We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Orrstown Financial Services Inc | NASDAQ:ORRF | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.05 | 0.19% | 26.48 | 20.12 | 34.73 | 26.60 | 26.21 | 26.40 | 43,090 | 22:30:00 |
|
|
|
|
|
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
Pennsylvania
(State or Other Jurisdiction of Incorporation or Organization)
|
|
23-2530374
(I.R.S. Employer Identification No.)
|
77 East King Street, P. O. Box 250, Shippensburg, Pennsylvania
|
|
17257
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
|
|
|
|
|
|
Page
|
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
Term
|
Definition
|
|
|
ALL
|
Allowance for loan losses
|
AFS
|
Available for sale
|
AOCI
|
Accumulated other comprehensive income (loss)
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Bank
|
Orrstown Bank, the commercial banking subsidiary of Orrstown Financial Services, Inc.
|
CET1
|
Common Equity Tier 1
|
CMO
|
Collateralized mortgage obligation
|
Company
|
Orrstown Financial Services, Inc. and subsidiaries (interchangeable with "Orrstown” below)
|
EPS
|
Earnings per common share
|
ERM
|
Enterprise risk management
|
Exchange Act
|
Securities Exchange Act of 1934, as amended
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
FRB
|
Board of Governors of the Federal Reserve System
|
GAAP
|
Accounting principles generally accepted in the United States of America
|
GSE
|
U.S. government-sponsored enterprise
|
IRC
|
Internal Revenue Code of 1986, as amended
|
LHFS
|
Loans held for sale
|
MBS
|
Mortgage-backed securities
|
MPF Program
|
Mortgage Partnership Finance Program
|
MSR
|
Mortgage servicing right
|
NIM
|
Net interest margin
|
OCI
|
Other comprehensive income (loss)
|
OFA
|
Orrstown Financial Advisors, a division of the Bank that provides investment and brokerage services
|
OREO
|
Other real estate owned (foreclosed real estate)
|
Orrstown
|
Orrstown Financial Services, Inc. and subsidiaries
|
OTTI
|
Other-than-temporary impairment
|
Parent Company
|
Orrstown Financial Services, Inc., the parent company of Orrstown Bank and Wheatland Advisors, Inc.
|
2011 Plan
|
2011 Orrstown Financial Services, Inc. Incentive Stock Plan
|
Repurchase Agreements
|
Securities sold under agreements to repurchase
|
SEC
|
Securities and Exchange Commission
|
Securities Act
|
Securities Act of 1933, as amended
|
TDR
|
Troubled debt restructuring
|
Wheatland
|
Wheatland Advisors, Inc., the Registered Investment Advisor subsidiary of Orrstown Financial Services, Inc.
|
Unless the context otherwise requires, the terms “Orrstown,” “we,” “us,” “our,” and “Company” refer to Orrstown Financial Services, Inc. and its subsidiaries.
|
Item 1.
|
Financial Statements
|
(Dollars in thousands, except per share data)
|
June 30,
2017 |
|
December 31,
2016 |
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
19,754
|
|
|
$
|
16,072
|
|
Interest-bearing deposits with banks
|
18,258
|
|
|
14,201
|
|
||
Cash and cash equivalents
|
38,012
|
|
|
30,273
|
|
||
Restricted investments in bank stocks
|
7,072
|
|
|
7,970
|
|
||
Securities available for sale
|
401,904
|
|
|
400,154
|
|
||
Loans held for sale
|
5,182
|
|
|
2,768
|
|
||
Loans
|
934,382
|
|
|
883,391
|
|
||
Less: Allowance for loan losses
|
(12,751
|
)
|
|
(12,775
|
)
|
||
Net loans
|
921,631
|
|
|
870,616
|
|
||
Premises and equipment, net
|
35,036
|
|
|
34,871
|
|
||
Cash surrender value of life insurance
|
32,523
|
|
|
32,102
|
|
||
Accrued interest receivable
|
4,467
|
|
|
4,672
|
|
||
Other assets
|
29,103
|
|
|
31,078
|
|
||
Total assets
|
$
|
1,474,930
|
|
|
$
|
1,414,504
|
|
Liabilities
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
157,703
|
|
|
$
|
150,747
|
|
Interest-bearing
|
1,038,233
|
|
|
1,001,705
|
|
||
Total deposits
|
1,195,936
|
|
|
1,152,452
|
|
||
Short-term borrowings
|
90,562
|
|
|
87,864
|
|
||
Long-term debt
|
23,991
|
|
|
24,163
|
|
||
Accrued interest and other liabilities
|
21,178
|
|
|
15,166
|
|
||
Total liabilities
|
1,331,667
|
|
|
1,279,645
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding
|
0
|
|
|
0
|
|
||
Common stock, no par value—$0.05205 stated value per share 50,000,000 shares authorized; 8,348,243 and 8,343,435 shares issued; 8,343,908 and 8,285,733 shares outstanding
|
435
|
|
|
437
|
|
||
Additional paid - in capital
|
124,727
|
|
|
124,935
|
|
||
Retained earnings
|
15,324
|
|
|
11,669
|
|
||
Accumulated other comprehensive income (loss)
|
2,857
|
|
|
(1,165
|
)
|
||
Treasury stock—common, 4,335 and 57,702 shares, at cost
|
(80
|
)
|
|
(1,017
|
)
|
||
Total shareholders’ equity
|
143,263
|
|
|
134,859
|
|
||
Total liabilities and shareholders’ equity
|
$
|
1,474,930
|
|
|
$
|
1,414,504
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Dollars in thousands, except per share data)
|
June 30,
2017 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
9,851
|
|
|
$
|
8,384
|
|
|
$
|
19,055
|
|
|
$
|
16,375
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
||||||||
Taxable
|
1,766
|
|
|
1,368
|
|
|
3,593
|
|
|
2,832
|
|
||||
Tax-exempt
|
805
|
|
|
441
|
|
|
1,586
|
|
|
882
|
|
||||
Short-term investments
|
46
|
|
|
79
|
|
|
64
|
|
|
144
|
|
||||
Total interest and dividend income
|
12,468
|
|
|
10,272
|
|
|
24,298
|
|
|
20,233
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
||||||||
Interest on deposits
|
1,484
|
|
|
1,191
|
|
|
2,810
|
|
|
2,330
|
|
||||
Interest on short-term borrowings
|
189
|
|
|
25
|
|
|
361
|
|
|
91
|
|
||||
Interest on long-term debt
|
77
|
|
|
105
|
|
|
172
|
|
|
211
|
|
||||
Total interest expense
|
1,750
|
|
|
1,321
|
|
|
3,343
|
|
|
2,632
|
|
||||
Net interest income
|
10,718
|
|
|
8,951
|
|
|
20,955
|
|
|
17,601
|
|
||||
Provision for loan losses
|
100
|
|
|
0
|
|
|
100
|
|
|
0
|
|
||||
Net interest income after provision for loan losses
|
10,618
|
|
|
8,951
|
|
|
20,855
|
|
|
17,601
|
|
||||
Noninterest income
|
|
|
|
|
|
|
|
||||||||
Service charges on deposit accounts
|
1,429
|
|
|
1,372
|
|
|
2,787
|
|
|
2,675
|
|
||||
Other service charges, commissions and fees
|
283
|
|
|
289
|
|
|
492
|
|
|
449
|
|
||||
Trust and investment management income
|
1,623
|
|
|
1,188
|
|
|
3,069
|
|
|
2,524
|
|
||||
Brokerage income
|
518
|
|
|
577
|
|
|
985
|
|
|
1,026
|
|
||||
Mortgage banking activities
|
813
|
|
|
727
|
|
|
1,316
|
|
|
1,369
|
|
||||
Earnings on life insurance
|
271
|
|
|
270
|
|
|
539
|
|
|
538
|
|
||||
Other income
|
32
|
|
|
114
|
|
|
113
|
|
|
201
|
|
||||
Investment securities gains
|
654
|
|
|
0
|
|
|
657
|
|
|
1,420
|
|
||||
Total noninterest income
|
5,623
|
|
|
4,537
|
|
|
9,958
|
|
|
10,202
|
|
||||
Noninterest expenses
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
7,422
|
|
|
6,312
|
|
|
14,822
|
|
|
12,495
|
|
||||
Occupancy expense
|
705
|
|
|
592
|
|
|
1,462
|
|
|
1,118
|
|
||||
Furniture and equipment
|
826
|
|
|
748
|
|
|
1,562
|
|
|
1,534
|
|
||||
Data processing
|
664
|
|
|
519
|
|
|
1,175
|
|
|
1,154
|
|
||||
Telephone and communication
|
193
|
|
|
190
|
|
|
315
|
|
|
366
|
|
||||
Automated teller and interchange fees
|
194
|
|
|
237
|
|
|
372
|
|
|
398
|
|
||||
Advertising and bank promotions
|
391
|
|
|
355
|
|
|
778
|
|
|
811
|
|
||||
FDIC insurance
|
178
|
|
|
223
|
|
|
315
|
|
|
455
|
|
||||
Legal fees
|
108
|
|
|
225
|
|
|
261
|
|
|
406
|
|
||||
Other professional services
|
377
|
|
|
345
|
|
|
732
|
|
|
684
|
|
||||
Directors' compensation
|
249
|
|
|
257
|
|
|
491
|
|
|
488
|
|
||||
Collection and problem loan
|
3
|
|
|
96
|
|
|
78
|
|
|
148
|
|
||||
Real estate owned
|
(12
|
)
|
|
58
|
|
|
8
|
|
|
101
|
|
||||
Taxes other than income
|
220
|
|
|
253
|
|
|
448
|
|
|
408
|
|
||||
Regulatory settlement
|
0
|
|
|
1,000
|
|
|
0
|
|
|
1,000
|
|
||||
Other operating expenses
|
899
|
|
|
1,148
|
|
|
1,744
|
|
|
2,113
|
|
||||
Total noninterest expenses
|
12,417
|
|
|
12,558
|
|
|
24,563
|
|
|
23,679
|
|
||||
Income before income tax expense
|
3,824
|
|
|
930
|
|
|
6,250
|
|
|
4,124
|
|
||||
Income tax expense
|
516
|
|
|
252
|
|
|
940
|
|
|
866
|
|
||||
Net income
|
$
|
3,308
|
|
|
$
|
678
|
|
|
$
|
5,310
|
|
|
$
|
3,258
|
|
Per share information:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.41
|
|
|
$
|
0.08
|
|
|
$
|
0.66
|
|
|
$
|
0.40
|
|
Diluted earnings per share
|
0.40
|
|
|
0.08
|
|
|
0.65
|
|
|
0.40
|
|
||||
Dividends per share
|
0.10
|
|
|
0.09
|
|
|
0.20
|
|
|
0.17
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(Dollars in thousands)
|
June 30,
2017 |
|
June 30,
2016 |
|
June 30,
2017 |
|
June 30,
2016 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
3,308
|
|
|
$
|
678
|
|
|
$
|
5,310
|
|
|
$
|
3,258
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains on securities available for sale arising during the period
|
5,130
|
|
|
4,596
|
|
|
6,750
|
|
|
10,992
|
|
||||
Reclassification adjustment for gains realized in net income
|
(654
|
)
|
|
0
|
|
|
(657
|
)
|
|
(1,420
|
)
|
||||
Net unrealized gains
|
4,476
|
|
|
4,596
|
|
|
6,093
|
|
|
9,572
|
|
||||
Tax effect
|
(1,521
|
)
|
|
(1,609
|
)
|
|
(2,071
|
)
|
|
(3,350
|
)
|
||||
Total other comprehensive income, net of tax and reclassification adjustments
|
2,955
|
|
|
2,987
|
|
|
4,022
|
|
|
6,222
|
|
||||
Total comprehensive income
|
$
|
6,263
|
|
|
$
|
3,665
|
|
|
$
|
9,332
|
|
|
$
|
9,480
|
|
|
Six Months Ended June 30, 2017 and 2016
|
||||||||||||||||||||||
(Dollars in thousands, except per share data)
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total
Shareholders’
Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, January 1, 2016
|
$
|
435
|
|
|
$
|
124,317
|
|
|
$
|
7,939
|
|
|
$
|
1,199
|
|
|
$
|
(829
|
)
|
|
$
|
133,061
|
|
Net income
|
0
|
|
|
0
|
|
|
3,258
|
|
|
0
|
|
|
0
|
|
|
3,258
|
|
||||||
Total other comprehensive income, net of taxes
|
0
|
|
|
0
|
|
|
0
|
|
|
6,222
|
|
|
0
|
|
|
6,222
|
|
||||||
Cash dividends ($0.17 per share)
|
0
|
|
|
0
|
|
|
(1,410
|
)
|
|
0
|
|
|
0
|
|
|
(1,410
|
)
|
||||||
Share-based compensation plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuance of stock (37,462 common shares and 2,461 treasury shares), including compensation expense of $499
|
2
|
|
|
490
|
|
|
0
|
|
|
0
|
|
|
47
|
|
|
539
|
|
||||||
Acquisition of treasury stock (35,648 shares)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(631
|
)
|
|
(631
|
)
|
||||||
Balance, June 30, 2016
|
$
|
437
|
|
|
$
|
124,807
|
|
|
$
|
9,787
|
|
|
$
|
7,421
|
|
|
$
|
(1,413
|
)
|
|
$
|
141,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, January 1, 2017
|
$
|
437
|
|
|
$
|
124,935
|
|
|
$
|
11,669
|
|
|
$
|
(1,165
|
)
|
|
$
|
(1,017
|
)
|
|
$
|
134,859
|
|
Net income
|
0
|
|
|
0
|
|
|
5,310
|
|
|
0
|
|
|
0
|
|
|
5,310
|
|
||||||
Total other comprehensive income, net of taxes
|
0
|
|
|
0
|
|
|
0
|
|
|
4,022
|
|
|
0
|
|
|
4,022
|
|
||||||
Cash dividends ($0.20 per share)
|
0
|
|
|
0
|
|
|
(1,655
|
)
|
|
0
|
|
|
0
|
|
|
(1,655
|
)
|
||||||
Share-based compensation plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuance of stock (4,808 net common shares and 53,367 treasury shares issued), including compensation expense of $666
|
(2
|
)
|
|
(208
|
)
|
|
0
|
|
|
0
|
|
|
937
|
|
|
727
|
|
||||||
Balance, June 30, 2017
|
$
|
435
|
|
|
$
|
124,727
|
|
|
$
|
15,324
|
|
|
$
|
2,857
|
|
|
$
|
(80
|
)
|
|
$
|
143,263
|
|
|
