

 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

8,203 

 

$

8,507 

 

$

 -

 

$

5,929 

 

$

152 

 

$

4,795 

 

$

189 

 

   Commercial construction

 

 

315 

 

 

315 

 

 

 -

 

 

565 

 

 

 

 

690 

 

 

17 

 

   Commercial

 

 

352 

 

 

412 

 

 

45 

 

 

310 

 

 

 

 

299 

 

 

10 

 

   Residential real estate

 

 

1,967 

 

 

2,105 

 

 

274 

 

 

1,941 

 

 

 

 

1,780 

 

 

16 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

$

10,837 

 

$

11,339 

 

$

319 

 

$

8,745 

 

$

168 

 

$

7,564 

 

$

232 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

3,644 

 

$

3,928 

 

 

 

 

 

 

 

 

 

 

$

3,672 

 

$

139 

 

   Commercial construction

 

 

815 

 

 

815 

 

 

 

 

 

 

 

 

 

 

 

1,096 

 

 

38 

 

   Commercial

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Residential real estate

 

 

758 

 

 

758 

 

 

 

 

 

 

 

 

 

 

 

1,029 

 

 

10 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

$

336 

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Commercial

 

 

321 

 

 

321 

 

 

115 

 

 

 

 

 

 

 

 

323 

 

 

10 

 

   Residential real estate

 

 

834 

 

 

834 

 

 

255 

 

 

 

 

 

 

 

 

878 

 

 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

3,644 

 

$

3,928 

 

$

 -

 

 

 

 

 

 

 

$

4,008 

 

$

139 

 

   Commercial construction

 

 

815 

 

 

815 

 

 

 -

 

 

 

 

 

 

 

 

1,096 

 

 

38 

 

   Commercial

 

 

321 

 

 

321 

 

 

115 

 

 

 

 

 

 

 

 

323 

 

 

10 

 

   Residential real estate

 

 

1,592 

 

 

1,592 

 

 

255 

 

 

 

 

 

 

 

 

1,907 

 

 

15 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 



 

$

6,372 

 

$

6,656 

 

$

370 

 

 

 

 

 

 

 

$

7,334 

 

$

202 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





Schedule Of Nonaccrual Loans



 

 

 

 

 

 



 

 

 

 

 

 



September 30, 2016

 

December 31, 2015

 



 

 

 

 

 

 



(In Thousands)

 

   Commercial real estate

$

180 

 

$

164 

 

   Commercial construction

 

 -

 

 

 -

 

   Commercial

 

100 

 

 

66 

 

   Residential real estate

 

717 

 

 

529 

 

   Consumer

 

 -

 

 

 -

 

       Total

$

997 

 

$

759 

 



Schedule Of Past Due Loans



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

Greater

 

 

 

 

 

 

 

 

 

 

Loan



 

 

 

 

than

 

 

 

 

 

 

 

Receivables >



30-59 Days

 

60-89 Days

 

90 Days

 

Total

 

 

 

Total Loan

 

90 Days and



Past Due

 

Past Due

 

Past Due

 

Past Due

 

Current

 

Receivables

 

Accruing



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2016

(In Thousands)

Commercial real estate

$

 -

 

$

 -

 

$

180 

 

$

180 

 

$

299,992 

 

$

300,172 

 

$

 -

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

25,337 

 

 

25,337 

 

 

 -

Commercial

 

31 

 

 

 -

 

 

100 

 

 

131 

 

 

36,100 

 

 

36,231 

 

 

 -

Residential real estate

 

55 

 

 

156 

 

 

956 

 

 

1,167 

 

 

392,460 

 

 

393,627 

 

 

238 

Consumer

 

 -

 

 

 

 

 -

 

 

 

 

704 

 

 

707 

 

 

 -

             Total

$

86 

 

$

159 

 

$

1,236 

 

$

1,481 

 

$

754,593 

 

$

756,074 

 

$

238 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

219 

 

$

 -

 

$

164 

 

$

383 

 

$

288,921 

 

$

289,304 

 

$

 -

Commercial construction

 

500 

 

 

 -

 

 

 -

 

 

500 

 

 

17,286 

 

 

17,786 

 

 

 -

Commercial

 

 -

 

 

 -

 

 

66 

 

 

66 

 

 

34,889 

 

 

34,955 

 

 

 -

Residential real estate

 

159 

 

 

76 

 

 

529 

 

 

764 

 

 

346,552 

 

 

347,316 

 

 

 -

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

745 

 

 

745 

 

 

 -

             Total

$

878 

 

$

76 

 

$

759 

 

$

1,713 

 

$

688,393 

 

$

690,106 

 

$

 -



Activity In The Allowance For Loan Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Allowance for loan losses

(In Thousands)



Three Months Ending September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2016

$

2,178 

 

$

427 

 

$

418 

 

$

2,787 

 

$

30 

 

$

439 

 

$

6,279 



  Charge-offs

 

 -

 

 

 -

 

 

(75)

 

 

(129)

 

 

 -

 

 

 -

 

 

(204)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

22 

 

 

30 

 

 

20 

 

 

196 

 

 

(2)

 

 

(101)

 

 

165 



Ending Balance - September 30, 2016

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2015

$

2,132 

 

$

294 

 

$

402 

 

$

2,529 

 

$

29 

 

$

682 

 

$

6,068 



  Charge-offs

 

(35)

 

 

 -

 

 

(75)

 

 

(138)

 

 

 -

 

 

 -

 

 

(248)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

103 

 

