MAINE
|
01-0404322
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
MAIN STREET, DAMARISCOTTA, MAINE
|
04543
|
(Address of principal executive offices)
|
(Zip code)
|
ITEM 1. Discussion of Business
|
|
|
|
•
|
The creation of an independent accounting oversight board;
|
•
|
Auditor independence provisions which restrict non-audit services that accountants may provide to clients;
|
•
|
Additional corporate governance and responsibility measures, including the requirement that the chief executive officer and chief financial officer of a public company certify financial statements;
|
•
|
The forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer's securities by directors and senior officers in the twelve-month period following initial publication of any financial statements that later require restatement;
|
•
|
An increase in the oversight of, and enhancement of certain requirements relating to, audit committees of public companies and how they interact with the public company's independent auditors;
|
•
|
Requirements that audit committee members must be independent and are barred from accepting consulting, advisory or other compensatory fees from the issuer;
|
•
|
Requirements that companies disclose whether at least one member of the audit committee is a 'financial expert' (as such term is defined by the SEC), and if not, why not;
|
•
|
Expanded disclosure requirements for corporate insiders, including accelerated reporting of stock transactions by insiders and a prohibition on insider trading during certain blackout periods;
|
•
|
A prohibition on personal loans to directors and officers, except certain loans made by insured financial institutions, such as the Bank, on nonpreferential terms and in compliance with bank regulatory requirements;
|
•
|
Disclosure of a code of ethics and filing a Form 8-K in the event of a change or waiver of such code; and
|
•
|
A range of enhanced penalties for fraud and other violations.
|
•
|
raise the quality of capital so that banks will be better able to absorb losses on both a going concern basis;
|
•
|
increase the risk coverage of the capital framework, specifically for trading activities, securitizations, exposures to off-balance sheet vehicles, and counterparty credit exposures arising from derivatives;
|
•
|
raise the level of minimum capital requirements;
|
•
|
establish an international leverage ratio;
|
•
|
develop capital buffers; and
|
•
|
raise standards for the supervisory review process (Pillar 2) and public disclosures (Pillar 3).
|
•
|
implement in the United States the Basel III regulatory capital reforms, including those that revise the definition of capital, increase minimum capital ratios, and introduce a minimum Tier 1 common equity ratio of 4.5% and a capital conservation buffer of 2.5% (for a total minimum Tier 1 common equity ratio of 7.0%) and a potential countercyclical buffer of up to 2.5%, which would be imposed by regulators at their discretion if it is determined that a period of excessive credit growth is contributing to an increase in systemic risk;
|
•
|
revise "Basel I" rules for calculating risk-weighted assets to enhance risk sensitivity;
|
•
|
modify the existing Basel II advanced approaches rules for calculating risk-weighted assets to implement Basel III; and
|
•
|
comply with the Dodd-Frank Act provision prohibiting reliance on external credit ratings to support certain investment decisions.
|
•
|
our ability to originate loans and obtain deposits;
|
•
|
the fair value of our financial assets and liabilities; and
|
•
|
the average duration of our loans and securities that are collateralized by mortgages.
|
•
|
quarterly fluctuations in our operating and financial results;
|
•
|
operating results that vary from the expectations of investors;
|
•
|
changes in expectations as to our future financial performance, including financial estimates;
|
•
|
events negatively impacting the financial services industry which result in a general decline for the industry;
|
•
|
new laws or regulations or new interpretations of existing laws or regulations applicable to our business;
|
•
|
changes in accounting standards, policies, guidance, interpretations or principles;
|
•
|
general domestic economic and market conditions; and
|
•
|
declines in bank stock prices driven by macro-economic concerns.
|
•
|
potential exposure to unknown or contingent liabilities of the target;
|
•
|
exposure to potential asset quality issues of the target;
|
•
|
difficulty and expense of integrating the operations and personnel of the target;
|
•
|
potential disruption to our business;
|
•
|
potential diversion of Management's time and attention;
|
•
|
the possible loss of key employees and customers of the target;
|
•
|
difficulty in estimating the value of the assets and liabilities of the target; and
|
•
|
potential changes in banking or tax laws or regulations that may affect the target.
|
Lincoln County
|
Knox County
|
Hancock County
|
Washington County
|
Boothbay Harbor
|
Camden
|
Bar Harbor
|
Eastport
|
Damariscotta
|
Rockland Park Street
|
Blue Hill
|
Calais
|
Waldoboro
|
Rockland Union Street
|
Ellsworth
|
|
Wiscasset
|
Rockport
|
Northeast Harbor
|
Penobscot County
|
|
|
Southwest Harbor
|
Bangor
|
|
|
|
|
Month
|
Shares Purchased
|
Average Price Per Share
|
Total shares purchased as part of publicly announced repurchase plans
|
Maximum number of shares that may be purchased under the plans
|
||||
January 2018
|
5,134
|
|
29.47
|
|
—
|
|
—
|
|
February 2018
|
168
|
|
27.21
|
|
—
|
|
—
|
|
March 2018
|
423
|
|
27.98
|
|
—
|
|
—
|
|
April 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
May 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
June 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
July 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
August 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
September 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
October 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
November 2018
|
—
|
|
—
|
|
—
|
|
—
|
|
December 2017
|
—
|
|
—
|
|
—
|
|
—
|
|
|
5,725
|
|
29.18
|
|
—
|
|
—
|
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column)
|
||||
Plan category
|
|
|
|
|
|
||||
Equity compensation plans approved by security holders
|
—
|
|
|
$
|
—
|
|
|
255,645
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
—
|
|
|
$
|
—
|
|
|
255,645
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||
FNLC
|
100.00
|
|
|
110.65
|
|
111.15
|
|
129.65
|
|
138.20
|
|
218.82
|
|
108.13
|
|
186.65
|
|
124.90
|
|
187.02
|
|
S&P 500
|
100.00
|
|
|
132.38
|
|
117.48
|
|
134.20
|
|
180.40
|
|
150.24
|
|
115.06
|
|
183.02
|
|
136.28
|
|
174.98
|
|
NASD Bank
|
100.00
|
|
|
141.72
|
|
102.16
|
|
154.25
|
|
171.85
|
|
212.82
|
|
114.15
|
|
224.45
|
|
121.26
|
|
188.15
|
|
|
Years ended December 31,
|
||||||||||||||||||
Dollars in thousands,
except for per share amounts
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Summary of Operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Income
|
$
|
70,543
|
|
|
$
|
60,832
|
|
|
$
|
53,759
|
|
|
$
|
50,810
|
|
|
$
|
51,022
|
|
Interest Expense
|
20,334
|
|
|
13,529
|
|
|
10,812
|
|
|
9,874
|
|
|
11,425
|
|
|||||
Net Interest Income
|
50,209
|
|
|
47,303
|
|
|
42,947
|
|
|
40,936
|
|
|
39,597
|
|
|||||
Provision for Loan Losses
|
1,500
|
|
|
2,000
|
|
|
1,600
|
|
|
1,550
|
|
|
1,150
|
|
|||||
Non-Interest Income
|
12,600
|
|
|
12,548
|
|
|
12,499
|
|
|
12,230
|
|
|
11,048
|
|
|||||
Non-Interest Expense
|
33,467
|
|
|
31,651
|
|
|
29,383
|
|
|
29,896
|
|
|
30,220
|
|
|||||
Net Income
|
23,536
|
|
|
19,588
|
|
|
18,009
|
|
|
16,206
|
|
|
14,709
|
|
|||||
Per Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic Earnings per Share
|
$
|
2.18
|
|
|
$
|
1.82
|
|
|
$
|
1.68
|
|
|
$
|
1.52
|
|
|
$
|
1.38
|
|
Diluted Earnings per Share
|
2.17
|
|
|
1.81
|
|
|
1.66
|
|
|
1.51
|
|
|
1.37
|
|
|||||
Cash Dividends Declared per Common Share
|
1.110
|
|
|
0.950
|
|
|
1.030
|
|
|
0.870
|
|
|
0.830
|
|
|||||
Book Value per Common Share
|
17.63
|
|
|
16.74
|
|
|
15.98
|
|
|
15.58
|
|
|
15.06
|
|
|||||
Tangible Book Value per Common Share
|
14.87
|
|
|
13.97
|
|
|
13.20
|
|
|
12.78
|
|
|
12.25
|
|
|||||
Market Value per Common Share
|
26.30
|
|
|
27.23
|
|
|
33.10
|
|
|
20.47
|
|
|
18.09
|
|
|||||
Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on Average Equity1
|
12.72
|
%
|
|
10.91
|
%
|
|
10.28
|
%
|
|
9.74
|
%
|
|
9.34
|
%
|
|||||
Return on Average Tangible Equity1,2
|
15.18
|
%
|
|
13.11
|
%
|
|
12.42
|
%
|
|
11.90
|
%
|
|
11.57
|
%
|
|||||
Return on Average Assets1
|
1.23
|
%
|
|
1.10
|
%
|
|
1.12
|
%
|
|
1.07
|
%
|
|
0.99
|
%
|
|||||
Average Equity to Average Assets
|
9.70
|
%
|
|
10.04
|
%
|
|
10.86
|
%
|
|
11.00
|
%
|
|
10.63
|
%
|
|||||
Average Tangible Equity to Average Assets2
|
8.13
|
%
|
|
8.36
|
%
|
|
9.00
|
%
|
|
9.01
|
%
|
|
8.58
|
%
|
|||||
Net Interest Margin Tax-Equivalent1,2
|
2.91
|
%
|
|
3.04
|
%
|
|
3.05
|
%
|
|
3.10
|
%
|
|
3.10
|
%
|
|||||
Dividend Payout Ratio
|
50.92
|
%
|
|
52.20
|
%
|
|
61.31
|
%
|
|
57.24
|
%
|
|
60.14
|
%
|
|||||
Allowance for Loan Losses/Total Loans
|
0.91
|
%
|
|
0.92
|
%
|
|
0.95
|
%
|
|
1.00
|
%
|
|
1.13
|
%
|
|||||
Non-Performing Loans to Total Loans
|
1.19
|
%
|
|
1.27
|
%
|
|
0.73
|
%
|
|
0.75
|
%
|
|
1.15
|
%
|
|||||
Non-Performing Assets to Total Assets
|
0.79
|
%
|
|
0.86
|
%
|
|
0.48
|
%
|
|
0.57
|
%
|
|
0.97
|
%
|
|||||
Efficiency Ratio2
|
51.50
|
%
|
|
49.72
|
%
|
|
50.43
|
%
|
|
54.26
|
%
|
|
56.86
|
%
|
|||||
At Year End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Assets
|
$
|
1,944,570
|
|
|
$
|
1,842,930
|
|
|
$
|
1,712,875
|
|
|
$
|
1,564,810
|
|
|
$
|
1,482,131
|
|
Total Loans
|
1,238,283
|
|
|
1,164,139
|
|
|
1,071,526
|
|
|
988,638
|
|
|
917,564
|
|
|||||
Total Investment Securities
|
584,665
|
|
|
564,124
|
|
|
536,276
|
|
|
477,319
|
|
|
475,092
|
|
|||||
Total Deposits
|
1,527,085
|
|
|
1,418,879
|
|
|
1,242,957
|
|
|
1,043,189
|
|
|
1,024,819
|
|
|||||
Total Borrowings
|
210,317
|
|
|
228,758
|
|
|
278,901
|
|
|
337,457
|
|
|
279,916
|
|
|||||
Total Shareholders' Equity
|
191,542
|
|
|
181,321
|
|
|
172,521
|
|
|
167,498
|
|
|
161,554
|
|
|
Years ended December 31,
|
||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
||||||
Net interest income as presented
|
$
|
50,209
|
|
|
$
|
47,303
|
|
|
$
|
42,947
|
|
Effect of tax-exempt income
|
2,156
|
|
|
3,935
|
|
|
3,150
|
|
|||
Net interest income, tax equivalent
|
$
|
52,365
|
|
|
$
|
51,238
|
|
|
$
|
46,097
|
|
|
Years ended December 31,
|
||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
||||||
Non-interest expense, as presented
|
$
|
33,467
|
|
|
$
|
31,651
|
|
|
$
|
29,383
|
|
Net interest income, as presented
|
50,209
|
|
|
47,303
|
|
|
42,947
|
|
|||
Effect of tax-exempt income
|
2,156
|
|
|
3,935
|
|
|
3,150
|
|
|||
Non-interest income, as presented
|
12,600
|
|
|
12,548
|
|
|
12,499
|
|
|||
Effect of non-interest tax-exempt income
|
162
|
|
|
338
|
|
|
345
|
|
|||
Net securities gains
|
(137
|
)
|
|
(471
|
)
|
|
(673
|
)
|
|||
Adjusted net interest income plus non-interest income
|
$
|
64,990
|
|
|
$
|
63,653
|
|
|
$
|
58,268
|
|
Non-GAAP efficiency ratio
|
51.50
|
%
|
|
49.72
|
%
|
|
50.43
|
%
|
|||
GAAP efficiency ratio
|
53.28
|
%
|
|
52.88
|
%
|
|
52.99
|
%
|
|
Years ended December 31,
|
||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
||||||
Average shareholders' equity as presented
|
$
|
185,049
|
|
|
$
|
179,473
|
|
|
$
|
175,119
|
|
Less intangible assets (average)
|
(30,001
|
)
|
|
(30,044
|
)
|
|
(30,087
|
)
|
|||
Average tangible common shareholders' equity
|
$
|
155,048
|
|
|
$
|
149,429
|
|
|
$
|
145,032
|
|
Year ended December 31, 2017 compared to 2016
|
|
|
|
|
|||||||||||
Dollars in thousands
|
Volume
|
|
Rate
|
|
Rate/Volume1
|
|
Total
|
||||||||
Interest on earning assets
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits
|
$
|
5
|
|
|
$
|
20
|
|
|
$
|
5
|
|
|
$
|
30
|
|
Investment securities
|
2,796
|
|
|
(354
|
)
|
|
(60
|
)
|
|
2,382
|
|
||||
Loans held for sale
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Loans
|
3,563
|
|
|
1,730
|
|
|
153
|
|
|
5,446
|
|
||||
Total interest income
|
6,365
|
|
|
1,395
|
|
|
98
|
|
|
7,858
|
|
||||
Interest expense
|
|
|
|
|
|
|
|
|
|||||||
Deposits
|
1,128
|
|
|
1,956
|
|
|
367
|
|
|
3,451
|
|
||||
Borrowings
|
(702
|
)
|
|
(38
|
)
|
|
6
|
|
|
(734
|
)
|
||||
Total interest expense
|
426
|
|
|
1,918
|
|
|
373
|
|
|
2,717
|
|
||||
Change in net interest income
|
$
|
5,939
|
|
|
$
|
(523
|
)
|
|
$
|
(275
|
)
|
|
$
|
5,141
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Dollars in thousands
|
Amount of interest
|
|
Average Yield/Rate
|
|
Amount of interest
|
|
Average Yield/Rate
|
|
Amount of interest
|
|
Average Yield/Rate
|
|||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits
|
$
|
242
|
|
|
2.00
|
%
|
|
$
|
52
|
|
|
0.98
|
%
|
|
$
|
22
|
|
|
0.51
|
%
|
Investment securities
|
18,602
|
|
|
3.26
|
%
|
|
18,912
|
|
|
3.35
|
%
|
|
16,530
|
|
|
3.42
|
%
|
|||
Loans held for sale
|
5
|
|
|
1.33
|
%
|
|
20
|
|
|
2.58
|
%
|
|
29
|
|
|
3.95
|
%
|
|||
Loans
|
53,850
|
|
|
4.43
|
%
|
|
45,783
|
|
|
4.11
|
%
|
|
40,328
|
|
|
3.94
|
%
|
|||
Total interest-earning assets
|
72,699
|
|
|
4.04
|
%
|
|
64,767
|
|
|
3.84
|
%
|
|
56,909
|
|
|
3.76
|
%
|
|||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
15,970
|
|
|
1.23
|
%
|
|
9,479
|
|
|
0.82
|
%
|
|
6,028
|
|
|
0.61
|
%
|
|||
Borrowings
|
4,364
|
|
|
1.69
|
%
|
|
4,050
|
|
|
1.61
|
%
|
|
4,784
|
|
|
1.62
|
%
|
|||
Total interest-bearing liabilities
|
20,334
|
|
|
1.31
|
%
|
|
13,529
|
|
|
0.96
|
%
|
|
10,812
|
|
|
0.84
|
%
|
|||
Net interest income
|
$
|
52,365
|
|
|
|
|
|
$
|
51,238
|
|
|
|
|
|
$
|
46,097
|
|
|
|
|
Interest rate spread
|
|
|
2.74
|
%
|
|
|
|
2.88
|
%
|
|
|
|
2.91
|
%
|
||||||
Net interest margin
|
|
|
2.91
|
%
|
|
|
|
3.04
|
%
|
|
|
|
3.05
|
%
|
|
Years ended December 31,
|
||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
||||||
Assets
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
17,626
|
|
|
$
|
17,728
|
|
|
$
|
18,742
|
|
Interest-bearing deposits in other banks
|
12,103
|
|
|
5,280
|
|
|
4,302
|
|
|||
Securities available for sale
|
302,260
|
|
|
308,607
|
|
|
251,714
|
|
|||
Securities to be held to maturity
|
257,514
|
|
|
243,392
|
|
|
216,640
|
|
|||
Restricted equity securities, at cost
|
11,599
|
|
|
12,313
|
|
|
14,327
|
|
|||
Loans held for sale (fair value approximates cost)
|
376
|
|
|
776
|
|
|
734
|
|
|||
Loans
|
1,214,932
|
|
|
1,115,288
|
|
|
1,024,777
|
|
|||
Allowance for loan losses
|
(11,331
|
)
|
|
(10,584
|
)
|
|
(10,229
|
)
