EMBASSY BANCORP, INC., 10-Q filed on 11/13/2017
Quarterly Report
v3.8.0.1
Document And Entity Information - shares
 9 Months Ended
Sep. 30, 2017
Nov. 03, 2017
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2017  
Document Fiscal Year Focus 2017  
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   7,458,999
Trading Symbol emyb  
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
ASSETS    
Cash and due from banks $ 20,373 $ 14,574
Interest bearing demand deposits with banks 18,447 8,644
Federal funds sold 1,000 1,000
Cash and Cash Equivalents 39,820 24,218
Securities available for sale 96,396 85,598
Restricted investment in bank stock 583 624
Loans receivable, net of allowance for loan losses of $6,850 in 2017; $6,517 in 2016 831,179 792,598
Premises and equipment, net of accumulated depreciation 1,937 2,109
Bank owned life insurance 13,030 12,728
Accrued interest receivable 1,833 1,749
Other real estate owned 427 480
Other assets 4,067 4,129
Total Assets 989,272 924,233
Liabilities:    
Deposits: Non-interest bearing 134,808 117,208
Deposits: Interest bearing 758,403 716,176
Total Deposits 893,211 833,384
Securities sold under agreements to repurchase 10,195 11,889
Accrued interest payable 781 813
Other liabilities 5,561 4,869
Total Liabilities 909,748 850,955
Stockholders' Equity:    
Common stock, $1 par value; authorized 20,000,000 shares; 2017 issued 7,459,449 shares; outstanding 7,443,902 shares; 2016 issued 7,452,462 shares; outstanding 7,443,472 shares; 7,475 7,453
Surplus 24,977 24,603
Retained earnings 46,520 41,344
Accumulated other comprehensive income (loss) 747 (24)
Treasury stock, at cost: 15,547 and 8,990 shares at September 30, 2017 and December 31, 2016, respectively (195) (98)
Total Stockholders' Equity 79,524 73,278
Total Liabilities and Stockholders' Equity $ 989,272 $ 924,233
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Consolidated Balance Sheets [Abstract]    
Loans receivable, allowance $ 6,850 $ 6,517
Common Stock, Par or Stated Value Per Share $ 1 $ 1
Common Stock, Shares Authorized 20,000,000 20,000,000
Common Stock, Shares, Issued 7,459,449 7,452,462
Common Stock, Shares, Outstanding 7,443,902 7,443,472
Treasury Stock, Shares 15,547 8,990
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
INTEREST INCOME        
Loans receivable, including fees $ 8,075 $ 7,137 $ 23,369 $ 20,837
Securities, taxable 246 205 639 605
Securities, non-taxable 323 295 983 864
Federal funds sold, and other 117 26 218 108
Total Interest Income 8,761 7,663 25,209 22,414
INTEREST EXPENSE        
Deposits 1,094 1,004 3,173 2,823
Securities sold under agreements to repurchase 3 3 9 10
Short-term borrowings     9 31
Long-term borrowings       5
Total Interest Expense 1,097 1,007 3,191 2,869
Net Interest Income 7,664 6,656 22,018 19,545
Provision for Loan Losses 320 165 735 420
Net Interest Income after Provision for Loan Losses 7,344 6,491 21,283 19,125
OTHER NON-INTEREST INCOME        
Credit card processing fees 444 442 1,370 1,285
Other service fees 219 199 647 534
Bank owned life insurance 115 114 302 243
Gain on sale of securities, net 19 350 19 350
Gain on sale of other real estate owned 5 (12) 16 3
Impairment on other real estate owned       (80)
Total Other Non-Interest Income 802 1,093 2,354 2,335
OTHER NON-INTEREST EXPENSES        
Salaries and employee benefits 2,177 2,000 6,529 5,921
Occupancy and equipment 665 671 1,963 2,027
Data processing 493 411 1,424 1,191
Credit card processing 406 415 1,266 1,213
Advertising and promotion 381 368 1,047 1,063
Professional fees 149 179 453 456
FDIC insurance 124 112 377 320
Insurance 14 16 45 44
Loan & real estate 62 70 185 180
Charitable contributions 169 155 595 541
Other real estate owned expenses 23 26 43 83
Other 330 338 956 1,011
Total Other Non-Interest Expenses 4,993 4,761 14,883 14,050
Income before Income Taxes 3,153 2,823 8,754 7,410
INCOME TAX EXPENSE 920 816 2,536 2,131
Net Income $ 2,233 $ 2,007 $ 6,218 $ 5,279
BASIC EARNINGS PER SHARE $ 0.30 $ 0.27 $ 0.84 $ 0.71
DILUTED EARNINGS PER SHARE 0.30 0.27 0.83 0.71
DIVIDENDS PER SHARE $ 0.14 $ 0.13 $ 0.14 $ 0.13
v3.8.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Consolidated Statements Of Comprehensive Income [Abstract]        
Net Income $ 2,233 $ 2,007 $ 6,218 $ 5,279
Change in Accumulated Other Comprehensive Income:        
Unrealized holding gain (loss) on securities available for sale (162) (212) 1,188 845
Less: reclassification adjustment for realized gains [1],[2] (19) (350) (19) (350)
Total other comprehensive income (loss), before tax (181) (562) 1,169 495
Income tax effect 62 191 (398) (168)
Net unrealized gain (loss) (119) (371) 771 327
Other comprehensive gain(loss), net of tax (119) (371) 771 327
Comprehensive Income $ 2,114 $ 1,636 $ 6,989 $ 5,606
[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.
v3.8.0.1
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Common Stock [Member]
Surplus [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Total
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   34       34
Purchase treasury stock         $ (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
BALANCE-Beginning at Dec. 31, 2016 7,453 24,603 41,344 (24) (98) 73,278
Net income     6,218     6,218
Other comprehensive income, net of tax       771   771
Dividend declared     (1,042)     (1,042)
Compensation expense recognized on stock options   5       5
Common stock grants to directors 5 63       68
Compensation expense recognized on stock grants, net of unearned compensation expense   72       72
Shares issued under employee stock purchase plan, 1,830 shares 3 38       41
Purchase treasury stock         (97) (97)
Shares issued under Dividend Reinvestment and Stock Purchase Plan 14 196       210
BALANCE-Ending at Sep. 30, 2017 $ 7,475 $ 24,977 $ 46,520 $ 747 $ (195) $ 79,524
v3.8.0.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Consolidated Statements Of Stockholders' Equity [Abstract]    
Dividends declared per share $ 0.14 $ 0.13
Common stock grants to directors, shares 5,156 5,934
Unearned compensation expense $ 379 $ 211
Shares issued under employee stock purchase plan, shares 2,820  
Treasury stock, shares, acquired 6,557 8,990
Purchased treasury stock, price per share $ 14.80 $ 10.85
Stock issued under Dividend Reinvestment and Stock Repurchase Plan 14,091 19,776
v3.8.0.1
Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 6,218 $ 5,279
Adjustments to reconcile net income to net cash provided by operating activities:    
Provision for Loan Losses 735 420
Amortization of deferred loan costs 55 93
Depreciation and amortization 494 557
Net amortization of investment security premiums and discounts 203 208
Stock compensation expense 77 55
Net realized gain on sale of other real estate owned (16) (3)
Impairment on other real estate owned   80
Income on bank owned life insurance (302) (243)
Net realized gain on sale of securities available for sale (19) (350)
(Increase) decrease in accrued interest receivable (84) 33
(Increase) decrease in other assets (336) 197
(Decrease) increase in accrued interest payable (32) 256
Increase in other liabilities 776 535
Net Cash Provided by Operating Activities 7,769 7,117
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchases of securities available for sale (36,348) (28,506)
Maturities, calls and principal repayments of securities available for sale 11,615 8,608
Proceeds from sales of securities available for sale 14,920 7,751
Net increase in loans (39,371) (65,929)
Net redemption of restricted investment in bank stock 41 1,640
Proceeds from sale of other real estate owned 53 141
Purchases of premises and equipment (322) (480)
Net Cash Used in Investing Activities (49,412) (76,775)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 59,827 141,493
Net decrease in securities sold under agreements to repurchase (1,694) (18,691)
Proceeds from Employee Stock Purchase Plan 41  
Decrease in short-term borrowed funds   (39,306)
Payments of long-term borrowed funds   (3,820)
Acquisition of treasury stock (97) (98)
Proceeds from Dividend Reinvestment Plan 210 211
Dividends paid (1,042) (962)
Net Cash Provided by Financing Activities 57,245 78,827
Net Increase in Cash and Cash Equivalents 15,602 9,169
CASH AND CASH EQUIVALENTS - BEGINNING 24,218 19,526
CASH AND CASH EQUIVALENTS - ENDING 39,820 28,695
SUPPLEMENTARY CASH FLOWS INFORMATION    
Interest paid 3,223 2,601
Income taxes paid 2,530 1,984
Other real estate sold through bank financing   523
Deferral of gain from sale of other real estate sold through bank financing $ 16 3
Other real estate acquired in settlement of loans   $ 41
v3.8.0.1
Basis Of Presentation
 9 Months Ended
Sep. 30, 2017
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.



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, 2016, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2017.  



In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after September 30, 2017 through the date these consolidated financial statements were issued.



Certain amounts in the 2016 financial statements may have been reclassified to conform to 2017 presentation. These reclassifications had no effect on 2016 net income.



v3.8.0.1
Summary Of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2017
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, 2016.

v3.8.0.1
Stockholders' Equity
 9 Months Ended
Sep. 30, 2017
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.

v3.8.0.1
Stock Incentive Plan And Employee Stock Purchase Plan
 9 Months Ended
Sep. 30, 2017
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



Stock Incentive 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, 2017, there were 293,622 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, 2017, there have been 90,135  awards granted. No awards were granted during the three months ended September 30, 2017 and 2016. During the nine months ended September 30, 2017 and 2016 there were 5,156 and 5,934 awards granted, respectively. During the three months ended September 30, 2017 and 2016 the Company recognized $24 thousand and $12 thousand, respectively, in compensation expense for the restricted stock awards. During the nine months ended September 30, 2017 and 2016 the Company recognized $72 thousand and $34 thousand, respectively, in compensation expense for the restricted stock awards. 



In December 2016, January 2014, February 2013 and 2012, the Company granted stock options to purchase 4,227,  29,663,  29,742 and 52,611 shares of stock to certain executive officers under individual agreements and/or in accordance with their respective employment agreements.  No stock options were granted in 2017 or 2015. Stock compensation expense related to these options was $2 thousand and $6 thousand for the three months ended September 30, 2017 and 2016, respectively.  Stock compensation expense related to these options was $5 thousand and $21 thousand for the nine months ended September 30, 2017 and 2016, respectively.  At September 30, 2017,  approximately $10 thousand unrecognized cost related to these stock options granted in 2016 will be recognized over the next 2.22 years, respectively.   The fair value of the options granted in 2016, 2014, 2013 and 2012 was determined with the following weighted average assumptions: dividend yield of 1.03% in 2016 and 0.00% in 2014, 2013 and 2012, respectively, risk free interest rate of 2.35%,  2.30%,  1.34% and 1.43%, respectively, expected life of 6.0 years, 6.0 years, 6.0 years and 7.5 years, respectively, and expected volatility of 25.58%,  28.93%,  28.79% and 31.10%, respectively.  The weighted average fair value of options granted in 2016, 2014, 2013 and 2012 was $3.28,  $2.46,  $2.14 and $2.56 per share, respectively.