Six Months Ended
|
||||||
(Dollars in thousands)
|
June 30,
2017 |
|
June 30,
2016 |
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
5,310
|
|
|
$
|
3,258
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Amortization of premiums on securities available for sale
|
2,477
|
|
|
2,577
|
|
||
Depreciation and amortization
|
1,539
|
|
|
1,458
|
|
||
Provision for loan losses
|
100
|
|
|
0
|
|
||
Share-based compensation
|
666
|
|
|
499
|
|
||
Gain on sales of loans originated for sale
|
(1,064
|
)
|
|
(1,164
|
)
|
||
Mortgage loans originated for sale
|
(44,710
|
)
|
|
(44,052
|
)
|
||
Proceeds from sales of loans originated for sale
|
43,011
|
|
|
44,237
|
|
||
Net gain on disposal of OREO
|
(10
|
)
|
|
(92
|
)
|
||
Writedown of OREO
|
4
|
|
|
95
|
|
||
Net (gain) loss on disposal of premises and equipment
|
(18
|
)
|
|
46
|
|
||
Deferred income taxes
|
745
|
|
|
743
|
|
||
Investment securities gains
|
(657
|
)
|
|
(1,420
|
)
|
||
Earnings on cash surrender value of life insurance
|
(539
|
)
|
|
(538
|
)
|
||
Decrease in accrued interest receivable
|
205
|
|
|
86
|
|
||
Increase in accrued interest payable and other liabilities
|
589
|
|
|
684
|
|
||
Other, net
|
(95
|
)
|
|
(1,045
|
)
|
||
Net cash provided by operating activities
|
7,553
|
|
|
5,372
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Proceeds from sales of available for sale securities
|
58,653
|
|
|
64,743
|
|
||
Maturities, repayments and calls of available for sale securities
|
13,824
|
|
|
13,258
|
|
||
Purchases of available for sale securities
|
(64,531
|
)
|
|
0
|
|
||
Net redemptions of restricted investments in bank stocks
|
898
|
|
|
2,940
|
|
||
Net increase in loans
|
(51,835
|
)
|
|
(50,762
|
)
|
||
Purchases of bank premises and equipment
|
(1,498
|
)
|
|
(8,585
|
)
|
||
Improvements to OREO
|
(9
|
)
|
|
(39
|
)
|
||
Proceeds from disposal of OREO
|
185
|
|
|
508
|
|
||
Proceeds from disposal of bank premises and equipment
|
83
|
|
|
0
|
|
||
Net cash provided by (used in) investing activities
|
(44,230
|
)
|
|
22,063
|
|
||
Cash flows from financing activities
|
|
|
|
||||
Net increase in deposits
|
43,484
|
|
|
55,802
|
|
||
Net increase (decrease) in short-term borrowings
|
2,698
|
|
|
(45,763
|
)
|
||
Payments on long-term debt
|
(172
|
)
|
|
(164
|
)
|
||
Dividends paid
|
(1,655
|
)
|
|
(1,410
|
)
|
||
Acquisition of treasury stock
|
0
|
|
|
(631
|
)
|
||
Issuance of treasury stock
|
61
|
|
|
40
|
|
||
Net cash provided by financing activities
|
44,416
|
|
|
7,874
|
|
||
Net increase in cash and cash equivalents
|
7,739
|
|
|
35,309
|
|
||
Cash and cash equivalents at beginning of period
|
30,273
|
|
|
28,340
|
|
||
Cash and cash equivalents at end of period
|
$
|
38,012
|
|
|
$
|
63,649
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
||||
Interest
|
$
|
3,332
|
|
|
$
|
2,620
|
|
Income taxes
|
150
|
|
|
450
|
|
||
Supplemental schedule of noncash investing activities:
|
|
|
|
||||
OREO acquired in settlement of loans
|
$
|
720
|
|
|
$
|
414
|
|
Security purchases not yet settled
|
5,423
|
|
|
0
|
|
(Dollars in thousands)
|
Amortized Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Fair Value
|
||||||||
June 30, 2017
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agencies
|
$
|
7,311
|
|
|
$
|
23
|
|
|
$
|
0
|
|
|
$
|
7,334
|
|
States and political subdivisions
|
159,185
|
|
|
4,640
|
|
|
394
|
|
|
163,431
|
|
||||
GSE residential MBSs
|
103,590
|
|
|
1,186
|
|
|
0
|
|
|
104,776
|
|
||||
GSE residential CMOs
|
113,339
|
|
|
705
|
|
|
1,723
|
|
|
112,321
|
|
||||
GSE commercial CMOs
|
5,141
|
|
|
0
|
|
|
168
|
|
|
4,973
|
|
||||
Private label CMOs
|
3,542
|
|
|
18
|
|
|
20
|
|
|
3,540
|
|
||||
Asset-backed
|
5,418
|
|
|
0
|
|
|
0
|
|
|
5,418
|
|
||||
Total debt securities
|
397,526
|
|
|
6,572
|
|
|
2,305
|
|
|
401,793
|
|
||||
Equity securities
|
50
|
|
|
61
|
|
|
0
|
|
|
111
|
|
||||
Totals
|
$
|
397,576
|
|
|
$
|
6,633
|
|
|
$
|
2,305
|
|
|
$
|
401,904
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agencies
|
$
|
39,569
|
|
|
$
|
147
|
|
|
$
|
124
|
|
|
$
|
39,592
|
|
States and political subdivisions
|
163,677
|
|
|
1,782
|
|
|
1,177
|
|
|
164,282
|
|
||||
GSE residential MBSs
|
116,022
|
|
|
928
|
|
|
6
|
|
|
116,944
|
|
||||
GSE residential CMOs
|
72,411
|
|
|
240
|
|
|
3,268
|
|
|
69,383
|
|
||||
GSE commercial CMOs
|
5,148
|
|
|
0
|
|
|
292
|
|
|
4,856
|
|
||||
Private label CMOs
|
5,042
|
|
|
0
|
|
|
36
|
|
|
5,006
|
|
||||
Total debt securities
|
401,869
|
|
|
3,097
|
|
|
4,903
|
|
|
400,063
|
|
||||
Equity securities
|
50
|
|
|
41
|
|
|
0
|
|
|
91
|
|
||||
Totals
|
$
|
401,919
|
|
|
$
|
3,138
|
|
|
$
|
4,903
|
|
|
$
|
400,154
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||||||||
(Dollars in thousands)
|
# of Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
# of Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
|
# of Securities
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
States and political subdivisions
|
9
|
|
$
|
19,752
|
|
|
$
|
246
|
|
|
1
|
|
$
|
5,469
|
|
|
$
|
148
|
|
|
10
|
|
$
|
25,221
|
|
|
$
|
394
|
|
GSE residential CMOs
|
6
|
|
57,391
|
|
|
1,638
|
|
|
2
|
|
2,781
|
|
|
85
|
|
|
8
|
|
60,172
|
|
|
1,723
|
|
||||||
GSE commercial CMOs
|
1
|
|
4,973
|
|
|
168
|
|
|
0
|
|
0
|
|
|
0
|
|
|
1
|
|
4,973
|
|
|
168
|
|
||||||
Private label CMOs
|
0
|
|
0
|
|
|
0
|
|
|
1
|
|
1,268
|
|
|
20
|
|
|
1
|
|
1,268
|
|
|
20
|
|
||||||
Totals
|
16
|
|
$
|
82,116
|
|
|
$
|
2,052
|
|
|
4
|
|
$
|
9,518
|
|
|
$
|
253
|
|
|
20
|
|
$
|
91,634
|
|
|
$
|
2,305
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government Agencies
|
6
|
|
$
|
10,710
|
|
|
$
|
23
|
|
|
2
|
|
$
|
13,531
|
|
|
$
|
101
|
|
|
8
|
|
$
|
24,241
|
|
|
$
|
124
|
|
States and political subdivisions
|
25
|
|
58,924
|
|
|
610
|
|
|
1
|
|
5,075
|
|
|
567
|
|
|
26
|
|
63,999
|
|
|
1,177
|
|
||||||
GSE residential MBSs
|
1
|
|
5,034
|
|
|
6
|
|
|
0
|
|
0
|
|
|
0
|
|
|
1
|
|
5,034
|
|
|
6
|
|
||||||
GSE residential CMOs
|
6
|
|
59,534
|
|
|
3,264
|
|
|
1
|
|
634
|
|
|
4
|
|
|
7
|
|
60,168
|
|
|
3,268
|
|
||||||
GSE commercial CMOs
|
1
|
|
4,856
|
|
|
292
|
|
|
0
|
|
0
|
|
|
0
|
|
|
1
|
|
4,856
|
|
|
292
|
|
||||||
Private label CMOs
|
0
|
|
0
|
|
|
0
|
|
|
3
|
|
5,005
|
|
|
36
|
|
|
3
|
|
5,005
|
|
|
36
|
|
||||||
Totals
|
39
|
|
$
|
139,058
|
|
|
$
|
4,195
|
|
|
7
|
|
$
|
24,245
|
|
|
$
|
708
|
|
|
46
|
|
$
|
163,303
|
|
|
$
|
4,903
|
|
|
Available for Sale
|
||||||
(Dollars in thousands)
|
Amortized Cost
|
|
Fair Value
|
||||
|
|
|
|
||||
Due in one year or less
|
$
|
15
|
|
|
$
|
15
|
|
Due after one year through five years
|
11,734
|
|
|
11,990
|
|
||
Due after five years through ten years
|
59,744
|
|
|
61,267
|
|
||
Due after ten years
|
95,003
|
|
|
97,493
|
|
||
MBSs and CMOs
|
225,612
|
|
|
225,610
|
|
||
Asset-backed
|
5,418
|
|
|
5,418
|
|
||
Total debt securities
|
397,526
|
|
|
401,793
|
|
||
Equity securities
|
50
|
|
|
111
|
|
||
|
$
|
397,576
|
|
|
$
|
401,904
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of AFS securities
|
$
|
23,581
|
|
|
$
|
0
|
|
|
$
|
58,653
|
|
|
$
|
64,743
|
|
Gross gains
|
654
|
|
|
0
|
|
|
807
|
|
|
1,468
|
|
||||
Gross losses
|
0
|
|
|
0
|
|
|
150
|
|
|
48
|
|
(Dollars in thousands)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Commercial real estate:
|
|
|
|
||||
Owner-occupied
|
$
|
116,419
|
|
|
$
|
112,295
|
|
Non-owner occupied
|
217,070
|
|
|
206,358
|
|
||
Multi-family
|
48,637
|
|
|
47,681
|
|
||
Non-owner occupied residential
|
68,621
|
|
|
62,533
|
|
||
Acquisition and development:
|
|
|
|
||||
1-4 family residential construction
|
8,036
|
|
|
4,663
|
|
||
Commercial and land development
|
28,481
|
|
|
26,085
|
|
||
Commercial and industrial
|
97,913
|
|
|
88,465
|
|
||
Municipal
|
51,381
|
|
|
53,741
|
|
||
Residential mortgage:
|
|
|
|
||||
First lien
|
150,173
|
|
|
139,851
|
|
||
Home equity - term
|
13,019
|
|
|
14,248
|
|
||
Home equity - lines of credit
|
127,262
|
|
|
120,353
|
|
||
Installment and other loans
|
7,370
|
|
|
7,118
|
|
||
|
$
|
934,382
|
|
|
$
|
883,391
|
|
(Dollars in thousands)
|
Pass
|
|
Special Mention
|
|
Non-Impaired Substandard
|
|
Impaired - Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
111,737
|
|
|
$
|
1,814
|
|
|
$
|
1,959
|
|
|
$
|
909
|
|
|
$
|
0
|
|
|
$
|
116,419
|
|
Non-owner occupied
|
206,823
|
|
|
196
|
|
|
10,051
|
|
|
0
|
|
|
0
|
|
|
217,070
|
|
||||||
Multi-family
|
43,526
|
|
|
4,159
|
|
|
770
|
|
|
182
|
|
|
0
|
|
|
48,637
|
|
||||||
Non-owner occupied residential
|
66,024
|
|
|
1,062
|
|
|
1,117
|
|
|
418
|
|
|
0
|
|
|
68,621
|
|
||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1-4 family residential construction
|
8,036
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
8,036
|
|
||||||
Commercial and land development
|
27,849
|
|
|
7
|
|
|
625
|
|
|
0
|
|
|
0
|
|
|
28,481
|
|
||||||
Commercial and industrial
|
95,124
|
|
|
2,384
|
|
|
29
|
|
|
376
|
|
|
0
|
|
|
97,913
|
|
||||||
Municipal
|
49,392
|
|
|
1,989
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
51,381
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First lien
|
146,200
|
|
|
0
|
|
|
0
|
|
|
3,973
|
|
|
0
|
|
|
150,173
|
|
||||||
Home equity - term
|
12,994
|
|
|
0
|
|
|
0
|
|
|
25
|
|
|
0
|
|
|
13,019
|
|
||||||
Home equity - lines of credit
|
126,648
|
|
|
81
|
|
|
61
|
|
|
472
|
|
|
0
|
|
|
127,262
|
|
||||||
Installment and other loans
|
7,361
|
|
|
0
|
|
|
0
|
|
|
9
|
|
|
0
|
|
|
7,370
|
|
||||||
|
$
|
901,714
|
|
|
$
|
11,692
|
|
|
$
|
14,612
|
|
|
$
|
6,364
|
|
|
$
|
0
|
|
|
$
|
934,382
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
103,652
|
|
|
$
|
5,422
|
|
|
$
|
2,151
|
|
|
$
|
1,070
|
|
|
$
|
0
|
|
|
$
|
112,295
|
|
Non-owner occupied
|
190,726
|
|
|
4,791
|
|
|
10,105
|
|
|
736
|
|
|
0
|
|
|
206,358
|
|
||||||
Multi-family
|
42,473
|
|
|
4,222
|
|
|
787
|
|
|
199
|
|
|
0
|
|
|
47,681
|
|
||||||
Non-owner occupied residential
|
59,982
|
|
|
949
|
|
|
1,150
|
|
|
452
|
|
|
0
|
|
|
62,533
|
|
||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1-4 family residential construction
|
4,560
|
|
|
103
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,663
|
|
||||||
Commercial and land development
|
25,435
|
|
|
10
|
|
|
639
|
|
|
1
|
|
|
0
|
|
|
26,085
|
|
||||||
Commercial and industrial
|
87,588
|
|
|
251
|
|
|
32
|
|
|
594
|
|
|
0
|
|
|
88,465
|
|
||||||
Municipal
|
53,741
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
53,741
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First lien
|
135,558
|
|
|
0
|
|
|
0
|
|
|
4,293
|
|
|
0
|
|
|
139,851
|
|
||||||
Home equity - term
|
14,155
|
|
|
0
|
|
|
0
|
|
|
93
|
|
|
0
|
|
|
14,248
|
|
||||||
Home equity - lines of credit
|
119,681
|
|
|
82
|
|
|
61
|
|
|
529
|
|
|
0
|
|
|
120,353
|
|
||||||
Installment and other loans
|
7,112
|
|
|
0
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
7,118
|
|
||||||
|
$
|
844,663
|
|
|
$
|
15,830
|
|
|
$
|
14,925
|
|
|
$
|
7,973
|
|
|
$
|
0
|
|
|
$
|
883,391
|
|
•
|
Original appraisal – if the original appraisal provides a strong loan-to-value ratio (generally
70%
or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the original certified appraised value may be used. Discounts as deemed appropriate for selling costs are factored into the appraised value in arriving at fair value.