|
|||
Net loans
|
1,203,601
|
|
|
1,104,704
|
|
|
1,014,548
|
|
|||
Accrued interest receivable
|
6,632
|
|
|
6,080
|
|
|
5,213
|
|
|||
Premises and equipment, net
|
21,896
|
|
|
21,698
|
|
|
21,475
|
|
|||
Other real estate owned
|
754
|
|
|
384
|
|
|
1,171
|
|
|||
Goodwill
|
29,805
|
|
|
29,805
|
|
|
29,805
|
|
|||
Other assets
|
43,986
|
|
|
37,177
|
|
|
33,315
|
|
|||
Total Assets
|
$
|
1,908,152
|
|
|
$
|
1,787,944
|
|
|
$
|
1,611,986
|
|
Liabilities & Shareholders' Equity
|
|
|
|
|
|
|
|
|
|||
Demand deposits
|
$
|
152,386
|
|
|
$
|
143,260
|
|
|
$
|
132,726
|
|
NOW deposits
|
318,823
|
|
|
310,701
|
|
|
259,462
|
|
|||
Money market deposits
|
124,305
|
|
|
136,624
|
|
|
82,563
|
|
|||
Savings deposits
|
233,606
|
|
|
227,024
|
|
|
210,540
|
|
|||
Certificates of deposit
|
622,261
|
|
|
523,966
|
|
|
441,341
|
|
|||
Total deposits
|
1,451,381
|
|
|
1,341,575
|
|
|
1,126,632
|
|
|||
Borrowed funds – short term
|
193,341
|
|
|
113,638
|
|
|
158,774
|
|
|||
Borrowed funds – long term
|
65,112
|
|
|
138,418
|
|
|
136,611
|
|
|||
Dividends payable
|
1,157
|
|
|
987
|
|
|
943
|
|
|||
Other liabilities
|
12,112
|
|
|
13,853
|
|
|
13,907
|
|
|||
Total Liabilities
|
1,723,103
|
|
|
1,608,471
|
|
|
1,436,867
|
|
|||
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|||
Common stock
|
109
|
|
|
108
|
|
|
108
|
|
|||
Additional paid-in capital
|
62,220
|
|
|
61,196
|
|
|
60,262
|
|
|||
Retained earnings
|
128,362
|
|
|
117,977
|
|
|
112,405
|
|
|||
Net unrealized gain (loss) on securities available for sale
|
(7,340
|
)
|
|
(634
|
)
|
|
2,525
|
|
|||
Net unrealized gain on cash flow hedging derivative instruments
|
2,030
|
|
|
1,064
|
|
|
100
|
|
|||
Net unrealized loss on securities transferred from available for sale to held to maturity
|
(187
|
)
|
|
(136
|
)
|
|
(125
|
)
|
|||
Net unrealized loss on postretirement benefit costs
|
(145
|
)
|
|
(102
|
)
|
|
(156
|
)
|
|||
Total Shareholders' Equity
|
185,049
|
|
|
179,473
|
|
|
175,119
|
|
|||
Total Liabilities & Shareholders' Equity
|
$
|
1,908,152
|
|
|
$
|
1,787,944
|
|
|
$
|
1,611,986
|
|
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
||||||
Securities available for sale
|
|
|
|
|
|
||||||
U.S. Government sponsored agencies
|
$
|
5,007
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mortgage-backed securities
|
307,693
|
|
|
289,989
|
|
|
280,604
|
|
|||
State and political subdivisions
|
4,716
|
|
|
6,769
|
|
|
16,482
|
|
|||
Other equity securities
|
—
|
|
|
441
|
|
|
432
|
|
|||
|
317,416
|
|
|
297,199
|
|
|
297,518
|
|
|||
Securities to be held to maturity
|
|
|
|
|
|
|
|
|
|||
U.S. Government sponsored agencies
|
11,155
|
|
|
11,155
|
|
|
11,943
|
|
|||
Mortgage-backed securities
|
18,250
|
|
|
23,284
|
|
|
31,201
|
|
|||
State and political subdivisions
|
221,958
|
|
|
217,828
|
|
|
179,384
|
|
|||
Corporate securities
|
4,300
|
|
|
4,300
|
|
|
4,300
|
|
|||
|
255,663
|
|
|
256,567
|
|
|
226,828
|
|
|||
Restricted equity securities
|
|
|
|
|
|
|
|||||
Federal Home Loan Bank Stock
|
10,549
|
|
|
9,321
|
|
|
10,893
|
|
|||
Federal Reserve Bank Stock
|
1,037
|
|
|
1,037
|
|
|
1,037
|
|
|||
|
11,586
|
|
|
10,358
|
|
|
11,930
|
|
|||
Total securities
|
$
|
584,665
|
|
|
$
|
564,124
|
|
|
$
|
536,276
|
|
|
Available For Sale
|
|
Held to Maturity
|
||||||||||
Dollars in thousands
|
Fair Value
|
|
Yield to maturity
|
|
Amortized Cost
|
|
Yield to maturity
|
||||||
U.S. Government Sponsored Agencies
|
|
|
|
|
|
|
|
||||||
Due in 1 year or less
|
$
|
—
|
|
|
0.00
|
%
|
|
$
|
—
|
|
|
0.00
|
%
|
Due in 1 to 5 years
|
5,007
|
|
|
3.38
|
%
|
|
—
|
|
|
0.00
|
%
|
||
Due in 5 to 10 years
|
—
|
|
|
0.00
|
%
|
|
7,255
|
|
|
3.03
|
%
|
||
Due after 10 years
|
—
|
|
|
0.00
|
%
|
|
3,900
|
|
|
3.05
|
%
|
||
Total
|
5,007
|
|
|
3.38
|
%
|
|
11,155
|
|
|
3.04
|
%
|
||
Mortgage-Backed Securities
|
|
|
|
|
|
|
|
||||||
Due in 1 year or less
|
—
|
|
|
0.00
|
%
|
|
2
|
|
|
1.61
|
%
|
||
Due in 1 to 5 years
|
8,136
|
|
|
3.17
|
%
|
|
2,903
|
|
|
2.75
|
%
|
||
Due in 5 to 10 years
|
78,985
|
|
|
3.17
|
%
|
|
11,696
|
|
|
3.35
|
%
|
||
Due after 10 years
|
220,572
|
|
|
2.52
|
%
|
|
3,649
|
|
|
4.90
|
%
|
||
Total
|
307,693
|
|
|
2.71
|
%
|
|
18,250
|
|
|
3.56
|
%
|
||
State & Political Subdivisions
|
|
|
|
|
|
|
|
||||||
Due in 1 year or less
|
—
|
|
|
0.00
|
%
|
|
1,130
|
|
|
5.41
|
%
|
||
Due in 1 to 5 years
|
375
|
|
|
5.67
|
%
|
|
17,814
|
|
|
5.71
|
%
|
||
Due in 5 to 10 years
|
4,341
|
|
|
4.40
|
%
|
|
134,593
|
|
|
4.68
|
%
|
||
Due after 10 years
|
—
|
|
|
0.00
|
%
|
|
68,421
|
|
|
4.70
|
%
|
||
Total
|
4,716
|
|
|
4.50
|
%
|
|
221,958
|
|
|
4.77
|
%
|
||
Corporate Securities
|
|
|
|
|
|
|
|
||||||
Due in 1 year or less
|
—
|
|
|
0.00
|
%
|
|
300
|
|
|
1.50
|
%
|
||
Due in 1 to 5 years
|
—
|
|
|
0.00
|
%
|
|
—
|
|
|
0.00
|
%
|
||
Due in 5 to 10 years
|
—
|
|
|
0.00
|
%
|
|
4,000
|
|
|
5.50
|
%
|
||
Due after 10 years
|
—
|
|
|
0.00
|
%
|
|
—
|
|
|
0.00
|
%
|
||
Total
|
—
|
|
|
0.00
|
%
|
|
4,300
|
|
|
5.22
|
%
|
||
|
$
|
317,416
|
|
|
2.74
|
%
|
|
$
|
255,663
|
|
|
4.62
|
%
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
Dollars in thousands
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
U.S. Government-sponsored agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,683
|
|
|
$
|
(472
|
)
|
|
$
|
10,683
|
|
|
$
|
(472
|
)
|
Mortgage-backed securities
|
76,050
|
|
|
(1,061
|
)
|
|
185,136
|
|
|
(5,926
|
)
|
|
261,186
|
|
|
(6,987
|
)
|
||||||
State and political subdivisions
|
76,809
|
|
|
(1,784
|
)
|
|
45,052
|
|
|
(3,873
|
)
|
|
121,861
|
|
|
(5,657
|
)
|
||||||
|
$
|
152,859
|
|
|
$
|
(2,845
|
)
|
|
$
|
240,871
|
|
|
$
|
(10,271
|
)
|
|
$
|
393,730
|
|
|
$
|
(13,116
|
)
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||
Dollars
in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Real estate
|
$
|
353,243
|
|
|
28.5
|
%
|
|
$
|
323,809
|
|
|
27.8
|
%
|
|
$
|
302,506
|
|
|
28.2
|
%
|
|
$
|
269,462
|
|
|
27.3
|
%
|
|
$
|
242,311
|
|
|
26.4
|
%
|
Construction
|
27,304
|
|
|
2.2
|
%
|
|
38,056
|
|
|
3.3
|
%
|
|
25,406
|
|
|
2.4
|
%
|
|
24,881
|
|
|
2.5
|
%
|
|
30,932
|
|
|
3.4
|
%
|
|||||
Other
|
196,391
|
|
|
15.9
|
%
|
|
181,528
|
|
|
15.6
|
%
|
|
150,769
|
|
|
14.1
|
%
|
|
128,341
|
|
|
13.0
|
%
|
|
104,531
|
|
|
11.4
|
%
|
|||||
Municipal
|
51,128
|
|
|
4.1
|
%
|
|
33,391
|
|
|
2.9
|
%
|
|
27,056
|
|
|
2.5
|
%
|
|
19,751
|
|
|
2.0
|
%
|
|
20,424
|
|
|
2.2
|
%
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Term
|
469,145
|
|
|
37.9
|
%
|
|
432,661
|
|
|
37.1
|
%
|
|
411,469
|
|
|
38.4
|
%
|
|
403,030
|
|
|
40.7
|
%
|
|
384,032
|
|
|
41.9
|
%
|
|||||
Construction
|
17,743
|
|
|
1.4
|
%
|
|
17,868
|
|
|
1.5
|
%
|
|
18,303
|
|
|
1.7
|
%
|
|
8,451
|
|
|
0.9
|
%
|
|
12,160
|
|
|
1.3
|
%
|
|||||
Home equity line of credit
|
98,469
|
|
|
8.0
|
%
|
|
111,302
|
|
|
9.6
|
%
|
|
110,907
|
|
|
10.4
|
%
|
|
110,202
|
|
|
11.1
|
%
|
|
103,521
|
|
|
11.3
|
%
|
|||||
Consumer
|
24,860
|
|
|
2.0
|
%
|
|
25,524
|
|
|
2.2
|
%
|
|
25,110
|
|
|
2.3
|
%
|
|
24,520
|
|
|
2.5
|
%
|
|
19,653
|
|
|
2.1
|
%
|
|||||
Total loans
|
$
|
1,238,283
|
|
|
100.0
|
%
|
|
$
|
1,164,139
|
|
|
100.0
|
%
|
|
$
|
1,071,526
|
|
|
100.0
|
%
|
|
$
|
988,638
|
|
|
100.0
|
%
|
|
$
|
917,564
|
|
|
100.0
|
%
|
Dollars in thousands
|
< 1 Year
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
> 10 Years
|
|
Total
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
4,934
|
|
|
$
|
16,438
|
|
|
$
|
32,585
|
|
|
$
|
299,286
|
|
|
$
|
353,243
|
|
Construction
|
2,857
|
|
|
2,563
|
|
|
4,681
|
|
|
17,203
|
|
|
27,304
|
|
|||||
Other
|
14,635
|
|
|
70,821
|
|
|
51,202
|
|
|
59,733
|
|
|
196,391
|
|
|||||
Municipal
|
24,389
|
|
|
9,473
|
|
|
13,810
|
|
|
3,456
|
|
|
51,128
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
2,036
|
|
|
7,515
|
|
|
28,678
|
|
|
430,916
|
|
|
469,145
|
|
|||||
Construction
|
234
|
|
|
—
|
|
|
—
|
|
|
17,509
|
|
|
17,743
|
|
|||||
Home equity line of credit
|
631
|
|
|
178
|
|
|
739
|
|
|
96,921
|
|
|
98,469
|
|
|||||
Consumer
|
7,322
|
|
|
4,999
|
|
|
2,833
|
|
|
9,706
|
|
|
24,860
|
|
|||||
Total loans
|
$
|
57,038
|
|
|
$
|
111,987
|
|
|
$
|
134,528
|
|
|
$
|
934,730
|
|
|
$
|
1,238,283
|
|
|
Fixed-Rate
|
|
Adjustable-Rate
|
|
Total
|
|||||||||||||||
Dollars in thousands
|
Amount
|
|
% of total
|
|
Amount
|
|
% of total
|
|
Amount
|
|
% of total
|
|||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate
|
$
|
51,881
|
|
|
4.2
|
%
|
|
$
|
301,362
|
|
|
24.3
|
%
|
|
$
|
353,243
|
|
|
28.5
|
%
|
Construction
|
11,776
|
|
|
1.0
|
%
|
|
15,528
|
|
|
1.2
|
%
|
|
27,304
|
|
|
2.2
|
%
|
|||
Other
|
82,895
|
|
|
6.7
|
%
|
|
113,496
|
|
|
9.2
|
%
|
|
196,391
|
|
|
15.9
|
%
|
|||
Municipal
|
49,816
|
|
|
4.0
|
%
|
|
1,312
|
|
|
0.1
|
%
|
|
51,128
|
|
|
4.1
|
%
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Term
|
340,147
|
|
|
27.5
|
%
|
|
128,998
|
|
|
10.4
|
%
|
|
469,145
|
|
|
37.9
|
%
|
|||
Construction
|
17,286
|
|
|
1.4
|
%
|
|
457
|
|
|
—
|
%
|
|
17,743
|
|
|
1.4
|
%
|
|||
Home equity line of credit
|
748
|
|
|
0.1
|
%
|
|
97,721
|
|
|
7.9
|
%
|
|
98,469
|
|
|
8.0
|
%
|
|||
Consumer
|
18,481
|
|
|
1.5
|
%
|
|
6,379
|
|
|
0.5
|
%
|
|
24,860
|
|
|
2.0
|
%
|
|||
Total loans
|
$
|
573,030
|
|
|
46.4
|
%
|
|
$
|
665,253
|
|
|
53.6
|
%
|
|
$
|
1,238,283
|
|
|
100.0
|
%
|
|
As of December 31,
|
|||||||||||||||||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Real estate
|
$
|
3,567
|
|
|
28.5
|
%
|
|
$
|
3,872
|
|
|
27.8
|
%
|
|
$
|
3,988
|
|
|
28.2
|
%
|
|
$
|
3,120
|
|
|
27.3
|
%
|
|
$
|
3,532
|
|
|
26.4
|
%
|
Construction
|
255
|
|
|
2.2
|
%
|
|
434
|
|
|
3.3
|
%
|
|
396
|
|
|
2.4
|
%
|
|
580
|
|
|
2.5
|
%
|
|
823
|
|
|
3.4
|
%
|
|||||
Other
|
3,541
|
|
|
15.9
|
%
|
|
3,358
|
|
|
15.6
|
%
|
|
1,780
|
|
|
14.1
|
%
|
|
1,452
|
|
|
13.0
|
%
|
|
1,505
|
|
|
11.4
|
%
|
|||||
Municipal
|
24
|
|
|
4.1
|
%
|
|
20
|
|
|
2.9
|
%
|
|
18
|
|
|
2.5
|
%
|
|
17
|
|
|
2.0
|
%
|
|
15
|
|
|
2.2
|
%
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Term
|
1,235
|
|
|
37.9
|
%
|
|
1,130
|
|
|
37.1
|
%
|
|
1,288
|
|
|
38.4
|
%
|
|
1,391
|
|
|
40.7
|
%
|
|
1,185
|
|
|
41.9
|
%
|
|||||
Construction
|
34
|
|
|
1.4
|
%
|
|
36
|
|
|
1.5
|
%
|
|
44
|
|
|
1.7
|
%
|
|
24
|
|
|
0.9
|
%
|
|
20
|
|
|
1.3
|
%
|
|||||
Home equity line of credit
|
730
|
|
|
8.0
|
%
|
|
692
|
|
|
9.6
|
%
|
|
807
|
|
|
10.4
|
%
|
|
893
|
|
|
11.1
|
%
|
|
1,060
|
|
|
11.3
|
%
|
|||||
Consumer
|
630
|
|
|
2.0
|
%
|
|
545
|
|
|
2.2
|
%
|
|
559
|
|
|
2.3
|
%
|
|
566
|
|
|
2.5
|
%
|
|
542
|
|
|
2.1
|
%
|
|||||
Unallocated
|
1,216
|
|
|
—
|
%
|
|
642
|
|
|
—
|
%
|
|
1,258
|
|
|
—
|
%
|
|
1,873
|
|
|
—
|
%
|
|
1,662
|
|
|
—
|
%
|
|||||
Total
|
$
|
11,232
|
|
|
100.0
|
%
|
|
$
|
10,729
|
|
|
100.0
|
%
|
|
$
|
10,138
|
|
|
100.0
|
%
|
|
$
|
9,916
|
|
|
100.0
|
%
|
|
$
|
10,344
|
|
|
100.0
|
%
|
Dollars in thousands
|
Specific Reserves on Loans Evaluated Individually for Impairment
|
|
General Reserves on Loans Based on Historical Loss Experience
|
|
Reserves for Qualitative Factors
|
|
Unallocated Reserves
|
|
Total Reserves
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
260
|
|
|
$
|
742
|
|
|
$
|
2,565
|
|
|
$
|
—
|
|
|
$
|
3,567
|
|
Construction
|
—
|
|
|
57
|
|
|
198
|
|
|
—
|
|
|
255
|
|
|||||
Other
|
1,696
|
|
|
414
|
|
|
1,431
|
|
|
—
|
|
|
3,541
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
335
|
|
|
326
|
|
|
574
|
|
|
—
|
|
|
1,235
|
|
|||||
Construction
|
—
|
|
|
12
|
|
|
22
|
|
|
—
|
|
|
34
|
|
|||||
Home equity line of credit
|
17
|
|
|
263
|
|
|
450
|
|
|
—
|
|
|
730
|
|
|||||
Consumer
|
—
|
|
|
271
|
|
|
359
|
|
|
—
|
|
|
630
|
|
|||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
1,216
|
|
|
1,216
|
|
|||||
|
$
|
2,308
|
|
|
$
|
2,085
|
|
|
$
|
5,623
|
|
|
$
|
1,216
|
|
|
$
|
11,232
|
|
|
As of December 31,
|
||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Balance at beginning of year
|
$
|
10,729
|
|
|
$
|
10,138
|
|
|
$
|
9,916
|
|
|
$
|
10,344
|
|
|
$
|
11,514
|
|
Loans charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
168
|
|
|
587
|
|
|
294
|
|
|
280
|
|
|
1,205
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
75
|
|
|
9
|
|
|
—
|
|
|||||
Other
|
423
|
|
|
212
|
|
|
376
|
|
|
732
|
|
|
989
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
213
|
|
|
456
|
|
|
379
|
|
|
420
|
|
|
699
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
121
|
|
|
28
|
|
|
147
|
|
|
582
|
|
|
153
|
|
|||||
Consumer
|
348
|
|
|
335
|
|
|
450
|
|
|
350
|
|
|
449
|
|
|||||
Total
|
1,273
|
|
|
1,618
|
|
|
1,721
|
|
|
2,373
|
|
|
3,495
|
|
|||||
Recoveries on loans previously charged off
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
52
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
144
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|||||
Other
|
40
|
|
|
49
|
|
|
129
|
|
|
88
|
|
|
758
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
64
|
|
|
40
|
|
|
93
|
|
|
152
|
|
|
36
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Home equity line of credit
|
24
|
|
|
11
|
|
|
5
|
|
|
31
|
|
|
16
|
|
|||||
Consumer
|
96
|
|
|
109
|
|
|
108
|
|
|
121
|
|
|
196
|
|
|||||
Total
|
276
|
|
|
209
|
|
|
343
|
|
|
395
|
|
|
1,175
|
|
|||||
Net loans charged off
|
997
|
|
|
1,409
|
|
|
1,378
|
|
|
1,978
|
|
|
2,320
|
|
|||||
Provision for loan losses
|
1,500
|
|
|
2,000
|
|
|
1,600
|
|
|
1,550
|
|
|
1,150
|
|
|||||
Balance at end of period
|
$
|
11,232
|
|
|
$
|
10,729
|
|
|
$
|
10,138
|
|
|
$
|
9,916
|
|
|
$
|
10,344
|
|
Ratio of net loans charged off to average loans outstanding
|
0.08
|
%
|
|
0.13
|
%
|
|
0.13
|
%
|
|
0.21
|
%
|
|
0.26
|
%
|
|||||
Ratio of allowance for loan losses to total loans outstanding
|
0.91
|
%
|
|
0.92
|
%
|
|
0.95
|
%
|
|
1.00
|
%
|
|
1.13
|
%
|
|
As of December 31,
|
||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
1,226
|
|
|
$
|
752
|
|
|
$
|
1,907
|
|
|
$
|
915
|
|
|
$
|
2,088
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
238
|
|
|
208
|
|
|||||
Other
|
8,664
|
|
|
9,357
|
|
|
964
|
|
|
66
|
|
|
935
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
4,062
|
|
|
3,778
|
|
|
4,060
|
|
|
5,260
|
|
|
6,421
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
760
|
|
|
833
|
|
|
843
|
|
|
893
|
|
|
832
|
|
|||||
Consumer
|
15
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|||||
Total non-performing loans
|
$
|
14,727
|
|
|
$
|
14,736
|
|
|
$
|
7,774
|
|
|
$
|
7,372
|
|
|
$
|
10,510
|
|
•
|
The borrower demonstrates financial difficulty; common indicators include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender, and
|
•
|
The Bank has granted a concession; common concession types include maturity date extension, interest rate adjustments to below market pricing, and deferral of payments.