 

163 

 

 

36 

 

 

463 

 

 

(1)

 

 

(344)

 

 

420 



Ending Balance - September 30, 2016

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ending September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2015

$

2,005 

 

$

333 

 

$

391 

 

$

2,417 

 

$

32 

 

$

522 

 

$

5,700 



  Charge-offs

 

(14)

 

 

 -

 

 

 -

 

 

(2)

 

 

 -

 

 

 -

 

 

(16)



  Recoveries

 

10 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

10 



  Provisions

 

212 

 

 

(67)

 

 

13 

 

 

91 

 

 

(6)

 

 

27 

 

 

270 



Ending Balance - September 30, 2015

$

2,213 

 

$

266 

 

$

404 

 

$

2,506 

 

$

26 

 

$

549 

 

$

5,964 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2014

$

1,704 

 

$

401 

 

$

407 

 

$

1,955 

 

$

22 

 

$

1,125 

 

$

5,614 



  Charge-offs

 

(60)

 

 

 -

 

 

 -

 

 

(12)

 

 

 -

 

 

 -

 

 

(72)



  Recoveries

 

10 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

10 



  Provisions

 

559 

 

 

(135)

 

 

(3)

 

 

563 

 

 

 

 

(576)

 

 

412 



Ending Balance - September 30, 2015

$

2,213 

 

$

266 

 

$

404 

 

$

2,506 

 

$

26 

 

$

549 

 

$

5,964 



Allocation For Loan Losses And The Related Portfolio Disaggregated Based On Impairment Methodology



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

 September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

2,200 

 

$

457 

 

$

363 

 

$

2,854 

 

$

28 

 

$

338 

 

$

6,240 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

45 

 

$

274 

 

$

 -

 

$

 -

 

$

319 

Ending balance: collectively evaluated for impairment

$

2,200 

 

$

457 

 

$

318 

 

$

2,580 

 

$

28 

 

$

338 

 

$

5,921 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

300,172 

 

$

25,337 

 

$

36,231 

 

$

393,627 

 

$

707 

 

 

 

 

$

756,074 

Ending balance: individually evaluated  for impairment

$

8,203 

 

$

315 

 

$

352 

 

$

1,967 

 

$

 -

 

 

 

 

$

10,837 

Ending balance: collectively evaluated for impairment

$

291,969 

 

$

25,022 

 

$

35,879 

 

$

391,660 

 

$

707 

 

 

 

 

$

745,237 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

2,132 

 

$

294 

 

$

402 

 

$

2,529 

 

$

29 

 

$

682 

 

$

6,068 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

115 

 

$

255 

 

$

 -

 

$

 -

 

$

370 

Ending balance: collectively evaluated for impairment

$

2,132 

 

$

294 

 

$

287 

 

$

2,274 

 

$

29 

 

$

682 

 

$

5,698 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

289,304 

 

$

17,786 

 

$

34,955 

 

$

347,316 

 

$

745 

 

 

 

 

$

690,106 

Ending balance: individually evaluated  for impairment

$

3,644 

 

$

815 

 

$

321 

 

$

1,592 

 

$

 -

 

 

 

 

$

6,372 

Ending balance: collectively evaluated for impairment

$

285,660 

 

$

16,971 

 

$

34,634 

 

$

345,724 

 

$

745 

 

 

 

 

$

683,734 



Troubled Debt Restructuring Outstanding



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



September 30, 2016



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 



(In Thousands)

Commercial real estate

$

3,093 

 

$

 -

 

$

3,093 

Commercial construction

 

260 

 

 

 -

 

 

260 

Commercial

 

251 

 

 

 -

 

 

251 

Residential real estate

 

1,039 

 

 

 -

 

 

1,039 

Consumer

 

 -

 

 

 -

 

 

 -



$

4,643 

 

$

 -

 

$

4,643 



 

 

 

 

 

 

 

 



December 31, 2015



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 



(In Thousands)

Commercial real estate

$

3,145 

 

$

 -

 

$

3,145 

Commercial construction

 

260 

 

 

 -

 

 

260 

Commercial

 

255 

 

 

 -

 

 

255 

Residential real estate

 

1,063 

 

 

 -

 

 

1,063 

Consumer

 

 -

 

 

 -

 

 

 -



$

4,723 

 

$

 -

 

$

4,723 



v3.5.0.2
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2016
Fair Value Measurements [Abstract]  
Fair Value Of Financial Assets Measured On Recurring Basis



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Level 1)

 

 

(Level 2)

 

 

 

 

 

 



 

 

Quoted

 

 

Significant

 

 

(Level 3)

 

 

 



 

 

Prices in Active

 

 

Other

 

 

Significant

 

 

 



 

 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 



Description

  Identical Assets

 

 Inputs

 

Inputs

 

Total



 

 

 

 

 

 

 

 

 

 

 

 



 

 

(In Thousands)



U.S. Government agency obligations

$

 -

 

$

33,821 

 

$

 -

 

$

33,821 



Municipal bonds

 

 -

 

 

40,229 

 

 

 -

 

 

40,229 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

15,987 

 

 

 -

 

 

15,987 



September 30, 2016 Securities available for sale

$

 -

 

$

90,037 

 

$

 -

 

$

90,037 



 

 

 

 

 

 

 

 

 

 

 

 



U.S. Government agency obligations

$

 -

 

$

34,570 

 

$

 -

 

$

34,570 



Municipal bonds

 

 -

 

 

41,204 

 

 

 -

 

 