Employee Stock Purchase Plan:



On January 1, 2017, the Company implemented the Embassy Bancorp, Inc. Employee Stock Purchase Plan, which was approved by the Company’s shareholders at the annual 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. The purchase price for shares purchased under the plan shall initially equal 95% of the fair market value of such shares on the date of purchase.  The purchase price may be adjusted from time to time by the Board of Directors; provided, however, that the discount to fair market value shall not exceed 15%.  The Company has authorized 350,000 shares of its common stock for the plan, of which 2,820 shares have been issued as of September 30, 2017.



v3.8.0.1
Other Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2017
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,



 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding loss on securities
   available for sale

 

$

 (162)

 

$

 56 

 

$

 (106)

 

$

 (212)

 

$

 72 

 

$

 (140)

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

 

 

 (19)

 

 

 6 

 

 

 (13)

 

 

 (350)

 

 

 119 

 

 

 (231)

Total change in other comprehensive income

 

$

 (181)

 

$

 62 

 

$

 (119)

 

$

 (562)

 

$

 191 

 

$

 (371)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains on securities
   available for sale

 

$

 1,188 

 

$

 (404)

 

$

 784 

 

$

 845 

 

$

 (287)

 

$

 558 

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

 

 

 (19)

 

 

 6 

 

 

 (13)

 

 

 (350)

 

 

 119 

 

 

 (231)

Total change in other comprehensive income

 

$

 1,169 

 

$

 (398)

 

$

 771 

 

$

 495 

 

$

 (168)

 

$

 327 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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, 2017 and 2016 are as follows:







 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended



 

September 30,



 

 

2017

 

 

2016



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

 (19)

 

$

 (350)

Income taxes

 

 

 6 

 

 

 119 

Net of tax

 

$

 (13)

 

$

 (231)







 

 

 

 

 

 



 

 

 

 

 

 



 

Nine Months Ended



 

September 30,



 

 

2017

 

 

2016



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

 (19)

 

$

 (350)

Income taxes

 

 

 6 

 

 

 119 

Net of tax

 

$

 (13)

 

$

 (231)

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











































 

 

 



 

 

 



 

Securities



 

Available



 

for Sale

Three Months Ended September 30, 2017 and 2016

 

(In Thousands)

Balance June 30, 2017

 

$

 866 

Other comprehensive loss before reclassifications

 

 

 (106)

Amounts reclassified from accumulated other
   comprehensive income

 

 

 (13)

Net other comprehensive loss during the period

 

 

 (119)

Balance September 30, 2017

 

$

 747 



 

 

 

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 



 

 

 



 

 

 



 

 

 

Nine Months Ended September 30, 2017 and 2016

 

 

 

Balance January 1, 2017

 

$

 (24)

Other comprehensive income before reclassifications

 

 

 784 

Amounts reclassified from accumulated other
   comprehensive income

 

 

 (13)

Net other comprehensive income during the period

 

 

 771 

Balance September 30, 2017

 

$

 747 



 

 

 

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 



 

 

 





v3.8.0.1
Basic And Diluted Earnings Per Share
 9 Months Ended
Sep. 30, 2017
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,



 

 

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Dollars In Thousands, Except Share and Per Share Data)



Net income

 

$

 2,233 

 

$

 2,007 

 

$

 6,218 

 

$

 5,279 



 

 

 

 

 

 

 

 

 

 

 

 

 



Weighted average shares outstanding

 

 

 7,444,231 

 

 

 7,413,697 

 

 

 7,445,997 

 

 

 7,412,861 



Dilutive effect of potential common shares, stock options

 

 

 57,076 

 

 

 35,645 

 

 

 57,038 

 

 

 34,948 



Diluted weighted average common shares outstanding

 

 

 7,501,307 

 

 

 7,449,342 

 

 

 7,503,035 

 

 

 7,447,809 



 

 

 

 

 

 

 

 

 

 

 

 

 



Basic earnings per share

 

$

 0.30 

 

$

 0.27 

 

$

 0.84 

 

$

 0.71 



Diluted earnings per share

 

$

 0.30 

 

$

 0.27 

 

$

 0.83 

 

$

 0.71 



 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options of 4,227 were not considered in computing diluted earnings per common share for the three and nine months ended September 30, 2017. There were no stock options not considered in computing diluted earnings per common share for the three and nine months ended September 30, 2016.

v3.8.0.1
Guarantees
 9 Months Ended
Sep. 30, 2017
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. 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 $4.9 million of standby letters of credit outstanding as of September 30, 2017. The approximate value of underlying collateral upon liquidation that would be expected to cover this maximum potential exposure was $3.6 million. Management does not consider the current amount of the liability as of September 30, 2017 for guarantees under standby letters of credit issued to be material. 

v3.8.0.1
Short-Term And Long-Term Borrowings
 9 Months Ended
Sep. 30, 2017
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, 2017, the Bank had a maximum borrowing capacity for short-term and long-term advances of approximately $487.5 million.  This borrowing capacity with the FHLB includes a line of credit of $150.0 million. There were no short-term or long-term FHLB advances outstanding as of September 30, 2017 and December 31, 2016.  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, 2017 and December 31, 2016. Advances from this line are unsecured.









v3.8.0.1
Securities Available For Sale
 9 Months Ended
Sep. 30, 2017
Securities Available For Sale [Abstract]  
Securities Available For Sale



Note 9 – Securities Available For Sale



At September 30, 2017 and December 31, 2016, 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, 2017 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 14,053 

 

$

 4 

 

$

 (29)

 

$

 14,028 

Municipal bonds

 

 37,357 

 

 

 1,359 

 

 

 (247)

 

 

 38,469 

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

 

 43,855 

 

 

 226 

 

 

 (182)

 

 

 43,899 

Total

$

 95,265 

 

$

 1,589 

 

$

 (458)

 

$

 96,396 



 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 32,581 

 

$

 12 

 

$

 (105)

 

$

 32,488 

Municipal bonds

 

 38,410 

 

 

 1,161 

 

 

 (763)

 

 

 38,808 

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

 

 14,645 

 

 

 114 

 

 

 (457)

 

 

 14,302 

Total

$

 85,636 

 

$

 1,287 

 

$

 (1,325)

 

$

 85,598 



The amortized cost and fair value of securities as of September 30, 2017, 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

 

$

 9,249 

 

$

 9,268 

 

Due after one year through five years

 

 

 12,073 

 

 

 12,297 

 

Due after five years through ten years

 

 

 7,409 

 

 

 7,629 

 

Due after ten years

 

 

 22,679 

 

 

 23,303 

 



 

 

 51,410 

 

 

 52,497 

 

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

 

 

 43,855 

 

 

 43,899 

 



 

$

 95,265 

 

$

 96,396 

 



 

 

 

 

 

 

 

Gross gains of $19 thousand and $350 thousand were realized on the sales of securities for the three and nine months ended September 30, 2017 and 2016, respectively. There were no gross losses on the sales of securities during the three and nine months ended September 30, 2017 and 2016.

 

Securities with a carrying value of $85.9 million and $71.8 million at September 30, 2017 and December 31, 2016, 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, 2017 and December 31, 2016, respectively:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Less Than 12 Months

 

 

12 Months or More

 

 

Total



Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses

 

Fair Value

 

Unrealized Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017 :

(In Thousands)

U.S. Government agency obligations

$

 7,024 

 

$

 (9)

 

$

 2,997 

 

$

 (20)

 

$

 10,021 

 

$

 (29)

Municipal bonds

 

 2,588 

 

 

 (21)

 

 

 6,401 

 

 

 (226)

 

 

 8,989 

 

 

 (247)

U.S. Government Sponsored Enterprise

 

 25,685 

 

 

 (182)

 

 

 -

 

 

 -

 

 

 25,685 

 

 

 (182)

   (GSE) - Mortgage -backed securities -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Temporarily Impaired Securities

$

 35,297 

 

$

 (212)

 

$

 9,398 

 

$

 (246)

 

$

 44,695 

 

$

 (458)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016 :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 20,388 

 

$

 (105)

 

$

 -

 

$

 -

 

$

 20,388 

 

$

 (105)

Municipal bonds

 

 8,595 

 

 

 (763)

 

 

 -

 

 

 -

 

 

 8,595 

 

 

 (763)

U.S. Government Sponsored Enterprise

 

 13,206 

 

 

 (457)

 

 

 -

 

 

 -

 

 

 13,206 

 

 

 (457)

   (GSE) - Mortgage -backed securities -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Temporarily Impaired Securities

$

 42,189 

 

$

 (1,325)

 

$

 -

 

$

 -

 

$

 42,189 

 

$

 (1,325)



The Company had thirty-three (33) securities in an unrealized loss position at September 30, 2017. The unrealized losses are due only to market rate fluctuations. As of September 30, 2017, 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 material.

v3.8.0.1
Restricted Investment In Bank Stock
 9 Months Ended
Sep. 30, 2017
Restricted Investment In Bank Stock [Abstract]  
Restricted Investment 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.  There were no stock repurchases during the three months ended September 30, 2017 and $1.3 million stock repurchased during the nine months ended September 30, 2017. The Bank had $87 thousand and $2.2 million stock repurchased during the three and nine months ended September 30, 2016, respectively. There were no stock purchases for the three months ending September 30, 2017 and 2016. Stock purchases of $1.3 million and $537 thousand were made during the nine months ended September 30, 2017 and 2016, respectively. Dividend payments of $5 thousand and $11 thousand were received during the three and nine months ended September 30, 2017 and $4 thousand and $45 thousand were received during the three and nine months ended September 30, 2016, 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, 2017.



v3.8.0.1
Loans Receivable And Credit Quality
 9 Months Ended
Sep. 30, 2017
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, 2017 and December 31, 2016, respectively:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



September 30, 2017

 

December 31, 2016



 

 

Percentage of

 

 

 

Percentage of



Balance

 

total Loans

 

Balance

 

total Loans



 

 

 

 

 

 

 

 

 



 

(Dollars in Thousands)



 

 

 

 

 

 

 

 

 

Commercial real estate

$

 333,331 

 

 39.79% 

 

$

 321,730 

 

 40.27% 

Commercial construction

 

 34,536 

 

 4.12% 

 

 

 28,606 

 

 3.58% 

Commercial

 

 39,862 

 

 4.76% 

 

 

 39,045 

 

 4.89% 

Residential real estate

 

 428,951 

 

 51.21% 

 

 

 408,872 

 

 51.17% 

Consumer

 

 978 

 

 0.12% 

 

 

 718 

 

 0.09% 

Total loans

 

 837,658 

 

 100.00% 

 

 

 798,971 

 

 100.00% 

Unearned origination fees

 

 371 

 

 

 

 

 144 

 

 

Allowance for loan losses

 

 (6,850)

 

 

 

 

 (6,517)

 

 



$

 831,179 

 

 

 

$

 792,598 

 

 





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, 2017 and December 31, 2016, respectively:





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2017

 

(In Thousands)

Commercial real estate

$

 327,832 

 

$

 -

 

$

 5,499 

 

$

 -

 

$

 333,331 

Commercial construction

 

 34,221 

 

 

 -

 

 

 315 

 

 

 -

 

 

 34,536 

Commercial

 

 39,862 

 

 

 -

 

 

 -

 

 

 -

 

 

 39,862 

Residential real estate

 

 428,113 

 

 

 -

 

 

 838 

 

 

 -

 

 

 428,951 

Consumer

 

 978 

 

 

 -

 

 

 -

 

 

 -

 

 

 978 

             Total

$

 831,006 

 

$

 -

 

$

 6,652 

 

$

 -

 

$

 837,658 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

 315,579 

 

$

 20 

 

$

 6,131 

 

$

 -

 

$

 321,730 

Commercial construction

 

 28,291 

 

 

 -

 

 

 315 

 

 

 -

 

 

 28,606 

Commercial

 