|
Balance in Thousands of Dollars
|
Number of Loans
|
|
Aggregate Balance
|
|||
Total at December 31, 2016
|
71
|
|
|
$
|
21,526
|
|
Added in 2017
|
—
|
|
|
—
|
|
|
Loans paid off in 2017
|
(9
|
)
|
|
(2,814
|
)
|
|
Repayments in 2017
|
—
|
|
|
(911
|
)
|
|
Total at December 31, 2017
|
62
|
|
|
$
|
17,801
|
|
Added in 2018
|
18
|
|
|
9,140
|
|
|
Principal reduction on loans added in 2018
|
—
|
|
|
(108
|
)
|
|
Net added in 2018
|
|
|
9,032
|
|
||
Loans paid off in 2018
|
(4
|
)
|
|
(1,150
|
)
|
|
Repayments in 2018
|
—
|
|
|
(461
|
)
|
|
Total at December 31, 2018
|
76
|
|
|
$
|
25,222
|
|
In thousands of dollars
|
Performing
As Modified
|
|
30+ Days Past Due
and Accruing
|
|
On
Nonaccrual
|
|
All
TDRs
|
||||||||
Commercial
|
|
|
|
|
|
|
|
||||||||
Real estate
|
$
|
8,535
|
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
8,631
|
|
Construction
|
721
|
|
|
—
|
|
|
—
|
|
|
721
|
|
||||
Other
|
595
|
|
|
—
|
|
|
6,703
|
|
|
7,298
|
|
||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential
|
|
|
|
|
|
|
|
||||||||
Term
|
6,574
|
|
|
269
|
|
|
1,231
|
|
|
8,074
|
|
||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity line of credit
|
331
|
|
|
—
|
|
|
167
|
|
|
498
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
16,756
|
|
|
$
|
269
|
|
|
$
|
8,197
|
|
|
$
|
25,222
|
|
Percent of balance
|
66.4
|
%
|
|
1.1
|
%
|
|
32.5
|
%
|
|
100.0
|
%
|
||||
Number of loans
|
57
|
|
|
2
|
|
|
17
|
|
|
76
|
|
||||
Associated specific reserve
|
$
|
307
|
|
|
$
|
22
|
|
|
$
|
1,239
|
|
|
$
|
1,568
|
|
|
As of December 31,
|
||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
9,760
|
|
|
$
|
7,790
|
|
|
$
|
10,021
|
|
|
$
|
10,717
|
|
|
$
|
13,304
|
|
Construction
|
721
|
|
|
741
|
|
|
763
|
|
|
1,026
|
|
|
1,380
|
|
|||||
Other
|
9,259
|
|
|
9,918
|
|
|
1,743
|
|
|
1,234
|
|
|
2,942
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
10,904
|
|
|
11,748
|
|
|
13,669
|
|
|
15,088
|
|
|
16,123
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,092
|
|
|
1,179
|
|
|
1,387
|
|
|
1,466
|
|
|
2,087
|
|
|||||
Consumer
|
15
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|||||
Total
|
$
|
31,751
|
|
|
$
|
31,392
|
|
|
$
|
27,583
|
|
|
$
|
29,531
|
|
|
$
|
35,862
|
|
|
As of December 31,
|
||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
2,051
|
|
|
$
|
874
|
|
|
$
|
3,476
|
|
|
$
|
884
|
|
|
$
|
860
|
|
Construction
|
10
|
|
|
—
|
|
|
—
|
|
|
273
|
|
|
249
|
|
|||||
Other
|
580
|
|
|
7,779
|
|
|
1,031
|
|
|
328
|
|
|
860
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
6,638
|
|
|
7,659
|
|
|
6,403
|
|
|
5,187
|
|
|
7,003
|
|
|||||
Construction
|
76
|
|
|
471
|
|
|
—
|
|
|
368
|
|
|
—
|
|
|||||
Home equity line of credit
|
3,731
|
|
|
1,707
|
|
|
1,564
|
|
|
1,108
|
|
|
2,122
|
|
|||||
Consumer
|
289
|
|
|
186
|
|
|
184
|
|
|
139
|
|
|
769
|
|
|||||
Total
|
$
|
13,375
|
|
|
$
|
18,676
|
|
|
$
|
12,658
|
|
|
$
|
8,287
|
|
|
$
|
11,863
|
|
Loans 30-89 days past due to total loans
|
0.80
|
%
|
|
1.28
|
%
|
|
0.65
|
%
|
|
0.46
|
%
|
|
0.38
|
%
|
|||||
Loans 90+ days past due and accruing to total loans
|
0.03
|
%
|
|
0.04
|
%
|
|
0.07
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|||||
Loans 90+ days past due on non-accrual to total loans
|
0.25
|
%
|
|
0.29
|
%
|
|
0.46
|
%
|
|
0.37
|
%
|
|
0.89
|
%
|
|||||
Total past due loans to total loans
|
1.08
|
%
|
|
1.60
|
%
|
|
1.18
|
%
|
|
0.84
|
%
|
|
1.29
|
%
|
|
As of December 31,
|
||||||||||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Carrying Value
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
145
|
|
Construction
|
—
|
|
|
28
|
|
|
28
|
|
|
28
|
|
|
151
|
|
|||||
Other
|
—
|
|
|
511
|
|
|
170
|
|
|
706
|
|
|
888
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
584
|
|
|
526
|
|
|
382
|
|
|
960
|
|
|
3,255
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
584
|
|
|
$
|
1,065
|
|
|
$
|
580
|
|
|
$
|
1,694
|
|
|
$
|
4,439
|
|
Related Allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
75
|
|
Construction
|
—
|
|
|
28
|
|
|
11
|
|
|
11
|
|
|
17
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
127
|
|
|
77
|
|
|
170
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
—
|
|
|
25
|
|
|
67
|
|
|
74
|
|
|
392
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
—
|
|
|
$
|
53
|
|
|
$
|
205
|
|
|
$
|
162
|
|
|
$
|
654
|
|
Net Value
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70
|
|
Construction
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
134
|
|
|||||
Other
|
—
|
|
|
511
|
|
|
43
|
|
|
629
|
|
|
718
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
584
|
|
|
501
|
|
|
315
|
|
|
886
|
|
|
2,863
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
584
|
|
|
$
|
1,012
|
|
|
$
|
375
|
|
|
$
|
1,532
|
|
|
$
|
3,785
|
|
|
Years ended December 31,
|
|
% change
|
|||||||||||
Dollars in thousands
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
|||||||
Demand deposits
|
$
|
152,386
|
|
|
$
|
143,260
|
|
|
$
|
132,726
|
|
|
6.37
|
%
|
NOW accounts
|
318,823
|
|
|
310,701
|
|
|
259,462
|
|
|
2.61
|
%
|
|||
Money market accounts
|
124,305
|
|
|
136,624
|
|
|
82,563
|
|
|
-9.02
|
%
|
|||
Savings
|
233,606
|
|
|
227,024
|
|
|
210,540
|
|
|
2.90
|
%
|
|||
Certificates of deposit
|
622,261
|
|
|
523,966
|
|
|
441,341
|
|
|
18.76
|
%
|
|||
Total deposits
|
$
|
1,451,381
|
|
|
$
|
1,341,575
|
|
|
$
|
1,126,632
|
|
|
8.18
|
%
|
|
Years ended December 31,
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
NOW
|
0.73
|
%
|
|
0.59
|
%
|
|
0.44
|
%
|
Money market
|
1.28
|
%
|
|
0.73
|
%
|
|
0.28
|
%
|
Savings
|
0.30
|
%
|
|
0.26
|
%
|
|
0.23
|
%
|
Certificates of deposit
|
1.83
|
%
|
|
1.20
|
%
|
|
0.96
|
%
|
Total interest-bearing deposits
|
1.23
|
%
|
|
0.82
|
%
|
|
0.61
|
%
|
|
As of December 31,
|
||||||
Dollars in thousands
|
2018
|
|
2017
|
||||
Within 3 Months
|
$
|
60,817
|
|
|
$
|
131,527
|
|
3 Months through 6 months
|
27,386
|
|
|
32,184
|
|
||
6 months through 12 months
|
20,138
|
|
|
14,034
|
|
||
Over 12 months
|
110,604
|
|
|
97,190
|
|
||
Total
|
$
|
218,945
|
|
|
$
|
274,935
|
|
Dividend reinvestment plan
|
9,524
|
|
Employee stock program
|
12,138
|
|
Restricted stock grants
|
16,795
|
|
Total
|
38,457
|
|
As of December 31, 2018
|
Leverage
|
|
Tier 1
|
|
Common Equity Tier 1
|
|
Total Risk-Based
|
|
||||
Bank
|
8.51
|
|
%
|
14.13
|
|
%
|
14.13
|
|
%
|
15.11
|
|
%
|
Company
|
8.60
|
|
%
|
14.22
|
|
%
|
14.22
|
|
%
|
15.19
|
|
%
|
Adequately capitalized ratio
|
4.00
|
|
%
|
6.00
|
|
%
|
4.50
|
|
%
|
8.00
|
|
%
|
Adequately capitalized ratio plus capital conservation buffer
|
4.00
|
|
%
|
8.50
|
|
%
|
7.00
|
|
%
|
10.50
|
|
%
|
Well capitalized ratio (Bank only)
|
5.00
|
|
%
|
8.00
|
|
%
|
6.50
|
|
%
|
10.00
|
|
%
|
As of December 31, 2017
|
Leverage
|
|
Tier 1
|
|
Common Equity Tier 1
|
|
Total Risk-Based
|
|
||||
Bank
|
8.49
|
|
%
|
14.09
|
|
%
|
14.09
|
|
%
|
15.09
|
|
%
|
Company
|
8.57
|
|
%
|
14.23
|
|
%
|
14.23
|
|
%
|
15.24
|
|
%
|
Adequately capitalized ratio
|
4.00
|
|
%
|
6.00
|
|
%
|
4.50
|
|
%
|
8.00
|
|
%
|
Adequately capitalized ratio plus capital conservation buffer
|
4.00
|
|
%
|
8.50
|
|
%
|
7.00
|
|
%
|
10.50
|
|
%
|
Well capitalized ratio (Bank only)
|
5.00
|
|
%
|
8.00
|
|
%
|
6.50
|
|
%
|
10.00
|
|
%
|
Dollars in thousands
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
Borrowed funds
|
$
|
210,317
|
|
|
$
|
145,205
|
|
|
$
|
65,000
|
|
|
$
|
—
|
|
|
$
|
112
|
|
Operating leases
|
145
|
|
|
74
|
|
|
33
|
|
|
33
|
|
|
5
|
|
|||||
Certificates of deposit
|
591,409
|
|
|
411,809
|
|
|
133,386
|
|
|
46,214
|
|
|
—
|
|
|||||
Total
|
$
|
801,871
|
|
|
$
|
557,088
|
|
|
$
|
198,419
|
|
|
$
|
46,247
|
|
|
$
|
117
|
|
Unused lines, collateralized by residential real estate
|
$
|
83,421
|
|
|
$
|
83,421
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other unused commitments
|
60,033
|
|
|
60,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Standby letters of credit
|
3,590
|
|
|
3,590
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commitments to extend credit
|
19,268
|
|
|
19,268
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loan commitments and unused lines of credit
|
$
|
166,312
|
|
|
$
|
166,312
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
0-90
|
|
90-365
|
|
1-5
|
|
5+
|
||||||||
Dollars in thousands
|
Days
|
|
Days
|
|
Years
|
|
Years
|
||||||||
Investment securities at amortized cost (HTM) and fair value (AFS)
|
$
|
34,113
|
|
|
$
|
52,670
|
|
|
$
|
177,536
|
|
|
$
|
308,760
|
|
Restricted equity securities, at cost
|
10,549
|
|
|
—
|
|
|
—
|
|
|
1,037
|
|
||||
Loans
|
391,843
|
|
|
176,591
|
|
|
480,859
|
|
|
188,990
|
|
||||
Other interest-earning assets
|
—
|
|
|
23,507
|
|
|
—
|
|
|
—
|
|
||||
Non-rate-sensitive assets
|
21,390
|
|
|
—
|
|
|
—
|
|
|
76,725
|
|
||||
Total assets
|
457,895
|
|
|
252,768
|
|
|
658,395
|
|
|
575,512
|
|
||||
Interest-bearing deposits
|
465,427
|
|
|
131,558
|
|
|
230,409
|
|
|
536,282
|
|
||||
Borrowed funds
|
145,205
|
|
|
—
|
|
|
65,000
|
|
|
112
|
|
||||
Non-rate-sensitive liabilities and equity
|
1,900
|
|
|
5,700
|
|
|
30,450
|
|
|
332,527
|
|
||||
Total liabilities and equity
|
612,532
|
|
|
137,258
|
|
|
325,859
|
|
|
868,921
|
|
||||
Period gap
|
$
|
(154,637
|
)
|
|
$
|
115,510
|
|
|
$
|
332,536
|
|
|
$
|
(293,409
|
)
|
Percent of total assets
|
(7.95
|
)%
|
|
5.94
|
%
|
|
17.10
|
%
|
|
(15.09
|
)%
|
||||
Cumulative gap (current)
|
$
|
(154,637
|
)
|
|
$
|
(39,127
|
)
|
|
$
|
293,409
|
|
|
—
|
|
|
Percent of total assets
|
(7.95
|
)%
|
|
(2.01
|
)%
|
|
15.09
|
%
|
|
0.00
|
%
|
Changes in Net Interest Income
|
2018
|
|
2017
|
Year 1
|
|
|
|
Projected changes if rates decrease by 2.0%
|
-0.10%
|
|
0.97%
|
Projected change if rates increase by 2.0%
|
-3.93%
|
|
-5.10%
|
Year 2
|
|
|
|
Projected changes if rates decrease by 2.0%
|
1.55%
|
|
1.08%
|
Projected change if rates increase by 2.0%
|
-7.02%
|
|
-7.09%
|
As of December 31,
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
19,134,000
|
|
|
$
|
19,207,000
|
|
Interest-bearing deposits in other banks
|
12,079,000
|
|
|
860,000
|
|
||
Securities available for sale
|
317,416,000
|
|
|
297,199,000
|
|
||
Securities to be held to maturity (fair value of $250,900,000 at December 31, 2018, and $259,655,000 at December 31, 2017)
|
255,663,000
|
|
|
256,567,000
|
|
||
Restricted equity securities, at cost
|
11,586,000
|
|
|
10,358,000
|
|
||
Loans held for sale
|
—
|
|
|
386,000
|
|
||
Loans
|
1,238,283,000
|
|
|
1,164,139,000
|
|
||
Less allowance for loan losses
|
11,232,000
|
|
|
10,729,000
|
|
||
Net loans
|
1,227,051,000
|
|
|
1,153,410,000
|
|
||
Accrued interest receivable
|
6,660,000
|
|
|
5,867,000
|
|
||
Premises and equipment, net
|
22,056,000
|
|
|
22,502,000
|
|
||
Other real estate owned
|
584,000
|
|
|
1,012,000
|
|
||
Goodwill
|
29,805,000
|
|
|
29,805,000
|
|
||
Other assets
|
42,536,000
|
|
|
45,757,000
|
|
||
Total assets
|
$
|
1,944,570,000
|
|
|
$
|
1,842,930,000
|
|
Liabilities
|
|
|
|
||||
Demand deposits
|
$
|
163,575,000
|
|
|
$
|
145,332,000
|
|
NOW deposits
|
382,923,000
|
|
|
318,043,000
|
|
||
Money market deposits
|
152,043,000
|
|
|
163,898,000
|
|
||
Savings deposits
|
237,135,000
|
|
|
232,605,000
|
|
||
Certificates of deposit
|
591,409,000
|
|
|
559,001,000
|
|
||
Total deposits
|
1,527,085,000
|
|
|
1,418,879,000
|
|
||
Borrowed funds – short term
|
145,205,000
|
|
|
113,638,000
|
|
||
Borrowed funds – long term
|
65,112,000
|
|
|
115,120,000
|
|
||
Other liabilities
|
15,626,000
|
|
|
13,972,000
|
|
||
Total liabilities
|
1,753,028,000
|
|
|
1,661,609,000
|
|
||
Commitments and contingent liabilities
|
|
|
|
|
|
||
Shareholders' equity
|
|
|
|
||||
Common stock, one cent par value per share
|
109,000
|
|
|
108,000
|
|
||
Additional paid-in capital
|
62,746,000
|
|
|
61,747,000
|
|
||
Retained earnings
|
132,460,000
|
|
|
121,144,000
|
|
||
Accumulated other comprehensive income (loss)
|
|
|
|
||||
Net unrealized loss on securities available for sale
|
(5,051,000
|
)
|
|
(2,901,000
|
)
|
||
Net unrealized loss on securities transferred from available for sale to held to maturity
|
(197,000
|
)
|
|
(174,000
|
)
|
||
Net unrealized gain on cash flow hedging derivative instruments
|
1,438,000
|
|
|
1,544,000
|
|
||
Net unrecognized gain (loss) on postretirement benefit costs
|
37,000
|
|
|
(147,000
|
)
|
||
Total shareholders' equity
|
191,542,000
|
|
|
181,321,000
|
|
||
Total liabilities and shareholders' equity
|
$
|
1,944,570,000
|
|
|
$
|
1,842,930,000
|
|
Common stock
|
|
|
|
||||
Number of shares authorized
|
18,000,000
|
|
|
18,000,000
|
|
||
Number of shares issued and outstanding
|
10,862,651
|
|
|
10,829,918
|
|
||
Book value per common share
|
$
|
17.63
|
|
|
$
|
16.74
|
|
Tangible book value per common share
|
$
|
14.87
|
|
|
$
|
13.97
|
|
The accompanying notes are an integral part of these consolidated financial statements
|
Years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Interest and dividend income
|
|
|
|
|
|
||||||
Interest and fees on loans (includes tax-exempt income of $1,157,000 in 2018, $798,000 in 2017, and $670,000 in 2016)
|
$
|
53,548,000
|
|
|
$
|
45,373,000
|
|
|
$
|
39,996,000
|
|
Interest on deposits with other banks
|
242,000
|
|
|
52,000
|
|
|
22,000
|
|
|||
Interest and dividends on investments (includes tax-exempt income of $6,954,000 in 2018, $6,501,000 in 2017, and $5,168,000 in 2016)
|
16,753,000
|
|
|
15,407,000
|
|
|
13,741,000
|
|
|||
Total interest and dividend income
|
70,543,000
|
|
|
60,832,000
|
|
|
53,759,000
|
|
|||
Interest expense
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
15,970,000
|
|
|
9,479,000
|
|
|
6,028,000
|
|
|||
Interest on borrowed funds
|
4,364,000
|
|
|
4,050,000
|
|
|
4,784,000
|
|
|||
Total interest expense
|
20,334,000
|
|
|
13,529,000
|
|
|
10,812,000
|
|
|||
Net interest income
|
50,209,000
|
|
|
47,303,000
|
|
|
42,947,000
|
|
|||
Provision for loan losses
|
1,500,000
|
|
|
2,000,000
|
|
|
1,600,000
|
|
|||
Net interest income after provision for loan losses
|
48,709,000
|
|
|
45,303,000
|
|
|
41,347,000
|
|
|||
Non-interest income
|
|
|
|
|
|
|
|
|
|||
Fiduciary and investment management income
|
3,030,000
|
|
|
2,680,000
|
|
|
2,411,000
|
|
|||
Service charges on deposit accounts
|
2,194,000
|
|
|
2,081,000
|
|
|
2,237,000
|
|
|||
Net securities gains
|
137,000
|
|
|
471,000
|
|
|
673,000
|
|
|||
Mortgage origination and servicing income
|
1,565,000
|
|
|
1,853,000
|
|
|
2,192,000
|
|
|||
Other operating income
|
5,674,000
|
|
|
5,463,000
|
|
|
4,986,000
|
|
|||
Total non-interest income
|
12,600,000
|
|
|
12,548,000
|
|
|
12,499,000
|
|
|||
Non-interest expense
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
17,641,000
|
|
|
16,601,000
|
|
|
15,215,000
|
|
|||
Occupancy expense
|
2,435,000
|
|
|
2,400,000
|
|
|
2,313,000
|
|
|||
Furniture and equipment expense
|
3,924,000
|
|
|
3,681,000
|
|
|
3,305,000
|
|
|||
FDIC insurance premiums
|
1,226,000
|
|
|
1,008,000
|
|
|
789,000
|
|
|||
Amortization of identified intangibles