41,204 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

1,479 

 

 

 -

 

 

1,479 



December 31, 2015 Securities available for sale

$

 -

 

$

77,253 

 

$

 -

 

$

77,253 



Fair Value Of Financial Assets Measured On Nonrecurring Basis



 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



 

(Level 1)

 

 

(Level 2)

 

 

 

 

 

 



 

Quoted

 

 

Significant

 

 

(Level 3)

 

 

 



 

Prices in Active

 

 

Other

 

 

Significant

 

 

 



 

Markets for

 

 

Observable

 

 

Unobservable

 

 

 

Description

  Identical Assets

 

 Inputs

 

Inputs

 

Total



 

(In Thousands)

September 30, 2016 Impaired loans (1)

$

 -

 

$

 -

 

$

839 

 

$

839 

September 30, 2016 Impaired loans (2)

$

 -

 

$

 -

 

$

 -

 

$

 -

September 30, 2016 Other real estate owned (1)

$

 -

 

$

 -

 

$

521 

 

$

521 

December 31, 2015 Impaired loans (1)

$

 -

 

$

 -

 

$

785 

 

$

785 

December 31, 2015 Impaired loans (2)

$

 -

 

$

 -

 

$

 -

 

$

 -

December 31, 2015 Other real estate owned (1)

$

 -

 

$

 -

 

$

1,224 

 

$

1,224 



 

 

 

 

 

 

 

 

 

 

 

(1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 input which

     are not identifiable.  Fair values may also include qualitative adjustments by management based on economic conditions and liquidation expenses.

(2) Fair Value determined using the debt service of the borrower.



Quantitative Information About Level 3 Fair Value Measurements



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



Quantitative Information about Level 3 Fair Value Measurements

 

 Description

Fair Value
Estimate

 

Valuation Techniques

 

Unobservable Input

 

Range
(Weighted Average)

 



 

 

 

 

 

 

 

 

 



 

(Dollars In Thousands)

 

September 30, 2016:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

839 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-22.1%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -10.0%  (-7.8%)

 

 Other real estate owned

$

521 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 

December 31, 2015:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

785 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-25.0%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -7.5%  (-7.5%)

 

 Other real estate owned

$

1,224 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 



1.

Fair value is generally determined through independent appraisals of the underlying collateral, which generally include Level 3 inputs which are not identifiable.

2.

Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal. The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.

3.

Appraisals and pending agreements of sale are adjusted by management for liquidation expenses.  The range and weighted average of liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.

4.

Fair value is determined by listings, letters of intent or third-party evaluations.



Estimated Fair Value Of Financial Instruments



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(Level 1)

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Quoted

 

 

(Level 2)

 

 

(Level 3)

 



 

 

 

 

 

 

 

 

Prices in Active

 

 

Significant Other

 

 

Significant

 



 

 

Carrying

 

 

Fair Value

 

 

Markets for

 

 

Observable

 

 

Unobservable

 



 

 

Amount

 

 

Estimate

 

 

Identical Assets

 

 

Inputs

 

 

Inputs

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)

 

September 30, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

28,695 

 

$

28,695 

 

$

28,695 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

90,037 

 

 

90,037 

 

 

 -

 

 

90,037 

 

 

 -

 

Loans receivable, net of allowance

 

 

749,945 

 

 

765,272 

 

 

 -

 

 

 -

 

 

765,272 

 

Restricted investments in bank stock

 

 

538 

 

 

538 

 

 

 -

 

 

538 

 

 

 -

 

Accrued interest receivable

 

 

1,604 

 

 

1,604 

 

 

 -

 

 

1,604 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

801,759 

 

 

802,587 

 

 

 -

 

 

802,587 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

8,844 

 

 

8,843 

 

 

 -

 

 

8,843 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

718 

 

 

718 

 

 

 -

 

 

718 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,526 

 

$

19,527 

 

$

19,527 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

77,253 

 

 

77,253 

 

 

 -

 

 

77,253 

 

 

 -

 

Loans receivable, net of allowance

 

 

684,047 

 

 

688,645 

 

 

 -

 

 

 -

 

 

688,645 

 

Restricted investments in bank stock

 

 

2,178 

 

 

2,178 

 

 

 -

 

 

2,178 

 

 

 -

 

Accrued interest receivable

 

 

1,637 

 

 

1,637 

 

 

 -

 

 

1,637 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

660,266 

 

 

660,503 

 

 

 -

 

 

660,503 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

27,535 

 

 

27,529 

 

 

 -

 

 

27,529 

 

 

 -

 

Short-term borrowings

 

 

39,306 

 

 

39,273 

 

 

 -

 

 

39,273 

 

 

 -

 

Long-term borrowings

 

 

3,820 

 

 

3,740 

 

 

 -

 

 

 -

 

 

3,740 

 

Accrued interest payable

 

 

462 

 

 

462 

 

 

 -

 

 

462 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



v3.5.0.2
Offsetting Assets And Liabilities (Tables)
9 Months Ended
Sep. 30, 2016
Offsetting Assets And Liabilities [Abstract]  
Schedule Of Liabilities Subject To An Enforceable Master Netting Arrangement Or Repurchase Agreements



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

Net Amounts

 

 

 

 

 

 

 

 

 



 

 

Gross

 

 

Gross Amounts

 

 

of Liabilities

 

 

 

 

 

 

 

 

 



 

 

Amounts of

 

 

Offset in the

 

 

Presented in the

 

 

 

 

 

Cash

 

 

 



 