|
•
|
Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches.
|
|
Impaired Loans with a Specific Allowance
|
|
Impaired Loans with No Specific Allowance
|
||||||||||||||||
(Dollars in thousands)
|
Recorded
Investment
(Book Balance)
|
|
Unpaid Principal
Balance
(Legal Balance)
|
|
Related
Allowance
|
|
Recorded
Investment
(Book Balance)
|
|
Unpaid Principal
Balance
(Legal Balance)
|
||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
909
|
|
|
$
|
2,098
|
|
Multi-family
|
0
|
|
|
0
|
|
|
0
|
|
|
182
|
|
|
360
|
|
|||||
Non-owner occupied residential
|
0
|
|
|
0
|
|
|
0
|
|
|
418
|
|
|
688
|
|
|||||
Commercial and industrial
|
0
|
|
|
0
|
|
|
0
|
|
|
376
|
|
|
508
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
First lien
|
553
|
|
|
553
|
|
|
40
|
|
|
3,420
|
|
|
4,101
|
|
|||||
Home equity - term
|
0
|
|
|
0
|
|
|
0
|
|
|
25
|
|
|
29
|
|
|||||
Home equity - lines of credit
|
0
|
|
|
0
|
|
|
0
|
|
|
472
|
|
|
613
|
|
|||||
Installment and other loans
|
5
|
|
|
5
|
|
|
5
|
|
|
4
|
|
|
33
|
|
|||||
|
$
|
558
|
|
|
$
|
558
|
|
|
$
|
45
|
|
|
$
|
5,806
|
|
|
$
|
8,430
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1,070
|
|
|
$
|
2,236
|
|
Non-owner occupied
|
0
|
|
|
0
|
|
|
0
|
|
|
736
|
|
|
1,323
|
|
|||||
Multi-family
|
0
|
|
|
0
|
|
|
0
|
|
|
199
|
|
|
368
|
|
|||||
Non-owner occupied residential
|
0
|
|
|
0
|
|
|
0
|
|
|
452
|
|
|
706
|
|
|||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and land development
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
16
|
|
|||||
Commercial and industrial
|
0
|
|
|
0
|
|
|
0
|
|
|
594
|
|
|
715
|
|
|||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
||||||||||
First lien
|
643
|
|
|
643
|
|
|
43
|
|
|
3,650
|
|
|
4,399
|
|
|||||
Home equity - term
|
0
|
|
|
0
|
|
|
0
|
|
|
93
|
|
|
103
|
|
|||||
Home equity - lines of credit
|
0
|
|
|
0
|
|
|
0
|
|
|
529
|
|
|
659
|
|
|||||
Installment and other loans
|
0
|
|
|
0
|
|
|
0
|
|
|
6
|
|
|
34
|
|
|||||
|
$
|
643
|
|
|
$
|
643
|
|
|
$
|
43
|
|
|
$
|
7,330
|
|
|
$
|
10,559
|
|
|
2017
|
|
2016
|
||||||||||||
(Dollars in thousands)
|
Average
Impaired
Balance
|
|
Interest
Income
Recognized
|
|
Average
Impaired
Balance
|
|
Interest
Income
Recognized
|
||||||||
Three Months Ended June 30,
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
979
|
|
|
$
|
5
|
|
|
$
|
1,954
|
|
|
$
|
0
|
|
Non-owner occupied
|
0
|
|
|
0
|
|
|
7,251
|
|
|
0
|
|
||||
Multi-family
|
186
|
|
|
0
|
|
|
221
|
|
|
0
|
|
||||
Non-owner occupied residential
|
427
|
|
|
0
|
|
|
699
|
|
|
0
|
|
||||
Acquisition and development:
|
|
|
|
|
|
|
|
||||||||
Commercial and land development
|
0
|
|
|
0
|
|
|
3
|
|
|
0
|
|
||||
Commercial and industrial
|
404
|
|
|
0
|
|
|
514
|
|
|
0
|
|
||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||
First lien
|
4,192
|
|
|
21
|
|
|
4,618
|
|
|
8
|
|
||||
Home equity – term
|
78
|
|
|
0
|
|
|
98
|
|
|
0
|
|
||||
Home equity - lines of credit
|
503
|
|
|
1
|
|
|
499
|
|
|
0
|
|
||||
Installment and other loans
|
6
|
|
|
0
|
|
|
14
|
|
|
0
|
|
||||
|
$
|
6,775
|
|
|
$
|
27
|
|
|
$
|
15,871
|
|
|
$
|
8
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
1,036
|
|
|
$
|
5
|
|
|
$
|
2,012
|
|
|
$
|
0
|
|
Non-owner occupied
|
276
|
|
|
0
|
|
|
7,511
|
|
|
0
|
|
||||
Multi-family
|
191
|
|
|
0
|
|
|
225
|
|
|
0
|
|
||||
Non-owner occupied residential
|
437
|
|
|
0
|
|
|
787
|
|
|
0
|
|
||||
Acquisition and development:
|
|
|
|
|
|
|
|
||||||||
Commercial and land development
|
0
|
|
|
0
|
|
|
4
|
|
|
0
|
|
||||
Commercial and industrial
|
458
|
|
|
0
|
|
|
619
|
|
|
0
|
|
||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||
First lien
|
4,272
|
|
|
29
|
|
|
4,697
|
|
|
17
|
|
||||
Home equity - term
|
87
|
|
|
0
|
|
|
100
|
|
|
0
|
|
||||
Home equity - lines of credit
|
513
|
|
|
1
|
|
|
544
|
|
|
0
|
|
||||
Installment and other loans
|
6
|
|
|
0
|
|
|
16
|
|
|
0
|
|
||||
|
$
|
7,276
|
|
|
$
|
35
|
|
|
$
|
16,515
|
|
|
$
|
17
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
|
Recorded
Investment
|
|
Number of
Contracts
|
|
Recorded
Investment
|
||||||
Accruing:
|
|
|
|
|
|
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Owner-occupied
|
1
|
|
|
$
|
56
|
|
|
0
|
|
|
$
|
0
|
|
Residential mortgage:
|
|
|
|
|
|
|
|
||||||
First lien
|
11
|
|
|
1,116
|
|
|
8
|
|
|
896
|
|
||
Home equity - lines of credit
|
1
|
|
|
32
|
|
|
1
|
|
|
34
|
|
||
|
13
|
|
|
1,204
|
|
|
9
|
|
|
930
|
|
||
Nonaccruing:
|
|
|
|
|
|
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||
Owner-occupied
|
1
|
|
|
61
|
|
|
0
|
|
|
0
|
|
||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||
First lien
|
8
|
|
|
746
|
|
|
12
|
|
|
1,035
|
|
||
Installment and other loans
|
1
|
|
|
4
|
|
|
1
|
|
|
6
|
|
||
|
10
|
|
|
811
|
|
|
13
|
|
|
1,041
|
|
||
|
23
|
|
|
$
|
2,015
|
|
|
22
|
|
|
$
|
1,971
|
|
|
2017
|
|
2016
|
||||||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
|
Pre-
Modification
Recorded
Investment
|
|
Post
Modification
Recorded
Investment
|
|
Number of
Contracts
|
|
Pre-
Modification
Recorded
Investment
|
|
Post
Modification
Recorded
Investment
|
||||||||||
Three Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied
|
1
|
|
|
$
|
56
|
|
|
$
|
56
|
|
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied
|
2
|
|
|
$
|
119
|
|
|
$
|
119
|
|
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
First lien
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
257
|
|
|
257
|
|
||||
|
2
|
|
|
$
|
119
|
|
|
$
|
119
|
|
|
1
|
|
|
$
|
257
|
|
|
$
|
257
|
|
|
|
|
Days Past Due
|
|
|
|
|
|
|
||||||||||||||||||
(Dollars in thousands)
|
Current
|
|
30-59
|
|
60-89
|
|
90+
(still accruing)
|
|
Total
Past Due
|
|
Non-
Accrual
|
|
Total
Loans
|
||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner-occupied
|
$
|
115,561
|
|
|
$
|
5
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
5
|
|
|
$
|
853
|
|
|
$
|
116,419
|
|
Non-owner occupied
|
217,070
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
217,070
|
|
|||||||
Multi-family
|
48,455
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
182
|
|
|
48,637
|
|
|||||||
Non-owner occupied residential
|
68,203
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
418
|
|
|
68,621
|
|
|||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
1-4 family residential construction
|
8,036
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
8,036
|
|
|||||||
Commercial and land development
|
28,418
|
|
|
63
|
|
|
0
|
|
|
0
|
|
|
63
|
|
|
0
|
|
|
28,481
|
|
|||||||
Commercial and industrial
|
97,507
|
|
|
30
|
|
|
0
|
|
|
0
|
|
|
30
|
|
|
376
|
|
|
97,913
|
|
|||||||
Municipal
|
51,381
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
51,381
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
First lien
|
146,712
|
|
|
583
|
|
|
21
|
|
|
0
|
|
|
604
|
|
|
2,857
|
|
|
150,173
|
|
|||||||
Home equity - term
|
12,964
|
|
|
30
|
|
|
0
|
|
|
0
|
|
|
30
|
|
|
25
|
|
|
13,019
|
|
|||||||
Home equity - lines of credit
|
126,497
|
|
|
288
|
|
|
37
|
|
|
0
|
|
|
325
|
|
|
440
|
|
|
127,262
|
|
|||||||
Installment and other loans
|
7,349
|
|
|
8
|
|
|
4
|
|
|
0
|
|
|
12
|
|
|
9
|
|
|
7,370
|
|
|||||||
|
$
|
928,153
|
|
|
$
|
1,007
|
|
|
$
|
62
|
|
|
$
|
0
|
|
|
$
|
1,069
|
|
|
$
|
5,160
|
|
|
$
|
934,382
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owner-occupied
|
$
|
111,225
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1,070
|
|
|
$
|
112,295
|
|
Non-owner occupied
|
205,622
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
736
|
|
|
206,358
|
|
|||||||
Multi-family
|
47,482
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
199
|
|
|
47,681
|
|
|||||||
Non-owner occupied residential
|
62,081
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
452
|
|
|
62,533
|
|
|||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
1-4 family residential construction
|
4,548
|
|
|
115
|
|
|
0
|
|
|
0
|
|
|
115
|
|
|
0
|
|
|
4,663
|
|
|||||||
Commercial and land development
|
26,084
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
26,085
|
|
|||||||
Commercial and industrial
|
87,871
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
594
|
|
|
88,465
|
|
|||||||
Municipal
|
53,741
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
53,741
|
|
|||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
First lien
|
135,499
|
|
|
628
|
|
|
328
|
|
|
0
|
|
|
956
|
|
|
3,396
|
|
|
139,851
|
|
|||||||
Home equity - term
|
14,155
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
93
|
|
|
14,248
|
|
|||||||
Home equity - lines of credit
|
119,733
|
|
|
125
|
|
|
0
|
|
|
0
|
|
|
125
|
|
|
495
|
|
|
120,353
|
|
|||||||
Installment and other loans
|
7,090
|
|
|
20
|
|
|
2
|
|
|
0
|
|
|
22
|
|
|
6
|
|
|
7,118
|
|
|||||||
|
$
|
875,131
|
|
|
$
|
888
|
|
|
$
|
330
|
|
|
$
|
0
|
|
|
$
|
1,218
|
|
|
$
|
7,042
|
|
|
$
|
883,391
|
|
|
Commercial
|
|
Consumer
|
|
|
|
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
Real Estate
|
|
Acquisition
and
Development
|
|
Commercial
and
Industrial
|
|
Municipal
|
|
Total
|
|
Residential
Mortgage
|
|
Installment
and Other
|
|
Total
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
6,963
|
|
|
$
|
513
|
|
|
$
|
1,218
|
|
|
$
|
106
|
|
|
$
|
8,800
|
|
|
$
|
3,229
|
|
|
$
|
127
|
|
|
$
|
3,356
|
|
|
$
|
512
|
|
|
$
|
12,668
|
|
Provision for loan losses
|
(214
|
)
|
|
65
|
|
|
69
|
|
|
11
|
|
|
(69
|
)
|
|
198
|
|
|
13
|
|
|
211
|
|
|
(42
|
)
|
|
100
|
|
||||||||||
Charge-offs
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(51
|
)
|
|
(27
|
)
|
|
(78
|
)
|
|
0
|
|
|
(78
|
)
|
||||||||||
Recoveries
|
28
|
|
|
1
|
|
|
4
|
|
|
0
|
|
|
33
|
|
|
10
|
|
|
18
|
|
|
28
|
|
|
0
|
|
|
61
|
|
||||||||||
Balance, end of period
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,996
|
|
|
$
|
739
|
|
|
$
|
1,030
|
|
|
$
|
62
|
|
|
$
|
9,827
|
|
|
$
|
2,677
|
|
|
$
|
179
|
|
|
$
|
2,856
|
|
|
$
|
664
|
|
|
$
|
13,347
|
|
Provision for loan losses
|
(12
|
)
|
|
(152
|
)
|
|
112
|
|
|
(1
|
)
|
|
(53
|
)
|
|
66
|
|
|
26
|
|
|
92
|
|
|
(39
|
)
|
|
0
|
|
||||||||||
Charge-offs
|
(26
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(26
|
)
|
|
(80
|
)
|
|
(48
|
)
|
|
(128
|
)
|
|
0
|
|
|
(154
|
)
|
||||||||||
Recoveries
|
175
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