|
43,000
|
|
|
43,000
|
|
|
43,000
|
|
|||
Other operating expense
|
8,198,000
|
|
|
7,918,000
|
|
|
7,718,000
|
|
|||
Total non-interest expense
|
33,467,000
|
|
|
31,651,000
|
|
|
29,383,000
|
|
|||
Income before income taxes
|
27,842,000
|
|
|
26,200,000
|
|
|
24,463,000
|
|
|||
Applicable tax expense
|
4,306,000
|
|
|
6,612,000
|
|
|
6,454,000
|
|
|||
Net income
|
$
|
23,536,000
|
|
|
$
|
19,588,000
|
|
|
$
|
18,009,000
|
|
Basic earnings per common share
|
$
|
2.18
|
|
|
$
|
1.82
|
|
|
$
|
1.68
|
|
Diluted earnings per common share
|
2.17
|
|
|
1.81
|
|
|
1.66
|
|
|||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|||
Net unrealized loss on securities available for sale
|
(2,150,000
|
)
|
|
(1,452,000
|
)
|
|
(2,058,000
|
)
|
|||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of amortization
|
(23,000
|
)
|
|
(14,000
|
)
|
|
(17,000
|
)
|
|||
Net unrealized gain (loss) on cash flow hedging derivative instruments
|
(106,000
|
)
|
|
107,000
|
|
|
1,163,000
|
|
|||
Net unrecognized gain (loss) on postretirement benefits
|
184,000
|
|
|
(19,000
|
)
|
|
54,000
|
|
|||
Other comprehensive loss
|
(2,095,000
|
)
|
|
(1,378,000
|
)
|
|
(858,000
|
)
|
|||
Comprehensive income
|
$
|
21,441,000
|
|
|
$
|
18,210,000
|
|
|
$
|
17,151,000
|
|
The accompanying notes are an integral part of these consolidated financial statements
|
|
|
Common stock and
additional paid-in capital
|
|
Retained
|
|
Accumulated other
comprehensive
|
|
Total
shareholders'
|
|||||||||||
|
|
Shares
|
|
Amount
|
|
earnings
|
|
income (loss)
|
|
equity
|
|||||||||
Balance at December 31, 2015
|
|
10,753,855
|
|
|
$
|
59,970,000
|
|
|
$
|
106,673,000
|
|
|
$
|
855,000
|
|
|
$
|
167,498,000
|
|
Net income
|
|
—
|
|
|
—
|
|
|
18,009,000
|
|
|
—
|
|
|
18,009,000
|
|
||||
Net unrealized loss on securities available for sale, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,058,000
|
)
|
|
(2,058,000
|
)
|
||||
Net unrealized gain on cash flow hedging derivative instruments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,163,000
|
|
|
1,163,000
|
|
||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,000
|
)
|
|
(17,000
|
)
|
||||
Unrecognized gain for post-retirement benefits, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,000
|
|
|
54,000
|
|
||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
18,009,000
|
|
|
(858,000
|
)
|
|
17,151,000
|
|
||||
Cash dividends declared ($1.03 per share)
|
|
—
|
|
|
—
|
|
|
(11,110,000
|
)
|
|
—
|
|
|
(11,110,000
|
)
|
||||
Equity compensation expense
|
|
—
|
|
|
298,000
|
|
|
—
|
|
|
—
|
|
|
298,000
|
|
||||
Payment for repurchase of common stock
|
|
(7,156
|
)
|
|
—
|
|
|
(129,000
|
)
|
|
—
|
|
|
(129,000
|
)
|
||||
Repurchase of warrants
|
|
—
|
|
|
—
|
|
|
(1,750,000
|
)
|
|
—
|
|
|
(1,750,000
|
)
|
||||
Tax benefit from vesting restricted stock
|
|
—
|
|
|
32,000
|
|
|
—
|
|
|
—
|
|
|
32,000
|
|
||||
Issuance of restricted stock
|
|
21,847
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Proceeds from sale of common stock
|
|
25,400
|
|
|
531,000
|
|
|
—
|
|
|
—
|
|
|
531,000
|
|
||||
Balance at December 31, 2016
|
|
10,793,946
|
|
|
$
|
60,831,000
|
|
|
$
|
111,693,000
|
|
|
$
|
(3,000
|
)
|
|
$
|
172,521,000
|
|
Net income
|
|
—
|
|
|
—
|
|
|
19,588,000
|
|
|
—
|
|
|
19,588,000
|
|
||||
Net unrealized loss on securities available for sale, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,452,000
|
)
|
|
(1,452,000
|
)
|
||||
Net unrealized gain on cash flow hedging derivate instruments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,000
|
|
|
107,000
|
|
||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,000
|
)
|
|
(14,000
|
)
|
||||
Unrecognized loss for post-retirement benefits, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,000
|
)
|
|
(19,000
|
)
|
||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
19,588,000
|
|
|
(1,378,000
|
)
|
|
18,210,000
|
|
||||
Cash dividends declared ($0.95 per share)
|
|
—
|
|
|
—
|
|
|
(10,280,000
|
)
|
|
—
|
|
|
(10,280,000
|
)
|
||||
Equity compensation expense
|
|
—
|
|
|
392,000
|
|
|
—
|
|
|
—
|
|
|
392,000
|
|
||||
Payment for repurchase of common stock
|
|
(5,562
|
)
|
|
—
|
|
|
(154,000
|
)
|
|
—
|
|
|
(154,000
|
)
|
||||
Reclassification adjustment for effect of enacted tax law changes
|
|
—
|
|
|
—
|
|
|
297,000
|
|
|
(297,000
|
)
|
|
—
|
|
||||
Issuance of restricted stock
|
|
18,850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Proceeds from sale of common stock
|
|
22,684
|
|
|
632,000
|
|
|
—
|
|
|
—
|
|
|
632,000
|
|
||||
Balance at December 31, 2017
|
|
10,829,918
|
|
|
$
|
61,855,000
|
|
|
$
|
121,144,000
|
|
|
$
|
(1,678,000
|
)
|
|
$
|
181,321,000
|
|
|
|
Common stock and
additional paid-in capital
|
|
Retained
|
|
Accumulated other
comprehensive
|
|
Total
shareholders'
|
|||||||||||
|
|
Shares
|
|
Amount
|
|
earnings
|
|
income (loss)
|
|
equity
|
|||||||||
Balance at December 31, 2017
|
|
10,829,918
|
|
|
$
|
61,855,000
|
|
|
$
|
121,144,000
|
|
|
$
|
(1,678,000
|
)
|
|
$
|
181,321,000
|
|
Net income
|
|
—
|
|
|
—
|
|
|
23,536,000
|
|
|
—
|
|
|
23,536,000
|
|
||||
Net unrealized loss on securities available for sale, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,150,000
|
)
|
|
(2,150,000
|
)
|
||||
Net unrealized loss on cash flow hedging derivative instruments, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106,000
|
)
|
|
(106,000
|
)
|
||||
Net unrealized loss on securities transferred from available for sale to held to maturity, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,000
|
)
|
|
(23,000
|
)
|
||||
Unrecognized gain for post-retirement benefits, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184,000
|
|
|
184,000
|
|
||||
Comprehensive income
|
|
—
|
|
|
—
|
|
|
23,536,000
|
|
|
(2,095,000
|
)
|
|
21,441,000
|
|
||||
Cash dividends declared ($1.11 per share)
|
|
—
|
|
|
—
|
|
|
(12,052,000
|
)
|
|
—
|
|
|
(12,052,000
|
)
|
||||
Equity compensation expense
|
|
—
|
|
|
381,000
|
|
|
—
|
|
|
—
|
|
|
381,000
|
|
||||
Payment for repurchase of common stock
|
|
(5,725
|
)
|
|
—
|
|
|
(168,000
|
)
|
|
—
|
|
|
(168,000
|
)
|
||||
Issuance of restricted stock
|
|
16,795
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Proceeds from sale of common stock
|
|
21,663
|
|
|
619,000
|
|
|
—
|
|
|
—
|
|
|
619,000
|
|
||||
Balance at December 31, 2018
|
|
10,862,651
|
|
|
$
|
62,855,000
|
|
|
$
|
132,460,000
|
|
|
$
|
(3,773,000
|
)
|
|
$
|
191,542,000
|
|
The accompanying notes are an integral part of these consolidated financial statements
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
23,536,000
|
|
|
$
|
19,588,000
|
|
|
$
|
18,009,000
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
1,792,000
|
|
|
1,864,000
|
|
|
1,745,000
|
|
|||
Change in deferred taxes
|
(485,000
|
)
|
|
2,083,000
|
|
|
(139,000
|
)
|
|||
Provision for loan losses
|
1,500,000
|
|
|
2,000,000
|
|
|
1,600,000
|
|
|||
Loans originated for resale
|
(25,447,000
|
)
|
|
(39,039,000
|
)
|
|
(54,257,000
|
)
|
|||
Proceeds from sales and transfers of loans
|
26,323,000
|
|
|
40,172,000
|
|
|
55,035,000
|
|
|||
Net gain on sales of loans
|
(490,000
|
)
|
|
(737,000
|
)
|
|
(1,211,000
|
)
|
|||
Net gain on sale or call of securities
|
(137,000
|
)
|
|
(471,000
|
)
|
|
(673,000
|
)
|
|||
Net amortization of investment premiums
|
1,820,000
|
|
|
3,212,000
|
|
|
2,338,000
|
|
|||
Net gain on sale of other real estate owned
|
(312,000
|
)
|
|
(84,000
|
)
|
|
(177,000
|
)
|
|||
Provision for losses on other real estate owned
|
—
|
|
|
17,000
|
|
|
132,000
|
|
|||
Equity compensation expense
|
381,000
|
|
|
392,000
|
|
|
298,000
|
|
|||
Tax benefit from vesting of restricted stock
|
—
|
|
|
—
|
|
|
32,000
|
|
|||
Net (increase) decrease in other assets and accrued interest
|
1,146,000
|
|
|
(4,817,000
|
)
|
|
(2,444,000
|
)
|
|||
Net increase (decrease) in other liabilities
|
3,848,000
|
|
|
(2,020,000
|
)
|
|
665,000
|
|
|||
Net (gain) loss on disposal of premises and equipment
|
136,000
|
|
|
(108,000
|
)
|
|
—
|
|
|||
Amortization of investments in limited partnerships
|
186,000
|
|
|
178,000
|
|
|
194,000
|
|
|||
Net acquisition amortization
|
43,000
|
|
|
43,000
|
|
|
43,000
|
|
|||
Net cash provided by operating activities
|
33,840,000
|
|
|
22,273,000
|
|
|
21,190,000
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|||
(Increase) decrease in interest-bearing deposits in other banks
|
(11,219,000
|
)
|
|
(567,000
|
)
|
|
3,720,000
|
|
|||
Proceeds from sales of securities available for sale
|
459,000
|
|
|
15,587,000
|
|
|
10,309,000
|
|
|||
Proceeds from maturities, payments, calls of securities available for sale
|
51,752,000
|
|
|
156,969,000
|
|
|
79,217,000
|
|
|||
Proceeds from maturities, payments, calls of securities held to maturity
|
14,094,000
|
|
|
14,770,000
|
|
|
88,899,000
|
|
|||
Proceeds from sales of other real estate owned
|
1,350,000
|
|
|
607,000
|
|
|
1,786,000
|
|
|||
Purchases of securities available for sale
|
(76,893,000
|
)
|
|
(177,409,000
|
)
|
|
(171,881,000
|
)
|
|||
Purchases of securities to be held to maturity
|
(13,159,000
|
)
|
|
(44,334,000
|
)
|
|
(75,573,000
|
)
|
|||
Purchase of Federal Home Loan Bank Stock
|
(1,228,000
|
)
|
|
—
|
|
|
—
|
|
|||
Redemption of restricted equity securities
|
—
|
|
|
1,572,000
|
|
|
2,327,000
|
|
|||
Net increase in loans
|
(75,751,000
|
)
|
|
(95,199,000
|
)
|
|
(84,850,000
|
)
|
|||
Capital expenditures
|
(1,484,000
|
)
|
|
(2,529,000
|
)
|
|
(2,131,000
|
)
|
|||
Proceeds from sale of premises and equipment
|
2,000
|
|
|
473,000
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(112,077,000
|
)
|
|
(130,060,000
|
)
|
|
(148,177,000
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|||
Net increase in demand, savings, and money market accounts
|
75,798,000
|
|
|
88,372,000
|
|
|
94,130,000
|
|
|||
Net increase in certificates of deposit
|
32,408,000
|
|
|
82,381,000
|
|
|
105,638,000
|
|
|||
Advances on long-term borrowings
|
—
|
|
|
50,000,000
|
|
|
35,000,000
|
|
|||
Repayment on long-term borrowings
|
(80,000,000
|
)
|
|
(70,000,000
|
)
|
|
(30,000,000
|
)
|
|||
Net increase (decrease) in short-term borrowings
|
61,559,000
|
|
|
(30,143,000
|
)
|
|
(63,556,000
|
)
|
|||
Payment to repurchase common stock
|
(168,000
|
)
|
|
(154,000
|
)
|
|
(129,000
|
)
|
|||
Proceeds from sale of common stock
|
619,000
|
|
|
632,000
|
|
|
531,000
|
|
|||
Repurchase of warrants
|
—
|
|
|
—
|
|
|
(1,750,000
|
)
|
|||
Dividends paid
|
(12,052,000
|
)
|
|
(11,460,000
|
)
|
|
(9,810,000
|
)
|
|||
Net cash provided by financing activities
|
78,164,000
|
|
|
109,628,000
|
|
|
130,054,000
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
(73,000
|
)
|
|
1,841,000
|
|
|
3,067,000
|
|
|||
Cash and cash equivalents at beginning of year
|
19,207,000
|
|
|
17,366,000
|
|
|
14,299,000
|
|
|||
Cash and cash equivalents at end of year
|
$
|
19,134,000
|
|
|
$
|
19,207,000
|
|
|
$
|
17,366,000
|
|
Interest paid
|
$
|
20,104,000
|
|
|
$
|
13,366,000
|
|
|
$
|
10,767,000
|
|
Income taxes paid
|
3,057,000
|
|
|
5,730,000
|
|
|
6,367,000
|
|
|||
Non-cash transactions:
|
|
|
|
|
|
||||||
Net transfer from loans to other real estate owned
|
610,000
|
|
|
1,177,000
|
|
|
584,000
|
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair Value
|
||||||||
As of December 31, 2018
|
Cost
|
|
Gains
|
|
Losses
|
|
(Estimated)
|
||||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. government-sponsored agencies
|
$
|
5,000,000
|
|
|
$
|
7,000
|
|
|
$
|
—
|
|
|
$
|
5,007,000
|
|
Mortgage-backed securities
|
313,854,000
|
|
571,000
|
|
(6,732,000)
|
|
307,693,000
|
||||||||
State and political subdivisions
|
4,955,000
|
|
|
—
|
|
|
(239,000
|
)
|
|
4,716,000
|
|
||||
|
$
|
323,809,000
|
|
|
$
|
578,000
|
|
|
$
|
(6,971,000
|
)
|
|
$
|
317,416,000
|
|
Securities to be held to maturity
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agencies
|
$
|
11,155,000
|
|
|
$
|
—
|
|
|
$
|
(472,000
|
)
|
|
$
|
10,683,000
|
|
Mortgage-backed securities
|
18,250,000
|
|
|
336,000
|
|
|
(255,000
|
)
|
|
18,331,000
|
|
||||
State and political subdivisions
|
221,958,000
|
|
|
1,046,000
|
|
|
(5,418,000
|
)
|
|
217,586,000
|
|
||||
Corporate securities
|
4,300,000
|
|
|
—
|
|
|
—
|
|
|
4,300,000
|
|
||||
|
$
|
255,663,000
|
|
|
$
|
1,382,000
|
|
|
$
|
(6,145,000
|
)
|
|
$
|
250,900,000
|
|
Restricted equity securities
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank Stock
|
$
|
10,549,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,549,000
|
|
Federal Reserve Bank Stock
|
1,037,000
|
|
|
—
|
|
|
—
|
|
|
1,037,000
|
|
||||
|
$
|
11,586,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,586,000
|
|
|
Amortized
|
|
Unrealized
|
|
Unrealized
|
|
Fair Value
|
||||||||
As of December 31, 2017
|
Cost
|
|
Gains
|
|
Losses
|
|
(Estimated)
|
||||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
293,689,000
|
|
|
$
|
722,000
|
|
|
$
|
(4,422,000
|
)
|
|
$
|
289,989,000
|
|
State and political subdivisions
|
6,860,000
|
|
|
16,000
|
|
|
(107,000
|
)
|
|
6,769,000
|
|
||||
Other equity securities
|
323,000
|
|
|
121,000
|
|
|
(3,000
|
)
|
|
441,000
|
|
||||
|
$
|
300,872,000
|
|
|
$
|
859,000
|
|
|
$
|
(4,532,000
|
)
|
|
$
|
297,199,000
|
|
Securities to be held to maturity
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agencies
|
$
|
11,155,000
|
|
|
$
|
—
|
|
|
$
|
(180,000
|
)
|
|
$
|
10,975,000
|
|
Mortgage-backed securities
|
23,284,000
|
|
|
568,000
|
|
|
(128,000
|
)
|
|
23,724,000
|
|
||||
State and political subdivisions
|
217,828,000
|
|
|
3,931,000
|
|
|
(1,103,000
|
)
|
|
220,656,000
|
|
||||
Corporate securities
|
4,300,000
|
|
|
—
|
|
|
—
|
|
|
4,300,000
|
|
||||
|
$
|
256,567,000
|
|
|
$
|
4,499,000
|
|
|
$
|
(1,411,000
|
)
|
|
$
|
259,655,000
|
|
Restricted equity securities
|
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank Stock
|
$
|
9,321,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,321,000
|
|
Federal Reserve Bank Stock
|
1,037,000
|
|
|
—
|
|
|
—
|
|
|
1,037,000
|
|
||||
|
$
|
10,358,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,358,000
|
|
|
Securities available for sale
|
|
Securities to be held to maturity
|
||||||||||||
|
Amortized Cost
|
|
Fair Value (Estimated)
|
|
Amortized Cost
|
|
Fair Value (Estimated)
|
||||||||
Due in 1 year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,432,000
|
|
|
$
|
1,433,000
|
|
Due in 1 to 5 years
|
13,501,000
|
|
|
13,518,000
|
|
|
20,717,000
|
|
|
20,778,000
|
|
||||
Due in 5 to 10 years
|
83,954,000
|
|
|
83,326,000
|
|
|
157,544,000
|
|
|
155,313,000
|
|
||||
Due after 10 years
|
226,354,000
|
|
|
220,572,000
|
|
|
75,970,000
|
|
|
73,376,000
|
|
||||
|
$
|
323,809,000
|
|
|
$
|
317,416,000
|
|
|
$
|
255,663,000
|
|
|
$
|
250,900,000
|
|
|
Securities available for sale
|
|
Securities to be held to maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair Value (Estimated)
|
|
Amortized
Cost
|
|
Fair Value (Estimated)
|
||||||||
Due in 1 year or less