 38,916 

 

 

 29 

 

 

 100 

 

 

 -

 

 

 39,045 

Residential real estate

 

 407,787 

 

 

 -

 

 

 1,085 

 

 

 -

 

 

 408,872 

Consumer

 

 718 

 

 

 -

 

 

 -

 

 

 -

 

 

 718 

             Total

$

 791,291 

 

$

 49 

 

$

 7,631 

 

$

 -

 

$

 798,971 





The following table summarizes information in regards to impaired loans by loan portfolio class as of September 30, 2017 and December 31, 2016, 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, 2017

 

 

(In Thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 5,453 

 

$

 5,453 

 

 

 

 

$

 5,517 

 

$

 55 

 

$

 6,730 

 

$

 167 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 

 

 

 315 

 

 

 3 

 

 

 315 

 

 

 8 

 

   Commercial

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 50 

 

 

 -

 

   Residential real estate

 

 

 838 

 

 

 1,105 

 

 

 

 

 

 909 

 

 

 1 

 

 

 1,191 

 

 

 4 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 2,020 

 

$

 2,284 

 

$

 40 

 

$

 2,006 

 

$

 7 

 

$

 1,003 

 

$

 17 

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

   Commercial

 

 

 246 

 

 

 246 

 

 

 39 

 

 

 247 

 

 

 3 

 

 

 255 

 

 

 8 

 

   Residential real estate

 

 

 1,207 

 

 

 1,207 

 

 

 235 

 

 

 1,213 

 

 

 4 

 

 

 1,009 

 

 

 13 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 7,473 

 

$

 7,737 

 

$

 40 

 

$

 7,523 

 

$

 62 

 

$

 7,733 

 

$

 184 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 -

 

 

 315 

 

 

 3 

 

 

 315 

 

 

 8 

 

   Commercial

 

 

 246 

 

 

 246 

 

 

 39 

 

 

 247 

 

 

 3 

 

 

 305 

 

 

 8 

 

   Residential real estate

 

 

 2,045 

 

 

 2,312 

 

 

 235 

 

 

 2,122 

 

 

 5 

 

 

 2,200 

 

 

 17 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

$

 10,079 

 

$

 10,610 

 

$

 314 

 

$

 10,207 

 

$

 73 

 

$

 10,553 

 

$

 217 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 8,159 

 

$

 8,463 

 

 

 

 

 

 

 

 

 

 

$

 5,924 

 

$

 255 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 

 

 

 

 

 

 

 

 

 565 

 

 

 19 

 

   Commercial

 

 

 100 

 

 

 160 

 

 

 

 

 

 

 

 

 

 

 

 50 

 

 

 2 

 

   Residential real estate

 

 

 1,516 

 

 

 1,723 

 

 

 

 

 

 

 

 

 

 

 

 1,050 

 

 

 23 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

$

 -

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Commercial

 

 

 279 

 

 

 279 

 

 

 64 

 

 

 

 

 

 

 

 

 263 

 

 

 12 

 

   Residential real estate

 

 

 811 

 

 

 811 

 

 

 232 

 

 

 

 

 

 

 

 

 914 

 

 

 5 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 8,159 

 

$

 8,463 

 

$

 -

 

 

 

 

 

 

 

$

 5,924 

 

$

 255 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 -

 

 

 

 

 

 

 

 

 565 

 

 

 19 

 

   Commercial

 

 

 379 

 

 

 439 

 

 

 64 

 

 

 

 

 

 

 

 

 313 

 

 

 14 

 

   Residential real estate

 

 

 2,327 

 

 

 2,534 

 

 

 232 

 

 

 

 

 

 

 

 

 1,964 

 

 

 28 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 



 

$

 11,180 

 

$

 11,751 

 

$

 296 

 

 

 

 

 

 

 

$

 8,766 

 

$

 316 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







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





 

 

 

 

 

 



 

 

 

 

 

 



September 30, 2017

 

December 31, 2016

 



 

 

 

 

 

 



(In Thousands)

 

   Commercial real estate

$

 -

 

$

 180 

 

   Commercial construction

 

 -

 

 

 -

 

   Commercial

 

 -

 

 

 100 

 

   Residential real estate

 

 689 

 

 

 874 

 

   Consumer

 

 -

 

 

 -

 

       Total

$

 689 

 

$

 1,154 

 





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, 2017 and December 31, 2016, 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, 2017

(In Thousands)

Commercial real estate

$

 2,265 

 

$

 570 

 

$

 204 

 

$

 3,039 

 

$

 330,292 

 

$

 333,331 

 

$

 204 

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 34,536 

 

 

 34,536 

 

 

 -

Commercial

 

 -

 

 

 162 

 

 

 -

 

 

 162 

 

 

 39,700 

 

 

 39,862 

 

 

 -

Residential real estate

 

 397 

 

 

 135 

 

 

 635 

 

 

 1,167 

 

 

 427,784 

 

 

 428,951 

 

 

 -

Consumer

 

 -

 

 

 2 

 

 

 -

 

 

 2 

 

 

 976 

 

 

 978 

 

 

 -

             Total

$

 2,662 

 

$

 869 

 

$

 839 

 

$

 4,370 

 

$

 833,288 

 

$

 837,658 

 

$

 204 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

 123 

 

$

 -

 

$

 180 

 

$

 303 

 

$

 321,427 

 

$

 321,730 

 

$

 -

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 28,606 

 

 

 28,606 

 

 

 -

Commercial

 

 196 

 

 

 -

 

 

 100 

 

 

 296 

 

 

 38,749 

 

 

 39,045 

 

 

 -

Residential real estate

 

 595 

 

 

 155 

 

 

 929 

 

 

 1,679 

 

 

 407,193 

 

 

 408,872 

 

 

 55 

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 718 

 

 

 718 

 

 

 -

             Total

$

 914 

 

$

 155 

 

$

 1,209 

 

$

 2,278 

 

$

 796,693 

 

$

 798,971 

 

$

 55 





The following tables detail the activity in the allowance for loan losses for the three and nine months ended September 30, 2017 and 2016:



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Allowance for loan losses

(In Thousands)



Three Months Ending September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2017

$

 2,154 

 

$

 473 

 

$

 493 

 

$

 3,370 

 

$

 27 

 

$

 244 

 

$

 6,761 



  Charge-offs

 

 (108)

 

 

 -

 

 

 -

 

 

 (123)

 

 

 -

 

 

 -

 

 

 (231)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

 146 

 

 

 (49)

 

 

 48 

 

 

 182 

 

 

 (10)

 

 

 3 

 

 

 320 



Ending Balance - September 30, 2017

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2016

$

 2,349 

 

$

 516 

 

$

 423 

 

$

 2,937 

 

$

 15 

 

$

 277 

 

$

 6,517 



  Charge-offs

 

 (108)

 

 

 -

 

 

 (122)

 

 

 (185)

 

 

 -

 

 

 -

 

 

 (415)



  Recoveries

 

 13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 13 



  Provisions

 

 (62)

 

 

 (92)

 

 

 240 

 

 

 677 

 

 

 2 

 

 

 (30)

 

 

 735 



Ending Balance - September 30, 2017

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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 





The following tables represent the allocation for loan losses and the related loan portfolio disaggregated based on impairment methodology at September 30, 2017 and December 31, 2016:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Commercial Real Estate

 

Commercial Construction

 

Commercial

 

Residential Real Estate

 

Consumer

 

Unallocated

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(In Thousands)

 September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 

Ending balance: individually evaluated for impairment

$

 40 

 

$

 -

 

$

 39 

 

$

 235 

 

$

 -

 

$

 -

 

$

 314 

Ending balance: collectively evaluated for impairment

$

 2,152 

 

$

 424 

 

$

 502 

 

$

 3,194 

 

$

 17 

 

$

 247 

 

$

 6,536 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

 333,331 

 

$

 34,536 

 

$

 39,862 

 

$

 428,951 

 

$

 978 

 

 

 

 

$

 837,658 

Ending balance: individually evaluated  for impairment

$

 7,473 

 

$

 315 

 

$

 246 

 

$

 2,045 

 

$

 -

 

 

 

 

$

 10,079 

Ending balance: collectively evaluated for impairment

$

 325,858 

 

$

 34,221 

 

$

 39,616 

 

$

 426,906 

 

$

 978 

 

 

 

 

$

 827,579 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

 2,349 

 

$

 516 

 

$

 423 

 

$

 2,937 

 

$

 15 

 

$

 277 

 

$

 6,517 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

 64 

 

$

 232 

 

$

 -

 

$

 -

 

$

 296 

Ending balance: collectively evaluated for impairment

$

 2,349 

 

$

 516 

 

$

 359 

 

$

 2,705 

 

$

 15 

 

$

 277 

 

$

 6,221 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

 321,730 

 

$

 28,606 

 

$

 39,045 

 

$

 408,872 

 

$

 718 

 

 

 

 

$

 798,971 

Ending balance: individually evaluated  for impairment

$

 8,159 

 

$

 315 

 

$

 379 

 

$

 2,327 

 

$

 -

 

 

 

 

$

 11,180 

Ending balance: collectively evaluated for impairment

$

 313,571 

 

$

 28,291 

 

$

 38,666 

 

$

 406,545 

 

$

 718 

 

 

 

 

$

 787,791 



Beginning with the allowance for loan losses calculation of April 30, 2017, management updated the historical loss factors for each pool, which includes, but is not limited to, an average of the Company’s historical net charge-off ratio for five prior years and year to date, this has been reduced to four prior years and year to date as of the April 30, 2017 calculation, to maintain an adequate reserve. The updates were based on management’s best judgement using relevant information available at the time of the evaluation and are supported through documentation in a narrative accompanying the allowance for loan loss calculation.



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 TDR’s outstanding:



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 

 September 30, 2017

(In Thousands)

Commercial real estate

$

 3,024 

 

$

 -

 

$

 3,024 

Commercial construction

 

 260 

 

 

 -

 

 

 260 

Commercial

 

 246 

 

 

 -

 

 

 246 

Residential real estate

 

 1,207 

 

 

 53 

 

 

 1,260 

Consumer

 

 -

 

 

 -

 

 

 -



$

 4,737 

 

$

 53 

 

$

 4,790 



 

 

 

 

 

 

 

 

December 31, 2016

 

Commercial real estate

$

 3,078 

 

$

 -

 

$

 3,078 

Commercial construction

 

 260 

 

 

 -

 

 

 260 

Commercial

 

 250 

 

 

 -

 

 

 250 

Residential real estate

 

 1,243 

 

 

 -

 

 

 1,243 

Consumer

 

 -

 

 

 -

 

 

 -



$

 4,831 

 

$

 -

 

$

 4,831 





As of September 30, 2017,  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. The following table presents newly restructured loans that occurred during the three and nine months ended September 30, 2017.







 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Number of Loans

 

Pre-Modification

Outstanding Balance

 

Post- Modification Outstanding Balance



 

 

 

 

 

 

 

 



 

(Dollars In Thousands)

Three Months Ending September 30, 2017

 

 

 

 

 

 

 

 

Residential real estate

 

2 

 

$

 122 

 

$

 53 



 

2 

 

$

 122 

 

$

 53 



 

 

 

 

 

 

 

 

Nine Months Ending September 30, 2017

 

 

 

 

 

 

 

 

Residential real estate

 

2 

 

$

 122 

 

$

 53 



 

2 

 

$

 122 

 

$

 53 



The residential loans above were restructured through a payment modification and had no impairment reserve recorded in the allowance for loan loss for the three and nine months ending September 30, 2017.