181
|
|
|
43
|
|
|
23
|
|
|
66
|
|
|
0
|
|
|
247
|
|
||||||||||
Balance, end of period
|
$
|
8,133
|
|
|
$
|
587
|
|
|
$
|
1,148
|
|
|
$
|
61
|
|
|
$
|
9,929
|
|
|
$
|
2,706
|
|
|
$
|
180
|
|
|
$
|
2,886
|
|
|
$
|
625
|
|
|
$
|
13,440
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,530
|
|
|
$
|
580
|
|
|
$
|
1,074
|
|
|
$
|
54
|
|
|
$
|
9,238
|
|
|
$
|
2,979
|
|
|
$
|
144
|
|
|
$
|
3,123
|
|
|
$
|
414
|
|
|
$
|
12,775
|
|
Provision for loan losses
|
(738
|
)
|
|
(3
|
)
|
|
267
|
|
|
63
|
|
|
(411
|
)
|
|
441
|
|
|
14
|
|
|
455
|
|
|
56
|
|
|
100
|
|
||||||||||
Charge-offs
|
(45
|
)
|
|
0
|
|
|
(55
|
)
|
|
0
|
|
|
(100
|
)
|
|
(51
|
)
|
|
(56
|
)
|
|
(107
|
)
|
|
0
|
|
|
(207
|
)
|
||||||||||
Recoveries
|
30
|
|
|
2
|
|
|
5
|
|
|
0
|
|
|
37
|
|
|
17
|
|
|
29
|
|
|
46
|
|
|
0
|
|
|
83
|
|
||||||||||
Balance, end of period
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,883
|
|
|
$
|
850
|
|
|
$
|
1,012
|
|
|
$
|
58
|
|
|
$
|
9,803
|
|
|
$
|
2,870
|
|
|
$
|
121
|
|
|
$
|
2,991
|
|
|
$
|
774
|
|
|
$
|
13,568
|
|
Provision for loan losses
|
21
|
|
|
(263
|
)
|
|
149
|
|
|
3
|
|
|
(90
|
)
|
|
111
|
|
|
128
|
|
|
239
|
|
|
(149
|
)
|
|
0
|
|
||||||||||
Charge-offs
|
(26
|
)
|
|
0
|
|
|
(21
|
)
|
|
0
|
|
|
(47
|
)
|
|
(324
|
)
|
|
(112
|
)
|
|
(436
|
)
|
|
0
|
|
|
(483
|
)
|
||||||||||
Recoveries
|
255
|
|
|
0
|
|
|
8
|
|
|
0
|
|
|
263
|
|
|
49
|
|
|
43
|
|
|
92
|
|
|
0
|
|
|
355
|
|
||||||||||
Balance, end of period
|
$
|
8,133
|
|
|
$
|
587
|
|
|
$
|
1,148
|
|
|
$
|
61
|
|
|
$
|
9,929
|
|
|
$
|
2,706
|
|
|
$
|
180
|
|
|
$
|
2,886
|
|
|
$
|
625
|
|
|
$
|
13,440
|
|
|
Commercial
|
|
Consumer
|
|
|
|
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
Real Estate
|
|
Acquisition
and
Development
|
|
Commercial
and
Industrial
|
|
Municipal
|
|
Total
|
|
Residential
Mortgage
|
|
Installment
and Other
|
|
Total
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1,509
|
|
|
$
|
0
|
|
|
$
|
376
|
|
|
$
|
0
|
|
|
$
|
1,885
|
|
|
$
|
4,470
|
|
|
$
|
9
|
|
|
$
|
4,479
|
|
|
$
|
0
|
|
|
$
|
6,364
|
|
Collectively evaluated for impairment
|
449,238
|
|
|
36,517
|
|
|
97,537
|
|
|
51,381
|
|
|
634,673
|
|
|
285,984
|
|
|
7,361
|
|
|
293,345
|
|
|
0
|
|
|
928,018
|
|
||||||||||
|
$
|
450,747
|
|
|
$
|
36,517
|
|
|
$
|
97,913
|
|
|
$
|
51,381
|
|
|
$
|
636,558
|
|
|
$
|
290,454
|
|
|
$
|
7,370
|
|
|
$
|
297,824
|
|
|
$
|
0
|
|
|
$
|
934,382
|
|
ALL allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
40
|
|
|
$
|
5
|
|
|
$
|
45
|
|
|
$
|
0
|
|
|
$
|
45
|
|
Collectively evaluated for impairment
|
6,777
|
|
|
579
|
|
|
1,291
|
|
|
117
|
|
|
8,764
|
|
|
3,346
|
|
|
126
|
|
|
3,472
|
|
|
470
|
|
|
12,706
|
|
||||||||||
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
2,457
|
|
|
$
|
1
|
|
|
$
|
594
|
|
|
$
|
0
|
|
|
$
|
3,052
|
|
|
$
|
4,915
|
|
|
$
|
6
|
|
|
$
|
4,921
|
|
|
$
|
0
|
|
|
$
|
7,973
|
|
Collectively evaluated for impairment
|
426,410
|
|
|
30,747
|
|
|
87,871
|
|
|
53,741
|
|
|
598,769
|
|
|
269,537
|
|
|
7,112
|
|
|
276,649
|
|
|
0
|
|
|
875,418
|
|
||||||||||
|
$
|
428,867
|
|
|
$
|
30,748
|
|
|
$
|
88,465
|
|
|
$
|
53,741
|
|
|
$
|
601,821
|
|
|
$
|
274,452
|
|
|
$
|
7,118
|
|
|
$
|
281,570
|
|
|
$
|
0
|
|
|
$
|
883,391
|
|
ALL allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
43
|
|
|
$
|
0
|
|
|
$
|
43
|
|
|
$
|
0
|
|
|
$
|
43
|
|
Collectively evaluated for impairment
|
7,530
|
|
|
580
|
|
|
1,074
|
|
|
54
|
|
|
9,238
|
|
|
2,936
|
|
|
144
|
|
|
3,080
|
|
|
414
|
|
|
12,732
|
|
||||||||||
|
$
|
7,530
|
|
|
$
|
580
|
|
|
$
|
1,074
|
|
|
$
|
54
|
|
|
$
|
9,238
|
|
|
$
|
2,979
|
|
|
$
|
144
|
|
|
$
|
3,123
|
|
|
$
|
414
|
|
|
$
|
12,775
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Current year expense (benefit):
|
|
|
|
|
|
|
|
||||||||
Federal
|
$
|
145
|
|
|
$
|
238
|
|
|
$
|
202
|
|
|
$
|
126
|
|
State
|
(9
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(3
|
)
|
||||
|
136
|
|
|
237
|
|
|
195
|
|
|
123
|
|
||||
Deferred expense:
|
|
|
|
|
|
|
|
||||||||
Federal
|
371
|
|
|
10
|
|
|
735
|
|
|
732
|
|
||||
State
|
9
|
|
|
5
|
|
|
10
|
|
|
11
|
|
||||
|
380
|
|
|
15
|
|
|
745
|
|
|
743
|
|
||||
Income tax expense
|
$
|
516
|
|
|
$
|
252
|
|
|
$
|
940
|
|
|
$
|
866
|
|
(Dollars in thousands)
|
June 30,
2017 |
|
December 31,
2016 |
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
4,719
|
|
|
$
|
4,725
|
|
Deferred compensation
|
548
|
|
|
545
|
|
||
Retirement plans and salary continuation
|
2,018
|
|
|
1,942
|
|
||
Share-based compensation
|
730
|
|
|
583
|
|
||
Off-balance sheet reserves
|
337
|
|
|
313
|
|
||
Nonaccrual loan interest
|
466
|
|
|
370
|
|
||
Net unrealized losses on securities available for sale
|
0
|
|
|
600
|
|
||
Goodwill
|
77
|
|
|
92
|
|
||
Bonus accrual
|
321
|
|
|
236
|
|
||
Low-income housing credit carryforward
|
2,148
|
|
|
1,983
|
|
||
Alternative minimum tax credit carryforward
|
4,348
|
|
|
4,048
|
|
||
Net operating loss carryforward
|
804
|
|
|
2,520
|
|
||
Other
|
523
|
|
|
479
|
|
||
Total deferred tax assets
|
17,039
|
|
|
18,436
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Depreciation
|
694
|
|
|
771
|
|
||
Net unrealized gains on securities available for sale
|
1,472
|
|
|
0
|
|
||
Mortgage servicing rights
|
814
|
|
|
777
|
|
||
Purchase accounting adjustments
|
420
|
|
|
435
|
|
||
Other
|
198
|
|
|
195
|
|
||
Total deferred tax liabilities
|
3,598
|
|
|
2,178
|
|
||
Net deferred tax asset
|
$
|
13,441
|
|
|
$
|
16,258
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
|
|
|
|
|||
Nonvested restricted shares, beginning of year
|
227,337
|
|
|
$
|
16.88
|
|
Granted
|
62,253
|
|
|
22.26
|
|
|
Forfeited
|
(7,192
|
)
|
|
18.31
|
|
|
Vested
|
(12,000
|
)
|
|
17.95
|
|
|
Nonvested restricted shares, at period end
|
270,398
|
|
|
$
|
18.04
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Restricted share award expense
|
$
|
363
|
|
|
$
|
259
|
|
|
$
|
659
|
|
|
$
|
496
|
|
Restricted share award tax benefit
|
123
|
|
|
91
|
|
|
224
|
|
|
174
|
|
||||
Fair value of shares vested
|
263
|
|
|
193
|
|
|
263
|
|
|
237
|
|
|
Shares
|
|
Weighted Average Exercise Price
|
|||
|
|
|
|
|||
Outstanding at beginning of year
|
80,370
|
|
|
$
|
27.37
|
|
Forfeited
|
(1,100
|
)
|
|
21.14
|
|
|
Expired
|
(3,087
|
)
|
|
33.98
|
|
|
Options outstanding and exercisable, at period end
|
76,183
|
|
|
$
|
27.19
|
|
Range of Exercise Prices
|
|
Number Outstanding
|
|
Weighted Average Remaining Contractual Life (Years)
|
|
Weighted Average Exercise Price
|
|||
|
|
|
|
|
|
|
|||
$21.14 - $24.99
|
|
33,899
|
|
|
2.92
|
|
$
|
21.48
|
|
$25.00 - $29.99
|
|
2,792
|
|
|
2.76
|
|
25.76
|
|
|
$30.00 - $34.99
|
|
32,144
|
|
|
0.49
|
|
31.08
|
|
|
$35.00 - $37.59
|
|
7,348
|
|
|
2.06
|
|
37.08
|
|
|
$21.14 - $37.59
|
|
76,183
|
|
|
1.80
|
|
$
|
27.19
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands except share information)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Shares purchased
|
0
|
|
|
0
|
|
|
3,114
|
|
|
2,461
|
|
||||
Weighted average price of shares purchased
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
19.71
|
|
|
$
|
16.57
|
|
Compensation expense recognized
|
0
|
|
|
0
|
|
|
7
|
|
|
3
|
|
|
Actual
|
|
For Capital Adequacy Purposes
(includes applicable capital conservation buffer)
|
|
To Be Well
Capitalized Under
Prompt Corrective Action Provisions
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
145,122
|
|
|
14.5
|
%
|
|
$
|
92,523
|
|
|
9.250
|
%
|
|
n/a
|
|
|
n/a
|
|
|
Bank
|
139,953
|
|
|
14.0
|
%
|
|
92,457
|
|
|
9.250
|
%
|
|
$
|
99,954
|
|
|
10.0
|
%
|
||
Tier 1 (Core) Capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
132,589
|
|
|
13.3
|
%
|
|
72,518
|
|
|
7.250
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
127,429
|
|
|
12.7
|
%
|
|
72,467
|
|
|
7.250
|
%
|
|
79,963
|
|
|
8.0
|
%
|
|||
Common Equity Tier 1 (CET1) to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
132,589
|
|
|
13.3
|
%
|
|
57,514
|
|
|
5.750
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
127,429
|
|
|
12.7
|
%
|
|
57,473
|
|
|
5.750
|
%
|
|
64,970
|
|
|
6.5
|
%
|
|||
Tier 1 (Core) Capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
132,589
|
|
|
9.1
|
%
|
|
58,397
|
|
|
4.0
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
127,429
|
|
|
8.7
|
%
|
|
58,429
|
|
|
4.0
|
%
|
|
73,037
|
|
|
5.0
|
%
|
|||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
139,033
|
|
|
14.6
|
%
|
|
$
|
82,391
|
|
|
8.625
|
%
|
|
n/a
|
|
|
n/a
|
|
|
Bank
|
126,408
|
|
|
13.2
|
%
|
|
82,328
|
|
|
8.625
|
%
|
|
$
|
95,453
|
|
|
10.0
|
%
|
||
Tier 1 (Core) Capital to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
127,033
|
|
|
13.3
|
%
|
|
63,286
|
|
|
6.625
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
114,417
|
|
|
12.0
|
%
|
|
63,238
|
|
|
6.625
|
%
|
|
76,363
|
|
|
8.0
|
%
|
|||
Common Equity Tier 1 (CET1) to risk weighted assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
127,033
|
|
|
13.3
|
%
|
|
48,957
|
|
|
5.125
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
114,417
|
|
|
12.0
|
%
|
|
48,920
|
|
|
5.125
|
%
|
|
62,045
|
|
|
6.5
|
%
|
|||
Tier 1 (Core) Capital to average assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
127,033
|
|
|
9.3
|
%
|
|
54,453
|
|
|
4.0
|
%
|
|
n/a
|
|
|
n/a
|
|
|||
Bank
|
114,417
|
|
|
8.4
|
%
|
|
54,500
|
|
|
4.0
|
%
|
|
68,126
|
|
|
5.0
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Dollars in thousands, except per share data)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
3,308
|
|
|
$
|
678
|
|
|
$
|
5,310
|
|
|
$
|
3,258
|
|
Weighted average shares outstanding - basic
|
8,069
|
|
|
8,053
|
|
|
8,064
|
|
|
8,062
|
|
||||
Dilutive effect of share-based compensation
|
139
|
|
|
83
|
|
|
139
|
|
|
76
|
|
||||
Weighted average shares outstanding - diluted
|
8,208
|
|
|
8,136
|
|
|
8,203
|
|
|
8,138
|
|
||||
Per share information:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.41
|
|
|
$
|
0.08
|
|
|
$
|
0.66
|
|
|
$
|
0.40
|
|
Diluted earnings per share
|
0.40
|
|
|
0.08
|
|
|
0.65
|
|
|
0.40
|
|
|
Contract or Notional Amount
|
||||||
(Dollars in thousands)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Commitments to fund:
|
|
|
|
||||
Home equity lines of credit
|
$
|