 

Recognized

 

 

Consolidated

 

 

Consolidated

 

 

Financial

 

 

Collateral

 

 

 



 

 

Liabilities

 

 

Balance Sheet

 

 

Balance Sheet

 

 

Instruments

 

 

Pledged

 

 

Net Amount



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(In Thousands)

September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

8,844 

 

$

 -

 

$

8,844 

 

$

(8,844)

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

27,535 

 

$

 -

 

$

27,535 

 

$

(27,535)

 

$

 -

 

$

 -



v3.5.0.2
Basis Of Presentation (Details)
9 Months Ended
Sep. 30, 2016
Basis Of Presentation [Abstract]  
Reason for business combination The Company was formed for purposes of acquiring Embassy Bank For The Lehigh Valley (the "Bank") in connection with the reorganization of the Bank into a bank holding company structure, which was consummated on November 11, 2008.
Effective date of acquisition Nov. 11, 2008
v3.5.0.2
Stock Incentive Plan And Employee Stock Purchase Plan(Details)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 72 Months Ended
Jul. 15, 2016
item
shares
Jan. 31, 2014
shares
Feb. 28, 2013
shares
Feb. 29, 2012
shares
Sep. 30, 2016
USD ($)
shares
Sep. 30, 2015
USD ($)
shares
Sep. 30, 2016
USD ($)
shares
Sep. 30, 2015
USD ($)
shares
Dec. 31, 2014
$ / shares
Dec. 31, 2013
$ / shares
Dec. 31, 2012
$ / shares
Sep. 30, 2016
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock option compensation expense | $             $ 55 $ 34        
Stock Options [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock option compensation expense | $         $ 6 $ 10 $ 21 $ 34        
Stock options granted   29,663 29,742 52,611 0 0 0 0        
Dividend yield                 0.00% 0.00% 0.00%  
Risk free interest rate                 2.30% 1.34% 1.43%  
Expected life, in years                 6 years 6 years 7 years 6 months  
Expected volatility                 28.93% 28.79% 31.10%  
Weighted average fair value of options granted, per share | $ / shares                 $ 2.46 $ 2.14 $ 2.56  
Stock Options [Member] | Granted In 2014 [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Unrecognized compensation cost | $         $ 7   $ 7         $ 7
Unrecognized compensation cost, recognition period             3 months 18 days          
Restricted Stock [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock options granted         0 0 5,934 9,122       65,774
Restricted stock awards compensation expense | $         $ 12 $ 0 $ 34 $ 0        
Minimum [Member] | Restricted Stock [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting period             3 years          
Maximum [Member] | Restricted Stock [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting period             9 years          
Stock Incentive Plan [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting period             10 years          
Number of shares authorized         500,000   500,000         500,000
Shares available for issuance         322,210   322,210         322,210
Employee Stock Purchase Plan [Member]                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares authorized 350,000                      
Minimum work hours per week | item 20                      
Minimum months to be eligible to participate             5 months          
v3.5.0.2
Other Comprehensive Income (Loss) (Schedule Of Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Comprehensive Income (Loss) [Abstract]        
Unrealized holding gains (losses) on securities available for sale, Before Tax $ (212) $ 487 $ 845 $ (40)
Unrealized holding gains (losses) on securities available for sale, Tax Effect 72 (165) (287) 14
Unrealized holding gains (losses) on securities available for sale, Net of Tax (140) 322 558 (26)
Reclassification adjustments for gains on securities transactions included in net income, Before Tax [1],[2] (350) (26) (350) (165)
Reclassification adjustments for gains on securities transactions in net income: Tax Effect [1],[2] 119 9 119 56
Reclassification adjustments for gains on securities transactions in net income: Net of Tax [1],[2] (231) (17) (231) (109)
Total other comprehensive income (loss), before tax (562) 461 495 (205)
Total other comprehensive income (loss), Tax Effect 191 (156) (168) 70
Other comprehensive gain (loss), net of tax $ (371) $ 305 $ 327 $ (135)
[1] Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.
[2] Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.
v3.5.0.2
Other Comprehensive Income (Loss) (Schedule Of The Realized Gains On Securities Available For Sale, Net Of Tax) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Comprehensive Income (Loss) [Abstract]        
Reclassification adjustments for gains on securities transactions included in net income, Before Tax [1],[2] $ (350) $ (26) $ (350) $ (165)
Income taxes [1],[2] 119 9 119 56
Reclassification adjustments for gains on securities transactions in net income: Net of Tax [1],[2] $ (231) $ (17) $ (231) $ (109)
[1] Realized gains on securities transactions included in gain on sales of securities, net, in the accompanying Consolidated Statements of Income.
[2] Tax effect included in income tax expense in the accompanying Consolidated Statements of Income.
v3.5.0.2
Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Other Comprehensive Income (Loss) [Abstract]        
Beginning Balance $ 1,934 $ 1,025 $ 1,236 $ 1,465
Other comprehensive income before reclassifications (140) 322 558 (26)
Amounts reclassified from accumulated other comprehensive income (231) (17) (231) (109)
Other comprehensive gain (loss), net of tax (371) 305 327 (135)
Ending Balance $ 1,563 $ 1,330 $ 1,563 $ 1,330
v3.5.0.2
Basic And Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Basic And Diluted Earnings Per Share [Abstract]        
Net income $ 2,007 $ 1,872 $ 5,279 $ 5,491
Weighted average shares outstanding 7,413,697 7,367,057 7,412,861 7,366,267
Dilutive effect of potential common shares, stock options 35,645 32,392 34,948 31,189
Diluted weighted average common shares outstanding 7,449,342 7,399,449 7,447,809 7,397,456
Basic earnings per share $ 0.27 $ 0.25 $ 0.71 $ 0.75
Diluted earnings per share $ 0.27 $ 0.25 $ 0.71 $ 0.74
Stock Excluded from Diluted Earnings Per Share Computation 0 0 0 0
v3.5.0.2
Guarantees (Details)
$ in Millions
9 Months Ended
Sep. 30, 2016
USD ($)
Guarantor Obligations [Line Items]  
Guarantee obligations term 1 year
Maximum Potential Exposure $ 3.7
Federal Home Loan Bank of Pittsburgh [Member]  