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, 2017 and 2016.

v3.8.0.1
Fair Value Measurements
 9 Months Ended
Sep. 30, 2017
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, 2017 and December 31, 2016, 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

$

 -

 

$

 14,028 

 

$

 -

 

$

 14,028 



Municipal bonds

 

 -

 

 

 38,469 

 

 

 -

 

 

 38,469 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

 43,899 

 

 

 -

 

 

 43,899 



September 30, 2017 Securities available for sale

$

 -

 

$

 96,396 

 

$

 -

 

$

 96,396 



 

 

 

 

 

 

 

 

 

 

 

 



U.S. Government agency obligations

$

 -

 

$

 32,488 

 

$

 -

 

$

 32,488 



Municipal bonds

 

 -

 

 

 38,808 

 

 

 -

 

 

 38,808 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

 14,302 

 

 

 -

 

 

 14,302 



December 31, 2016 Securities available for sale

$

 -

 

$

 85,598 

 

$

 -

 

$

 85,598 



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, 2017 and December 31, 2016, 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, 2017 Impaired loans (1)

$

 -

 

$

 -

 

$

 3,159 

 

$

 3,159 

September 30, 2017 Other real estate owned (1)

$

 -

 

$

 -

 

$

 427 

 

$

 427 

December 31, 2016 Impaired loans (1)

$

 -

 

$

 -

 

$

 794 

 

$

 794 

December 31, 2016 Other real estate owned (1)

$

 -

 

$

 -

 

$

 480 

 

$

 480 



 

 

 

 

 

 

 

 

 

 

 

(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.



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, 2017, of the impaired loans having an aggregate balance of $10.1 million, $6.6 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 $3.5 million in impaired loans, an aggregate valuation allowance of $314 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, 2017:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

 3,159 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-24.2%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to - 10%  (-7.6%)

 

 Other real estate owned

$

 427 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 

 December 31, 2016:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

 794 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-24.8%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -10.0%  (-7.5%)

 

 Other real estate owned

$

 480 

 

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, 2017 and December 31, 2016:



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. Such amounts are not material.



The estimated fair values of the Company’s financial instruments were as follows at September 30, 2017 and December 31, 2016:





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

(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, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 39,820 

 

$

 39,820 

 

$

 39,820 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

 96,396 

 

 

 96,396 

 

 

 -

 

 

 96,396 

 

 

 -

 

Loans receivable, net of allowance

 

 

 831,179 

 

 

 828,267 

 

 

 -

 

 

 -

 

 

 828,267 

 

Restricted investments in bank stock

 

 

 583 

 

 

 583 

 

 

 -

 

 

 583 

 

 

 -

 

Accrued interest receivable

 

 

 1,833 

 

 

 1,833 

 

 

 -

 

 

 1,833 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 893,211 

 

 

 893,006 

 

 

 -

 

 

 893,006 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

 10,195 

 

 

 10,190 

 

 

 -

 

 

 10,190 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

 781 

 

 

 781 

 

 

 -

 

 

 781 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 24,218 

 

$

 24,218 

 

$

 24,218 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

 85,598 

 

 

 85,598 

 

 

 -

 

 

 85,598 

 

 

 -

 

Loans receivable, net of allowance

 

 

 792,598 

 

 

 790,326 

 

 

 -

 

 

 -

 

 

 790,326 

 

Restricted investments in bank stock

 

 

 624 

 

 

 624 

 

 

 -

 

 

 624 

 

 

 -

 

Accrued interest receivable

 

 

 1,749 

 

 

 1,749 

 

 

 -

 

 

 1,749 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 833,384 

 

 

 833,627 

 

 

 -

 

 

 833,627 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

 11,889 

 

 

 11,886 

 

 

 -

 

 

 11,886 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

 813 

 

 

 813 

 

 

 -

 

 

 813 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



v3.8.0.1
Offsetting Assets And Liabilities
 9 Months Ended
Sep. 30, 2017
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, 2017 and December 31, 2016:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

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, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

 10,195 

 

$

 -

 

$

 10,195 

 

$

 (10,195)

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

 11,889 

 

$

 -

 

$

 11,889 

 

$

 (11,889)

 

$

 -

 

$

 -



As of September 30, 2017 and December 31, 2016, the fair value of securities pledged was $13.3 million and $14.5 million, respectively.

v3.8.0.1
Deposits
 9 Months Ended
Sep. 30, 2017
Deposits [Abstract]  
Deposits

Note 14  –  Deposits



The components of deposits at September 30, 2017 and December 31, 2016 are as follows:













 

 

 

 

 



 

 

 

 

 



September 30, 2017

 

December 31, 2016



(In Thousands)



 

 

 

 

 

Demand, non-interest bearing

$

 134,808 

 

$

 117,208 

Demand, NOW and money market, interest bearing

 

 114,157 

 

 

 97,687 

Savings

 

 505,783 

 

 

 488,701 

Time, $100 and over

 

 99,444 

 

 

 89,020 

Time, other

 

 39,019 

 

 

 40,768 

Total deposits

$

 893,211 

 

$

 833,384 





v3.8.0.1
New Accounting Standards
 9 Months Ended
Sep. 30, 2017
New Accounting Standards [Abstract]  
New Accounting Standards

Note 15  – 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. The Company will adopt this ASU on January 1, 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. This guidance does not apply to revenue associated with financial instruments, including loans, securities, and derivatives that are accounted for under other U.S. GAAP guidance. For that reason, the Company does not expect it to have a material impact on the consolidated results of operations for elements of the statement of income associated with financial instruments, including securities gains, interest income and interest expense. However, the Company does believe the new standard will result in new disclosure requirements. The Company currently is in the process of reviewing contracts to assess the impact of the new guidance on its service offerings that are in the scope of the guidance, included in non-interest income. The recognition and measurement of certain non-interest income items such as gain on seller financed real estate owned sales and deposit related fees, could be affected. The Company does not expect this ASU to have material impact on the Company’s consolidated financial statements when adopted.



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 the Company in 2019. 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 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. This guidance is effective for the Company in 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, however due to the significant differences in the revised guidance from existing U.S. GAAP, the implementation of this guidance may result in material changes to the Company’s accounting for credit losses on financial instruments.



In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20)” (“ASU 2017-08”). ASU 2017-08 will amend the amortization period for certain purchased callable debt securities held at a premium to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for the Company in 2019. Early application is permitted for any interim period. The Company is currently assessing the impact this new standard will have on its consolidated financial statements.



v3.8.0.1
Basis Of Presentation (Policy)
 9 Months Ended
Sep. 30, 2017
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

v3.8.0.1
Other Comprehensive Income (Loss) (Tables)
 9 Months Ended
Sep. 30, 2017
Other Comprehensive Income (Loss) [Abstract]  
Schedule Of Comprehensive Income (Loss)









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding loss on securities
   available for sale

 

$

 (162)

 

$

 56 

 

$

 (106)

 

$

 (212)

 

$

 72 

 

$

 (140)

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

 

 

 (19)

 

 

 6 

 

 

 (13)

 

 

 (350)

 

 

 119 

 

 

 (231)

Total change in other comprehensive income

 

$

 (181)

 

$

 62 

 

$

 (119)

 

$

 (562)

 

$

 191 

 

$

 (371)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

(In Thousands)



 

Before

 

Tax

 

Net of

 

Before

 

Tax

 

Net of



 

Tax

 

Effect

 

Tax

 

Tax

 

Effect

 

Tax

Change in accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains on securities
   available for sale

 

$

 1,188 

 

$

 (404)

 

$

 784 

 

$

 845 

 

$

 (287)

 

$

 558 

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

 

 

 (19)

 

 

 6 

 

 

 (13)

 

 

 (350)

 

 

 119 

 

 

 (231)

Total change in other comprehensive income

 

$

 1,169 

 

$

 (398)

 

$

 771 

 

$

 495 

 

$

 (168)

 

$

 327 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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,



 

 

2017

 

 

2016



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

 (19)

 

$

 (350)

Income taxes

 

 

 6 

 

 

 119 

Net of tax

 

$

 (13)

 

$

 (231)







 

 

 

 

 

 



 

 

 

 

 

 



 

Nine Months Ended



 

September 30,



 

 

2017

 

 

2016



 

 

 

 

 

 



 

 

(In Thousands)

Securities available for sale:

 

 

 

 

 

 

Realized gains on securities transactions

 

$

 (19)

 

$

 (350)

Income taxes

 

 

 6 

 

 

 119 

Net of tax

 

$

 (13)

 

$

 (231)



Schedule Of Accumulated Other Comprehensive Income



















 

 

 



 

 

 



 

Securities



 

Available



 

for Sale

Three Months Ended September 30, 2017 and 2016

 

(In Thousands)

Balance June 30, 2017

 

$

 866 

Other comprehensive loss before reclassifications

 

 

 (106)

Amounts reclassified from accumulated other
   comprehensive income

 

 

 (13)

Net other comprehensive loss during the period

 

 

 (119)

Balance September 30, 2017

 

$

 747 



 

 

 

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 



 

 

 



 

 

 



 

 

 

Nine Months Ended September 30, 2017 and 2016

 

 

 

Balance January 1, 2017

 

$

 (24)

Other comprehensive income before reclassifications

 

 

 784 

Amounts reclassified from accumulated other
   comprehensive income

 

 

 (13)

Net other comprehensive income during the period

 

 

 771 

Balance September 30, 2017

 

$

 747 



 

 

 

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 



 

 

 



v3.8.0.1
Basic And Diluted Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2017
Basic And Diluted Earnings Per Share [Abstract]  
Earnings Per Share



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended

 

Nine Months Ended



 

 

September 30,

 

September 30,



 

 

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

(Dollars In Thousands, Except Share and Per Share Data)



Net income

 

$

 2,233 

 

$

 2,007 

 

$

 6,218 

 

$

 5,279 



 

 

 

 

 

 

 

 

 

 

 

 

 



Weighted average shares outstanding

 

 

 7,444,231 

 

 

 7,413,697 

 

 

 7,445,997 

 

 

 7,412,861 



Dilutive effect of potential common shares, stock options

 

 

 57,076 

 

 

 35,645 

 

 

 57,038 

 

 

 34,948 



Diluted weighted average common shares outstanding

 

 

 7,501,307 

 

 

 7,449,342 

 

 

 7,503,035 

 

 

 7,447,809 



 

 

 

 

 

 

 

 

 

 

 

 

 



Basic earnings per share

 

$

 0.30 

 

$

 0.27 

 

$

 0.84 

 

$

 0.71 



Diluted earnings per share

 

$

 0.30 

 

$

 0.27 

 

$

 0.83 

 

$

 0.71 



 

 

 

 

 

 

 

 

 

 

 

 

 



v3.8.0.1
Securities Available For Sale (Tables)
 9 Months Ended
Sep. 30, 2017
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, 2017 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 14,053 

 

$

 4 

 

$

 (29)

 

$

 14,028 

Municipal bonds

 

 37,357 

 

 

 1,359 

 

 

 (247)

 

 

 38,469 

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

 

 43,855 

 

 

 226 

 

 

 (182)

 

 

 43,899 

Total

$

 95,265 

 

$

 1,589 

 

$

 (458)

 

$

 96,396 



 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016 :

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 32,581 

 

$

 12 

 

$

 (105)

 

$

 32,488 

Municipal bonds

 

 38,410 

 

 

 1,161 

 

 

 (763)

 

 

 38,808 

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

 

 14,645 

 

 

 114 

 

 

 (457)

 

 

 14,302 

Total

$

 85,636 

 

$

 1,287 

 

$

 (1,325)

 

$

 85,598 



Securities Available-For-Sale By Contractual Maturity



 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Amortized

 

 

Fair

 



 

 

Cost

 

 

Value

 



 

 

 

 

 

 

 



 

(In Thousands)

 

Due in one year or less

 

$

 9,249 

 

$

 9,268 

 

Due after one year through five years

 

 

 12,073 

 

 

 12,297 

 

Due after five years through ten years

 

 

 7,409 

 

 

 7,629 

 

Due after ten years

 

 

 22,679 

 

 

 23,303 

 



 

 

 51,410 

 

 

 52,497 

 

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

 

 

 43,855 

 

 

 43,899 

 



 

$

 95,265 

 

$

 96,396 

 



 

 

 

 

 

 

 



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, 2017 :

(In Thousands)

U.S. Government agency obligations

$

 7,024 

 

$

 (9)

 

$

 2,997 

 

$

 (20)

 

$

 10,021 

 

$

 (29)

Municipal bonds

 

 2,588 

 

 

 (21)

 

 

 6,401 

 

 

 (226)

 

 

 8,989 

 

 

 (247)

U.S. Government Sponsored Enterprise

 

 25,685 

 

 

 (182)

 

 

 -

 

 

 -

 

 

 25,685 

 

 

 (182)

   (GSE) - Mortgage -backed securities -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   residential 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Temporarily Impaired Securities

$

 35,297 

 

$

 (212)

 

$

 9,398 

 

$

 (246)

 

$

 44,695 

 

$

 (458)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016 :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

$

 20,388 

 

$

 (105)

 

$

 -

 

$

 -

 

$

 20,388 

 

$

 (105)

Municipal bonds

 

 8,595 

 

 

 (763)

 

 

 -

 

 

 -

 

 

 8,595 

 

 

 (763)

U.S. Government Sponsored Enterprise

 

 13,206 

 

 

 (457)

 

 

 -

 

 

 -

 

 

 13,206 

 

 

 (457)

   (GSE) - Mortgage -backed securities -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Temporarily Impaired Securities

$

 42,189 

 

$

 (1,325)

 

$

 -

 

$

 -

 

$

 42,189 

 

$

 (1,325)



v3.8.0.1
Loans Receivable And Credit Quality (Tables)
 9 Months Ended
Sep. 30, 2017
Loans Receivable And Credit Quality [Abstract]  
Composition Of Loans Receivable



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



September 30, 2017

 

December 31, 2016



 

 

Percentage of

 

 

 

Percentage of



Balance

 

total Loans

 

Balance

 

total Loans



 

 

 

 

 

 

 

 

 



 

(Dollars in Thousands)



 

 

 

 

 

 

 

 

 

Commercial real estate

$

 333,331 

 

 39.79% 

 

$

 321,730 

 

 40.27% 

Commercial construction

 

 34,536 

 

 4.12% 

 

 

 28,606 

 

 3.58% 

Commercial

 

 39,862 

 

 4.76% 

 

 

 39,045 

 

 4.89% 

Residential real estate

 

 428,951 

 

 51.21% 

 

 

 408,872 

 

 51.17% 

Consumer

 

 978 

 

 0.12% 

 

 

 718 

 

 0.09% 

Total loans

 

 837,658 

 

 100.00% 

 

 

 798,971 

 

 100.00% 

Unearned origination fees

 

 371 

 

 

 

 

 144 

 

 

Allowance for loan losses

 

 (6,850)

 

 

 

 

 (6,517)

 

 



$

 831,179 

 

 

 

$

 792,598 

 

 



Schedule Of Loan Portfolio By Aggregate Risk Rating



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 September 30, 2017

 

(In Thousands)

Commercial real estate

$

 327,832 

 

$

 -

 

$

 5,499 

 

$

 -

 

$

 333,331 

Commercial construction

 

 34,221 

 

 

 -

 

 

 315 

 

 

 -

 

 

 34,536 

Commercial

 

 39,862 

 

 

 -

 

 

 -

 

 

 -

 

 

 39,862 

Residential real estate

 

 428,113 

 

 

 -

 

 

 838 

 

 

 -

 

 

 428,951 

Consumer

 

 978 

 

 

 -

 

 

 -

 

 

 -

 

 

 978 

             Total

$

 831,006 

 

$

 -

 

$

 6,652 

 

$

 -

 

$

 837,658 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

 315,579 

 

$

 20 

 

$

 6,131 

 

$

 -

 

$

 321,730 

Commercial construction

 

 28,291 

 

 

 -

 

 

 315 

 

 

 -

 

 

 28,606 

Commercial

 

 38,916 

 

 

 29 

 

 

 100 

 

 

 -

 

 

 39,045 

Residential real estate

 

 407,787 

 

 

 -

 

 

 1,085 

 

 

 -

 

 

 408,872 

Consumer

 

 718 

 

 

 -

 

 

 -

 

 

 -

 

 

 718 

             Total

$

 791,291 

 

$

 49 

 

$

 7,631 

 

$

 -

 

$

 798,971 



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, 2017

 

 

(In Thousands)

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 5,453 

 

$

 5,453 

 

 

 

 

$

 5,517 

 

$

 55 

 

$

 6,730 

 

$

 167 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 

 

 

 315 

 

 

 3 

 

 

 315 

 

 

 8 

 

   Commercial

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 50 

 

 

 -

 

   Residential real estate

 

 

 838 

 

 

 1,105 

 

 

 

 

 

 909 

 

 

 1 

 

 

 1,191 

 

 

 4 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 2,020 

 

$

 2,284 

 

$

 40 

 

$

 2,006 

 

$

 7 

 

$

 1,003 

 

$

 17 

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

   Commercial

 

 

 246 

 

 

 246 

 

 

 39 

 

 

 247 

 

 

 3 

 

 

 255 

 

 

 8 

 

   Residential real estate

 

 

 1,207 

 

 

 1,207 

 

 

 235 

 

 

 1,213 

 

 

 4 

 

 

 1,009 

 

 

 13 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 7,473 

 

$

 7,737 

 

$

 40 

 

$

 7,523 

 

$

 62 

 

$

 7,733 

 

$

 184 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 -

 

 

 315 

 

 

 3 

 

 

 315 

 

 

 8 

 

   Commercial

 

 

 246 

 

 

 246 

 

 

 39 

 

 

 247 

 

 

 3 

 

 

 305 

 

 

 8 

 

   Residential real estate

 

 

 2,045 

 

 

 2,312 

 

 

 235 

 

 

 2,122 

 

 

 5 

 

 

 2,200 

 

 

 17 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

$

 10,079 

 

$

 10,610 

 

$

 314 

 

$

 10,207 

 

$

 73 

 

$

 10,553 

 

$

 217 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 8,159 

 

$

 8,463 

 

 

 

 

 

 

 

 

 

 

$

 5,924 

 

$

 255 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 

 

 

 

 

 

 

 

 

 565 

 

 

 19 

 

   Commercial

 

 

 100 

 

 

 160 

 

 

 

 

 

 

 

 

 

 

 

 50 

 

 

 2 

 

   Residential real estate

 

 

 1,516 

 

 

 1,723 

 

 

 

 

 

 

 

 

 

 

 

 1,050 

 

 

 23 

 

   Consumer

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 -

 

$

 -

 

$

 -

 

 

 

 

 

 

 

$

 -

 

$

 -

 

   Commercial construction

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

   Commercial

 

 

 279 

 

 

 279 

 

 

 64 

 

 

 

 

 

 

 

 

 263 

 

 

 12 

 

   Residential real estate

 

 

 811 

 

 

 811 

 

 

 232 

 

 

 

 

 

 

 

 

 914 

 

 

 5 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate

 

$

 8,159 

 

$

 8,463 

 

$

 -

 

 

 

 

 

 

 

$

 5,924 

 

$

 255 

 

   Commercial construction

 

 

 315 

 

 

 315 

 

 

 -

 

 

 

 

 

 

 

 

 565 

 

 

 19 

 

   Commercial

 

 

 379 

 

 

 439 

 

 

 64 

 

 

 

 

 

 

 

 

 313 

 

 

 14 

 

   Residential real estate

 

 

 2,327 

 

 

 2,534 

 

 

 232 

 

 

 

 

 

 

 

 

 1,964 

 

 

 28 

 

   Consumer

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 -

 

 

 -

 



 

$

 11,180 

 

$

 11,751 

 

$

 296 

 

 

 

 

 

 

 

$

 8,766 

 

$

 316 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





Schedule Of Nonaccrual Loans



 

 

 

 

 

 



 

 

 

 

 

 



September 30, 2017

 

December 31, 2016

 



 

 

 

 

 

 



(In Thousands)

 

   Commercial real estate

$

 -

 

$

 180 

 

   Commercial construction

 

 -

 

 

 -

 

   Commercial

 

 -

 

 

 100 

 

   Residential real estate

 

 689 

 

 

 874 

 

   Consumer

 

 -

 

 

 -

 

       Total

$

 689 

 

$

 1,154 

 



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, 2017

(In Thousands)

Commercial real estate

$

 2,265 

 

$

 570 

 

$

 204 

 

$

 3,039 

 

$

 330,292 

 

$

 333,331 

 

$

 204 

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 34,536 

 

 

 34,536 

 

 

 -

Commercial

 

 -

 

 

 162 

 

 

 -

 

 

 162 

 

 

 39,700 

 

 

 39,862 

 

 

 -

Residential real estate

 

 397 

 

 

 135 

 

 

 635 

 

 

 1,167 

 

 

 427,784 

 

 

 428,951 

 

 

 -

Consumer

 

 -

 

 

 2 

 

 

 -

 

 

 2 

 

 

 976 

 

 

 978 

 

 

 -

             Total

$

 2,662 

 

$

 869 

 

$

 839 

 

$

 4,370 

 

$

 833,288 

 

$

 837,658 

 

$

 204 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

$

 123 

 

$

 -

 

$

 180 

 

$

 303 

 

$

 321,427 

 

$

 321,730 

 

$

 -

Commercial construction

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 28,606 

 

 

 28,606 

 

 

 -

Commercial

 

 196 

 

 

 -

 

 

 100 

 

 

 296 

 

 

 38,749 

 

 

 39,045 

 

 

 -

Residential real estate

 

 595 

 

 

 155 

 

 

 929 

 

 

 1,679 

 

 

 407,193 

 

 

 408,872 

 

 

 55 

Consumer

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 718 

 

 

 718 

 

 

 -

             Total

$

 914 

 

$

 155 

 

$

 1,209 

 

$

 2,278 

 

$

 796,693 

 

$

 798,971 

 

$

 55 



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, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - June 30, 2017

$

 2,154 

 

$

 473 

 

$

 493 

 

$

 3,370 

 

$

 27 

 

$

 244 

 

$

 6,761 



  Charge-offs

 

 (108)

 

 

 -

 

 

 -

 

 

 (123)

 

 

 -

 

 

 -

 

 

 (231)



  Recoveries

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -



  Provisions

 

 146 

 

 

 (49)

 

 

 48 

 

 

 182 

 

 

 (10)

 

 

 3 

 

 

 320 



Ending Balance - September 30, 2017

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ending September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Beginning Balance - December 31, 2016

$

 2,349 

 

$

 516 

 

$

 423 

 

$

 2,937 

 

$

 15 

 

$

 277 

 

$

 6,517 



  Charge-offs

 

 (108)

 

 

 -

 

 

 (122)

 

 

 (185)

 

 

 -

 

 

 -

 

 

 (415)



  Recoveries

 

 13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 13 



  Provisions

 

 (62)

 

 

 (92)

 

 

 240 

 

 

 677 

 

 

 2 

 

 

 (30)

 

 

 735 



Ending Balance - September 30, 2017

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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 



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, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

 2,192 

 

$

 424 

 

$

 541 

 

$

 3,429 

 

$

 17 

 

$

 247 

 

$

 6,850 

Ending balance: individually evaluated for impairment

$

 40 

 

$

 -

 

$

 39 

 

$

 235 

 

$

 -

 

$

 -

 

$

 314 

Ending balance: collectively evaluated for impairment

$

 2,152 

 

$

 424 

 

$

 502 

 

$

 3,194 

 

$

 17 

 

$

 247 

 

$

 6,536 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

 333,331 

 

$

 34,536 

 

$

 39,862 

 

$

 428,951 

 

$

 978 

 

 

 

 

$

 837,658 

Ending balance: individually evaluated  for impairment

$

 7,473 

 

$

 315 

 

$

 246 

 

$

 2,045 

 

$

 -

 

 

 

 

$

 10,079 

Ending balance: collectively evaluated for impairment

$

 325,858 

 

$

 34,221 

 

$

 39,616 

 

$

 426,906 

 

$

 978 

 

 

 

 

$

 827,579 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance

$

 2,349 

 

$

 516 

 

$

 423 

 

$

 2,937 

 

$

 15 

 

$

 277 

 

$

 6,517 

Ending balance: individually evaluated for impairment

$

 -

 

$

 -

 

$

 64 

 

$

 232 

 

$

 -

 

$

 -

 

$

 296 

Ending balance: collectively evaluated for impairment

$

 2,349 

 

$

 516 

 

$

 359 

 

$

 2,705 

 

$

 15 

 

$

 277 

 

$

 6,221 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivables:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$

 321,730 

 

$

 28,606 

 

$

 39,045 

 

$

 408,872 

 

$

 718 

 

 

 

 

$

 798,971 

Ending balance: individually evaluated  for impairment

$

 8,159 

 

$

 315 

 

$

 379 

 

$

 2,327 

 

$

 -

 

 

 

 

$

 11,180 

Ending balance: collectively evaluated for impairment

$

 313,571 

 

$

 28,291 

 

$

 38,666 

 

$

 406,545 

 

$

 718 

 

 

 

 

$

 787,791 



Troubled Debt Restructuring Outstanding



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



Accrual Loans

 

Non-Accrual Loans

 

Total Modifications



 

 

 

 

 

 

 

 

 September 30, 2017

(In Thousands)

Commercial real estate

$

 3,024 

 

$

 -

 

$

 3,024 

Commercial construction

 

 260 

 

 

 -

 

 

 260 

Commercial

 

 246 

 

 

 -

 

 

 246 

Residential real estate

 

 1,207 

 

 

 53 

 

 

 1,260 

Consumer

 

 -

 

 

 -

 

 

 -



$

 4,737 

 

$

 53 

 

$

 4,790 



 

 

 

 

 

 

 

 

December 31, 2016

 

Commercial real estate

$

 3,078 

 

$

 -

 

$

 3,078 

Commercial construction

 

 260 

 

 

 -

 

 

 260 

Commercial

 

 250 

 

 

 -

 

 

 250 

Residential real estate

 

 1,243 

 

 

 -

 

 

 1,243 

Consumer

 

 -

 

 

 -

 

 

 -



$

 4,831 

 

$

 -

 

$

 4,831 



Schedule Of Newly Restructured Loans



 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 



 

Number of Loans

 

Pre-Modification

Outstanding Balance

 

Post- Modification Outstanding Balance



 

 

 

 

 

 

 

 



 

(Dollars In Thousands)

Three Months Ending September 30, 2017

 

 

 

 

 

 

 

 

Residential real estate

 

2 

 

$

 122 

 

$

 53 



 

2 

 

$

 122 

 

$

 53 



 

 

 

 

 

 

 

 

Nine Months Ending September 30, 2017

 

 

 

 

 

 

 

 

Residential real estate

 

2 

 

$

 122 

 

$

 53 



 

2 

 

$

 122 

 

$

 53 



v3.8.0.1
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2017
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

$

 -

 

$

 14,028 

 

$

 -

 

$

 14,028 



Municipal bonds

 

 -

 

 

 38,469 

 

 

 -

 

 

 38,469 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

 43,899 

 

 

 -

 

 

 43,899 



September 30, 2017 Securities available for sale

$

 -

 

$

 96,396 

 

$

 -

 

$

 96,396 



 

 

 

 

 

 

 

 

 

 

 

 



U.S. Government agency obligations

$

 -

 

$

 32,488 

 

$

 -

 

$

 32,488 



Municipal bonds

 

 -

 

 

 38,808 

 

 

 -

 

 

 38,808 



U.S. Government Sponsored Enterprise (GSE) -

 

 

 

 

 

 

 

 

 

 

 



  Mortgage-backed securities - residential

 

 -

 

 

 14,302 

 

 

 -

 

 

 14,302 



December 31, 2016 Securities available for sale

$

 -

 

$

 85,598 

 

$

 -

 

$

 85,598 



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, 2017 Impaired loans (1)

$

 -

 

$

 -

 

$

 3,159 

 

$

 3,159 

September 30, 2017 Other real estate owned (1)

$

 -

 

$

 -

 

$

 427 

 

$

 427 

December 31, 2016 Impaired loans (1)

$

 -

 

$

 -

 

$

 794 

 

$

 794 

December 31, 2016 Other real estate owned (1)

$

 -

 

$

 -

 

$

 480 

 

$

 480 



 

 

 

 

 

 

 

 

 

 

 

(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.



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, 2017:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

 3,159 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-24.2%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to - 10%  (-7.6%)

 

 Other real estate owned

$

 427 

 

Listings, Letters of Intent

 

Liquidation expenses (3)

 

-5%  (-5%)

 



 

 

 

& Third Party Evaluations (4)

 

 

 

 

 

 December 31, 2016:

 

 

 

 

 

 

 

 

 

 Impaired loans

$

 794 

 

Appraisal of collateral (1)

 

Appraisal adjustments (2)

 

0% to -25%  (-24.8%)

 



 

 

 

 

 

Liquidation expenses (3)

 

0% to -10.0%  (-7.5%)

 

 Other real estate owned

$

 480 

 

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, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 39,820 

 

$

 39,820 

 

$

 39,820 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

 96,396 

 

 

 96,396 

 

 

 -

 

 

 96,396 

 

 

 -

 

Loans receivable, net of allowance

 

 

 831,179 

 

 

 828,267 

 

 

 -

 

 

 -

 

 

 828,267 

 

Restricted investments in bank stock

 

 

 583 

 

 

 583 

 

 

 -

 

 

 583 

 

 

 -

 

Accrued interest receivable

 

 

 1,833 

 

 

 1,833 

 

 

 -

 

 

 1,833 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 893,211 

 

 

 893,006 

 

 

 -

 

 

 893,006 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

 10,195 

 

 

 10,190 

 

 

 -

 

 

 10,190 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

 781 

 

 

 781 

 

 

 -

 

 

 781 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 24,218 

 

$

 24,218 

 

$

 24,218 

 

$

 -

 

$

 -

 

Interest bearing time deposits

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Securities available-for-sale

 

 

 85,598 

 

 

 85,598 

 

 

 -

 

 

 85,598 

 

 

 -

 

Loans receivable, net of allowance

 

 

 792,598 

 

 

 790,326 

 

 

 -

 

 

 -

 

 

 790,326 

 

Restricted investments in bank stock

 

 

 624 

 

 

 624 

 

 

 -

 

 

 624 

 

 

 -

 

Accrued interest receivable

 

 

 1,749 

 

 

 1,749 

 

 

 -

 

 

 1,749 

 

 

 -

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 833,384 

 

 

 833,627 

 

 

 -

 

 

 833,627 

 

 

 -

 

Securities sold under agreements to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   repurchase and federal funds purchased

 

 

 11,889 

 

 

 11,886 

 

 

 -

 

 

 11,886 

 

 

 -

 

Short-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Long-term borrowings

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Accrued interest payable

 

 

 813 

 

 

 813 

 

 

 -

 

 

 813 

 

 

 -

 

Off-balance sheet financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to grant loans

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Unfunded commitments under lines of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

Standby letters of credit

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 



v3.8.0.1
Offsetting Assets And Liabilities (Tables)
 9 Months Ended
Sep. 30, 2017
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, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

 10,195 

 

$

 -

 

$

 10,195 

 

$

 (10,195)

 

$

 -

 

$

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase Agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Institutions

 

$

 11,889 

 

$

 -

 

$

 11,889 

 

$

 (11,889)

 

$

 -

 

$

 -



v3.8.0.1
Deposits (Tables)
 9 Months Ended
Sep. 30, 2017
Deposits [Abstract]  
Components Of Deposits



 

 

 

 

 



 

 

 

 

 



September 30, 2017

 

December 31, 2016



(In Thousands)



 

 

 

 

 

Demand, non-interest bearing

$

 134,808 

 

$

 117,208 

Demand, NOW and money market, interest bearing

 

 114,157 

 

 

 97,687 

Savings

 

 505,783 

 

 

 488,701 

Time, $100 and over

 

 99,444 

 

 

 89,020 

Time, other

 

 39,019 

 

 

 40,768 

Total deposits

$

 893,211 

 

$

 833,384 



v3.8.0.1
Basis Of Presentation (Details)
 9 Months Ended
Sep. 30, 2017
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
v3.8.0.1
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 84 Months Ended
Dec. 31, 2016
shares
Jan. 31, 2014
shares
Feb. 28, 2013
shares
Feb. 29, 2012
shares
Sep. 30, 2017
USD ($)
shares
Sep. 30, 2016
USD ($)
shares
Sep. 30, 2017
USD ($)
item
shares
Sep. 30, 2016
USD ($)
shares
Dec. 31, 2016
$ / shares
Dec. 31, 2015
shares
Dec. 31, 2014
$ / shares
Dec. 31, 2013
$ / shares
Dec. 31, 2012
$ / shares
Sep. 30, 2017
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Shares issued under employee stock purchase plan, shares             2,820              
Stock Options [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Stock options granted 4,227 29,663 29,742 52,611     0     0        
Stock compensation expense | $         $ 2 $ 6 $ 5 $ 21            
Unrecognized compensation cost | $         $ 10   $ 10             $ 10
Unrecognized compensation cost, recognition period             2 years 2 months 19 days              
Dividend yield                 1.03%   0.00% 0.00% 0.00%  
Risk free interest rate                 2.35%   2.30% 1.34% 1.43%  
Expected life, in years                 6 years   6 years 6 years 7 years 6 months  
Expected volatility                 25.58%   28.93% 28.79% 31.10%  
Weighted average fair value of options granted, per share | $ / shares                 $ 3.28   $ 2.46 $ 2.14 $ 2.56  
Restricted Stock [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Awards granted         0 0 5,156 5,934           90,135
Restricted stock awards compensation expense | $         $ 24 $ 12 $ 72 $ 34            
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         293,622   293,622             293,622
Employee Stock Purchase Plan [Member]                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Number of shares authorized         350,000   350,000             350,000
Minimum work hours per week | item             20              
Minimum months to be eligible to participate             5 months              
Purchase price for share percentage equal to fair value of such shares             95.00%              
Maximum discount to fair value percentage             15.00%              
Shares issued under employee stock purchase plan, shares             2,820              
v3.8.0.1
Other Comprehensive Income (Loss) (Schedule Of Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Other Comprehensive Income (Loss) [Abstract]        
Unrealized holding gains (loss) on securities available for sale, Before Tax $ (162) $ (212) $ 1,188 $ 845
Unrealized holding gains (loss) on securities available for sale, Tax Effect 56 72 (404) (287)
Unrealized holding gains (loss) on securities available for sale, Net of Tax (106) (140) 784 558
Reclassification adjustments for gains on securities transactions included in net income, Before Tax [1],[2] (19) (350) (19) (350)
Reclassification adjustments for gains on securities transactions in net income: Tax Effect [1],[2] 6 119 6 119
Reclassification adjustments for gains on securities transactions in net income: Net of Tax [1],[2] (13) (231) (13) (231)
Total other comprehensive income (loss), before tax (181) (562) 1,169 495
Total other comprehensive income, Tax Effect 62 191 (398) (168)
Other comprehensive gain(loss), net of tax $ (119) $ (371) $ 771 $ 327
[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.
v3.8.0.1
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, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Other Comprehensive Income (Loss) [Abstract]        
Reclassification adjustments for gains on securities transactions included in net income, Before Tax [1],[2] $ (19) $ (350) $ (19) $ (350)
Income taxes [1],[2] 6 119 6 119
Reclassification adjustments for gains on securities transactions in net income: Net of Tax [1],[2] $ (13) $ (231) $ (13) $ (231)
[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.
v3.8.0.1
Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Other Comprehensive Income (Loss) [Abstract]        
Beginning Balance $ 866 $ 1,934 $ (24) $ 1,236
Other comprehensive income (loss) before reclassifications (106) (140) 784 558
Amounts reclassified from accumulated other comprehensive income (13) (231) (13) (231)
Other comprehensive gain(loss), net of tax (119) (371) 771 327
Ending Balance $ 747 $ 1,563 $ 747 $ 1,563
v3.8.0.1
Basic And Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Basic And Diluted Earnings Per Share [Abstract]        
Net income $ 2,233 $ 2,007 $ 6,218 $ 5,279
Weighted average shares outstanding 7,444,231 7,413,697 7,445,997 7,412,861
Dilutive effect of potential common shares, stock options 57,076 35,645 57,038 34,948
Diluted weighted average common shares outstanding 7,501,307 7,449,342 7,503,035 7,447,809
Basic earnings per share $ 0.30 $ 0.27 $ 0.84 $ 0.71
Diluted earnings per share $ 0.30 $ 0.27 $ 0.83 $ 0.71
Stock Excluded from Diluted Earnings Per Share Computation 4,227 0 4,227 0
v3.8.0.1
Guarantees (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2017
USD ($)
Guarantor Obligations [Line Items]  
Guarantee obligations term 1 year
Maximum Potential Exposure $ 3.6
Financial Standby Letter of Credit [Member]  
Guarantor Obligations [Line Items]  
Stand by letters of credit $ 4.9
v3.8.0.1
Short-Term And Long-Term Borrowings (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Line of Credit Facility [Line Items]    
Maximum borrowing capacity $ 487,500  
Short-term borrowings 0 $ 0
Long-term borrowings $ 0 0
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
v3.8.0.1
Securities Available For Sale (Narrative) (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
security
Sep. 30, 2016
USD ($)
Sep. 30, 2017
USD ($)
security
Sep. 30, 2016
USD ($)
Dec. 31, 2016
USD ($)
Securities Available For Sale [Abstract]          
Realized gains $ 19 $ 350 $ 19 $ 350  
Realized losses 0 $ 0 0 $ 0  
Securities pledged as collateral $ 85,900   $ 85,900   $ 71,800
Securities in an unrealized loss position | security 33   33    
v3.8.0.1
Securities Available For Sale (Amortized Cost And Fair Values Of Securities Available-For-Sale) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total $ 95,265 $ 85,636
Gross Unrealized Gains 1,589 1,287
Gross Unrealized Losses (458) (1,325)
Fair Value 96,396 85,598
U.S Government Agency Obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 14,053 32,581
Gross Unrealized Gains 4 12
Gross Unrealized Losses (29) (105)
Fair Value 14,028 32,488
Municipal Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 37,357 38,410
Gross Unrealized Gains 1,359 1,161
Gross Unrealized Losses (247) (763)
Fair Value 38,469 38,808
U.S. Government Sponsored Enterprise (GSE) - Mortgage-Backed Securities - Residential [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost, Total 43,855 14,645
Gross Unrealized Gains 226 114
Gross Unrealized Losses (182) (457)
Fair Value $ 43,899 $ 14,302
v3.8.0.1
Securities Available For Sale (Securities Available-For-Sale By Contractual Maturity) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Securities Available For Sale [Abstract]    
Amortized Cost, Due in one year or less $ 9,249  
Amortized Cost, Due after one year through five years 12,073  
Amortized Cost, Due after five years through ten years 7,409  
Amortized Cost, Due after ten years 22,679  
Amortized Cost, Debt Maturities, Total 51,410  
Amortized Cost, U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 43,855  
Amortized Cost, Total 95,265 $ 85,636
Fair Value, Due in one year or less 9,268  
Fair Value, Due after one year through five years 12,297  
Fair Value, Due after five years through ten years 7,629  
Fair Value, Due after ten years 23,303  
Fair Value, Debt maturities, Total 52,497  
Fair Value, U.S. Government Sponsored Enterprise (GSE) - Mortgage-backed securities - residential 43,899  
Fair Value, Total $ 96,396 $ 85,598
v3.8.0.1
Securities Available For Sale (Investments' Gross Unrealized Losses And Fair Value) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months $ 35,297 $ 42,189
Fair Value, 12 Months or More 9,398  
Fair Value, Total 44,695 42,189
Unrealized Losses, Less Than 12 Months (212) (1,325)
Unrealized Losses, 12 Months or More (246)  
Unrealized Losses, Total (458) (1,325)
U.S Government Agency Obligations [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months 7,024 20,388
Fair Value, 12 Months or More 2,997  
Fair Value, Total 10,021 20,388
Unrealized Losses, Less Than 12 Months (9) (105)
Unrealized Losses, 12 Months or More (20)  
Unrealized Losses, Total (29) (105)
Municipal Bonds [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months 2,588 8,595
Fair Value, 12 Months or More 6,401  
Fair Value, Total 8,989 8,595
Unrealized Losses, Less Than 12 Months (21) (763)
Unrealized Losses, 12 Months or More (226)  
Unrealized Losses, Total (247) (763)
U.S. Government Sponsored Enterprise (GSE) - Mortgage-Backed Securities - Residential [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value, Less Than 12 Months 25,685 13,206
Fair Value, Total 25,685 13,206
Unrealized Losses, Less Than 12 Months (182) (457)
Unrealized Losses, Total $ (182) $ (457)
v3.8.0.1
Restricted Investment In Bank Stock (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Restricted Investment In Bank Stock [Abstract]        
FHLB stock repurchased $ 0 $ 87 $ 1,300 $ 2,200
Payments to Acquire Federal Home Loan Bank Stock 0 0 1,300 537
Restricted stock dividends received $ 5 $ 4 $ 11 $ 45
v3.8.0.1
Loans Receivable And Credit Quality (Narrative) (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
loan
Sep. 30, 2016
loan
Sep. 30, 2017
USD ($)
loan
Sep. 30, 2016
loan
Financing Receivable, Modifications [Line Items]        
Available Commitments Outstanding on TDRs | $ $ 0   $ 0  
Number of Loans 2 0 2 0
Number of Loans experiencing payment default 0 0 0 0
Residential Real Estate [Member]        
Financing Receivable, Modifications [Line Items]        
Number of Loans 2   2  
Impairment reserve recorded | $ $ 0   $ 0  
v3.8.0.1
Loans Receivable And Credit Quality (Composition Of Loans Receivable) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 100.00% 100.00%
Total loans $ 837,658 $ 798,971
Unearned origination fees 371 144
Allowance for loan losses (6,850) (6,517)
Net Loans Receivable $ 831,179 $ 792,598
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 39.79% 40.27%
Total loans $ 333,331 $ 321,730
Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 4.76% 4.89%
Total loans $ 39,862 $ 39,045
Residential Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 51.21% 51.17%
Total loans $ 428,951 $ 408,872
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 0.12% 0.09%
Total loans $ 978 $ 718
Construction [Member] | Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of Total Loans 4.12% 3.58%
Total loans $ 34,536 $ 28,606
v3.8.0.1
Loans Receivable And Credit Quality (Schedule Of Loan Portfolio By Aggregate Risk Rating) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 837,658 $ 798,971
Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 831,006 791,291
Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans   49
Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 6,652 7,631
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 333,331 321,730
Commercial Real Estate [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 327,832 315,579
Commercial Real Estate [Member] | Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans   20
Commercial Real Estate [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 5,499 6,131
Commercial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 39,862 39,045
Commercial [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 39,862 38,916
Commercial [Member] | Special Mention [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans   29
Commercial [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans   100
Commercial [Member] | Construction [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 34,536 28,606
Commercial [Member] | Construction [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 34,221 28,291
Commercial [Member] | Construction [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 315 315
Residential Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 428,951 408,872
Residential Real Estate [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 428,113 407,787
Residential Real Estate [Member] | Substandard [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 838 1,085
Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 978 718
Consumer [Member] | Pass [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 978 $ 718
v3.8.0.1
Loans Receivable And Credit Quality (Schedule Of Impaired Loans) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]      
Recorded Investment, With no related allowance recorded $ 6,600 $ 6,600  
Recorded Investment, With an allowance recorded 3,500 3,500  
Total Recorded Investment Impaired 10,079 10,079 $ 11,180
Total Unpaid Principal Balance Impaired 10,610 10,610 11,751
Related Allowance 314 314 296
Total Average Recorded Investment Impaired 10,207 10,553 8,766
Total Interest Income Recognized Impaired 73 217 316
Commercial Real Estate [Member]      
Financing Receivable, Impaired [Line Items]      
Recorded Investment, With no related allowance recorded 5,453 5,453 8,159
Recorded Investment, With an allowance recorded 2,020 2,020  
Total Recorded Investment Impaired 7,473 7,473 8,159
Unpaid Principal Balance, With no related allowance recorded 5,453 5,453 8,463
Unpaid Principal Balance, With an allowance recorded 2,284 2,284  
Total Unpaid Principal Balance Impaired 7,737 7,737 8,463
Related Allowance 40 40  
Average Recorded Investment, With no related allowance recorded 5,517 6,730 5,924
Average Recorded Investment, With an allowance recorded 2,006 1,003  
Total Average Recorded Investment Impaired 7,523 7,733 5,924
Interest Income Recognized, With no related allowance recorded 55 167 255
Interest Income Recognized, With an allowance recorded 7 17  
Total Interest Income Recognized Impaired 62 184 255
Commercial [Member]      
Financing Receivable, Impaired [Line Items]      
Recorded Investment, With no related allowance recorded     100
Recorded Investment, With an allowance recorded 246 246 279
Total Recorded Investment Impaired 246 246 379
Unpaid Principal Balance, With no related allowance recorded     160
Unpaid Principal Balance, With an allowance recorded 246 246 279
Total Unpaid Principal Balance Impaired 246 246 439
Related Allowance 39 39 64
Average Recorded Investment, With no related allowance recorded   50 50
Average Recorded Investment, With an allowance recorded 247 255 263
Total Average Recorded Investment Impaired 247 305 313
Interest Income Recognized, With no related allowance recorded     2
Interest Income Recognized, With an allowance recorded 3 8 12
Total Interest Income Recognized Impaired 3 8 14
Residential Real Estate [Member]      
Financing Receivable, Impaired [Line Items]      
Recorded Investment, With no related allowance recorded 838 838 1,516
Recorded Investment, With an allowance recorded 1,207 1,207 811
Total Recorded Investment Impaired 2,045 2,045 2,327
Unpaid Principal Balance, With no related allowance recorded 1,105 1,105 1,723
Unpaid Principal Balance, With an allowance recorded 1,207 1,207 811
Total Unpaid Principal Balance Impaired 2,312 2,312 2,534
Related Allowance 235 235 232
Average Recorded Investment, With no related allowance recorded 909 1,191 1,050
Average Recorded Investment, With an allowance recorded 1,213 1,009 914
Total Average Recorded Investment Impaired 2,122 2,200 1,964
Interest Income Recognized, With no related allowance recorded 1 4 23
Interest Income Recognized, With an allowance recorded 4 13 5
Total Interest Income Recognized Impaired 5 17 28
Consumer [Member]      
Financing Receivable, Impaired [Line Items]      
Recorded Investment, With no related allowance recorded  
Recorded Investment, With an allowance recorded  
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]      
Recorded Investment, With no related allowance recorded 315 315 315
Total Recorded Investment Impaired 315 315 315
Unpaid Principal Balance, With no related allowance recorded 315 315 315
Total Unpaid Principal Balance Impaired 315 315 315
Average Recorded Investment, With no related allowance recorded 315 315 565
Total Average Recorded Investment Impaired 315 315 565
Interest Income Recognized, With no related allowance recorded 3 8 19
Total Interest Income Recognized Impaired $ 3 $ 8 $ 19
v3.8.0.1
Loans Receivable And Credit Quality (Schedule Of Nonaccrual Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans $ 689 $ 1,154
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans   180
Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans   100
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-Accrual Loans $ 689 $ 874
v3.8.0.1
Loans Receivable And Credit Quality (Schedule Of Past Due Loans) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due $ 4,370 $ 2,278
Current 833,288 796,693
Total Loan Receivables 837,658 798,971
Loans Receivable > 90 Days and Accruing 204 55
30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2,662 914
60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 869 155
Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 839 1,209
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 3,039 303
Current 330,292 321,427
Total Loan Receivables 333,331 321,730
Loans Receivable > 90 Days and Accruing 204  
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2,265 123
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 570  
Commercial Real Estate [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 204 180
Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 162 296
Current 39,700 38,749
Total Loan Receivables 39,862 39,045
Commercial [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due   196
Commercial [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 162  
Commercial [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due   100
Residential Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 1,167 1,679
Current 427,784 407,193
Total Loan Receivables 428,951 408,872
Loans Receivable > 90 Days and Accruing   55
Residential Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 397 595
Residential Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 135 155
Residential Real Estate [Member] | Greater than 90 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 635 929
Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2  
Current 976 718
Total Loan Receivables 978 718
Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 2  
Construction [Member] | Commercial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Current 34,536 28,606
Total Loan Receivables $ 34,536 $ 28,606
v3.8.0.1
Loans Receivable And Credit Quality (Activity In The Allowance For Loan Losses) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance $ 6,761 $ 6,279 $ 6,517 $ 6,068
Charge-offs (231) (204) (415) (248)
Recoveries     13  
Provisions 320 165 735 420
Ending balance 6,850 6,240 6,850 6,240
Commercial Real Estate [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 2,154 2,178 2,349 2,132
Charge-offs (108)   (108) (35)
Recoveries     13  
Provisions 146 22 (62) 103
Ending balance 2,192 2,200 2,192 2,200
Commercial [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 493 418 423 402
Charge-offs   (75) (122) (75)
Provisions 48 20 240 36
Ending balance 541 363 541 363
Commercial [Member] | Construction [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 473 427 516 294
Provisions (49) 30 (92) 163
Ending balance 424 457 424 457
Residential Real Estate [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 3,370 2,787 2,937 2,529
Charge-offs (123) (129) (185) (138)
Provisions 182 196 677 463
Ending balance 3,429 2,854 3,429 2,854
Consumer [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 27 30 15 29
Provisions (10) (2) 2 (1)
Ending balance 17 28 17 28
Unallocated [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Beginning balance 244 439 277 682
Provisions 3 (101) (30) (344)
Ending balance $ 247 $ 338 $ 247 $ 338
v3.8.0.1
Loans Receivable And Credit Quality (Allocation For Loan Losses And The Related Portfolio Disaggregated Based On Impairment Methodology) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance $ 6,850 $ 6,761 $ 6,517 $ 6,240 $ 6,279 $ 6,068
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 314   296      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 6,536   6,221      
Total Loan Receivables 837,658   798,971      
Loans receivables, Ending balance: individually evaluated for impairment 10,079   11,180      
Loans receivables, Ending balance: collectively evaluated for impairment 827,579   787,791      
Commercial Real Estate [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 2,192 2,154 2,349 2,200 2,178 2,132
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 40          
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 2,152   2,349      
Total Loan Receivables 333,331   321,730      
Loans receivables, Ending balance: individually evaluated for impairment 7,473   8,159      
Loans receivables, Ending balance: collectively evaluated for impairment 325,858   313,571      
Commercial [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 541 493 423 363 418 402
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 39   64      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 502   359      
Total Loan Receivables 39,862   39,045      
Loans receivables, Ending balance: individually evaluated for impairment 246   379      
Loans receivables, Ending balance: collectively evaluated for impairment 39,616   38,666      
Commercial [Member] | Construction [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 424 473 516 457 427 294
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 424   516      
Total Loan Receivables 34,536   28,606      
Loans receivables, Ending balance: individually evaluated for impairment 315   315      
Loans receivables, Ending balance: collectively evaluated for impairment 34,221   28,291      
Residential Real Estate [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 3,429 3,370 2,937 2,854 2,787 2,529
Allowance for Loan Losses, Ending balance: individually evaluated for impairment 235   232      
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 3,194   2,705      
Total Loan Receivables 428,951   408,872      
Loans receivables, Ending balance: individually evaluated for impairment 2,045   2,327      
Loans receivables, Ending balance: collectively evaluated for impairment 426,906   406,545      
Consumer [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 17 27 15 28 30 29
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment 17   15      
Total Loan Receivables 978   718      
Loans receivables, Ending balance: collectively evaluated for impairment 978   718      
Unallocated [Member]            
Financing Receivable, Allowance for Credit Losses [Line Items]            
Allowance for Loan Losses, Ending Balance 247 $ 244 277 $ 338 $ 439 $ 682
Allowance for Loan Losses, Ending balance: collectively evaluated for impairment $ 247   $ 277      
v3.8.0.1
Loans Receivable And Credit Quality (Troubled Debt Restructuring Outstanding) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Modifications [Line Items]    
Total Modifications $ 4,790 $ 4,831
Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 4,737 4,831
Non-Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 53  
Commercial Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 3,024 3,078
Commercial Real Estate [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 3,024 3,078
Commercial [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 246 250
Commercial [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 246 250
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 1,260 1,243
Residential Real Estate [Member] | Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications 1,207 $ 1,243
Residential Real Estate [Member] | Non-Accrual Loans [Member]    
Financing Receivable, Modifications [Line Items]    
Total Modifications $ 53  
v3.8.0.1
Loans Receivable And Credit Quality (Schedule Of Newly Restructured Loans) (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
loan
Sep. 30, 2016
loan
Sep. 30, 2017
USD ($)
loan
Sep. 30, 2016
loan
Financing Receivable, Recorded Investment, Past Due [Line Items]        
Financing Receivable, Modifications, Number of Contracts | loan 2 0 2 0
Pre-Modification Outstanding Balance $ 122   $ 122  
Post-Modification Outstanding Balance $ 53   $ 53  
Residential Real Estate [Member]        
Financing Receivable, Recorded Investment, Past Due [Line Items]        
Financing Receivable, Modifications, Number of Contracts | loan 2   2  
Pre-Modification Outstanding Balance $ 122   $ 122  
Post-Modification Outstanding Balance $ 53   $ 53  
v3.8.0.1
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Fair Value Measurements [Abstract]    
Impaired loans aggregate balance $ 10,079 $ 11,180
Impaired Financing Receivable, with No Related Allowance, Recorded Investment 6,600  
Impaired Financing Receivable, with Related Allowance, Recorded Investment 3,500  
Related Allowance $ 314 $ 296
v3.8.0.1
Fair Value Measurements (Fair Value Of Financial Assets Measured On Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities $ 96,396 $ 85,598
U.S Government Agency Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 14,028 32,488
Municipal Bonds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 38,469 38,808
U.S. Government Sponsored Enterprise (GSE) - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 43,899 14,302
(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. Government Sponsored Enterprise (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 96,396 85,598
(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 14,028 32,488
(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 38,469 38,808
(Level 2) Significant Other Observable Inputs [Member] | U.S. Government Sponsored Enterprise (GSE) - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities 43,899 14,302
(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. Government Sponsored Enterprise (GSE) - Mortgage-Backed Securities - Residential [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Available-for-sale Securities
v3.8.0.1
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, 2017
Dec. 31, 2016
Impaired Loans [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] $ 3,159 $ 794
Other Real Estate Owned [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] 427 [2] 480
(Level 3) Significant Unobservable Inputs [Member] | Impaired Loans [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] 3,159 794
(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] $ 427 [2] $ 480
[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.
[2] Fair Value determined using the debt service of the borrower.
v3.8.0.1
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, 2017
Dec. 31, 2016
Impaired Loans [Member] | Market Approach Valuation Technique [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [1] $ 3,159 $ 794
Impaired Loans [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 Loans [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 Loans [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] (24.20%) (24.80%)
Impaired Loans [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% (10.00%)
Impaired Loans [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 Loans [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] (7.60%) (7.50%)
Other Real Estate Owned [Member] | Cost Approach Valuation Technique [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Asset fair value [4] $ 427 $ 480
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.
v3.8.0.1
Fair Value Measurements (Estimated Fair Value Of Financial Instruments) (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available for sale $ 96,396 $ 85,598
Carrying Amount [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and cash equivalents 39,820 24,218
Securities available for sale 96,396 85,598
Loans receivable, net of allowance 831,179 792,598
Restricted investment in bank stock 583 624
Accrued interest receivable 1,833 1,749
Deposits 893,211 833,384
Securities sold under agreements to repurchase and federal funds purchased 10,195 11,889
Accrued interest payable 781 813
Fair Value Estimate [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash and cash equivalents 39,820 24,218
Securities available for sale 96,396 85,598
Loans receivable, net of allowance 828,267 790,326
Restricted investment in bank stock 583 624
Accrued interest receivable 1,833 1,749
Deposits 893,006 833,627
Securities sold under agreements to repurchase and federal funds purchased 10,190 11,886
Accrued interest payable 781 813
(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 39,820 24,218
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 96,396 85,598
Restricted investment in bank stock 583 624
Accrued interest receivable 1,833 1,749
Deposits 893,006 833,627
Securities sold under agreements to repurchase and federal funds purchased 10,190 11,886
Accrued interest payable 781 813
(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 $ 828,267 $ 790,326
v3.8.0.1
Offsetting Assets And Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Securities Pledged as Collateral [Member]    
Offsetting Liabilities [Line Items]    
Off-balance sheet financial instruments $ 13,300 $ 14,500
Repurchase Agreements [Member]    
Offsetting Liabilities [Line Items]    
Gross Amounts of Recognized Liabilities 10,195 11,889
Gross Amounts Offset in the Consolidated Balance Sheet
Net Amounts of Liabilities Presented in Consolidated Balance Sheet 10,195 11,889
Financial Instruments (10,195) (11,889)
Cash Collateral Pledged
Net Amount
v3.8.0.1
Deposits (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Deposits [Abstract]    
Demand, non-interest bearing $ 134,808 $ 117,208
Demand, NOW and money market, interest bearing 114,157 97,687
Savings 505,783 488,701
Time, $100 and over 99,444 89,020
Time, other 39,019 40,768
Total Deposits $ 893,211 $ 833,384