131,944
|
|
|
$
|
126,811
|
|
1-4 family residential construction loans
|
12,709
|
|
|
7,820
|
|
||
Commercial real estate, construction and land development loans
|
39,339
|
|
|
43,830
|
|
||
Commercial, industrial and other loans
|
136,092
|
|
|
111,884
|
|
||
Standby letters of credit
|
7,668
|
|
|
7,097
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Off-balance sheet credit exposures expense
|
$
|
140
|
|
|
$
|
252
|
|
|
$
|
45
|
|
|
$
|
299
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
MPF program recourse loss recoveries
|
$
|
(35
|
)
|
|
$
|
(59
|
)
|
|
$
|
(26
|
)
|
|
$
|
(112
|
)
|
(Dollars in Thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Fair
Value
Measurements
|
||||||||
June 30, 2017
|
|
|
|
|
|
|
|
||||||||
AFS Securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agencies
|
$
|
0
|
|
|
$
|
7,334
|
|
|
$
|
0
|
|
|
$
|
7,334
|
|
States and political subdivisions
|
0
|
|
|
163,431
|
|
|
0
|
|
|
163,431
|
|
||||
GSE residential MBSs
|
0
|
|
|
104,776
|
|
|
0
|
|
|
104,776
|
|
||||
GSE residential CMOs
|
0
|
|
|
112,321
|
|
|
0
|
|
|
112,321
|
|
||||
GSE commercial CMOs
|
0
|
|
|
4,973
|
|
|
0
|
|
|
4,973
|
|
||||
Private label CMOs
|
0
|
|
|
3,540
|
|
|
0
|
|
|
3,540
|
|
||||
Asset-backed
|
0
|
|
|
5,418
|
|
|
0
|
|
|
5,418
|
|
||||
Total debt securities
|
0
|
|
|
401,793
|
|
|
0
|
|
|
401,793
|
|
||||
Equity securities
|
0
|
|
|
111
|
|
|
0
|
|
|
111
|
|
||||
Total securities
|
$
|
0
|
|
|
$
|
401,904
|
|
|
$
|
0
|
|
|
$
|
401,904
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
AFS Securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government Agencies
|
$
|
0
|
|
|
$
|
39,592
|
|
|
$
|
0
|
|
|
$
|
39,592
|
|
States and political subdivisions
|
0
|
|
|
164,282
|
|
|
0
|
|
|
164,282
|
|
||||
GSE residential MBSs
|
0
|
|
|
116,944
|
|
|
0
|
|
|
116,944
|
|
||||
GSE residential CMOs
|
0
|
|
|
69,383
|
|
|
0
|
|
|
69,383
|
|
||||
GSE commercial CMOs
|
0
|
|
|
4,856
|
|
|
0
|
|
|
4,856
|
|
||||
Private label CMOs
|
0
|
|
|
5,006
|
|
|
0
|
|
|
5,006
|
|
||||
Total debt securities
|
0
|
|
|
400,063
|
|
|
0
|
|
|
400,063
|
|
||||
Equity securities
|
0
|
|
|
91
|
|
|
0
|
|
|
91
|
|
||||
Total securities
|
$
|
0
|
|
|
$
|
400,154
|
|
|
$
|
0
|
|
|
$
|
400,154
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Changes in fair value of impaired loans still held at June 30
|
$
|
4
|
|
|
$
|
183
|
|
|
$
|
2
|
|
|
$
|
162
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Changes in fair value of OREO still held at June 30
|
$
|
0
|
|
|
$
|
44
|
|
|
$
|
0
|
|
|
$
|
95
|
|
(Dollars in thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
Measurements
|
||||||||
June 30, 2017
|
|
|
|
|
|
|
|
||||||||
Impaired Loans
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
517
|
|
|
$
|
517
|
|
Multi-family
|
0
|
|
|
0
|
|
|
182
|
|
|
182
|
|
||||
Non-owner occupied residential
|
0
|
|
|
0
|
|
|
378
|
|
|
378
|
|
||||
Commercial and industrial
|
0
|
|
|
0
|
|
|
63
|
|
|
63
|
|
||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||
First lien
|
0
|
|
|
0
|
|
|
1,781
|
|
|
1,781
|
|
||||
Home equity - lines of credit
|
0
|
|
|
0
|
|
|
154
|
|
|
154
|
|
||||
Installment and other loans
|
0
|
|
|
0
|
|
|
5
|
|
|
5
|
|
||||
Total impaired loans
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
3,080
|
|
|
$
|
3,080
|
|
|
|
|
|
|
|
|
|
||||||||
Foreclosed real estate
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
22
|
|
|
$
|
22
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Impaired Loans
|
|
|
|
|
|
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
||||||||
Owner-occupied
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
777
|
|
|
$
|
777
|
|
Non-owner occupied
|
0
|
|
|
0
|
|
|
736
|
|
|
736
|
|
||||
Multi-family
|
0
|
|
|
0
|
|
|
199
|
|
|
199
|
|
||||
Non-owner occupied residential
|
0
|
|
|
0
|
|
|
409
|
|
|
409
|
|
||||
Acquisition and development:
|
|
|
|
|
|
|
|
||||||||
Commercial and land development
|
0
|
|
|
0
|
|
|
1
|
|
|
1
|
|
||||
Commercial and industrial
|
0
|
|
|
0
|
|
|
66
|
|
|
66
|
|
||||
Residential mortgage:
|
|
|
|
|
|
|
|
||||||||
First lien
|
0
|
|
|
0
|
|
|
1,994
|
|
|
1,994
|
|
||||
Home equity - lines of credit
|
0
|
|
|
0
|
|
|
162
|
|
|
162
|
|
||||
Installment and other loans
|
0
|
|
|
0
|
|
|
6
|
|
|
6
|
|
||||
Total impaired loans
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
4,350
|
|
|
$
|
4,350
|
|
|
|
|
|
|
|
|
|
||||||||
Foreclosed real estate
|
|
|
|
|
|
|
|
||||||||
Residential
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
88
|
|
|
$
|
88
|
|
(Dollars in thousands)
|
Fair Value
Estimate
|
|
Valuation
Techniques
|
|
Unobservable Input
|
|
Range
|
||
June 30, 2017
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
3,080
|
|
|
Appraisal of
collateral |
|
Management adjustments on appraisals for property type and recent activity
|
|
10% - 75% discount
|
|
|
|
|
|
- Management adjustments for liquidation expenses
|
|
0% - 38% discount
|
||
Foreclosed real estate
|
22
|
|
|
Appraisal of
collateral |
|
Management adjustments on appraisals for property type and recent activity
|
|
17% discount
|
|
|
|
|
|
|
- Management adjustments for liquidation expenses
|
|
10% discount
|
||
December 31, 2016
|
|
|
|
|
|
|
|
||
Impaired loans
|
$
|
4,350
|
|
|
Appraisal of
collateral |
|
Management adjustments on appraisals for property type and recent activity
|
|
10% - 75% discount
|
|
|
|
|
|
- Management adjustments for liquidation expenses
|
|
0% - 41% discount
|
||
Foreclosed real estate
|
88
|
|
|
Appraisal of
collateral |
|
Management adjustments on appraisals for property type and recent activity
|
|
13% - 17% discount
|
|
|
|
|
|
|
- Management adjustments for liquidation expenses
|
|
10% - 18% discount
|
(Dollars in thousands)
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
19,754
|
|
|
$
|
19,754
|
|
|
$
|
19,754
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Interest-bearing deposits with banks
|
18,258
|
|
|
18,258
|
|
|
18,258
|
|
|
0
|
|
|
0
|
|
|||||
Restricted investments in bank stocks
|
7,072
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
AFS securities
|
401,904
|
|
|
401,904
|
|
|
0
|
|
|
401,904
|
|
|
0
|
|
|||||
Loans held for sale
|
5,182
|
|
|
5,320
|
|
|
0
|
|
|
5,320
|
|
|
0
|
|
|||||
Loans, net of allowance for loan losses
|
921,631
|
|
|
922,642
|
|
|
0
|
|
|
0
|
|
|
922,642
|
|
|||||
Accrued interest receivable
|
4,467
|
|
|
4,467
|
|
|
0
|
|
|
2,501
|
|
|
1,966
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,195,936
|
|
|
1,193,225
|
|
|
0
|
|
|
1,193,225
|
|
|
0
|
|
|||||
Short-term borrowings
|
90,562
|
|
|
90,562
|
|
|
0
|
|
|
90,562
|
|
|
0
|
|
|||||
Long-term debt
|
23,991
|
|
|
24,487
|
|
|
0
|
|
|
24,487
|
|
|
0
|
|
|||||
Accrued interest payable
|
448
|
|
|
448
|
|
|
0
|
|
|
448
|
|
|
0
|
|
|||||
Off-balance sheet instruments
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks
|
$
|
16,072
|
|
|
$
|
16,072
|
|
|
$
|
16,072
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Interest-bearing deposits with banks
|
14,201
|
|
|
14,201
|
|
|
14,201
|
|
|
0
|
|
|
0
|
|
|||||
Restricted investments in bank stocks
|
7,970
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
AFS securities
|
400,154
|
|
|
400,154
|
|
|
0
|
|
|
400,154
|
|
|
0
|
|
|||||
Loans held for sale
|
2,768
|
|
|
2,843
|
|
|
0
|
|
|
2,843
|
|
|
0
|
|
|||||
Loans, net of allowance for loan losses
|
870,616
|
|
|
870,470
|
|
|
0
|
|
|
0
|
|
|
870,470
|
|
|||||
Accrued interest receivable
|
4,672
|
|
|
4,672
|
|
|
0
|
|
|
2,643
|
|
|
2,029
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,152,452
|
|
|
1,149,727
|
|
|
0
|
|
|
1,149,727
|
|
|
0
|
|
|||||
Short-term borrowings
|
87,864
|
|
|
87,864
|
|
|
0
|
|
|
87,864
|
|
|
0
|
|
|||||
Long-term debt
|
24,163
|
|
|
24,966
|
|
|
0
|
|
|
24,966
|
|
|
0
|
|
|||||
Accrued interest payable
|
437
|
|
|
437
|
|
|
0
|
|
|
437
|
|
|
0
|
|
|||||
Off-balance sheet instruments
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
|
Taxable-
Equivalent
Interest
|
|
Taxable-
Equivalent
Rate
|
|
Average
Balance
|
|
Taxable-
Equivalent
Interest
|
|
Taxable-
Equivalent
Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold & interest bearing bank balances
|
$
|
12,380
|
|
|
$
|
46
|
|
|
1.49
|
%
|
|
$
|
50,491
|
|
|
$
|
79
|
|
|
0.63
|
%
|
Securities
|
416,823
|
|
|
2,986
|
|
|
2.87
|
|
|
330,973
|
|
|
2,046
|
|
|
2.49
|
|
||||
Loans
|
928,739
|
|
|
10,065
|
|
|
4.35
|
|
|
824,004
|
|
|
8,652
|
|
|
4.22
|
|
||||
Total interest-earning assets
|
1,357,942
|
|
|
13,097
|
|
|
3.87
|
|
|
1,205,468
|
|
|
10,777
|
|
|
3.60
|
|
||||
Other assets
|
109,793
|
|
|
|
|
|
|
98,376
|
|
|
|
|
|
||||||||
Total
|
$
|
1,467,735
|
|
|
|
|
|
|
$
|
1,303,844
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand deposits
|
$
|
641,111
|
|
|
474
|
|
|
0.30
|
|
|
$
|
542,075
|
|
|
282
|
|
|
0.21
|
|
||
Savings deposits
|
96,261
|
|
|
38
|
|
|
0.16
|
|
|
91,341
|
|
|
36
|
|
|
0.16
|
|
||||
Time deposits
|
303,473
|
|
|
972
|
|
|
1.28
|
|
|
300,244
|
|
|
873
|
|
|
1.17
|
|
||||
Short-term borrowings
|
99,983
|
|
|
189
|
|
|
0.76
|
|
|
47,810
|
|
|
25
|
|
|
0.21
|
|
||||
Long-term debt
|
10,634
|
|
|
77
|
|
|
2.90
|
|
|
24,378
|
|
|
105
|
|
|
1.73
|
|
||||
Total interest-bearing liabilities
|
1,151,462
|
|
|
1,750
|
|
|
0.61
|
|
|
1,005,848
|
|
|
1,321
|
|
|
0.53
|
|
||||
Noninterest-bearing demand deposits
|
161,236
|
|
|
|
|
|
|
146,233
|
|
|
|
|
|
||||||||
Other
|
15,205
|
|
|
|
|
|
|
13,364
|
|
|
|
|
|
||||||||
Total Liabilities
|
1,327,903
|
|
|
|
|
|
|
1,165,445
|
|
|
|
|
|
||||||||
Shareholders’ Equity
|
139,832
|
|
|
|
|
|
|
138,399
|
|
|
|
|
|
||||||||
Total
|
$
|
1,467,735
|
|
|
|
|
|
|
$
|
1,303,844
|
|
|
|
|
|
||||||
Taxable-equivalent net interest income / net interest spread
|
|
|
11,347
|
|
|
3.26
|
%
|
|
|
|
9,456
|
|
|
3.07
|
%
|
||||||
Taxable-equivalent net interest margin
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
3.15
|
%
|
||||||||
Taxable-equivalent adjustment
|
|
|
(629
|
)
|
|
|
|
|
|
(505
|
)
|
|
|
||||||||
Net interest income
|
|
|
$
|
10,718
|
|
|
|
|
|
|
$
|
8,951
|
|
|
|
NOTES:
|
(1) Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 34% tax rate in 2017 and a 35% tax rate in 2016.