Guarantor Obligations [Line Items]  
Letters of Credit Outstanding 4.5
Financial Standby Letter of Credit [Member]  
Guarantor Obligations [Line Items]  
Stand by letters of credit $ 4.1
v3.5.0.2
Short-Term And Long-Term Borrowings (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Line of Credit Facility [Line Items]    
Maximum borrowing capacity $ 430,400  
Short-term borrowings   $ 39,306
Long-term borrowings   3,820
Maximum [Member]    
Line of Credit Facility [Line Items]    
Federal Home Loan Bank advance period 60 months  
Federal Home Loan Bank Advances [Member]    
Line of Credit Facility [Line Items]    
Line of credit, maximum borrowing capacity $ 150,000  
Atlantic Community Bankers Bank Borrowings [Member]    
Line of Credit Facility [Line Items]    
Line of credit, maximum borrowing capacity 10,000  
Line of credit outstanding 0 0
Univest Bank and Trust Co. Borrowings [Member]    
Line of Credit Facility [Line Items]    
Line of credit, maximum borrowing capacity 4,000  
Line of credit outstanding $ 0 $ 0
Number of shares used to secure the lines of credit 333,333  
v3.5.0.2
Securities Available For Sale (Narrative) (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2016
USD ($)
security
Sep. 30, 2015
USD ($)
Sep. 30, 2016
USD ($)
security
Sep. 30, 2015
USD ($)
Dec. 31, 2015
USD ($)
Securities Available For Sale [Abstract]          
Realized gains $ 350,000 $ 26,000 $ 350,000 $ 165,000  
Realized losses $ 0 $ 0 $ 0 $ 0  
Securities in an unrealized loss position | security 16   16    
Securities pledged as collateral $ 75,800,000   $ 75,800,000   $ 64,900,000
v3.5.0.2
Securities Available For Sale (Amortized Cost And Fair Values Of Securities Available-For-Sale) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total $ 87,670 $ 75,381
Gross Unrealized Gains 2,436 2,137
Gross Unrealized Losses (69) (265)
Fair Value 90,037 77,253
U.S Government Agency Obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 33,620 34,676
Gross Unrealized Gains 212 15
Gross Unrealized Losses (11) (121)
Fair Value 33,821 34,570
Municipal Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 38,292 39,378
Gross Unrealized Gains 1,995 1,970
Gross Unrealized Losses (58) (144)
Fair Value 40,229 41,204
U.S. GSE - Mortgage-Backed Securities - Residential [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 15,758 1,327
Gross Unrealized Gains 229 152
Fair Value $ 15,987 $ 1,479
v3.5.0.2
Securities Available For Sale (Securities Available-For-Sale By Contractual Maturity) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Securities Available For Sale [Abstract]    
Amortized Cost, Due in one year or less $ 9,182  
Amortized Cost, Due after one year through five years 29,411  
Amortized Cost, Due after five years through ten years 12,365  
Amortized Cost, Due after ten years 20,954  
Amortized Cost, Debt Maturities, Total 71,912  
Amortized Cost, U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 15,758  
Amortized Cost, Total 87,670 $ 75,381
Fair Value, Due in one year or less 9,203  
Fair Value, Due after one year through five years 29,752  
Fair Value, Due after five years through ten years 13,102  
Fair Value, Due after ten years 21,993  
Fair Value, Debt maturities, Total 74,050  
Fair Value, U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 15,987  
Fair Value, Total $ 90,037 $ 77,253
v3.5.0.2
Securities Available For Sale (Investments' Gross Unrealized Losses And Fair Value) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months $ 10,292 $ 31,705
Fair Value, Total 10,292 31,705
Unrealized Losses, Less Than 12 Months (69) (265)
Unrealized Losses, Total (69) (265)
U.S Government Agency Obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months 5,050 25,525
Fair Value, Total 5,050 25,525
Unrealized Losses, Less Than 12 Months (11) (121)
Unrealized Losses, Total (11) (121)
Municipal Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months 5,242 6,180
Fair Value, Total 5,242 6,180
Unrealized Losses, Less Than 12 Months (58) (144)
Unrealized Losses, Total $ (58) $ (144)
v3.5.0.2
Restricted Investment In Bank Stock (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Restricted Investment In Bank Stock [Abstract]        
FHLB stock repurchased $ 87 $ 428 $ 2,200 $ 542
Payments to Acquire Federal Home Loan Bank Stock 0 855 537 2,700
Restricted stock dividends received $ 4 $ 22 $ 45 $ 80
v3.5.0.2
Loans Receivable And Credit Quality (Narrative) (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
USD ($)
loan
Sep. 30, 2015
loan
Sep. 30, 2016
USD ($)
loan
Sep. 30, 2015
loan
Loans Receivable And Credit Quality [Abstract]        
Available Commitments Outstanding on TDRs | $ $ 0   $ 0  
Number of Loans 0 0 0 0
Number of Loans experiencing payment default 0 0 0 0
v3.5.0.2
Loans Receivable And Credit Quality (Composition Of Loans Receivable) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 100.00% 100.00%
Gross loans $ 756,074 $ 690,106
Unearned origination fees 111 9
Allowance for loan losses (6,240) (6,068)
Net Loans Receivable $ 749,945 $ 684,047
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 39.70% 41.92%
Gross loans $ 300,172 $ 289,304
Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 4.79% 5.06%
Gross loans $ 36,231 $ 34,955
Residential Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 52.06% 50.33%
Gross loans $ 393,627 $ 347,316
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 0.10% 0.11%
Gross loans $ 707 $ 745
Construction [Member] | Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 3.35% 2.58%
Gross loans $ 25,337 $ 17,786
v3.5.0.2
Loans Receivable And Credit Quality (Schedule Of Loan Portfolio By Aggregate Risk Rating) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross $ 756,074 $ 690,106
Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 748,551 687,147
Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 20 66
Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 7,503 2,893
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 300,172 289,304
Commercial Real Estate [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 293,992 287,755
Commercial Real Estate [Member] | Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 20  
Commercial Real Estate [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 6,160 1,549
Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 36,231 34,955
Commercial [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 36,131 34,889