|
$
|
111,000
|
|
|
$
|
112,000
|
|
|
$
|
635,000
|
|
|
$
|
637,000
|
|
Due in 1 to 5 years
|
841,000
|
|
|
842,000
|
|
|
18,059,000
|
|
|
18,164,000
|
|
||||
Due in 5 to 10 years
|
29,003,000
|
|
|
29,177,000
|
|
|
37,182,000
|
|
|
37,719,000
|
|
||||
Due after 10 years
|
270,594,000
|
|
|
266,627,000
|
|
|
200,691,000
|
|
|
203,135,000
|
|
||||
Equity securities
|
323,000
|
|
|
441,000
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
300,872,000
|
|
|
$
|
297,199,000
|
|
|
$
|
256,567,000
|
|
|
$
|
259,655,000
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from sales of securities
|
$
|
459,000
|
|
|
$
|
15,587,000
|
|
|
$
|
10,309,000
|
|
Gross realized gains
|
137,000
|
|
|
471,000
|
|
|
673,000
|
|
|||
Gross realized losses
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net gain
|
$
|
137,000
|
|
|
$
|
471,000
|
|
|
$
|
673,000
|
|
Related income taxes
|
$
|
29,000
|
|
|
$
|
165,000
|
|
|
$
|
236,000
|
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
As of December 31, 2018
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
U.S. Government-sponsored agencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,683,000
|
|
|
$
|
(472,000
|
)
|
|
$
|
10,683,000
|
|
|
$
|
(472,000
|
)
|
Mortgage-backed securities
|
76,050,000
|
|
|
(1,061,000
|
)
|
|
185,136,000
|
|
|
(5,926,000
|
)
|
|
261,186,000
|
|
|
(6,987,000
|
)
|
||||||
State and political subdivisions
|
76,809,000
|
|
|
(1,784,000
|
)
|
|
45,052,000
|
|
|
(3,873,000
|
)
|
|
121,861,000
|
|
|
(5,657,000
|
)
|
||||||
|
$
|
152,859,000
|
|
|
$
|
(2,845,000
|
)
|
|
$
|
240,871,000
|
|
|
$
|
(10,271,000
|
)
|
|
$
|
393,730,000
|
|
|
$
|
(13,116,000
|
)
|
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
As of December 31, 2017
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
U.S. Government-sponsored agencies
|
$
|
7,161,000
|
|
|
$
|
(94,000
|
)
|
|
$
|
3,814,000
|
|
|
$
|
(86,000
|
)
|
|
$
|
10,975,000
|
|
|
$
|
(180,000
|
)
|
Mortgage-backed securities
|
132,025,000
|
|
|
(1,857,000
|
)
|
|
101,707,000
|
|
|
(2,693,000
|
)
|
|
233,732,000
|
|
|
(4,550,000
|
)
|
||||||
State and political subdivisions
|
9,425,000
|
|
|
(149,000
|
)
|
|
38,864,000
|
|
|
(1,061,000
|
)
|
|
48,289,000
|
|
|
(1,210,000
|
)
|
||||||
Other equity securities
|
—
|
|
|
—
|
|
|
9,000
|
|
|
(3,000
|
)
|
|
9,000
|
|
|
(3,000
|
)
|
||||||
|
$
|
148,611,000
|
|
|
$
|
(2,100,000
|
)
|
|
$
|
144,394,000
|
|
|
$
|
(3,843,000
|
)
|
|
$
|
293,005,000
|
|
|
$
|
(5,943,000
|
)
|
As of December 31,
|
2018
|
|
2017
|
||||
Mortgage servicing rights
|
$
|
5,718,000
|
|
|
$
|
5,428,000
|
|
Accumulated amortization
|
(4,364,000
|
)
|
|
(4,160,000
|
)
|
||
|
$
|
1,354,000
|
|
|
$
|
1,268,000
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
||||||
Real estate
|
$
|
353,243,000
|
|
|
28.5
|
%
|
|
$
|
323,809,000
|
|
|
27.8
|
%
|
Construction
|
27,304,000
|
|
|
2.2
|
%
|
|
38,056,000
|
|
|
3.3
|
%
|
||
Other
|
196,391,000
|
|
|
15.9
|
%
|
|
181,528,000
|
|
|
15.6
|
%
|
||
Municipal
|
51,128,000
|
|
|
4.1
|
%
|
|
33,391,000
|
|
|
2.9
|
%
|
||
Residential
|
|
|
|
|
|
|
|
||||||
Term
|
469,145,000
|
|
|
37.9
|
%
|
|
432,661,000
|
|
|
37.1
|
%
|
||
Construction
|
17,743,000
|
|
|
1.4
|
%
|
|
17,868,000
|
|
|
1.5
|
%
|
||
Home equity line of credit
|
98,469,000
|
|
|
8.0
|
%
|
|
111,302,000
|
|
|
9.6
|
%
|
||
Consumer
|
24,860,000
|
|
|
2.0
|
%
|
|
25,524,000
|
|
|
2.2
|
%
|
||
Total loans
|
$
|
1,238,283,000
|
|
|
100.0
|
%
|
|
$
|
1,164,139,000
|
|
|
100.0
|
%
|
For the years ended December 31,
|
2018
|
|
2017
|
||||
Balance at beginning of year
|
$
|
22,354,000
|
|
|
$
|
23,293,000
|
|
New loans
|
1,341,000
|
|
|
867,000
|
|
||
Repayments
|
(1,192,000
|
)
|
|
(1,806,000
|
)
|
||
Retired director
|
(354,000
|
)
|
|
—
|
|
||
Balance at end of year
|
$
|
22,149,000
|
|
|
$
|
22,354,000
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90+ Days
Past Due
|
|
All
Past Due
|
|
Current
|
|
Total
|
|
90+ Days
&
Accruing
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Real estate
|
$
|
1,274,000
|
|
|
$
|
—
|
|
|
$
|
777,000
|
|
|
$
|
2,051,000
|
|
|
$
|
351,192,000
|
|
|
$
|
353,243,000
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
10,000
|
|
|
—
|
|
|
10,000
|
|
|
27,294,000
|
|
|
27,304,000
|
|
|
—
|
|
|||||||
Other
|
455,000
|
|
|
5,000
|
|
|
120,000
|
|
|
580,000
|
|
|
195,811,000
|
|
|
196,391,000
|
|
|
—
|
|
|||||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,128,000
|
|
|
51,128,000
|
|
|
—
|
|
|||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Term
|
1,097,000
|
|
|
3,518,000
|
|
|
2,023,000
|
|
|
6,638,000
|
|
|
462,507,000
|
|
|
469,145,000
|
|
|
339,000
|
|
|||||||
Construction
|
76,000
|
|
|
—
|
|
|
—
|
|
|
76,000
|
|
|
17,667,000
|
|
|
17,743,000
|
|
|
—
|
|
|||||||
Home equity line of credit
|
2,819,000
|
|
|
419,000
|
|
|
493,000
|
|
|
3,731,000
|
|
|
94,738,000
|
|
|
98,469,000
|
|
|
—
|
|
|||||||
Consumer
|
237,000
|
|
|
25,000
|
|
|
27,000
|
|
|
289,000
|
|
|
24,571,000
|
|
|
24,860,000
|
|
|
12,000
|
|
|||||||
Total
|
$
|
5,958,000
|
|
|
$
|
3,977,000
|
|
|
$
|
3,440,000
|
|
|
$
|
13,375,000
|
|
|
$
|
1,224,908,000
|
|
|
$
|
1,238,283,000
|
|
|
$
|
351,000
|
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90+ Days Past Due
|
|
All Past Due
|
|
Current
|
|
Total
|
|
90+ Days & Accruing
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Real estate
|
$
|
574,000
|
|
|
$
|
80,000
|
|
|
$
|
220,000
|
|
|
$
|
874,000
|
|
|
$
|
322,935,000
|
|
|
$
|
323,809,000
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,056,000
|
|
|
38,056,000
|
|
|
—
|
|
|||||||
Other
|
542,000
|
|
|
6,663,000
|
|
|
574,000
|
|
|
7,779,000
|
|
|
173,749,000
|
|
|
181,528,000
|
|
|
—
|
|
|||||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,391,000
|
|
|
33,391,000
|
|
|
—
|
|
|||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Term
|
1,031,000
|
|
|
4,372,000
|
|
|
2,256,000
|
|
|
7,659,000
|
|
|
425,002,000
|
|
|
432,661,000
|
|
|
436,000
|
|
|||||||
Construction
|
101,000
|
|
|
370,000
|
|
|
—
|
|
|
471,000
|
|
|
17,397,000
|
|
|
17,868,000
|
|
|
—
|
|
|||||||
Home equity line of credit
|
537,000
|
|
|
445,000
|
|
|
725,000
|
|
|
1,707,000
|
|
|
109,595,000
|
|
|
111,302,000
|
|
|
—
|
|
|||||||
Consumer
|
159,000
|
|
|
18,000
|
|
|
9,000
|
|
|
186,000
|
|
|
25,338,000
|
|
|
25,524,000
|
|
|
9,000
|
|
|||||||
Total
|
$
|
2,944,000
|
|
|
$
|
11,948,000
|
|
|
$
|
3,784,000
|
|
|
$
|
18,676,000
|
|
|
$
|
1,145,463,000
|
|
|
$
|
1,164,139,000
|
|
|
$
|
445,000
|
|
As of December 31,
|
2018
|
|
2017
|
||||
Commercial
|
|
|
|
||||
Real estate
|
$
|
1,226,000
|
|
|
$
|
752,000
|
|
Construction
|
—
|
|
|
—
|
|
||
Other
|
8,664,000
|
|
|
9,357,000
|
|
||
Municipal
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
||||
Term
|
4,062,000
|
|
|
3,778,000
|
|
||
Construction
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
760,000
|
|
|
833,000
|
|
||
Consumer
|
15,000
|
|
|
16,000
|
|
||
Total
|
$
|
14,727,000
|
|
|
$
|
14,736,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Average investment in impaired loans
|
$
|
31,805,000
|
|
|
$
|
29,108,000
|
|
|
$
|
28,217,000
|
|
Interest income recognized on impaired loans, all on cash basis
|
864,000
|
|
|
784,000
|
|
|
1,104,000
|
|
As of December 31,
|
2018
|
|
2017
|
||||
Balance of impaired loans
|
$
|
31,751,000
|
|
|
$
|
31,392,000
|
|
Less portion for which no allowance for loan losses is allocated
|
(21,030,000
|
)
|
|
(18,023,000
|
)
|
||
Portion of impaired loan balance for which an allowance for loan losses is allocated
|
$
|
10,721,000
|
|
|
$
|
13,369,000
|
|
Portion of allowance for loan losses allocated to the impaired loan balance
|
$
|
2,308,000
|
|
|
$
|
1,812,000
|
|
|
Recorded Investment
|
|
Unpaid
Principal Balance
|
|
Related Allowance
|
|
Average
Recorded Investment
|
|
Recognized Interest
Income
|
||||||||||
With No Related Allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
8,718,000
|
|
|
$
|
9,161,000
|
|
|
$
|
—
|
|
|
$
|
5,536,000
|
|
|
$
|
380,000
|
|
Construction
|
721,000
|
|
|
721,000
|
|
|
—
|
|
|
762,000
|
|
|
43,000
|
|
|||||
Other
|
1,468,000
|
|
|
1,555,000
|
|
|
—
|
|
|
2,037,000
|
|
|
32,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
9,136,000
|
|
|
10,317,000
|
|
|
—
|
|
|
9,427,000
|
|
|
289,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
972,000
|
|
|
1,035,000
|
|
|
—
|
|
|
1,001,000
|
|
|
20,000
|
|
|||||
Consumer
|
15,000
|
|
|
42,000
|
|
|
—
|
|
|
13,000
|
|
|
—
|
|
|||||
|
$
|
21,030,000
|
|
|
$
|
22,831,000
|
|
|
$
|
—
|
|
|
$
|
18,776,000
|
|
|
$
|
764,000
|
|
With an Allowance Recorded
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
1,042,000
|
|
|
$
|
1,059,000
|
|
|
$
|
260,000
|
|
|
$
|
3,477,000
|
|
|
$
|
42,000
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
7,791,000
|
|
|
8,216,000
|
|
|
1,696,000
|
|
|
7,471,000
|
|
|
5,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
1,768,000
|
|
|
1,998,000
|
|
|
335,000
|
|
|
1,982,000
|
|
|
53,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
120,000
|
|
|
124,000
|
|
|
17,000
|
|
|
99,000
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
10,721,000
|
|
|
$
|
11,397,000
|
|
|
$
|
2,308,000
|
|
|
$
|
13,029,000
|
|
|
$
|
100,000
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
9,760,000
|
|
|
$
|
10,220,000
|
|
|
$
|
260,000
|
|
|
$
|
9,013,000
|
|
|
$
|
422,000
|
|
Construction
|
721,000
|
|
|
721,000
|
|
|
—
|
|
|
762,000
|
|
|
43,000
|
|
|||||
Other
|
9,259,000
|
|
|
9,771,000
|
|
|
1,696,000
|
|
|
9,508,000
|
|
|
37,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
10,904,000
|
|
|
12,315,000
|
|
|
335,000
|
|
|
11,409,000
|
|
|
342,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,092,000
|
|
|
1,159,000
|
|
|
17,000
|
|
|
1,100,000
|
|
|
20,000
|
|
|||||
Consumer
|
15,000
|
|
|
42,000
|
|
|
—
|
|
|
13,000
|
|
|
—
|
|
|||||
|
$
|
31,751,000
|
|
|
$
|
34,228,000
|
|
|
$
|
2,308,000
|
|
|
$
|
31,805,000
|
|
|
$
|
864,000
|
|
|
Recorded Investment
|
|
Unpaid
Principal Balance
|
|
Related Allowance
|
|
Average
Recorded Investment
|
|
Recognized Interest
Income
|
||||||||||
With No Related Allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
3,791,000
|
|
|
$
|
3,996,000
|
|
|
$
|
—
|
|
|
$
|
5,124,000
|
|
|
$
|
164,000
|
|
Construction
|
741,000
|
|
|
741,000
|
|
|
—
|
|
|
62,000
|
|
|
38,000
|
|
|||||
Other
|
2,591,000
|
|
|
2,671,000
|
|
|
—
|
|
|
1,908,000
|
|
|
36,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
9,769,000
|
|
|
10,909,000
|
|
|
—
|
|
|
10,770,000
|
|
|
297,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,115,000
|
|
|
1,429,000
|
|
|
—
|
|
|
1,351,000
|
|
|
18,000
|
|
|||||
Consumer
|
16,000
|
|
|
29,000
|
|
|
—
|
|
|
12,000
|
|
|
—
|
|
|||||
|
$
|
18,023,000
|
|
|
$
|
19,775,000
|
|
|
$
|
—
|
|
|
$
|
19,227,000
|
|
|
$
|
553,000
|
|
With an Allowance Recorded
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate
|
$
|
3,999,000
|
|
|
$
|
4,116,000
|
|
|
$
|
224,000
|
|
|
$
|
4,460,000
|
|
|
$
|
152,000
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
699,000
|
|
|
—
|
|
|||||
Other
|
7,327,000
|
|
|
7,371,000
|
|
|
1,309,000
|
|
|
2,584,000
|
|
|
—
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
1,979,000
|
|
|
2,144,000
|
|
|
255,000
|
|
|
2,106,000
|
|
|
79,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
64,000
|
|
|
67,000
|
|
|
24,000
|
|
|
32,000
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
$
|
13,369,000
|
|
|
$
|
13,698,000
|
|
|
$
|
1,812,000
|
|
|
$
|
9,881,000
|
|
|
$
|
231,000
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
7,790,000
|
|
|
$
|
8,112,000
|
|
|
$
|
224,000
|
|
|
$
|
9,584,000
|
|
|
$
|
316,000
|
|
Construction
|
741,000
|
|
|
741,000
|
|
|
—
|
|
|
761,000
|
|
|
38,000
|
|
|||||
Other
|
9,918,000
|
|
|
10,042,000
|
|
|
1,309,000
|
|
|
4,492,000
|
|
|
36,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
11,748,000
|
|
|
13,053,000
|
|
|
255,000
|
|
|
12,876,000
|
|
|
376,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,179,000
|
|
|
1,496,000
|
|
|
24,000
|
|
|
1,383,000
|
|
|
18,000
|
|
|||||
Consumer
|
16,000
|
|
|
29,000
|
|
|
—
|
|
|
12,000
|
|
|
—
|
|
|||||
|
$
|
31,392,000
|
|
|
$
|
33,473,000
|
|
|
$
|
1,812,000
|
|
|
$
|
29,108,000
|
|
|
$
|
784,000
|
|
|
Recorded Investment
|
|
Unpaid
Principal Balance
|
|
Related Allowance
|
|
Average
Recorded Investment
|
|
Recognized Interest
Income
|
||||||||||
With No Related Allowance
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
5,201,000
|
|
|
$
|
5,614,000
|
|
|
$
|
—
|
|
|
$
|
6,252,000
|
|
|
$
|
220,000
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
32,000
|
|
|
—
|
|
|||||
Other
|
1,671,000
|
|
|
1,852,000
|
|
|
—
|
|
|
1,074,000
|
|
|
86,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
11,483,000
|
|
|
12,654,000
|
|
|
—
|
|
|
11,025,000
|
|
|
442,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,361,000
|
|
|
1,733,000
|
|
|
—
|
|
|
1,213,000
|
|
|
33,000
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
9,000
|
|
|
—
|
|
|||||
|
$
|
19,716,000
|
|
|
$
|
21,853,000
|
|
|
$
|
—
|
|
|
$
|
19,605,000
|
|
|
$
|
781,000
|
|
With an Allowance Recorded
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
4,820,000
|
|
|
$
|
4,925,000
|
|
|
$
|
505,000
|
|
|
$
|
4,153,000
|
|
|
$
|
186,000
|
|
Construction
|
763,000
|
|
|
763,000
|
|
|
100,000
|
|
|
816,000
|
|
|
36,000
|
|
|||||
Other
|
72,000
|
|
|
72,000
|
|
|
39,000
|
|
|
317,000
|
|
|
—
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
2,186,000
|
|
|
2,328,000
|
|
|
304,000
|
|
|
3,209,000
|
|
|
101,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
26,000
|
|
|
28,000
|
|
|
26,000
|
|
|
69,000
|
|
|
—
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
48,000
|
|
|
—
|
|
|||||
|
$
|
7,867,000
|
|
|
$
|
8,116,000
|
|
|
$
|
974,000
|
|
|
$
|
8,612,000
|
|
|
$
|
323,000
|
|
Total
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
10,021,000
|
|
|
$
|
10,539,000
|
|
|
$
|
505,000
|
|
|
$
|
10,405,000
|
|
|
$
|
406,000
|
|
Construction
|
763,000
|
|
|
763,000
|
|
|
100,000
|
|
|
848,000
|
|
|
36,000
|
|
|||||
Other
|
1,743,000
|
|
|
1,924,000
|
|
|
39,000
|
|
|
1,391,000
|
|
|
86,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
13,669,000
|
|
|
14,982,000
|
|
|
304,000
|
|
|
14,234,000
|
|
|
543,000
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity line of credit
|
1,387,000
|
|
|
1,761,000
|
|
|
26,000
|
|
|
1,282,000
|
|
|
33,000
|
|
|||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
57,000
|
|
|
—
|
|
|||||
|
$
|
27,583,000
|
|
|
$
|
29,969,000
|
|
|
$
|
974,000
|
|
|
$
|
28,217,000
|
|
|
$
|
1,104,000
|
|
•
|
The borrower demonstrates financial difficulty; common indicators include past due status with bank obligations, substandard credit bureau reports, or an inability to refinance with another lender, and
|
•
|
The Company has granted a concession; common concession types include maturity date extension, interest rate adjustments to below market pricing, and deferment of payments.
|
|
Number of Loans
|
|
Balance
|
|
Specific Reserves
|
|||||
Commercial
|
|
|
|
|
|
|||||
Real estate
|
17
|
|
|
$
|
8,631,000
|
|
|
$
|
132,000
|
|
Construction
|
1
|
|
|
721,000
|
|
|
—
|
|
||
Other
|
10
|
|
|
7,298,000
|
|
|
1,276,000
|
|
||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
|
|
|||||
Term
|
45
|
|
|
8,074,000
|
|
|
160,000
|
|
||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
3
|
|
|
498,000
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
|
76
|
|
|
$
|
25,222,000
|
|
|
$
|
1,568,000
|
|
|
Number of Loans
|
|
Balance
|
|
Specific Reserves
|
|||||
Commercial
|
|
|
|
|
|
|||||
Real estate
|
8
|
|
|
$
|
7,038,000
|
|
|
$
|
90,000
|
|
Construction
|
1
|
|
|
741,000
|
|
|
—
|
|
||
Other
|
4
|
|
|
561,000
|
|
|
—
|
|
||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
|
|
|||||
Term
|
46
|
|
|
8,948,000
|
|
|
233,000
|
|
||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
3
|
|
|
513,000
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
|
62
|
|
|
$
|
17,801,000
|
|
|
$
|
323,000
|
|
|
Number of Loans
|
|
Balance
|
|
Specific Reserves
|
|||||
Commercial
|
|
|
|
|
|
|||||
Real estate
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
|
|
|
|
|
||
Term
|
8
|
|
|
846,000
|
|
|
26,000
|
|
||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
1
|
|
|
167,000
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
|
9
|
|
|
$
|
1,013,000
|
|
|
$
|
26,000
|
|
|
Number of Loans
|
|
Balance
|
|
Specific Reserves
|
|||||
Commercial
|
|
|
|
|
|
|||||
Real estate
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Other
|
—
|
|
|
—
|
|
|
—
|
|
||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
|
|
|||||
Term
|
11
|
|
|
1,240,000
|
|
|
44,000
|
|
||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
1
|
|
|
167,000
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
||
|
12
|
|
|
$
|
1,407,000
|
|
|
$
|
44,000
|
|
|
Number of Loans
|
|
Pre-Modification
Outstanding
Recorded Investment
|
|
Post-Modification Outstanding
Recorded
Investment
|
|
Specific Reserves
|
||||||
Commercial
|
|
|
|
|
|
|
|
||||||
Real estate
|
9
|
|
|
$
|
1,729,000
|
|
|
$
|
1,727,000
|
|
|
42,000
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Other
|
6
|
|
|
7,116,000
|
|
|
6,798,000
|
|
|
1,276,000
|
|
||
Municipal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential
|
|
|
|
|
|
|
|
||||||
Term
|
3
|
|
|
520,000
|
|
|
507,000
|
|
|
26,000
|
|
||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Home equity line of credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
|
18
|
|
|
$
|
9,365,000
|
|
|
$
|
9,032,000
|
|
|
1,344,000
|
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
Specific Reserves on Loans Evaluated Individually for Impairment
|
|
General Reserves on Loans Based on Historical Loss Experience
|
|
Reserves for Qualitative Factors
|
|
Unallocated Reserves
|
|
Total Reserves
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
260,000
|
|
|
$
|
742,000
|
|
|
$
|
2,565,000
|
|
|
$
|
—
|
|
|
$
|
3,567,000
|
|
Construction
|
—
|
|
|
57,000
|
|
|
198,000
|
|
|
—
|
|
|
255,000
|
|
|||||
Other
|
1,696,000
|
|
|
414,000
|
|
|
1,431,000
|
|
|
—
|
|
|
3,541,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
24,000
|
|
|
—
|
|
|
24,000
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
||||||||||
Term
|
335,000
|
|
|
326,000
|
|
|
574,000
|
|
|
—
|
|
|
1,235,000
|
|
|||||
Construction
|
—
|
|
|
12,000
|
|
|
22,000
|
|
|
—
|
|
|
34,000
|
|
|||||
Home equity line of credit
|
17,000
|
|
|
263,000
|
|
|
450,000
|
|
|
—
|
|
|
730,000
|
|
|||||
Consumer
|
—
|
|
|
271,000
|
|
|
359,000
|
|
|
—
|
|
|
630,000
|
|
|||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
1,216,000
|
|
|
1,216,000
|
|
|||||
|
$
|
2,308,000
|
|
|
$
|
2,085,000
|
|
|
$
|
5,623,000
|
|
|
$
|
1,216,000
|
|
|
$
|
11,232,000
|
|
As of December 31, 2017
|
Specific Reserves on Loans Evaluated Individually for Impairment
|
|
General Reserves on Loans Based on Historical Loss Experience
|
|
Reserves for Qualitative Factors
|
|
Unallocated Reserves
|
|
Total Reserves
|
||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate
|
$
|
224,000
|
|
|
$
|
1,285,000
|
|
|
$
|
2,363,000
|
|
|
$
|
—
|
|
|
$
|
3,872,000
|
|
Construction
|
—
|
|
|
153,000
|
|
|
281,000
|
|
|
—
|
|
|
434,000
|
|
|||||
Other
|
1,309,000
|
|
|
723,000
|
|
|
1,326,000
|
|
|
—
|
|
|
3,358,000
|
|
|||||
Municipal
|
—
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Term
|
255,000
|
|
|
311,000
|
|
|
564,000
|
|
|
—
|
|
|
1,130,000
|
|
|||||
Construction
|
—
|
|
|
13,000
|
|
|
23,000
|
|
|
—
|
|
|
36,000
|
|
|||||
Home equity line of credit
|
24,000
|
|
|
297,000
|
|
|
371,000
|
|
|
—
|
|
|
692,000
|
|
|||||
Consumer
|
—
|
|
|
251,000
|
|
|
294,000
|
|
|
—
|
|
|
545,000
|
|
|||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
642,000
|
|
|
642,000
|
|
|||||
|
$
|
1,812,000
|
|
|
$
|
3,033,000
|
|
|
$
|
5,242,000
|
|
|
$
|
642,000
|
|
|
$
|
10,729,000
|
|
•
|
General economic conditions.
|
•
|
Credit quality trends with emphasis on loan delinquencies, nonaccrual levels and classified loans.
|
•
|
Recent loss experience in particular segments of the portfolio.
|
•
|
Loan volumes and concentrations, including changes in mix.
|
•
|
Other factors, including changes in quality of loan originations; loan policy changes; changes in credit risk management processes; Bank regulatory and external loan review examination results.
|
|
Commercial
Real Estate
|
|
Commercial
Construction
|
|
Commercial
Other
|
|
Municipal
Loans
|
|
All Risk-
Rated Loans
|
||||||||||
1 Strong
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,444,000
|
|
|
$
|
—
|
|
|
$
|
3,444,000
|
|
2 Above average
|
10,484,000
|
|
|
37,000
|
|
|
4,564,000
|
|
|
48,800,000
|
|
|
63,885,000
|
|
|||||
3 Satisfactory
|
80,266,000
|
|
|
2,231,000
|
|
|
46,090,000
|
|
|
518,000
|
|
|
129,105,000
|
|
|||||
4 Average
|
172,597,000
|
|
|
18,780,000
|
|
|
82,081,000
|
|
|
1,810,000
|
|
|
275,268,000
|
|
|||||
5 Watch
|
66,325,000
|
|
|
5,970,000
|
|
|
45,546,000
|
|
|
—
|
|
|
117,841,000
|
|
|||||
6 OAEM
|
6,890,000
|
|
|
—
|
|
|
1,805,000
|
|
|
—
|
|
|
8,695,000
|
|
|||||
7 Substandard
|
16,558,000
|
|
|
286,000
|
|
|
12,861,000
|
|
|
—
|
|
|
29,705,000
|
|
|||||
8 Doubtful
|
123,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,000
|
|
|||||
Total
|
$
|
353,243,000
|
|
|
$
|
27,304,000
|
|
|
$
|
196,391,000
|
|
|
$
|
51,128,000
|
|
|
$
|
628,066,000
|
|
|
Commercial
Real Estate
|
|
Commercial
Construction
|
|
Commercial
Other
|
|
Municipal
Loans
|
|
All Risk-
Rated Loans
|
||||||||||
1 Strong
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,586,000
|
|
|
$
|
—
|
|
|
$
|
1,586,000
|
|
2 Above average
|
12,534,000
|
|
|
40,000
|
|
|
5,776,000
|
|
|
32,673,000
|
|
|
51,023,000
|
|
|||||
3 Satisfactory
|
73,899,000
|
|
|
2,856,000
|
|
|
38,151,000
|
|
|
718,000
|
|
|
115,624,000
|
|
|||||
4 Average
|
173,956,000
|
|
|
22,446,000
|
|
|
84,360,000
|
|
|
—
|
|
|
280,762,000
|
|
|||||
5 Watch
|
41,652,000
|
|
|
12,714,000
|
|
|
33,934,000
|
|
|
—
|
|
|
88,300,000
|
|
|||||
6 OAEM
|
3,442,000
|
|
|
—
|
|
|
2,765,000
|
|
|
—
|
|
|
6,207,000
|
|
|||||
7 Substandard
|
18,203,000
|
|
|
—
|
|
|
14,956,000
|
|
|
—
|
|
|
33,159,000
|
|
|||||
8 Doubtful
|
123,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,000
|
|
|||||
Total
|
$
|
323,809,000
|
|
|
$
|
38,056,000
|
|
|
$
|
181,528,000
|
|
|
$
|
33,391,000
|
|
|
$
|
576,784,000
|
|
For the year ended December 31, 2018
|
Commercial
|
|
|
|
Residential
|
|
Home Equity
Line of Credit
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Real Estate
|
|
Construction
|
|
Other
|
|
Municipal
|
|
Term
|
|
Construction
|
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
3,872,000
|
|
|
$
|
434,000
|
|
|
$
|
3,358,000
|
|
|
$
|
20,000
|
|
|
$
|
1,130,000
|
|
|
$
|
36,000
|
|
|
$
|
692,000
|
|
|
$
|
545,000
|
|
|
$
|
642,000
|
|
|
$
|
10,729,000
|
|
Chargeoffs
|
168,000
|
|
|
—
|
|
|
423,000
|
|
|
—
|
|
|
213,000
|
|
|
—
|
|
|
121,000
|
|
|
348,000
|
|
|
—
|
|
|
1,273,000
|
|
||||||||||
Recoveries
|
52,000
|
|
|
—
|
|
|
40,000
|
|
|
—
|
|
|
64,000
|
|
|
—
|
|
|
24,000
|
|
|
96,000
|
|
|
—
|
|
|
276,000
|
|
||||||||||
Provision (credit)
|
(189,000
|
)
|
|
(179,000
|
)
|
|
566,000
|
|
|
4,000
|
|
|
254,000
|
|
|
(2,000
|
)
|
|
135,000
|
|
|
337,000
|
|
|
574,000
|
|
|
1,500,000
|
|
||||||||||
Ending balance
|
$
|
3,567,000
|
|
|
$
|
255,000
|
|
|
$
|
3,541,000
|
|
|
$
|
24,000
|
|
|
$
|
1,235,000
|
|
|
$
|
34,000
|
|
|
$
|
730,000
|
|
|
$
|
630,000
|
|
|
$
|
1,216,000
|
|
|
$
|
11,232,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
260,000
|
|
|
$
|
—
|
|
|
$
|
1,696,000
|
|
|
$
|
—
|
|
|
$
|
335,000
|
|
|
$
|
—
|
|
|
$
|
17,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,308,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
3,307,000
|
|
|
$
|
255,000
|
|
|
$
|
1,845,000
|
|
|
$
|
24,000
|
|
|
$
|
900,000
|
|
|
$
|
34,000
|
|
|
$
|
713,000
|
|
|
$
|
630,000
|
|
|
$
|
1,216,000
|
|
|
$
|
8,924,000
|
|
Related loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance
|
$
|
353,243,000
|
|
|
$
|
27,304,000
|
|
|
$
|
196,391,000
|
|
|
$
|
51,128,000
|
|
|
$
|
469,145,000
|
|
|
$
|
17,743,000
|
|
|
$
|
98,469,000
|
|
|
$
|
24,860,000
|
|
|
$
|
—
|
|
|
$
|
1,238,283,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
9,760,000
|
|
|
$
|
721,000
|
|
|
$
|
9,259,000
|
|
|
$
|
—
|
|
|
$
|
10,904,000
|
|
|
$
|
—
|
|
|
$
|
1,092,000
|
|
|
$
|
15,000
|
|
|
$
|
—
|
|
|
$
|
31,751,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
343,483,000
|
|
|
$
|
26,583,000
|
|
|
$
|
187,132,000
|
|
|
$
|
51,128,000
|
|
|
$
|
458,241,000
|
|
|
$
|
17,743,000
|
|
|
$
|
97,377,000
|
|
|
$
|
24,845,000
|
|
|
$
|
—
|
|
|
$
|
1,206,532,000
|
|
For the year ended December 31, 2017
|
Commercial
|
|
|
|
Residential
|
|
Home Equity
Line of Credit
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Real Estate
|
|
Construction
|
|
Other
|
|
Municipal
|
|
Term
|
|
Construction
|
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
3,988,000
|
|
|
$
|
396,000
|
|
|
$
|
1,780,000
|
|
|
$
|
18,000
|
|
|
$
|
1,288,000
|
|
|
$
|
44,000
|
|
|
$
|
807,000
|
|
|
$
|
559,000
|
|
|
$
|
1,258,000
|
|
|
$
|
10,138,000
|
|
Chargeoffs
|
587,000
|
|
|
—
|
|
|
212,000
|
|
|
—
|
|
|
456,000
|
|
|
—
|
|
|
28,000
|
|
|
335,000
|
|
|
—
|
|
|
1,618,000
|
|
||||||||||
Recoveries
|
—
|
|
|
—
|
|
|
49,000
|
|
|
—
|
|
|
40,000
|
|
|
—
|
|
|
11,000
|
|
|
109,000
|
|
|
—
|
|
|
209,000
|
|
||||||||||
Provision (credit)
|
471,000
|
|
|
38,000
|
|
|
1,741,000
|
|
|
2,000
|
|
|
258,000
|
|
|
(8,000
|
)
|
|
(98,000
|
)
|
|
212,000
|
|
|
(616,000
|
)
|
|
2,000,000
|
|
||||||||||
Ending balance
|
$
|
3,872,000
|
|
|
$
|
434,000
|
|
|
$
|
3,358,000
|
|
|
$
|
20,000
|
|
|
$
|
1,130,000
|
|
|
$
|
36,000
|
|
|
$
|
692,000
|
|
|
$
|
545,000
|
|
|
$
|
642,000
|
|
|
$
|
10,729,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
224,000
|
|
|
$
|
—
|
|
|
$
|
1,309,000
|
|
|
$
|
—
|
|
|
$
|
255,000
|
|
|
$
|
—
|
|
|
$
|
24,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,812,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
3,648,000
|
|
|
$
|
434,000
|
|
|
$
|
2,049,000
|
|
|
$
|
20,000
|
|
|
$
|
875,000
|
|
|
$
|
36,000
|
|
|
$
|
668,000
|
|
|
$
|
545,000
|
|
|
$
|
642,000
|
|
|
$
|
8,917,000
|
|
Related loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance
|
$
|
323,809,000
|
|
|
$
|
38,056,000
|
|
|
$
|
181,528,000
|
|
|
$
|
33,391,000
|
|
|
$
|
432,661,000
|
|
|
$
|
17,868,000
|
|
|
$
|
111,302,000
|
|
|
$
|
25,524,000
|
|
|
$
|
—
|
|
|
$
|
1,164,139,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
7,790,000
|
|
|
$
|
741,000
|
|
|
$
|
9,918,000
|
|
|
$
|
—
|
|
|
$
|
11,748,000
|
|
|
$
|
—
|
|
|
$
|
1,179,000
|
|
|
$
|
16,000
|
|
|
$
|
—
|
|
|
$
|
31,392,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
316,019,000
|
|
|
$
|
37,315,000
|
|
|
$
|
171,610,000
|
|
|
$
|
33,391,000
|
|
|
$
|
420,913,000
|
|
|
$
|
17,868,000
|
|
|
$
|
110,123,000
|
|
|
$
|
25,508,000
|
|
|
$
|
—
|
|
|
$
|
1,132,747,000
|
|
For the year ended December 31, 2016
|
Commercial
|
|
|
|
Residential
|
|
Home Equity
Line of Credit
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Real Estate
|
|
Construction
|
|
Other
|
|
Municipal
|
|
Term
|
|
Construction
|
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Beginning balance
|
$
|
3,120,000
|
|
|
$
|
580,000
|
|
|
$
|
1,452,000
|
|
|
$
|
17,000
|
|
|
$
|
1,391,000
|
|
|
$
|
24,000
|
|
|
$
|
893,000
|
|
|
$
|
566,000
|
|
|
$
|
1,873,000
|
|
|
$
|
9,916,000
|
|
Chargeoffs
|
294,000
|
|
|
75,000
|
|
|
376,000
|
|
|
—
|
|
|
379,000
|
|
|
—
|
|
|
147,000
|
|
|
450,000
|
|
|
—
|
|
|
1,721,000
|
|
||||||||||
Recoveries
|
—
|
|
|
8,000
|
|
|
129,000
|
|
|
—
|
|
|
93,000
|
|
|
—
|
|
|
5,000
|
|
|
108,000
|
|
|
—
|
|
|
343,000
|
|
||||||||||
Provision (credit)
|
1,162,000
|
|
|
(117,000
|
)
|
|
575,000
|
|
|
1,000
|
|
|
183,000
|
|
|
20,000
|
|
|
56,000
|
|
|
335,000
|
|
|
(615,000
|
)
|
|
1,600,000
|
|
||||||||||
Ending balance
|
$
|
3,988,000
|
|
|
$
|
396,000
|
|
|
$
|
1,780,000
|
|
|
$
|
18,000
|
|
|
$
|
1,288,000
|
|
|
$
|
44,000
|
|
|
$
|
807,000
|
|
|
$
|
559,000
|
|
|
$
|
1,258,000
|
|
|
$
|
10,138,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
505,000
|
|
|
$
|
100,000
|
|
|
$
|
39,000
|
|
|
$
|
—
|
|
|
$
|
304,000
|
|
|
$
|
—
|
|
|
$
|
26,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
974,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
3,483,000
|
|
|
$
|
296,000
|
|
|
$
|
1,741,000
|
|
|
$
|
18,000
|
|
|
$
|
984,000
|
|
|
$
|
44,000
|
|
|
$
|
781,000
|
|
|
$
|
559,000
|
|
|
$
|
1,258,000
|
|
|
$
|
9,164,000
|
|
Related loan balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ending balance
|
$
|
302,506,000
|
|
|
$
|
25,406,000
|
|
|
$
|
150,769,000
|
|
|
$
|
27,056,000
|
|
|
$
|
411,469,000
|
|
|
$
|
18,303,000
|
|
|
$
|
110,907,000
|
|
|
$
|
25,110,000
|
|
|
$
|
—
|
|
|
$
|
1,071,526,000
|
|
Ending balance specifically evaluated for impairment
|
$
|
10,021,000
|
|
|
$
|
763,000
|
|
|
$
|
1,743,000
|
|
|
$
|
—
|
|
|
$
|
13,669,000
|
|
|
$
|
—
|
|
|
$
|
1,387,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,583,000
|
|
Ending balance collectively evaluated for impairment
|
$
|
292,485,000
|
|
|
$
|
24,643,000
|
|
|
$
|
149,026,000
|
|
|
$
|
27,056,000
|
|
|
$
|
397,800,000
|
|
|
$
|
18,303,000
|
|
|
$
|
109,520,000
|
|
|
$
|
25,110,000
|
|
|
$
|
—
|
|
|
$
|
1,043,943,000
|
|
As of December 31,
|
2018
|
|
2017
|
||||
Land
|
$
|
4,852,000
|
|
|
$
|
4,639,000
|
|
Land improvements
|
1,105,000
|
|
|
1,052,000
|
|
||
Buildings
|
22,301,000
|
|
|
22,254,000
|
|
||
Equipment
|
12,461,000
|
|
|
13,147,000
|
|
||
|
40,719,000
|
|
|
41,092,000
|
|
||
Less accumulated depreciation
|
18,663,000
|
|
|
18,590,000
|
|
||
|
$
|
22,056,000
|
|
|
$
|
22,502,000
|
|
2019
|
|
$141,000
|
|
2020
|
101,000
|
|
|
2021
|
97,000
|
|
|
2022
|
94,000
|
|
|
2023
|
9,000
|
|
|
Thereafter
|
—
|
|
|
|
|
$442,000
|
|
As of December 31,
|
2018
|
|
2017
|
||||
Real estate acquired in settlement of loans
|
$
|
584,000
|
|
|
$