|
(Dollars in thousands)
|
Three Months Ended June 30,
|
|
$ Change
|
|
% Change
|
|||||||||
2017
|
|
2016
|
2017-2016
|
2017-2016
|
||||||||||
Service charges on deposit accounts
|
$
|
1,429
|
|
|
$
|
1,372
|
|
|
$
|
57
|
|
|
4.2
|
%
|
Other service charges, commissions and fees
|
283
|
|
|
289
|
|
|
(6
|
)
|
|
(2.1
|
)%
|
|||
Trust and investment management income
|
1,623
|
|
|
1,188
|
|
|
435
|
|
|
36.6
|
%
|
|||
Brokerage income
|
518
|
|
|
577
|
|
|
(59
|
)
|
|
(10.2
|
)%
|
|||
Mortgage banking activities
|
813
|
|
|
727
|
|
|
86
|
|
|
11.8
|
%
|
|||
Earnings on life insurance
|
271
|
|
|
270
|
|
|
1
|
|
|
0.4
|
%
|
|||
Other income
|
32
|
|
|
114
|
|
|
(82
|
)
|
|
(71.9
|
)%
|
|||
Subtotal before securities gains
|
4,969
|
|
|
4,537
|
|
|
432
|
|
|
9.5
|
%
|
|||
Investment securities gains
|
654
|
|
|
0
|
|
|
654
|
|
|
0.0
|
%
|
|||
Total noninterest income
|
$
|
5,623
|
|
|
$
|
4,537
|
|
|
$
|
1,086
|
|
|
23.9
|
%
|
•
|
Increased service charges income has resulted from new product offerings and increased activity associated with deposit growth.
|
•
|
Approximately 30% of the increase in trust and investment management income is attributable to income generated by Wheatland, which was acquired in December 2016. Trust department fees principally account for the remaining increase as additional revenues have been realized from favorable market conditions and the addition of an office in Berks County, Pennsylvania.
|
•
|
Mortgage banking income increased in the second quarter comparison of 2017 with 2016 after decreasing $53,000 in the first quarter comparison. This reflects some seasonality in mortgage production normally experienced in the second quarter over the first quarter. Refinance activity generally decreases as interest rates increase. Other factors that influenced the change in mortgage banking income include some slight compression in margins in the second quarter of 2017, as well as the portion of mortgage production retained for the Company's loan portfolio.
|
•
|
Other line items within noninterest income showed fluctuations between 2017 and 2016 attributable to normal business operations.
|
|
Three Months Ended June 30,
|
|
$ Change
|
|
% Change
|
|||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017-2016
|
|
2017-2016
|
|||||||
Salaries and employee benefits
|
$
|
7,422
|
|
|
$
|
6,312
|
|
|
$
|
1,110
|
|
|
17.6
|
%
|
Occupancy expense
|
705
|
|
|
592
|
|
|
113
|
|
|
19.1
|
%
|
|||
Furniture and equipment
|
826
|
|
|
748
|
|
|
78
|
|
|
10.4
|
%
|
|||
Data processing
|
664
|
|
|
519
|
|
|
145
|
|
|
27.9
|
%
|
|||
Telephone and communication
|
193
|
|
|
190
|
|
|
3
|
|
|
1.6
|
%
|
|||
Automated teller machine and interchange fees
|
194
|
|
|
237
|
|
|
(43
|
)
|
|
(18.1
|
)%
|
|||
Advertising and bank promotions
|
391
|
|
|
355
|
|
|
36
|
|
|
10.1
|
%
|
|||
FDIC insurance
|
178
|
|
|
223
|
|
|
(45
|
)
|
|
(20.2
|
)%
|
|||
Legal fees
|
108
|
|
|
225
|
|
|
(117
|
)
|
|
(52.0
|
)%
|
|||
Other professional services
|
377
|
|
|
345
|
|
|
32
|
|
|
9.3
|
%
|
|||
Directors compensation
|
249
|
|
|
257
|
|
|
(8
|
)
|
|
(3.1
|
)%
|
|||
Collection and problem loan
|
3
|
|
|
96
|
|
|
(93
|
)
|
|
(96.9
|
)%
|
|||
Real estate owned
|
(12
|
)
|
|
58
|
|
|
(70
|
)
|
|
(120.7
|
)%
|
|||
Taxes other than income
|
220
|
|
|
253
|
|
|
(33
|
)
|
|
(13.0
|
)%
|
|||
Regulatory settlement
|
0
|
|
|
1,000
|
|
|
(1,000
|
)
|
|
(100.0
|
)%
|
|||
Other operating expenses
|
899
|
|
|
1,148
|
|
|
(249
|
)
|
|
(21.7
|
)%
|
|||
Total noninterest expenses
|
$
|
12,417
|
|
|
$
|
12,558
|
|
|
$
|
(141
|
)
|
|
(1.1
|
)%
|
•
|
The salaries and employee benefits increase includes the impact in 2017 of additional employees, including new customer-facing employees in targeted expansion markets, throughout 2016 and 2017. Higher costs in 2017 also include annual merit increases awarded in 2017, increased medical benefit costs for the expanded workforce and increased claim activity, incentive compensation increases and additional share-based awards granted in 2017.
|
•
|
Occupancy, furniture and equipment expenses reflect a full period of expense for new facilities acquired in 2016 in Berks, Cumberland, Dauphin and Lancaster counties, Pennsylvania, as well as a new branch opened in Lancaster county in 2017.
|
•
|
Data processing expense in 2017 includes additional costs incurred for periodic processing updates and increased activity from higher volumes.
|
•
|
The FDIC reached its 1.15% of insured funds target in June 2016 and lower assessments have resulted. Our FDIC insurance expense in 2017 benefited from that lower assessment applied to our increased deposit base.
|
•
|
In the second quarter of 2016, a reserve of $1,000,000 was established for a matter which was resolved in the third quarter of 2016 with the Company's agreement to pay a civil money penalty in that amount to the Securities and Exchange Commission to settle administrative proceedings. Resolution of that matter in 2016 resulted in lower legal fees incurred in 2017.
|
•
|
The decrease in other operating expenses is principally attributable to a decrease in 2017 in reduced new hire fees to employment agencies; reduced consumer fraud expenses ("Reg E"); and provision expense for off-balance sheet reserves on loans that have been committed to borrowers, but not funded, resulting from changes in qualitative factors similar to those used in the determination of the provision for loan losses.
|
•
|
Other line items within noninterest expenses showed fluctuations between 2017 and 2016 attributable to normal business operations.
|
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
|
Taxable-
Equivalent
Interest
|
|
Taxable-
Equivalent
Rate
|
|
Average
Balance
|
|
Taxable-
Equivalent
Interest
|
|
Taxable-
Equivalent
Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold & interest-bearing bank balances
|
$
|
8,981
|
|
|
$
|
64
|
|
|
1.44
|
%
|
|
$
|
46,867
|
|
|
$
|
144
|
|
|
0.62
|
%
|
Securities
|
416,087
|
|
|
5,996
|
|
|
2.91
|
|
|
347,294
|
|
|
4,189
|
|
|
2.43
|
|
||||
Loans
|
912,127
|
|
|
19,487
|
|
|
4.31
|
|
|
809,894
|
|
|
16,914
|
|
|
4.20
|
|
||||
Total interest-earning assets
|
1,337,195
|
|
|
25,547
|
|
|
3.85
|
|
|
1,204,055
|
|
|
21,247
|
|
|
3.55
|
|
||||
Other assets
|
108,696
|
|
|
|
|
|
|
96,334
|
|
|
|
|
|
||||||||
Total
|
$
|
1,445,891
|
|
|
|
|
|
|
$
|
1,300,389
|
|
|
|
|
|
||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand deposits
|
$
|
625,170
|
|
|
837
|
|
|
0.27
|
|
|
$
|
531,757
|
|
|
532
|
|
|
0.20
|
|
||
Savings deposits
|
94,795
|
|
|
74
|
|
|
0.16
|
|
|
89,522
|
|
|
71
|
|
|
0.16
|
|
||||
Time deposits
|
300,117
|
|
|
1,899
|
|
|
1.28
|
|
|
302,523
|
|
|
1,727
|
|
|
1.15
|
|
||||
Short-term borrowings
|
102,303
|
|
|
361
|
|
|
0.71
|
|
|
62,076
|
|
|
91
|
|
|
0.29
|
|
||||
Long-term debt
|
16,017
|
|
|
172
|
|
|
2.17
|
|
|
24,419
|
|
|
211
|
|
|
1.74
|
|
||||
Total interest-bearing liabilities
|
1,138,402
|
|
|
3,343
|
|
|
0.59
|
|
|
1,010,297
|
|
|
2,632
|
|
|
0.52
|
|
||||
Noninterest-bearing demand deposits
|
154,904
|
|
|
|
|
|
|
139,723
|
|
|
|
|
|
||||||||
Other
|
14,900
|
|
|
|
|
|
|
13,286
|
|
|
|
|
|
||||||||
Total Liabilities
|
1,308,206
|
|
|
|
|
|
|
1,163,306
|
|
|
|
|
|
||||||||
Shareholders’ Equity
|
137,685
|
|
|
|
|
|
|
137,083
|
|
|
|
|
|
||||||||
Total
|
$
|
1,445,891
|
|
|
|
|
|
|
$
|
1,300,389
|
|
|
|
|
|
||||||
Taxable-equivalent net interest income /net interest spread
|
|
|
22,204
|
|
|
3.26
|
%
|
|
|
|
18,615
|
|
|
3.03
|
%
|
||||||
Taxable-equivalent net interest margin
|
|
|
|
|
3.35
|
%
|
|
|
|
|
|
3.11
|
%
|
||||||||
Taxable-equivalent adjustment
|
|
|
(1,249
|
)
|
|
|
|
|
|
(1,014
|
)
|
|
|
||||||||
Net interest income
|
|
|
$
|
20,955
|
|
|
|
|
|
|
$
|
17,601
|
|
|
|
NOTES:
|
(1) Yields and interest income on tax-exempt assets have been computed on a fully taxable equivalent basis assuming a 34% tax rate in 2017 and a 35% tax rate in 2016.