Commercial [Member] | Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross   66
Commercial [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 100  
Commercial [Member] | Construction [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 25,337 17,786
Commercial [Member] | Construction [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 25,022 16,971
Commercial [Member] | Construction [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 315 815
Residential Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 393,627 347,316
Residential Real Estate [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 392,699 346,787
Residential Real Estate [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 928 529
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross 707 745
Consumer [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross $ 707 $ 745
v3.5.0.2
Loans Receivable And Credit Quality (Schedule Of Impaired Loans) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2016
Dec. 31, 2015
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance $ 9,700 $ 9,700  
Impaired loans with related allowance 1,100 1,100  
Total Recorded Investment Impaired 10,837 10,837 $ 6,372
Total Unpaid Principal Balance Impaired 11,339 11,339 6,656
Related Allowance 319 319 370
Total Average Recorded Investment Impaired 8,745 7,564 7,334
Total Interest Income Recognized Impaired 168 232 202
Commercial Real Estate [Member]      
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance 8,203 8,203 3,644
Total Recorded Investment Impaired 8,203 8,203 3,644
Unpaid Principal Balance, With no related allowance recorded 8,507 8,507 3,928
Total Unpaid Principal Balance Impaired 8,507 8,507 3,928
Average Recorded Investment, With no related allowance recorded 5,929 4,795 3,672
Average Recorded Investment, With an allowance recorded     336
Total Average Recorded Investment Impaired 5,929 4,795 4,008
Interest Income Recognized, With no related allowance recorded 152 189 139
Total Interest Income Recognized Impaired 152 189 139
Commercial [Member]      
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance 100 100  
Impaired loans with related allowance 252 252 321
Total Recorded Investment Impaired 352 352 321
Unpaid Principal Balance, With no related allowance recorded 160 160  
Unpaid Principal Balance, With an allowance recorded 252 252 321
Total Unpaid Principal Balance Impaired 412 412 321
Related Allowance 45 45 115
Average Recorded Investment, With no related allowance recorded 50 25  
Average Recorded Investment, With an allowance recorded 260 274 323
Total Average Recorded Investment Impaired 310 299 323
Interest Income Recognized, With no related allowance recorded 2 2  
Interest Income Recognized, With an allowance recorded 2 8 10
Total Interest Income Recognized Impaired 4 10 10
Residential Real Estate [Member]      
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance 1,061 1,061 758
Impaired loans with related allowance 906 906 834
Total Recorded Investment Impaired 1,967 1,967 1,592
Unpaid Principal Balance, With no related allowance recorded 1,199 1,199 758
Unpaid Principal Balance, With an allowance recorded 906 906 834
Total Unpaid Principal Balance Impaired 2,105 2,105 1,592
Related Allowance 274 274 255
Average Recorded Investment, With no related allowance recorded 931 860 1,029
Average Recorded Investment, With an allowance recorded 1,010 920 878
Total Average Recorded Investment Impaired 1,941 1,780 1,907
Interest Income Recognized, With no related allowance recorded 9 12 10
Interest Income Recognized, With an allowance recorded   4 5
Total Interest Income Recognized Impaired 9 16 15
Consumer [Member]      
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance  
Impaired loans with related allowance  
Total Recorded Investment Impaired  
Unpaid Principal Balance, With no related allowance recorded  
Unpaid Principal Balance, With an allowance recorded  
Total Unpaid Principal Balance Impaired  
Related Allowance  
Average Recorded Investment, With no related allowance recorded  
Average Recorded Investment, With an allowance recorded  
Total Average Recorded Investment Impaired  
Interest Income Recognized, With no related allowance recorded  
Interest Income Recognized, With an allowance recorded  
Total Interest Income Recognized Impaired  
Construction [Member] | Commercial [Member]      
Financing Receivable, Impaired [Line Items]      
Impaired loans without related allowance 315 315 815
Total Recorded Investment Impaired 315 315 815
Unpaid Principal Balance, With no related allowance recorded 315 315 815
Total Unpaid Principal Balance Impaired 315 315 815
Average Recorded Investment, With no related allowance recorded 565 690 1,096
Total Average Recorded Investment Impaired 565 690 1,096
Interest Income Recognized, With no related allowance recorded 3 17 38
Total Interest Income Recognized Impaired $ 3 $ 17 $ 38
v3.5.0.2
Loans Receivable And Credit Quality (Schedule Of Nonaccrual Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans $ 997 $ 759
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans 180 164
Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans 100 66
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans $ 717 $ 529
v3.5.0.2
Loans Receivable And Credit Quality (Schedule Of Past Due Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due $ 1,481 $ 1,713
Current 754,593 688,393
Total Loan Receivables 756,074 690,106
Loans Receivable > 90 Days and Accruing 238  
30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 86 878
60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 159 76
Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,236 759
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 180 383
Current 299,992 288,921
Total Loan Receivables 300,172 289,304
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due   219
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 180 164
Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 131 66
Current 36,100 34,889
Total Loan Receivables 36,231 34,955
Commercial [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 31  
Commercial [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 100 66
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,167 764
Current 392,460 346,552
Total Loan Receivables 393,627 347,316
Loans Receivable > 90 Days and Accruing 238  
Residential Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 55 159
Residential Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 156 76
Residential Real Estate [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 956 529
Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 3  
Current 704 745
Total Loan Receivables 707 745
Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 3  
Construction [Member] | Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due   500
Current 25,337 17,286
Total Loan Receivables $ 25,337 17,786
Construction [Member] | Commercial [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due   $ 500
v3.5.0.2
Loans Receivable And Credit Quality (Activity In The Allowance For Loan Losses) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance $ 6,279 $ 5,700 $ 6,068 $ 5,614
Charge-offs (204) (16) (248) (72)
Recoveries   10   10
Provisions 165 270 420 412
Ending balance 6,240 5,964 6,240 5,964
Commercial Real Estate [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 2,178 2,005 2,132 1,704
Charge-offs   (14) (35) (60)
Recoveries   10   10
Provisions 22 212 103 559
Ending balance 2,200 2,213 2,200 2,213
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 418 391 402 407
Charge-offs (75)   (75)  
Provisions 20 13 36 (3)
Ending balance 363 404 363 404
Commercial [Member] | Construction [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 427 333 294 401
Provisions 30 (67) 163 (135)
Ending balance 457 266 457 266
Residential Real Estate [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 2,787 2,417 2,529 1,955
Charge-offs (129) (2) (138) (12)
Provisions 196 91 463 563
Ending balance 2,854 2,506 2,854 2,506
Consumer [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 30 32 29 22
Provisions (2) (6) (1) 4
Ending balance 28 26 28 26
Unallocated [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 439 522 682 1,125
Provisions (101) 27 (344) (576)
Ending balance $ 338 $ 549 $ 338 $ 549
v3.5.0.2
Loans Receivable And Credit Quality (Allocation For Loan Losses And The Related Portfolio Disaggregated Based On Impairment Methodology) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance $ 6,240 $ 6,279 $ 6,068 $ 5,964 $ 5,700 $ 5,614
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 319   370      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 5,921   5,698      
Total Loan Receivables 756,074   690,106      
Loans receivables, Ending balance: individually evaluated for impairment 10,837   6,372      
Loans receivables, Ending balance: collectively evaluated for impairment 745,237   683,734      
Commercial Real Estate [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 2,200 2,178 2,132 2,213 2,005 1,704
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 2,200   2,132      
Total Loan Receivables 300,172   289,304      
Loans receivables, Ending balance: individually evaluated for impairment 8,203   3,644      
Loans receivables, Ending balance: collectively evaluated for impairment 291,969   285,660      
Commercial [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 363 418 402 404 391 407
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 45   115      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 318   287      
Total Loan Receivables 36,231   34,955      
Loans receivables, Ending balance: individually evaluated for impairment 352   321      
Loans receivables, Ending balance: collectively evaluated for impairment 35,879   34,634      
Commercial [Member] | Construction [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 457 427 294 266 333 401
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 457   294      
Total Loan Receivables 25,337   17,786      
Loans receivables, Ending balance: individually evaluated for impairment 315   815      
Loans receivables, Ending balance: collectively evaluated for impairment 25,022   16,971      
Residential Real Estate [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 2,854 2,787 2,529 2,506 2,417 1,955
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 274   255      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 2,580   2,274      
Total Loan Receivables 393,627   347,316      
Loans receivables, Ending balance: individually evaluated for impairment 1,967   1,592      
Loans receivables, Ending balance: collectively evaluated for impairment 391,660   345,724      
Consumer [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 28 30 29 26 32 22
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 28   29      
Total Loan Receivables 707   745      
Loans receivables, Ending balance: collectively evaluated for impairment 707   745      
Unallocated [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 338 $ 439 682 $ 549 $ 522 $ 1,125
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment $ 338   $ 682      
v3.5.0.2
Loans Receivable And Credit Quality (Troubled Debt Restructuring Outstanding) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Financing Receivable, Modifications [Line Items]    
Total Modifications $ 4,643 $ 4,723
Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 4,643 4,723
Commercial Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 3,093 3,145
Commercial Real Estate [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 3,093 3,145
Commercial [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 251 255
Commercial [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 251 255
Commercial [Member] | Construction [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 260 260
Commercial [Member] | Construction [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 260 260
Residential Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 1,039 1,063
Residential Real Estate [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications $ 1,039 $ 1,063
v3.5.0.2
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Fair Value Measurements [Abstract]    
Impaired loans aggregate balance $ 10,837 $ 6,372
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 9,700  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 1,100  
Related Allowance $ 319 $ 370
v3.5.0.2
Fair Value Measurements (Fair Value Of Financial Assets Measured On Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities $ 90,037 $ 77,253
U.S Government Agency Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 33,821 34,570
Municipal Bonds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 40,229 41,204
U.S. GSE - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 15,987 1,479