|
1,012,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of year
|
$
|
53,000
|
|
|
$
|
205,000
|
|
|
$
|
162,000
|
|
Losses charged to allowance
|
(53,000
|
)
|
|
(169,000
|
)
|
|
(89,000
|
)
|
|||
Provision charged to operating expenses
|
—
|
|
|
17,000
|
|
|
132,000
|
|
|||
Balance at end of year
|
$
|
—
|
|
|
$
|
53,000
|
|
|
$
|
205,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Federal income tax
|
|
|
|
|
|
||||||
Current
|
$
|
4,407,000
|
|
|
$
|
4,184,000
|
|
|
$
|
6,276,000
|
|
Deferred
|
(492,000
|
)
|
|
2,083,000
|
|
|
(139,000
|
)
|
|||
|
3,915,000
|
|
|
6,267,000
|
|
|
6,137,000
|
|
|||
State franchise tax
|
391,000
|
|
|
345,000
|
|
|
317,000
|
|
|||
|
$
|
4,306,000
|
|
|
$
|
6,612,000
|
|
|
$
|
6,454,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Expected tax expense
|
$
|
5,847,000
|
|
|
$
|
9,170,000
|
|
|
$
|
8,562,000
|
|
Non-taxable income
|
(1,699,000
|
)
|
|
(2,625,000
|
)
|
|
(2,176,000
|
)
|
|||
State franchise tax, net of federal tax benefit
|
309,000
|
|
|
224,000
|
|
|
206,000
|
|
|||
Equity compensation
|
(55,000
|
)
|
|
(83,000
|
)
|
|
—
|
|
|||
Tax credits, net of amortization
|
(85,000
|
)
|
|
(88,000
|
)
|
|
(105,000
|
)
|
|||
Change in federal tax rate
|
—
|
|
|
134,000
|
|
|
—
|
|
|||
Other
|
(11,000
|
)
|
|
(120,000
|
)
|
|
(33,000
|
)
|
|||
|
$
|
4,306,000
|
|
|
$
|
6,612,000
|
|
|
$
|
6,454,000
|
|
|
2018
|
|
2017
|
||||
Allowance for loan losses
|
$
|
2,359,000
|
|
|
$
|
2,253,000
|
|
OREO
|
—
|
|
|
11,000
|
|
||
Accrued pension and post-retirement
|
955,000
|
|
|
1,036,000
|
|
||
Unrealized loss on securities transferred from available for sale to held to maturity
|
52,000
|
|
|
46,000
|
|
||
Unrealized loss on securities available for sale
|
1,343,000
|
|
|
772,000
|
|
||
Restricted stock grants
|
170,000
|
|
|
173,000
|
|
||
Core deposit intangible
|
18,000
|
|
|
15,000
|
|
||
Investment in flow through entities
|
31,000
|
|
|
22,000
|
|
||
Other assets
|
24,000
|
|
|
28,000
|
|
||
Total deferred tax asset
|
4,952,000
|
|
|
4,356,000
|
|
||
Net deferred loan costs
|
(1,504,000
|
)
|
|
(1,313,000
|
)
|
||
Depreciation
|
(1,300,000
|
)
|
|
(1,306,000
|
)
|
||
Goodwill
|
(80,000
|
)
|
|
(39,000
|
)
|
||
Mortgage servicing rights
|
(284,000
|
)
|
|
(266,000
|
)
|
||
Unrealized gain on derivative instruments
|
(382,000
|
)
|
|
(410,000
|
)
|
||
Prepaid expense
|
(159,000
|
)
|
|
(821,000
|
)
|
||
Total deferred tax liability
|
(3,709,000
|
)
|
|
(4,155,000
|
)
|
||
Net deferred tax asset
|
$
|
1,243,000
|
|
|
$
|
201,000
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Certificates of deposit < $100,000
|
$
|
372,464,000
|
|
|
$
|
284,066,000
|
|
Certificates $100,000 to $250,000
|
162,185,000
|
|
|
232,759,000
|
|
||
Certificates $250,000 and over
|
56,760,000
|
|
|
42,176,000
|
|
||
|
$
|
591,409,000
|
|
|
$
|
559,001,000
|
|
Year of Maturity
|
Less than $100,000
|
|
$100,000 and Greater
|
|
All Certificates of Deposit
|
||||||
2019
|
$
|
303,468,000
|
|
|
$
|
108,341,000
|
|
|
$
|
411,809,000
|
|
2020
|
25,150,000
|
|
|
36,046,000
|
|
|
61,196,000
|
|
|||
2021
|
20,073,000
|
|
|
24,534,000
|
|
|
44,607,000
|
|
|||
2022
|
10,752,000
|
|
|
16,831,000
|
|
|
27,583,000
|
|
|||
2023
|
13,015,000
|
|
|
33,193,000
|
|
|
46,208,000
|
|
|||
2024 and thereafter
|
6,000
|
|
|
—
|
|
|
6,000
|
|
|||
|
$
|
372,464,000
|
|
|
$
|
218,945,000
|
|
|
$
|
591,409,000
|
|
As of December 31, 2017
|
|
|
||
Federal Home Loan Bank Advances
|
|
|
||
2018
|
1.59% - 3.25%
|
$
|
43,074,000
|
|
2020
|
1.60% - 1.97%
|
55,000,000
|
|
|
2021
|
1.55%
|
10,000,000
|
|
|
2023 and thereafter
|
0.00% - 0.99%
|
50,120,000
|
|
|
|
|
158,194,000
|
|
|
Repurchase agreements
|
|
|
||
Municipal and commercial customers
|
0.15% - 2.48%
|
70,564,000
|
|
|
|
|
$
|
228,758,000
|
|
At December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Change in benefit obligations
|
|
|
|
|
|
||||||
Benefit obligation at beginning of year:
|
$
|
1,874,000
|
|
|
$
|
1,870,000
|
|
|
$
|
1,967,000
|
|
Interest cost
|
77,000
|
|
|
77,000
|
|
|
81,000
|
|
|||
Benefits paid
|
(117,000
|
)
|
|
(113,000
|
)
|
|
(109,000
|
)
|
|||
Actuarial (gain) loss
|
(235,000
|
)
|
|
40,000
|
|
|
(69,000
|
)
|
|||
Benefit obligation at end of year:
|
$
|
1,599,000
|
|
|
$
|
1,874,000
|
|
|
$
|
1,870,000
|
|
Funded status
|
|
|
|
|
|
|
|
||||
Benefit obligation at end of year
|
$
|
(1,599,000
|
)
|
|
$
|
(1,874,000
|
)
|
|
$
|
(1,870,000
|
)
|
Unamortized (gain) loss
|
(47,000
|
)
|
|
186,000
|
|
|
156,000
|
|
|||
Accrued benefit cost
|
$
|
(1,646,000
|
)
|
|
$
|
(1,688,000
|
)
|
|
$
|
(1,714,000
|
)
|
Weighted average discount rate as of December 31
|
4.25
|
%
|
|
4.25
|
%
|
|
4.25
|
%
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Components of net periodic benefit cost
|
|
|
|
|
|
||||||
Interest cost
|
$
|
77,000
|
|
|
$
|
77,000
|
|
|
$
|
81,000
|
|
Amortization of loss
|
—
|
|
|
—
|
|
|
4,000
|
|
|||
Other settlement (income) expense
|
(3,000
|
)
|
|
11,000
|
|
|
11,000
|
|
|||
Net periodic benefit cost
|
$
|
74,000
|
|
|
$
|
88,000
|
|
|
$
|
96,000
|
|
Weighted average discount rate for net periodic cost
|
4.25
|
%
|
|
4.25
|
%
|
|
4.25
|
%
|
At December 31,
|
2018
|
|
2017
|
|
Portion to Be Recognized in
Income in 2019
|
||||||
Unamortized net actuarial gain (loss)
|
$
|
47,000
|
|
|
$
|
(186,000
|
)
|
|
$
|
(160,000
|
)
|
Deferred tax (expense) benefit at 21% in 2018 and 35% in 2017
|
(10,000
|
)
|
|
65,000
|
|
|
34,000
|
|
|||
Reclassification adjustment for effect of enacted tax law changes
|
—
|
|
|
(26,000
|
)
|
|
—
|
|
|||
Net unrecognized post-retirement benefits included in accumulated other comprehensive income (loss)
|
$
|
37,000
|
|
|
$
|
(147,000
|
)
|
|
$
|
(126,000
|
)
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at beginning of year
|
$
|
(2,901,000
|
)
|
|
$
|
(935,000
|
)
|
|
$
|
1,123,000
|
|
Unrealized losses arising during the year
|
(2,585,000
|
)
|
|
(1,763,000
|
)
|
|
(2,493,000
|
)
|
|||
Reclassification of realized gains during the year
|
(137,000
|
)
|
|
(471,000
|
)
|
|
(673,000
|
)
|
|||
Related deferred taxes
|
572,000
|
|
|
782,000
|
|
|
1,108,000
|
|
|||
Reclassification adjustment for effect of enacted tax law changes
|
—
|
|
|
(514,000
|
)
|
|
—
|
|
|||
Net change
|
(2,150,000
|
)
|
|
(1,966,000
|
)
|
|
(2,058,000
|
)
|
|||
Balance at end of year
|
$
|
(5,051,000
|
)
|
|
$
|
(2,901,000
|
)
|
|
$
|
(935,000
|
)
|
For the years ended December 31,
|
2018
|
2017
|
2016
|
||||||
Balance at beginning of year
|
$
|
(174,000
|
)
|
$
|
(129,000
|
)
|
$
|
(112,000
|
)
|
Amortization of net unrealized losses
|
(29,000
|
)
|
(22,000
|
)
|
(26,000
|
)
|
|||
Related deferred taxes
|
6,000
|
|
8,000
|
|
9,000
|
|
|||
Reclassification adjustment for effect of enacted tax law changes
|
—
|
|
(31,000
|
)
|
—
|
|
|||
Net change
|
(23,000
|
)
|
(45,000
|
)
|
(17,000
|
)
|
|||
Balance at end of year
|
$
|
(197,000
|
)
|
$
|
(174,000
|
)
|
$
|
(129,000
|
)
|
For the years ended December 31,
|
2018
|
2017
|
2016
|
||||||
Balance at beginning of year
|
$
|
1,544,000
|
|
$
|
1,163,000
|
|
$
|
—
|
|
Unrealized gains (losses) on cash flow hedging derivatives arising during the year
|
(134,000
|
)
|
165,000
|
|
1,790,000
|
|
|||
Related deferred taxes
|
28,000
|
|
(58,000
|
)
|
(627,000
|
)
|
|||
Reclassification adjustment for effect of enacted tax law changes
|
—
|
|
274,000
|
|
—
|
|
|||
Net change
|
(106,000
|
)
|
381,000
|
|
1,163,000
|
|
|||
Balance at end of year
|
$
|
1,438,000
|
|
$
|
1,544,000
|
|
$
|
1,163,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Unrecognized postretirement benefits at beginning of year
|
$
|
(147,000
|
)
|
|
$
|
(102,000
|
)
|
|
$
|
(156,000
|
)
|
Change in unamortized net actuarial gain (loss)
|
233,000
|
|
|
(30,000
|
)
|
|
84,000
|
|
|||
Related deferred taxes
|
(49,000
|
)
|
|
11,000
|
|
|
(30,000
|
)
|
|||
Reclassification adjustment for effect of enacted tax law changes
|
—
|
|
|
(26,000
|
)
|
|
$
|
—
|
|
||
Net change
|
184,000
|
|
|
(45,000
|
)
|
|
$
|
54,000
|
|
||
Unrecognized postretirement benefits at end of year
|
$
|
37,000
|
|
|
$
|
(147,000
|
)
|
|
$
|
(102,000
|
)
|
|
|
|
|
|
As of December 31,
|
||||||||
|
|
|
|
|
2018
|
2017
|
|||||||
Notional Amount
|
Effective Date
|
Maturity Date
|
Variable Index Received
|
Fixed Rate Paid
|
Fair Value(1)
|
Fair Value(1)
|
|||||||
$
|
30,000,000
|
|
June 28, 2016
|
June 28, 2021
|
1-Month USD LIBOR
|
0.94
|
%
|
$
|
1,110,000
|
|
$
|
1,154,000
|
|
$
|
20,000,000
|
|
June 27, 2016
|
June 27, 2021
|
1-Month USD LIBOR
|
0.89
|
%
|
$
|
763,000
|
|
801,000
|
|
|
$
|
25,000,000
|
|
June 5, 2018
|
December 5, 2019
|
1-Month USD LIBOR
|
2.47
|
%
|
$
|
16,000
|
|
—
|
|
|
$
|
25,000,000
|
|
June 5, 2018
|
June 5, 2020
|
1-Month USD LIBOR
|
2.55
|
%
|
$
|
(9,000
|
)
|
—
|
|
|
$
|
25,000,000
|
|
June 5, 2018
|
December 5, 2020
|
1-Month USD LIBOR
|
2.60
|
%
|
$
|
(60,000
|
)
|
—
|
|
|
$
|
125,000,000
|
|
|
|
|
|
$
|
1,820,000
|
|
$
|
1,955,000
|
|
Year
Granted
|
Vesting Term
(In Years)
|
Shares
|
Remaining Term
(In Years)
|
2014
|
5.0
|
10,422
|
0.1
|
2015
|
5.0
|
12,023
|
1.0
|
2016
|
5.0
|
15,015
|
2.0
|
2017
|
3.0
|
4,902
|
1.1
|
2017
|
5.0
|
9,972
|
3.0
|
2018
|
1.0
|
300
|
0.1
|
2018
|
2.0
|
932
|
1.0
|
2018
|
3.0
|
2,400
|
2.1
|
2018
|
4.0
|
2,068
|
3.0
|
2018
|
5.0
|
9,655
|
4.0
|
|
|
67,689
|
1.8
|
|
Income
(Numerator)
|
|
Shares
(Denominator)
|
|
Per-Share
Amount
|
|||||
For the year ended December 31, 2018
|
|
|
|
|
|
|||||
Net income as reported
|
$
|
23,536,000
|
|
|
|
|
|
|||
Basic EPS: Income available to common shareholders
|
23,536,000
|
|
|
10,783,419
|
|
|
$
|
2.18
|
|
|
Effect of dilutive securities: restricted stock
|
|
|
69,055
|
|
|
|
||||
Diluted EPS: Income available to common shareholders plus assumed conversions
|
$
|
23,536,000
|
|
|
10,852,474
|
|
|
$
|
2.17
|
|
For the year ended December 31, 2017
|
|
|
|
|
|
|||||
Net income as reported
|
$
|
19,588,000
|
|
|
|
|
|
|||
Basic EPS: Income available to common shareholders
|
19,588,000
|
|
|
10,747,306
|
|
|
$
|
1.82
|
|
|
Effect of dilutive securities: restricted stock
|
|
|
71,712
|
|
|
|
||||
Diluted EPS: Income available to common shareholders plus assumed conversions
|
$
|
19,588,000
|
|
|
10,819,018
|
|
|
$
|
1.81
|
|
For the year ended December 31, 2016
|
|
|
|
|
|
|||||
Net income as reported
|
$
|
18,009,000
|
|
|
|
|
|
|||
Basic EPS: Income available to common shareholders
|
18,009,000
|
|
|
10,713,290
|
|
|
$
|
1.68
|
|
|
Effect of dilutive securities: restricted stock and warrants
|
|
|
116,512
|
|
|
|
||||
Diluted EPS: Income available to common shareholders plus assumed conversions
|
$
|
18,009,000
|
|
|
10,829,802
|
|
|
$
|
1.66
|
|
|
Actual
|
|
For capital
adequacy
purposes
|
|
To be well-capitalized
under prompt corrective
action provisions
|
||||||
As of December 31, 2018
|
|
|
|
|
|
||||||
Tier 2 capital to
|
$
|
175,448,000
|
|
|
$
|
92,892,000
|
|
|
$
|
116,115,000
|
|
risk-weighted assets
|
15.11
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|||
Tier 1 capital to
|
$
|
164,116,000
|
|
|
$
|
69,669,000
|
|
|
$
|
92,892,000
|
|
risk-weighted assets
|
14.13
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
|||
Common equity Tier 1 capital to
|
$
|
164,116,000
|
|
|
$
|
52,252,000
|
|
|
$
|
75,474,000
|
|
risk-weighted assets
|
14.13
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
|||
Tier 1 capital to
|
$
|
164,116,000
|
|
|
$
|
77,269,000
|
|
|
$
|
96,586,000
|
|
average assets
|
8.51
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Tier 2 capital to
|
$
|
162,355,000
|
|
|
$
|
86,063,000
|
|
|
$
|
107,579,000
|
|
risk-weighted assets
|
15.09
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|||
Tier 1 capital to
|
$
|
151,526,000
|
|
|
$
|
64,548,000
|
|
|
$
|
86,063,000
|
|
risk-weighted assets
|
14.09
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
|||
Common equity Tier 1 capital to
|
$
|
151,526,000
|
|
|
$
|
48,411,000
|
|
|
$
|
69,926,000
|
|
risk-weighted assets
|
14.09
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
|||
Tier 1 capital to
|
$
|
151,526,000
|
|
|
$
|
71,386,000
|
|
|
$
|
89,233,000
|
|
average assets
|
8.49
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
Actual
|
|
For capital
adequacy
purposes
|
|
To be well-capitalized
under prompt corrective
action provisions
|
||||
As of December 31, 2018
|
|
|
|
|
|
||||
Tier 2 capital to
|
$
|
176,349,000
|
|
|
$
|
92,892,000
|
|
|
n/a
|
risk-weighted assets
|
15.19
|
%
|
|
8.00
|
%
|
|
n/a
|
||
Tier 1 capital to
|
$
|
165,117,000
|
|
|
$
|
69,669,000
|
|
|
n/a
|
risk-weighted assets
|
14.22
|
%
|
|
6.00
|
%
|
|
n/a
|
||
Common equity Tier 1 capital to
|
$
|
165,117,000
|
|
|
$
|
52,252,000
|
|
|
n/a
|
risk-weighted assets
|
14.22
|
%
|
|
4.50
|
%
|
|
n/a
|
||
Tier 1 capital to
|
$
|
165,117,000
|
|
|
$
|
76,810,000
|
|
|
n/a
|
average assets
|
8.60
|
%
|
|
4.00
|
%
|
|
n/a
|
||
As of December 31, 2017
|
|
|
|
|
|
||||
Tier 2 capital to
|
$
|
163,943,000
|
|
|
$
|
86,070,000
|
|
|
n/a
|
risk-weighted assets
|
15.24
|
%
|
|
8.00
|
%
|
|
n/a
|
||
Tier 1 capital to
|
$
|
153,114,000
|
|
|
$
|
64,553,000
|
|
|
n/a
|
risk-weighted assets
|
14.23
|
%
|
|
6.00
|
%
|
|
n/a
|
||
Common equity Tier 1 capital to
|
$
|
153,114,000
|
|
|
$
|
48,415,000
|
|
|
n/a
|
risk-weighted assets
|
14.23
|
%
|
|
4.50
|
%
|
|
n/a
|
||
Tier 1 capital to
|
$
|
153,114,000
|
|
|
$
|
71,435,000
|
|
|
n/a
|
average assets
|
8.57
|
%
|
|
4.00
|
%
|
|
n/a
|
As of December 31,
|
2018
|
|
2017
|
||||
Unused lines, collateralized by residential real estate
|
$
|
83,421,000
|
|
|
$
|
76,887,000
|
|
Other unused commitments
|
60,033,000
|
|
|
62,771,000
|
|
||
Standby letters of credit
|
3,590,000
|
|
|
3,497,000
|
|
||
Commitments to extend credit
|
19,268,000
|
|
|
8,724,000
|
|
||
Total
|
$
|
166,312,000
|
|
|
$
|
151,879,000
|
|
|
At December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government-sponsored agencies
|
$
|
—
|
|
|
$
|
5,007,000
|
|
|
$
|
—
|
|
|
$
|
5,007,000
|
|
Mortgage-backed securities
|
—
|
|
|
307,693,000
|
|
|
—
|
|
|
307,693,000
|
|
||||
State and political subdivisions
|
—
|
|
|
4,716,000
|
|
|
—
|
|
|
4,716,000
|
|
||||
Total securities available for sale
|
$
|
—
|
|
|
$
|
317,416,000
|
|
|
$
|
—
|
|
|
$
|
317,416,000
|
|
Interest rate swap agreements
|
$
|
—
|
|
|
$
|
1,820,000
|
|
|
$
|
—
|
|
|
$
|
1,820,000
|
|
Total assets
|
$
|
—
|
|
|
$
|
319,236,000
|
|
|
$
|
—
|
|
|
$
|
319,236,000
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Securities available for sale
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
289,989,000
|
|
|
$
|
—
|
|
|
$
|
289,989,000
|
|
State and political subdivisions
|
—
|
|
|
6,769,000
|
|
|
—
|
|
|
6,769,000
|
|
||||
Other equity securities
|
—
|
|
|
441,000
|
|
|
—
|
|
|
441,000
|
|
||||
Total securities available for sale
|
$
|
—
|
|
|
$
|
297,199,000
|
|
|
$
|
—
|
|
|
$
|
297,199,000
|
|
Interest rate swap agreements
|
$
|
—
|
|
|
$
|
1,955,000
|
|
|
$
|
—
|
|
|
$
|
1,955,000
|
|
Total assets
|
$
|
—
|
|
|
$
|
299,154,000
|
|
|
$
|
—
|
|
|
$
|
299,154,000
|
|
|
At December 31, 2018
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Other real estate owned
|
$
|
—
|
|
|
$
|
584,000
|
|
|
$
|
—
|
|
|
$
|
584,000
|
|
Impaired loans
|
—
|
|
|
7,415,000
|
|
|
—
|
|
|
7,415,000
|
|
||||
Total assets
|
$
|
—
|
|
|
$
|
7,999,000
|
|
|
$
|
—
|
|
|
$
|
7,999,000
|
|
|
At December 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Other real estate owned
|
$
|
—
|
|
|
$
|
1,012,000
|
|
|
$
|
—
|
|
|
$
|
1,012,000
|
|
Impaired loans
|
—
|
|
|
6,521,000
|
|
|
—
|
|
|
6,521,000
|
|
||||
Total assets
|
$
|
—
|
|
|
$
|
7,533,000
|
|
|
$
|
—
|
|
|
$
|
7,533,000
|
|
|
Carrying
|
|
Estimated
|
|
|
|
|
|
|
|||||||
As of December 31, 2018
|
value
|
|
fair value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|||||||
Securities to be held to maturity
|
$255,663,000
|
|
$250,900,000
|
|
$
|
—
|
|
|
$250,900,000
|
|
$
|
—
|
|
|||
Loans (net of allowance for loan losses)
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate
|
349,243,000
|
|
|
340,526,000
|
|
|
—
|
|
|
423,000
|
|
|
340,103,000
|
|
||
Construction
|
27,018,000
|
|
|
26,344,000
|
|
|
—
|
|
|
—
|
|
|
26,344,000
|
|
||
Other
|
192,420,000
|
|
|
189,842,000
|
|
|
—
|
|
|
6,096,000
|
|
|
183,746,000
|
|
||
Municipal
|
51,101,000
|
|
|
50,965,000
|
|
|
—
|
|
|
—
|
|
|
50,965,000
|
|
||
Residential
|
|
|
|
|
|
|
|
|
|
|||||||
Term
|
467,760,000
|
|
|
451,323,000
|
|
|
—
|
|
|
793,000
|
|
|
450,530,000
|
|
||
Construction
|
17,705,000
|
|
|
17,083,000
|
|
|
—
|
|
|
—
|
|
|
17,083,000
|
|
||
Home equity line of credit
|
97,650,000
|
|
|
95,175,000
|
|
|
—
|
|
|
103,000
|
|
|
95,072,000
|
|
||
Consumer
|
24,154,000
|
|
|
22,530,000
|
|
|
—
|
|
|
—
|
|
|
22,530,000
|
|
||
Total loans
|
1,227,051,000
|
|
|
1,193,788,000
|
|
|
—
|
|
|
7,415,000
|
|
|
1,186,373,000
|
|
||
Mortgage servicing rights
|
1,354,000
|
|
|
2,586,000
|
|
|
—
|
|
|
2,586,000
|
|
|
—
|
|
||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|||||||
Local certificates of deposit
|
$284,482,000
|
|
$281,282,000
|
|
—
|
|
|
$281,282,000
|
|
—
|
|
|||||
National certificates of deposit
|
306,927,000
|
|
|
307,508,000
|
|
|
—
|
|
|
307,508,000
|
|
|
—
|
|
||
Total certificates of deposit deposits
|
591,409,000
|
|
|
588,790,000
|
|
|
—
|
|
|
588,790,000
|
|
|
—
|
|
||
Repurchase agreements
|
40,205,000
|
|
|
40,161,000
|
|
|
—
|
|
|
40,161,000
|
|
|
—
|
|
||
Federal Home Loan Bank advances
|
170,112,000
|
|
|
169,240,000
|
|
|
—
|
|
|
169,240,000
|
|
|
—
|
|
||
Total borrowed funds
|
210,317,000
|
|
|
209,401,000
|
|
|
—
|
|
|
209,401,000
|
|
|
—
|
|
|
Carrying
|
|
Estimated
|
|
|
|
|
|
|
|||||||
As of December 31, 2017
|
value
|
|
fair value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|||||||
Securities to be held to maturity
|
$256,567,000
|
|
$259,655,000
|
|
$
|
—
|
|
|
$259,655,000
|
|
$
|
—
|
|
|||
Loans (net of allowance for loan losses)
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate
|
319,691,000
|
|
|
311,321,000
|
|
|
—
|
|
|
72,000
|
|
|
311,249,000
|
|
||
Construction
|
37,594,000
|
|
|
36,610,000
|
|
|
—
|
|
|
—
|
|
|
36,610,000
|
|
||
Other
|
177,956,000
|
|
|
175,455,000
|
|
|
—
|
|
|
6,018,000
|
|
|
169,437,000
|
|
||
Municipal
|
33,370,000
|
|
|
33,280,000
|
|
|
—
|
|
|
—
|
|
|
33,280,000
|
|
||
Residential
|
|
|
|
|
|
|
|
|
|
|||||||
Term
|
431,459,000
|
|
|
431,028,000
|
|
|
—
|
|
|
391,000
|
|
|
430,637,000
|
|
||
Construction
|
17,830,000
|
|
|
17,613,000
|
|
|
—
|
|
|
—
|
|
|
17,613,000
|
|
||
Home equity line of credit
|
110,566,000
|
|
|
109,012,000
|
|
|
—
|
|
|
40,000
|
|
|
108,972,000
|
|
||
Consumer
|
24,944,000
|
|
|
24,408,000
|
|
|
—
|
|
|
—
|
|
|
24,408,000
|
|
||
Total loans
|
1,153,410,000
|
|
|
1,138,727,000
|
|
|
—
|
|
|
6,521,000
|
|
|
1,132,206,000
|
|
||
Mortgage servicing rights
|
1,268,000
|
|
|
2,321,000
|
|
|
—
|
|
|
2,321,000
|
|
|
—
|
|
||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|||||||
Local certificates of deposit
|
$223,074,000
|
|
$220,734,000
|
|
$
|
—
|
|
|
$220,734,000
|
|
$
|
—
|
|
|||
National certificates of deposit
|
335,927,000
|
|
|
335,775,000
|
|
|
—
|
|
|
335,775,000
|
|
|
—
|
|
||
Total certificates of deposits
|
559,001,000
|
|
|
556,509,000
|
|
|
—
|
|
|
556,509,000
|
|
|
—
|
|
||
Repurchase agreements
|
70,564,000
|
|
|
67,976,000
|
|
|
—
|
|
|
67,976,000
|
|
|
—
|
|
||
Federal Home Loan Bank advances
|
158,194,000
|
|
|
156,396,000
|
|
|
—
|
|
|
156,396,000
|
|
|
—
|
|
||
Total borrowed funds
|
228,758,000
|
|
|
224,372,000
|
|
|
—
|
|
|
224,372,000
|
|
|
—
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Other operating income
|
|
|
|
|
|
||||||
ATM and debit card income
|
$
|
3,556,000
|
|
|
$
|
3,378,000
|
|
|
$
|
3,024,000
|
|
Other operating expense
|
|
|
|
|
|
||||||
Advertising and marketing expense
|
$
|
1,165,000
|
|
|
$
|
1,208,000
|
|
|
$
|
1,099,000
|
|
Accounting and auditing expenses
|
837,000
|
|
|
818,000
|
|
|
690,000
|
|
|||
ATM and interchange expense
|
995,000
|
|
|
886,000
|
|
|
853,000
|
|
As of December 31,
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,190,000
|
|
|
$
|
958,000
|
|
Dividends receivable
|
2,950,000
|
|
|
2,500,000
|
|
||
Investments
|
—
|
|
|
441,000
|
|
||
Investment in subsidiary
|
162,763,000
|
|
|
152,174,000
|
|
||
Premises and equipment
|
2,000
|
|
|
3,000
|
|
||
Goodwill
|
27,559,000
|
|
|
27,559,000
|
|
||
Other assets
|
232,000
|
|
|
312,000
|
|
||
Total assets
|
$
|
194,696,000
|
|
|
$
|
183,947,000
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
||
Dividends payable
|
$
|
3,150,000
|
|
|
$
|
2,599,000
|
|
Other liabilities
|
4,000
|
|
|
27,000
|
|
||
Total liabilities
|
3,154,000
|
|
|
2,626,000
|
|
||
Shareholders' equity
|
|
|
|
|
|
||
Common stock
|
109,000
|
|
|
108,000
|
|
||
Additional paid-in capital
|
62,746,000
|
|
|
61,747,000
|
|
||
Retained earnings
|
128,687,000
|
|
|
119,373,000
|
|
||
Accumulated other comprehensive income
|
|
|
|
||||
Net unrealized gain on available for sale securities,
net of tax
|
—
|
|
|
93,000
|
|
||
Total accumulated other comprehensive income
|
—
|
|
|
93,000
|
|
||
Total shareholders' equity
|
191,542,000
|
|
|
181,321,000
|
|
||
Total liabilities and shareholders' equity
|
$
|
194,696,000
|
|
|
$
|
183,947,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Interest and dividends on investments
|
$
|
—
|
|
|
$
|
15,000
|
|
|
$
|
22,000
|
|
Net securities gains (losses)
|
137,000
|
|
|
(3,000
|
)
|
|
(6,000
|
)
|
|||
Total income
|
137,000
|
|
|
12,000
|
|
|
16,000
|
|
|||
Occupancy expense
|
2,000
|
|
|
5,000
|
|
|
9,000
|
|
|||
Other operating expense
|
652,000
|
|
|
588,000
|
|
|
528,000
|
|
|||
Total expense
|
654,000
|
|
|
593,000
|
|
|
537,000
|
|
|||
Loss before income taxes and Bank earnings
|
(517,000
|
)
|
|
(581,000
|
)
|
|
(521,000
|
)
|
|||
Applicable income taxes
|
(164,000
|
)
|
|
(187,000
|
)
|
|
(186,000
|
)
|
|||
Loss before Bank earnings
|
(353,000
|
)
|
|
(394,000
|
)
|
|
(335,000
|
)
|
|||
Equity in earnings of Bank
|
|
|
|
|
|
||||||
Remitted
|
11,300,000
|
|
|
11,180,000
|
|
|
11,300,000
|
|
|||
Unremitted
|
12,589,000
|
|
|
8,802,000
|
|
|
7,044,000
|
|
|||
Net income
|
$
|
23,536,000
|
|
|
$
|
19,588,000
|
|
|
$
|
18,009,000
|
|
For the years ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
23,536,000
|
|
|
$
|
19,588,000
|
|
|
$
|
18,009,000
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||
Depreciation
|
—
|
|
|
5,000
|
|
|
8,000
|
|
|||
Equity compensation expense
|
381,000
|
|
|
392,000
|
|
|
298,000
|
|
|||
(Gain) loss on sale of investments
|
(137,000
|
)
|
|
3,000
|
|
|
6,000
|
|
|||
Tax benefit from vesting of restricted stock
|
—
|
|
|
—
|
|
|
32,000
|
|
|||
Decrease in other assets
|
81,000
|
|
|
27,000
|
|
|
136,000
|
|
|||
(Increase) decrease in dividends receivable
|
(450,000
|
)
|
|
1,300,000
|
|
|
(1,300,000
|
)
|
|||
Increase (decrease) in dividends payable
|
551,000
|
|
|
(1,179,000
|
)
|
|
112,000
|
|
|||
Increase (decrease) in other liabilities
|
—
|
|
|
(3,000
|
)
|
|
(4,000
|
)
|
|||
Unremitted earnings of Bank
|
(12,589,000
|
)
|
|
(8,802,000
|
)
|
|
(7,044,000
|
)
|
|||
Net cash provided by operating activities
|
11,373,000
|
|
|
11,331,000
|
|
|
10,253,000
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Proceeds from sales/maturities of investments
|
459,000
|
|
|
—
|
|
|
87,000
|
|
|||
Capital expenditures
|
1,000
|
|
|
(4,000
|
)
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
460,000
|
|
|
(4,000
|
)
|
|
87,000
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Purchase of common stock
|
(168,000
|
)
|
|
(154,000
|
)
|
|
(129,000
|
)
|
|||
Proceeds from sale of common stock
|
619,000
|
|
|
632,000
|
|
|
531,000
|
|
|||
Repurchase of warrants
|
—
|
|
|
—
|
|
|
(1,750,000
|
)
|
|||
Dividends paid
|
(12,052,000
|
)
|
|
(11,460,000
|
)
|
|
(9,810,000
|
)
|
|||
Net cash used in financing activities
|
(11,601,000
|
)
|
|
(10,982,000
|
)
|
|
(11,158,000
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
232,000
|
|
|
345,000
|
|
|
(818,000
|
)
|
|||
Cash and cash equivalents at beginning of year
|
958,000
|
|
|
613,000
|
|
|
1,431,000
|
|
|||
Cash and cash equivalents at end of year
|
$
|
1,190,000
|
|
|
$
|
958,000
|
|
|
$
|
613,000
|
|
Dollars in thousands except per share data
|
2017Q1
|
|
2017Q2
|
|
2017Q3
|
|
2017Q4
|
|
2018Q1
|
|
2018Q2
|
|
2018Q3
|
|
2018Q4
|
||||||||||||||||
Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
$
|
17,600
|
|
|
$
|
23,718
|
|
|
$
|
22,375
|
|
|
$
|
19,207
|
|
|
$
|
16,559
|
|
|
$
|
21,056
|
|
|
$
|
21,649
|
|
|
$
|
19,134
|
|
Interest-bearing deposits in other banks
|
3,272
|
|
|
291
|
|
|
584
|
|
|
860
|
|
|
280
|
|
|
1,616
|
|
|
51,045
|
|
|
12,079
|
|
||||||||
Investments
|
553,453
|
|
|
552,269
|
|
|
541,678
|
|
|
553,766
|
|
|
562,459
|
|
|
565,125
|
|
|
562,839
|
|
|
573,079
|
|
||||||||
Restricted equity securities
|
13,363
|
|
|
12,311
|
|
|
10,798
|
|
|
10,358
|
|
|
11,947
|
|
|
12,363
|
|
|
11,586
|
|
|
11,586
|
|
||||||||
Net loans and loans held for sale
|
1,080,347
|
|
|
1,110,919
|
|
|
1,110,508
|
|
|
1,153,796
|
|
|
1,177,329
|
|
|
1,213,449
|
|
|
1,233,010
|
|
|
1,227,051
|
|
||||||||
Other assets
|
95,793
|
|
|
96,143
|
|
|
95,758
|
|
|
104,943
|
|
|
103,241
|
|
|
100,352
|
|
|
101,725
|
|
|
101,641
|
|
||||||||
Total assets
|
$
|
1,763,828
|
|
|
$
|
1,795,651
|
|
|
$
|
1,781,701
|
|
|
$
|
1,842,930
|
|
|
$
|
1,871,815
|
|
|
$
|
1,913,961
|
|
|
$
|
1,981,854
|
|
|
$
|
1,944,570
|
|
Deposits
|
$
|
1,346,483
|
|
|
$
|
1,319,259
|
|
|
$
|
1,350,049
|
|
|
$
|
1,418,879
|
|
|
$
|
1,428,192
|
|
|
$
|
1,416,646
|
|
|
$
|
1,514,911
|
|
|
$
|
1,527,085
|
|
Borrowed funds
|
226,467
|
|
|
282,277
|
|
|
234,328
|
|
|
228,758
|
|
|
244,229
|
|
|
297,455
|
|
|
265,274
|
|
|
210,317
|
|
||||||||
Other liabilities
|
15,968
|
|
|
16,578
|
|
|
17,442
|
|
|
13,972
|
|
|
18,022
|
|
|
16,556
|
|
|
17,008
|
|
|
15,626
|
|
||||||||
Shareholders' equity
|
174,910
|
|
|
177,537
|
|
|
179,882
|
|
|
181,321
|
|
|
181,372
|
|
|
183,304
|
|
|
184,661
|
|
|
191,542
|
|
||||||||
Total liabilities
& equity
|
$
|
1,763,828
|
|
|
$
|
1,795,651
|
|
|
$
|
1,781,701
|
|
|
$
|
1,842,930
|
|
|
$
|
1,871,815
|
|
|
$
|
1,913,961
|
|
|
$
|
1,981,854
|
|
|
$
|
1,944,570
|
|
Income and Comprehensive Income Statements
|
|||||||||||||||||||||||||||||||
Interest income
|
$
|
14,491
|
|
|
$
|
15,002
|
|
|
$
|
15,517
|
|
|
$
|
15,822
|
|
|
$
|
16,451
|
|
|
$
|
17,205
|
|
|
$
|
18,086
|
|
|
$
|
18,801
|
|
Interest expense
|
3,015
|
|
|
3,337
|
|
|
3,563
|
|
|
3,614
|
|
|
4,042
|
|
|
4,936
|
|
|
5,550
|
|
|
5,806
|
|
||||||||
Net interest income
|
11,476
|
|
|
11,665
|
|
|
11,954
|
|
|
12,208
|
|
|
12,409
|
|
|
12,269
|
|
|
12,536
|
|
|
12,995
|
|
||||||||
Provision for
loan losses
|
500
|
|
|
500
|
|
|
750
|
|
|
250
|
|
|
500
|
|
|
500
|
|
|
333
|
|
|
167
|
|
||||||||
Net interest income after provision for loan losses
|
10,976
|
|
|
11,165
|
|
|
11,204
|
|
|
11,958
|
|
|
11,909
|
|
|
11,769
|
|
|
12,203
|
|
|
12,828
|
|
||||||||
Non-interest income
|
2,843
|
|
|
3,002
|
|
|
3,493
|
|
|
3,210
|
|
|
3,132
|
|
|
3,181
|
|
|
3,034
|
|
|
3,253
|
|
||||||||
Non-interest expense
|
7,698
|
|
|
7,640
|
|
|
8,013
|
|
|
8,300
|
|
|
8,579
|
|
|
8,176
|
|
|
8,216
|
|
|
8,496
|
|
||||||||
Income before taxes
|
6,121
|
|
|
6,527
|
|
|
6,684
|
|
|
6,868
|
|
|
6,462
|
|
|
6,774
|
|
|
7,021
|
|
|
7,585
|
|
||||||||
Income taxes
|
1,484
|
|
|
1,644
|
|
|
1,702
|
|
|
1,782
|
|
|
956
|
|
|
1,040
|
|
|
1,088
|
|
|
1,222
|
|
||||||||
Net income
|
$
|
4,637
|
|
|
$
|
4,883
|
|
|
$
|
4,982
|
|
|
$
|
5,086
|
|
|
$
|
5,506
|
|
|
$
|
5,734
|
|
|
$
|
5,933
|
|
|
$
|
6,363
|
|
Basic earnings per share
|
$
|
0.43
|
|
|
$
|
0.45
|
|
|
$
|
0.46
|
|
|
$
|
0.48
|
|
|
$
|
0.51
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
0.59
|
|
Diluted earnings per share
|
$
|
0.43
|
|
|
$
|
0.45
|
|
|
$
|
0.46
|
|
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
0.58
|
|
Other comprehensive income (loss), net of tax
|
|||||||||||||||||||||||||||||||
Net unrealized gain (loss) on securities available for sale
|
$
|
1
|
|
|
$
|
349
|
|
|
$
|
(240
|
)
|
|
$
|
(1,562
|
)
|
|
$
|
(3,309
|
)
|
|
$
|
(1,035
|
)
|
|
$
|
(1,888
|
)
|
|
$
|
4,082
|
|
Net unrealized loss on securities transfered from available for sale to held to maturity
|
(4
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(3
|
)
|
||||||||
Net unrealized gain (loss) on cash flow hedging derivative instruments
|
63
|
|
|
(171
|
)
|
|
(20
|
)
|
|
235
|
|
|
384
|
|
|
138
|
|
|
216
|
|
|
(844
|
)
|
||||||||
Unrecognized gain (loss) on postretirement benefit costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
||||||||
Other comprehensive income (loss)
|
$
|
60
|
|
|
$
|
174
|
|
|
$
|
(263
|
)
|
|
$
|
(1,349
|
)
|
|
$
|
(2,933
|
)
|
|
$
|
(904
|
)
|
|
$
|
(1,677
|
)
|
|
$
|
3,419
|
|
Comprehensive income
|
$
|
4,697
|
|
|
$
|
5,057
|
|
|
$
|
4,719
|
|
|
$
|
3,737
|
|
|
$
|
2,573
|
|
|
$
|
4,830
|
|
|
$
|
4,256
|
|
|
$
|
9,782
|
|
/s/ Tony C. McKim
|
/s/ Richard M. Elder
|
Tony C. McKim, President and Director
|
Richard M. Elder, Treasurer and Chief Financial Officer
|
(Principal Executive Officer)
|
(Principal Financial Officer, Principal Accounting Officer)
|
March 8, 2019
|
March 8, 2019
|
/s/ TONY C. MCKIM
|
/s/ RICHARD M. ELDER
|
Tony C. McKim, President and Director
|
Richard M. Elder, Treasurer and Chief Financial Officer
|
(Principal Executive Officer)
|
(Principal Financial Officer, Principal Accounting Officer)
|
March 8, 2019
|
March 8, 2019
|
|
|
/s/ MARK N. ROSBOROUGH
|
/s/ KATHERINE M. BOYD
|
Mark N. Rosborough, Director and Chairman of the Board
|
Katherine M. Boyd, Director
|
March 8, 2019
|
March 8, 2019
|
|
|
/s/ ROBERT B. GREGORY
|
/s/ RENEE W. KELLY
|
Robert B. Gregory, Director
|
Renee W. Kelly, Director
|
March 8, 2019
|
March 8, 2019
|
|
|
/s/CORNELIUS J. RUSSELL
|
/s/ STUART G. SMITH
|
Cornelius J. Russell, Director
|
Stuart G. Smith, Director
|
March 8, 2019
|
March 8, 2019
|
|
|
/s/ BRUCE A. TINDAL
|
/s/ F. STEPHEN WARD
|
Bruce A. Tindal, Director
|
F. Stephen Ward, Director
|
March 8, 2019
|
March 8, 2019
|