|
(Dollars in thousands)
|
Six Months Ended June 30,
|
|
$ Change
|
|
% Change
|
|||||||||
2017
|
|
2016
|
|
2017-2016
|
|
2017-2016
|
||||||||
|
|
|
|
|
|
|
|
|||||||
Service charges on deposit accounts
|
$
|
2,787
|
|
|
$
|
2,675
|
|
|
$
|
112
|
|
|
4.2
|
%
|
Other service charges, commissions and fees
|
492
|
|
|
449
|
|
|
43
|
|
|
9.6
|
%
|
|||
Trust and investment management income
|
3,069
|
|
|
2,524
|
|
|
545
|
|
|
21.6
|
%
|
|||
Brokerage income
|
985
|
|
|
1,026
|
|
|
(41
|
)
|
|
(4.0
|
)%
|
|||
Mortgage banking activities
|
1,316
|
|
|
1,369
|
|
|
(53
|
)
|
|
(3.9
|
)%
|
|||
Earnings on life insurance
|
539
|
|
|
538
|
|
|
1
|
|
|
0.2
|
%
|
|||
Other income
|
113
|
|
|
201
|
|
|
(88
|
)
|
|
(43.8
|
)%
|
|||
Subtotal before securities gains
|
9,301
|
|
|
8,782
|
|
|
519
|
|
|
5.9
|
%
|
|||
Investment securities gains
|
657
|
|
|
1,420
|
|
|
(763
|
)
|
|
(53.7
|
)%
|
|||
Total noninterest income
|
$
|
9,958
|
|
|
$
|
10,202
|
|
|
$
|
(244
|
)
|
|
(2.4
|
)%
|
•
|
Increased service charges on deposit accounts income has resulted from new product offerings and increased activity associated with deposit growth.
|
•
|
Approximately half of the increase in trust and investment management income is attributable to income generated by Wheatland, which was acquired in December 2016. Trust department fees principally account for the remaining increase as additional revenues have been realized from favorable market conditions and the addition of an office in Berks County, Pennsylvania.
|
•
|
The decrease in mortgage banking activities reflects a combination of overall decreased refinance activity as interest rates have increased, some slight compression in margins the Company has experienced in the second quarter of 2017 and the portion of mortgage production retained for the Company's loan portfolio.
|
•
|
Other line items within noninterest income showed fluctuations between 2017 and 2016 attributable to normal business operations.
|
|
Six Months Ended June 30,
|
|
$ Change
|
|
% Change
|
|||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
2017-2016
|
|
2017-2016
|
|||||||
|
|
|
|
|
|
|
|
|||||||
Salaries and employee benefits
|
$
|
14,822
|
|
|
$
|
12,495
|
|
|
$
|
2,327
|
|
|
18.6
|
%
|
Occupancy expense
|
1,462
|
|
|
1,118
|
|
|
344
|
|
|
30.8
|
%
|
|||
Furniture and equipment
|
1,562
|
|
|
1,534
|
|
|
28
|
|
|
1.8
|
%
|
|||
Data processing
|
1,175
|
|
|
1,154
|
|
|
21
|
|
|
1.8
|
%
|
|||
Telephone and communication
|
315
|
|
|
366
|
|
|
(51
|
)
|
|
(13.9
|
)%
|
|||
Automated teller machine and interchange fees
|
372
|
|
|
398
|
|
|
(26
|
)
|
|
(6.5
|
)%
|
|||
Advertising and bank promotions
|
778
|
|
|
811
|
|
|
(33
|
)
|
|
(4.1
|
)%
|
|||
FDIC insurance
|
315
|
|
|
455
|
|
|
(140
|
)
|
|
(30.8
|
)%
|
|||
Legal fees
|
261
|
|
|
406
|
|
|
(145
|
)
|
|
(35.7
|
)%
|
|||
Other professional services
|
732
|
|
|
684
|
|
|
48
|
|
|
7.0
|
%
|
|||
Directors' compensation
|
491
|
|
|
488
|
|
|
3
|
|
|
0.6
|
%
|
|||
Collection and problem loan
|
78
|
|
|
148
|
|
|
(70
|
)
|
|
(47.3
|
)%
|
|||
Real estate owned
|
8
|
|
|
101
|
|
|
(93
|
)
|
|
(92.1
|
)%
|
|||
Taxes other than income
|
448
|
|
|
408
|
|
|
40
|
|
|
9.8
|
%
|
|||
Regulatory settlement
|
0
|
|
|
1,000
|
|
|
(1,000
|
)
|
|
(100.0
|
)%
|
|||
Other operating expenses
|
1,744
|
|
|
2,113
|
|
|
(369
|
)
|
|
(17.5
|
)%
|
|||
Total noninterest expenses
|
$
|
24,563
|
|
|
$
|
23,679
|
|
|
$
|
884
|
|
|
3.7
|
%
|
•
|
The salaries and employee benefits increase includes the impact in 2017 of additional employees, including new customer-facing employees in targeted expansion markets, throughout 2016 and 2017. Higher costs in 2017 also include annual merit increases awarded in 2017, increased medical benefit costs for the expanded workforce and increased claim activity, incentive compensation increases and additional share-based awards granted in 2017.
|
•
|
Occupancy expense reflect a full period of expense for new facilities acquired in 2016 in Berks, Cumberland, Dauphin and Lancaster counties, Pennsylvania.
|
•
|
The FDIC reached its 1.15% of insured funds target in June 2016 and lower assessments have resulted. Our FDIC insurance expense in 2017 benefited from that lower assessment applied to our increased deposit base.
|
•
|
In the second quarter of 2016, a reserve of $1,000,000 was established for a matter which was resolved in the third quarter of 2016 with the Company's agreement to pay a civil money penalty in that amount to the Securities and Exchange Commission to settle administrative proceedings. Resolution of that matter in 2016 resulted in lower legal fees incurred in 2017.
|
•
|
The decrease in other operating expenses is principally attributable to a decrease in 2017 in reduced new hire fees to employment agencies; reduced consumer fraud expenses ("Reg E"); and provision expense for off-balance sheet reserves on loans that have been committed to borrowers, but not funded, resulting from changes in qualitative factors similar to those used in the determination of the provision for loan losses.
|
•
|
Other line items within noninterest expenses showed fluctuations between 2017 and 2016 attributable to normal business operations.
|
(Dollars in thousands)
|
June 30,
2017 |
|
December 31,
2016 |
||||
Commercial real estate:
|
|
|
|
||||
Owner-occupied
|
$
|
116,419
|
|
|
$
|
112,295
|
|
Non-owner occupied
|
217,070
|
|
|
206,358
|
|
||
Multi-family
|
48,637
|
|
|
47,681
|
|
||
Non-owner occupied residential
|
68,621
|
|
|
62,533
|
|
||
Acquisition and development:
|
|
|
|
||||
1-4 family residential construction
|
8,036
|
|
|
4,663
|
|
||
Commercial and land development
|
28,481
|
|
|
26,085
|
|
||
Commercial and industrial
|
97,913
|
|
|
88,465
|
|
||
Municipal
|
51,381
|
|
|
53,741
|
|
||
Residential mortgage:
|
|
|
|
||||
First lien
|
150,173
|
|
|
139,851
|
|
||
Home equity - term
|
13,019
|
|
|
14,248
|
|
||
Home equity - lines of credit
|
127,262
|
|
|
120,353
|
|
||
Installment and other loans
|
7,370
|
|
|
7,118
|
|
||
|
$
|
934,382
|
|
|
$
|
883,391
|
|
(Dollars in thousands)
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2016 |
||||||
Nonaccrual loans (cash basis)
|
$
|
5,160
|
|
|
$
|
7,043
|
|
|
$
|
14,092
|
|
OREO
|
1,012
|
|
|
346
|
|
|
651
|
|
|||
Total nonperforming assets
|
6,172
|
|
|
7,389
|
|
|
14,743
|
|
|||
Restructured loans still accruing
|
1,204
|
|
|
930
|
|
|
907
|
|
|||
Loans past due 90 days or more and still accruing
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total nonperforming and other risk assets
|
$
|
7,376
|
|
|
$
|
8,319
|
|
|
$
|
15,650
|
|
Loans 30-89 days past due
|
$
|
1,069
|
|
|
$
|
1,218
|
|
|
$
|
1,051
|
|
Asset Quality Ratios:
|
|
|
|
|
|
||||||
Total nonperforming loans to loans
|
0.55
|
%
|
|
0.80
|
%
|
|
1.69
|
%
|
|||
Total nonperforming assets to total assets
|
0.42
|
%
|
|
0.52
|
%
|
|
1.12
|
%
|
|||
Total nonperforming assets to total loans and OREO
|
0.66
|
%
|
|
0.84
|
%
|
|
1.77
|
%
|
|||
Total risk assets to total loans and OREO
|
0.79
|
%
|
|
0.94
|
%
|
|
1.88
|
%
|
|||
Total risk assets to total assets
|
0.50
|
%
|
|
0.59
|
%
|
|
1.19
|
%
|
|||
ALL to total loans
|
1.36
|
%
|
|
1.45
|
%
|
|
1.62
|
%
|
|||
ALL to nonperforming loans
|
247.11
|
%
|
|
181.39
|
%
|
|
95.37
|
%
|
|||
ALL to nonperforming loans and restructured loans still accruing
|
200.36
|
%
|
|
160.23
|
%
|
|
89.61
|
%
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(Dollars in thousands)
|
Nonaccrual
Loans
|
|
Restructured
Loans Still
Accruing
|
|
Total
|
|
Nonaccrual
Loans
|
|
Restructured
Loans Still
Accruing
|
|
Total
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
853
|
|
|
$
|
56
|
|
|
$
|
909
|
|
|
$
|
1,070
|
|
|
$
|
0
|
|
|
$
|
1,070
|
|
Non-owner occupied
|
0
|
|
|
0
|
|
|
0
|
|
|
736
|
|
|
0
|
|
|
736
|
|
||||||
Multi-family
|
182
|
|
|
0
|
|
|
182
|
|
|
199
|
|
|
0
|
|
|
199
|
|
||||||
Non-owner occupied residential
|
418
|
|
|
0
|
|
|
418
|
|
|
452
|
|
|
0
|
|
|
452
|
|
||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and land development
|
0
|
|
|
0
|
|
|
0
|
|
|
1
|
|
|
0
|
|
|
1
|
|
||||||
Commercial and industrial
|
376
|
|
|
0
|
|
|
376
|
|
|
595
|
|
|
0
|
|
|
595
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First lien
|
2,857
|
|
|
1,116
|
|
|
3,973
|
|
|
3,396
|
|
|
896
|
|
|
4,292
|
|
||||||
Home equity - term
|
25
|
|
|
0
|
|
|
25
|
|
|
93
|
|
|
34
|
|
|
127
|
|
||||||
Home equity - lines of credit
|
440
|
|
|
32
|
|
|
472
|
|
|
495
|
|
|
0
|
|
|
495
|
|
||||||
Installment and other loans
|
9
|
|
|
0
|
|
|
9
|
|
|
6
|
|
|
0
|
|
|
6
|
|
||||||
|
$
|
5,160
|
|
|
$
|
1,204
|
|
|
$
|
6,364
|
|
|
$
|
7,043
|
|
|
$
|
930
|
|
|
$
|
7,973
|
|
(Dollars in thousands)
|
# of
Relationships
|
|
Recorded
Investment
|
|
Partial
Charge-offs
to Date
|
|
Specific
Reserves
|
|||||||
June 30, 2017
|
|
|
|
|
|
|
|
|||||||
Relationships greater than $1,000,000
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Relationships greater than $500,000 but less than $1,000,000
|
1
|
|
|
542
|
|
|
145
|
|
|
0
|
|
|||
Relationships greater than $250,000 but less than $500,000
|
1
|
|
|
315
|
|
|
120
|
|
|
0
|
|
|||
Relationships less than $250,000
|
70
|
|
|
5,507
|
|
|
1,135
|
|
|
45
|
|
|||
|
72
|
|
|
$
|
6,364
|
|
|
$
|
1,400
|
|
|
$
|
45
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|||||||
Relationships greater than $1,000,000
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Relationships greater than $500,000 but less than $1,000,000
|
2
|
|
|
1,327
|
|
|
620
|
|
|
0
|
|
|||
Relationships greater than $250,000 but less than $500,000
|
2
|
|
|
640
|
|
|
120
|
|
|
0
|
|
|||
Relationships less than $250,000
|
75
|
|
|
6,006
|
|
|
1,184
|
|
|
43
|
|
|||