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | U.S Government Agency Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | Municipal Bonds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | U.S. GSE - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 2) Significant Other Observable Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 90,037 77,253
(Level 2) Significant Other Observable Inputs [Member] | U.S Government Agency Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 33,821 34,570
(Level 2) Significant Other Observable Inputs [Member] | Municipal Bonds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 40,229 41,204
(Level 2) Significant Other Observable Inputs [Member] | U.S. GSE - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 15,987 1,479
(Level 3) Significant Unobservable Inputs [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 3) Significant Unobservable Inputs [Member] | U.S Government Agency Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 3) Significant Unobservable Inputs [Member] | Municipal Bonds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
(Level 3) Significant Unobservable Inputs [Member] | U.S. GSE - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
v3.5.0.2
Fair Value Measurements (Fair Value Of Financial Assets Measured On Nonrecurring Basis) (Details) - FV determined through independent appraisals of the underlying collateral [Member] - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Impaired Loan [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] $ 839 $ 785
Other Real Estate Owned [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] 521 1,224
(Level 3) Significant Unobservable Inputs [Member] | Impaired Loan [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] 839 785
(Level 3) Significant Unobservable Inputs [Member] | Other Real Estate Owned [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] $ 521 $ 1,224
[1] Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Fair values may also include qualitative adjustments by management based on economic conditions and liquidation expenses.
v3.5.0.2
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - (Level 3) Significant Unobservable Inputs [Member] - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2016
Dec. 31, 2015
Impaired Loan [Member] | Market Approach Valuation Technique [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] $ 839 $ 785
Impaired Loan [Member] | Market Approach Valuation Technique [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [2] (25.00%) (25.00%)
Impaired Loan [Member] | Market Approach Valuation Technique [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [2] 0.00% 0.00%
Impaired Loan [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [2] (22.10%) (25.00%)
Impaired Loan [Member] | Cost Approach Valuation Technique [Member] | Minimum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [3] (10.00%) (7.50%)
Impaired Loan [Member] | Cost Approach Valuation Technique [Member] | Maximum [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [3] 0.00% 0.00%
Impaired Loan [Member] | Cost Approach Valuation Technique [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [3] (7.80%) (7.50%)
Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [4] $ 521 $ 1,224
Other Real Estate Owned [Member] | Cost Approach Valuation Technique [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [3] (5.00%) (5.00%)
Other Real Estate Owned [Member] | Cost Approach Valuation Technique [Member] | Weighted Average [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Range (Weighted Average) [3] (5.00%) (5.00%)
[1] Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
[2] Appraisals may be adjusted by management for qualitative factors including economic conditions and the age of the appraisal. The range and weighted average of appraisal adjustments are presented as a percent of the appraisal.
[3] Appraisals and pending agreements of sale are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percent of the appraisal or pending agreement of sale.
[4] Fair value is determined by listings, letters of intent or third-party evaluations.
v3.5.0.2
Fair Value Measurements (Estimated Fair Value Of Financial Instruments) (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available for sale $ 90,037 $ 77,253
Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and cash equivalents 28,695 19,526
Securities available for sale 90,037 77,253
Loans receivable, net of allowance 749,945 684,047
Restricted investment in bank stock 538 2,178
Accrued interest receivable 1,604 1,637
Deposits 801,759 660,266
Securities sold under agreements to repurchase and federal funds purchased 8,844 27,535
Short-term borrowings   39,306
Long-term borrowings   3,820
Accrued interest payable 718 462
Fair Value Estimate [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and cash equivalents 28,695 19,527
Securities available for sale 90,037 77,253
Loans receivable, net of allowance 765,272 688,645
Restricted investment in bank stock 538 2,178
Accrued interest receivable 1,604 1,637
Deposits 802,587 660,503
Securities sold under agreements to repurchase and federal funds purchased 8,843 27,529
Short-term borrowings   39,273
Long-term borrowings   3,740
Accrued interest payable 718 462
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and cash equivalents 28,695 19,527
Securities available for sale
(Level 2) Significant Other Observable Inputs [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available for sale 90,037 77,253
Restricted investment in bank stock 538 2,178
Accrued interest receivable 1,604 1,637
Deposits 802,587 660,503
Securities sold under agreements to repurchase and federal funds purchased 8,843 27,529
Short-term borrowings   39,273
Accrued interest payable 718 462
(Level 3) Significant Unobservable Inputs [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available for sale
Loans receivable, net of allowance $ 765,272 688,645
Long-term borrowings   $ 3,740
v3.5.0.2
Offsetting Assets And Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Securities Pledged as Collateral [Member]    
Offsetting Liabilities [Line Items]    
Off-balance sheet financial instruments $ 12,800 $ 35,000
Repurchase Agreements [Member]    
Offsetting Liabilities [Line Items]    
Gross Amounts of Recognized Liabilities 8,844 27,535
Gross Amounts Offset in the Consolidated Balance Sheet
Net Amounts of Liabilities Presented in Consolidated Balance Sheet 8,844 27,535
Financial Instruments (8,844) (27,535)
Cash Collateral Pledged
Net Amount