|
79
|
|
|
$
|
7,973
|
|
|
$
|
1,924
|
|
|
$
|
43
|
|
(Dollars in thousands)
|
Pass
|
|
Special
Mention
|
|
Non-Impaired
Substandard
|
|
Impaired -
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
111,737
|
|
|
$
|
1,814
|
|
|
$
|
1,959
|
|
|
$
|
909
|
|
|
$
|
0
|
|
|
$
|
116,419
|
|
Non-owner occupied
|
206,823
|
|
|
196
|
|
|
10,051
|
|
|
0
|
|
|
0
|
|
|
217,070
|
|
||||||
Multi-family
|
43,526
|
|
|
4,159
|
|
|
770
|
|
|
182
|
|
|
0
|
|
|
48,637
|
|
||||||
Non-owner occupied residential
|
66,024
|
|
|
1,062
|
|
|
1,117
|
|
|
418
|
|
|
0
|
|
|
68,621
|
|
||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1-4 family residential construction
|
8,036
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
8,036
|
|
||||||
Commercial and land development
|
27,849
|
|
|
7
|
|
|
625
|
|
|
0
|
|
|
0
|
|
|
28,481
|
|
||||||
Commercial and industrial
|
95,124
|
|
|
2,384
|
|
|
29
|
|
|
376
|
|
|
0
|
|
|
97,913
|
|
||||||
Municipal
|
49,392
|
|
|
1,989
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
51,381
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First lien
|
146,200
|
|
|
0
|
|
|
0
|
|
|
3,973
|
|
|
0
|
|
|
150,173
|
|
||||||
Home equity - term
|
12,994
|
|
|
0
|
|
|
0
|
|
|
25
|
|
|
0
|
|
|
13,019
|
|
||||||
Home equity - lines of credit
|
126,648
|
|
|
81
|
|
|
61
|
|
|
472
|
|
|
0
|
|
|
127,262
|
|
||||||
Installment and other loans
|
7,361
|
|
|
0
|
|
|
0
|
|
|
9
|
|
|
0
|
|
|
7,370
|
|
||||||
|
$
|
901,714
|
|
|
$
|
11,692
|
|
|
$
|
14,612
|
|
|
$
|
6,364
|
|
|
$
|
0
|
|
|
$
|
934,382
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owner-occupied
|
$
|
103,652
|
|
|
$
|
5,422
|
|
|
$
|
2,151
|
|
|
$
|
1,070
|
|
|
$
|
0
|
|
|
$
|
112,295
|
|
Non-owner occupied
|
190,726
|
|
|
4,791
|
|
|
10,105
|
|
|
736
|
|
|
0
|
|
|
206,358
|
|
||||||
Multi-family
|
42,473
|
|
|
4,222
|
|
|
787
|
|
|
199
|
|
|
0
|
|
|
47,681
|
|
||||||
Non-owner occupied residential
|
59,982
|
|
|
949
|
|
|
1,150
|
|
|
452
|
|
|
0
|
|
|
62,533
|
|
||||||
Acquisition and development:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1-4 family residential construction
|
4,560
|
|
|
103
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,663
|
|
||||||
Commercial and land development
|
25,435
|
|
|
10
|
|
|
639
|
|
|
1
|
|
|
0
|
|
|
26,085
|
|
||||||
Commercial and industrial
|
87,588
|
|
|
251
|
|
|
32
|
|
|
594
|
|
|
0
|
|
|
88,465
|
|
||||||
Municipal
|
53,741
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
53,741
|
|
||||||
Residential mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
First lien
|
135,558
|
|
|
0
|
|
|
0
|
|
|
4,293
|
|
|
0
|
|
|
139,851
|
|
||||||
Home equity - term
|
14,155
|
|
|
0
|
|
|
0
|
|
|
93
|
|
|
0
|
|
|
14,248
|
|
||||||
Home equity - lines of credit
|
119,681
|
|
|
82
|
|
|
61
|
|
|
529
|
|
|
0
|
|
|
120,353
|
|
||||||
Installment and other loans
|
7,112
|
|
|
0
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
7,118
|
|
||||||
|
$
|
844,663
|
|
|
$
|
15,830
|
|
|
$
|
14,925
|
|
|
$
|
7,973
|
|
|
$
|
0
|
|
|
$
|
883,391
|
|
|
Commercial
|
|
Consumer
|
|
|
|
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
Real Estate
|
|
Acquisition
and
Development
|
|
Commercial
and
Industrial
|
|
Municipal
|
|
Total
|
|
Residential
Mortgage
|
|
Installment
and Other
|
|
Total
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
6,963
|
|
|
$
|
513
|
|
|
$
|
1,218
|
|
|
$
|
106
|
|
|
$
|
8,800
|
|
|
$
|
3,229
|
|
|
$
|
127
|
|
|
$
|
3,356
|
|
|
$
|
512
|
|
|
$
|
12,668
|
|
Provision for loan losses
|
(214
|
)
|
|
65
|
|
|
69
|
|
|
11
|
|
|
(69
|
)
|
|
198
|
|
|
13
|
|
|
211
|
|
|
(42
|
)
|
|
100
|
|
||||||||||
Charge-offs
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(51
|
)
|
|
(27
|
)
|
|
(78
|
)
|
|
0
|
|
|
(78
|
)
|
||||||||||
Recoveries
|
28
|
|
|
1
|
|
|
4
|
|
|
0
|
|
|
33
|
|
|
10
|
|
|
18
|
|
|
28
|
|
|
0
|
|
|
61
|
|
||||||||||
Balance, end of period
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,996
|
|
|
$
|
739
|
|
|
$
|
1,030
|
|
|
$
|
62
|
|
|
$
|
9,827
|
|
|
$
|
2,677
|
|
|
$
|
179
|
|
|
$
|
2,856
|
|
|
$
|
664
|
|
|
$
|
13,347
|
|
Provision for loan losses
|
(12
|
)
|
|
(152
|
)
|
|
112
|
|
|
(1
|
)
|
|
(53
|
)
|
|
66
|
|
|
26
|
|
|
92
|
|
|
(39
|
)
|
|
0
|
|
||||||||||
Charge-offs
|
(26
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(26
|
)
|
|
(80
|
)
|
|
(48
|
)
|
|
(128
|
)
|
|
0
|
|
|
(154
|
)
|
||||||||||
Recoveries
|
175
|
|
|
0
|
|
|
6
|
|
|
0
|
|
|
181
|
|
|
43
|
|
|
23
|
|
|
66
|
|
|
0
|
|
|
247
|
|
||||||||||
Balance, end of period
|
$
|
8,133
|
|
|
$
|
587
|
|
|
$
|
1,148
|
|
|
$
|
61
|
|
|
$
|
9,929
|
|
|
$
|
2,706
|
|
|
$
|
180
|
|
|
$
|
2,886
|
|
|
$
|
625
|
|
|
$
|
13,440
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,530
|
|
|
$
|
580
|
|
|
$
|
1,074
|
|
|
$
|
54
|
|
|
$
|
9,238
|
|
|
$
|
2,979
|
|
|
$
|
144
|
|
|
$
|
3,123
|
|
|
$
|
414
|
|
|
$
|
12,775
|
|
Provision for loan losses
|
(738
|
)
|
|
(3
|
)
|
|
267
|
|
|
63
|
|
|
(411
|
)
|
|
441
|
|
|
14
|
|
|
455
|
|
|
56
|
|
|
100
|
|
||||||||||
Charge-offs
|
(45
|
)
|
|
0
|
|
|
(55
|
)
|
|
0
|
|
|
(100
|
)
|
|
(51
|
)
|
|
(56
|
)
|
|
(107
|
)
|
|
0
|
|
|
(207
|
)
|
||||||||||
Recoveries
|
30
|
|
|
2
|
|
|
5
|
|
|
0
|
|
|
37
|
|
|
17
|
|
|
29
|
|
|
46
|
|
|
0
|
|
|
83
|
|
||||||||||
Balance, end of period
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance, beginning of period
|
$
|
7,883
|
|
|
$
|
850
|
|
|
$
|
1,012
|
|
|
$
|
58
|
|
|
$
|
9,803
|
|
|
$
|
2,870
|
|
|
$
|
121
|
|
|
$
|
2,991
|
|
|
$
|
774
|
|
|
$
|
13,568
|
|
Provision for loan losses
|
21
|
|
|
(263
|
)
|
|
149
|
|
|
3
|
|
|
(90
|
)
|
|
111
|
|
|
128
|
|
|
239
|
|
|
(149
|
)
|
|
0
|
|
||||||||||
Charge-offs
|
(26
|
)
|
|
0
|
|
|
(21
|
)
|
|
0
|
|
|
(47
|
)
|
|
(324
|
)
|
|
(112
|
)
|
|
(436
|
)
|
|
0
|
|
|
(483
|
)
|
||||||||||
Recoveries
|
255
|
|
|
0
|
|
|
8
|
|
|
0
|
|
|
263
|
|
|
49
|
|
|
43
|
|
|
92
|
|
|
0
|
|
|
355
|
|
||||||||||
Balance, end of period
|
$
|
8,133
|
|
|
$
|
587
|
|
|
$
|
1,148
|
|
|
$
|
61
|
|
|
$
|
9,929
|
|
|
$
|
2,706
|
|
|
$
|
180
|
|
|
$
|
2,886
|
|
|
$
|
625
|
|
|
$
|
13,440
|
|
|
Commercial
|
|
Consumer
|
|
|
|
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
Real Estate
|
|
Acquisition
and
Development
|
|
Commercial
and
Industrial
|
|
Municipal
|
|
Total
|
|
Residential
Mortgage
|
|
Installment
and Other
|
|
Total
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
1,509
|
|
|
$
|
0
|
|
|
$
|
376
|
|
|
$
|
0
|
|
|
$
|
1,885
|
|
|
$
|
4,470
|
|
|
$
|
9
|
|
|
$
|
4,479
|
|
|
$
|
0
|
|
|
$
|
6,364
|
|
Collectively evaluated for impairment
|
449,238
|
|
|
36,517
|
|
|
97,537
|
|
|
51,381
|
|
|
634,673
|
|
|
285,984
|
|
|
7,361
|
|
|
293,345
|
|
|
0
|
|
|
928,018
|
|
||||||||||
|
$
|
450,747
|
|
|
$
|
36,517
|
|
|
$
|
97,913
|
|
|
$
|
51,381
|
|
|
$
|
636,558
|
|
|
$
|
290,454
|
|
|
$
|
7,370
|
|
|
$
|
297,824
|
|
|
$
|
0
|
|
|
$
|
934,382
|
|
ALL allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
40
|
|
|
$
|
5
|
|
|
$
|
45
|
|
|
$
|
0
|
|
|
$
|
45
|
|
Collectively evaluated for impairment
|
6,777
|
|
|
579
|
|
|
1,291
|
|
|
117
|
|
|
8,764
|
|
|
3,346
|
|
|
126
|
|
|
3,472
|
|
|
470
|
|
|
12,706
|
|
||||||||||
|
$
|
6,777
|
|
|
$
|
579
|
|
|
$
|
1,291
|
|
|
$
|
117
|
|
|
$
|
8,764
|
|
|
$
|
3,386
|
|
|
$
|
131
|
|
|
$
|
3,517
|
|
|
$
|
470
|
|
|
$
|
12,751
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
2,457
|
|
|
$
|
1
|
|
|
$
|
594
|
|
|
$
|
0
|
|
|
$
|
3,052
|
|
|
$
|
4,915
|
|
|
$
|
6
|
|
|
$
|
4,921
|
|
|
$
|
0
|
|
|
$
|
7,973
|
|
Collectively evaluated for impairment
|
426,410
|
|
|
30,747
|
|
|
87,871
|
|
|
53,741
|
|
|
598,769
|
|
|
269,537
|
|
|
7,112
|
|
|
276,649
|
|
|
0
|
|
|
875,418
|
|
||||||||||
|
$
|
428,867
|
|
|
$
|
30,748
|
|
|
$
|
88,465
|
|
|
$
|
53,741
|
|
|
$
|
601,821
|
|
|
$
|
274,452
|
|
|
$
|
7,118
|
|
|
$
|
281,570
|
|
|
$
|
0
|
|
|
$
|
883,391
|
|
ALL allocated by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Individually evaluated for impairment
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
43
|
|
|
$
|
0
|
|
|
$
|
43
|
|
|
$
|
0
|
|
|
$
|
43
|
|
Collectively evaluated for impairment
|
7,530
|
|
|
580
|
|
|
1,074
|
|
|
54
|
|
|
9,238
|
|
|
2,936
|
|
|
144
|
|
|
3,080
|
|
|
414
|
|
|
12,732
|
|
||||||||||
|
$
|
7,530
|
|
|
$
|
580
|
|
|
$
|
1,074
|
|
|
$
|
54
|
|
|
$
|
9,238
|
|
|
$
|
2,979
|
|
|
$
|
144
|
|
|
$
|
3,123
|
|
|
$
|
414
|
|
|
$
|
12,775
|
|
Earnings at Risk
|
|
Value at Risk
|
||||||||||||||
|
|
% Change in Net Interest Income
|
|
|
|
% Change in Market Value
|
||||||||||
Change in Market Interest Rates
|
|
June 30, 2017
|
|
December 31, 2016
|
|
Change in Market Interest Rates
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
(100
|
)
|
|
(6.6
|
%)
|
|
(3.3
|
%)
|
|
(100
|
)
|
|
(5.8
|
%)
|
|
(1.0
|
%)
|
100
|
|
|
(1.2
|
%)
|
|
(1.5
|
%)
|
|
100
|
|
|
(0.7
|
%)
|
|
(1.5
|
%)
|
200
|
|
|
(2.2
|
%)
|
|
(2.5
|
%)
|
|
200
|
|
|
(3.4
|
%)
|
|
(2.9
|
%)
|
|
/s/ Thomas R. Quinn, Jr.
|
|
Thomas R. Quinn, Jr.
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/s/ David P. Boyle
|
|
David P. Boyle
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
|
|
Date: August 8, 2017
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase *
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase *
|
|
|
|
101.INS
|
|
XBRL Instance Document *
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema *
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase *
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase *
|
*
|
Attached as Exhibits 101 to this Form 10-Q are documents formatted in XBRL (eXtensible Business Reporting Language).
|
1 Year Orrstown Financial Servi... Chart |
1 Month Orrstown Financial Servi... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions