x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to ___________
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Commission file number 1-33377
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Stewardship Financial Corporation
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||||
(Exact name of registrant as specified in its charter)
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New Jersey
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22-3351447
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(State of other jurisdiction
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(I.R.S. Employer
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of incorporation or organization)
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Identification No.)
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630 Godwin Avenue, Midland Park, NJ
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07432
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (201) 444-7100
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Securities registered pursuant to Section 12(b) of the Act: Common Stock, no par value
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Securities registered under Section 12(g) of the Act: None
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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Yes
¨
No
x
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Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
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Yes
¨
No
x
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Note –
Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their obligations under those Sections.
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Indicate by check mark whether the registrant: (1) has filed reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes
x
No
¨
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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
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Yes
x
No
¨
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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
¨
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer
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¨
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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x
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
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Yes
¨
No
x
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•
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changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products;
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•
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monetary and fiscal policies of the Board of Governors of the Federal Reserve System and the U.S. Government and other government initiatives affecting the financial services industry;
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•
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results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down assets;
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•
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failures of or interruptions in the communications and information systems on which we rely to conduct our business could reduce our revenues, increase our costs or lead to disruptions in our business;
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•
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general economic conditions including employment, whether national or regional, and conditions in the lending markets in which we participate that may hinder our ability to increase lending activities or have an adverse effect on the demand for our loans and other products, our credit quality and related levels of nonperforming assets and loan losses, and the value and salability of the real estate that we own or that is the collateral for our loans;
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•
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impairment charges with respect to securities;
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•
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unanticipated costs in connection with new branch openings;
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•
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acts of war, acts of terrorism, cyber-attacks and natural disasters;
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•
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fluctuation in interest rates;
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•
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risks related to the concentration in commercial real estate, commercial business loans and commercial construction loans;
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•
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concentration of credit exposure;
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•
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declines in commercial and residential real estate values;
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•
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inability to manage growth in commercial loans;
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•
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unexpected loan prepayment volume;
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•
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unanticipated exposure to credit risks;
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•
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insufficient allowance for loan losses;
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•
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competition from other financial institutions;
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•
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a decline in the levels of loan quality and origination volume; and
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•
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a decline in deposits.
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•
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centralized responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau (the “CFPB”), responsible for implementing, examining, and enforcing compliance with federal consumer financial laws;
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•
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applied to most bank holding companies, the same leverage and risk-based capital requirements applicable to insured depository institutions. The Corporation’s existing trust preferred securities continue to be treated as Tier 1 capital;
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•
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changed the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible equity, eliminated the ceiling on the size of the Deposit Insurance Fund (“DIF”) and increased the floor on the size of the DIF, which generally requires an increase in the level of assessments for institutions with assets in excess of $10 billion;
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•
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implemented corporate governance revisions, including with regard to executive compensation and proxy access by shareholders, that apply to all public companies, not just financial institutions;
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•
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made permanent the $250,000 limit for federal deposit insurance;
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•
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repealed the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transactions and other accounts; and
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•
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restricted the interchange fees payable on debit card transactions for issuers with $10 billion in assets or greater.
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•
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actual or anticipated fluctuation in our operating and financial results;
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•
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press releases, publicity, or announcements
concerning us, our competitors or the banking industry;
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•
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changes in expectations as to future financial performance, including estimates by securities analysts and investors;
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•
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changes in accounting standards, policies, guidance, interpretations or principles;
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•
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future sales of our Common Stock or other equity securities;
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•
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developments in laws or regulations or new interpretations of existing laws or regulations affecting us or our competitors; and
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•
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general domestic economic and market conditions.
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Location
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Leased
or Owned
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Date of Lease
Expiration
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612 Godwin Avenue
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Owned
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---
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Midland Park, NJ
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630 Godwin Avenue
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Owned
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---
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Midland Park, NJ
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386 Lafayette Avenue
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Owned
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---
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Hawthorne, NJ
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87 Berdan Avenue
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Leased
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6/30/19
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Wayne, NJ
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64 Franklin Turnpike
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Owned
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---
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Waldwick, NJ
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190 Franklin Avenue
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Leased
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9/30/17
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Ridgewood, NJ
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311 Valley Road
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Leased
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11/30/18
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Wayne, NJ
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249 Newark Pompton Turnpike
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Owned
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---
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Pequannock, NJ
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2 Changebridge Road
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Leased
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7/31/20
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Montville, NJ
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378 Franklin Avenue
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Leased
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5/31/26
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Wyckoff, NJ
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200 Kinderkamack Road
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Leased
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5/30/26
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Westwood, NJ
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33 Sicomac Avenue
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Leased
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10/31/20
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North Haledon, NJ
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Sales Price
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Cash
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||||||||
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High
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Low
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Dividend
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||||||
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Year Ended December 31, 2016
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Fourth Quarter
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$
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10.20
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$
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7.40
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$
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0.03
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Third Quarter
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8.00
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6.44
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0.03
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Second Quarter
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6.65
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5.51
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0.03
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First Quarter
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6.10
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5.56
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0.02
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Year Ended December 31, 2015
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Fourth Quarter
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$
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6.48
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$
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5.41
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$
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0.02
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Third Quarter
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6.35
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5.48
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0.02
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Second Quarter
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6.50
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5.53
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0.02
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First Quarter
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5.96
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4.50
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0.02
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December 31,
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||||||||||||||||||
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2016
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2015
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2014
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2013
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2012
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||||||||||
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(Dollars in thousands, except per share amounts)
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||||||||||||||||||
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Selected Balance Sheet Data at Year End:
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Total assets
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$
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795,535
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$
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717,888
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$
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693,551
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$
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673,508
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$
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688,388
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Total interest-earning assets
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759,805
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685,141
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661,672
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640,253
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653,603
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|||||
Total investment securities (including FHLB stock)
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154,428
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156,700
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183,792
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196,508
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206,631
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|||||
Total loans, net of allowance for loan loss
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595,952
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517,556
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467,699
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424,262
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429,832
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|||||
Total deposits
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658,930
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604,753
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556,476
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577,591
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590,254
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|||||
Total borrowings
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82,452
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63,186
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73,917
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39,517
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39,560
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|||||
Shareholders' equity
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51,387
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47,573
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58,969
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|
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53,779
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|
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56,346
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|||||
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||||||||||
Earnings Summary:
|
|
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|
|||||
Net interest income
|
$
|
22,572
|
|
|
$
|
21,783
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|
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$
|
21,727
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|
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$
|
22,758
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$
|
23,532
|
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Provision for loan losses
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(1,350
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)
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(1,375
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)
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(50
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)
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|
3,775
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|
|
9,995
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|
|||||
Net interest income after provision for loan losses
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23,922
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23,158
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21,777
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18,983
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|
|
13,537
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|
|||||
Noninterest income
|
3,411
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|
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3,493
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|
|
2,960
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|
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3,965
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|
|
6,389
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|
|||||
Noninterest expense
|
19,902
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|
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20,179
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|
|
20,233
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|
19,838
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|
|
19,653
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|
|||||
Income before income tax expense (benefit)
|
7,431
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|
|
6,472
|
|
|
4,504
|
|
|
3,110
|
|
|
273
|
|
|||||
Income tax expense (benefit)
|
2,695
|
|
|
2,272
|
|
|
1,419
|
|
|
640
|
|
|
(247
|
)
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||||||
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|
||||||||||
Net income
|
4,736
|
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|
4,200
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|
|
3,085
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|
|
2,470
|
|
|
520
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|
|||||
Dividends on preferred stock and accretion
|
—
|
|
|
456
|
|
|
683
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|
633
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|
|
352
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|
|||||
Net income available to common shareholders
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$
|
4,736
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$
|
3,744
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|
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$
|
2,402
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|
|
$
|
1,837
|
|
|
$
|
168
|
|
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|
||||||||||
Common Share Data:
|
|
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|
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|
|
|
|
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|
|||||
Basic net income
|
$
|
0.78
|
|
|
$
|
0.62
|
|
|
$
|
0.40
|
|
|
$
|
0.31
|
|
|
$
|
0.03
|
|
Diluted net income
|
0.78
|
|
|
0.62
|
|
|
0.40
|
|
|
0.31
|
|
|
0.03
|
|
|||||
Cash dividends declared
|
0.11
|
|
|
0.08
|
|
|
0.05
|
|
|
0.04
|
|
|
0.15
|
|
|||||
Book value at year end
|
8.39
|
|
|
7.82
|
|
|
7.29
|
|
|
6.53
|
|
|
6.98
|
|
|||||
Weighted average shares outstanding (in thousands)
|
6,110
|
|
|
6,078
|
|
|
6,004
|
|
|
5,937
|
|
|
5,909
|
|
|||||
Shares outstanding at year end (in thousands)
|
6,121
|
|
|
6,086
|
|
|
6,035
|
|
|
5,944
|
|
|
5,925
|
|
|||||
|
|
|
|
|
|
|
|
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|
||||||||||
Performance Ratios:
|
|
|
|
|
|
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|
|
|
|
|
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|
|||||
Return on average assets
|
0.63
|
%
|
|
0.60
|
%
|
|
0.46
|
%
|
|
0.36
|
%
|
|
0.07
|
%
|
|||||
Return on average common shareholders' equity
|
9.43
|
%
|
|
8.14
|
%
|
|
5.77
|
%
|
|
4.54
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%
|
|
0.39
|
%
|
|||||
Net interest margin
|
3.18
|
%
|
|
3.30
|
%
|
|
3.46
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%
|
|
3.54
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%
|
|
3.59
|
%
|
|||||
Net interest spread
|
2.96
|
%
|
|
3.10
|
%
|
|
3.28
|
%
|
|
3.34
|
%
|
|
3.36
|
%
|
|||||
Yield on average interest-earning assets
|
3.81
|
%
|
|
3.87
|
%
|
|
3.96
|
%
|
|
4.12
|
%
|
|
4.36
|
%
|
|||||
Cost of average interest-bearing liabilities
|
0.85
|
%
|
|
0.77
|
%
|
|
0.68
|
%
|
|
0.78
|
%
|
|
1.00
|
%
|
|||||
Loans to deposits
|
91.64
|
%
|
|
87.04
|
%
|
|
85.77
|
%
|
|
75.17
|
%
|
|
74.62
|
%
|
|||||
|
|
|
|
|
|
|
|
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|
||||||||||
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|
||||||||||
Asset Quality:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-accrual loans
|
$
|
606
|
|
|
$
|
1,882
|
|
|
$
|
3,628
|
|
|
$
|
10,219
|
|
|
$
|
18,011
|
|
Other nonperforming assets
|
$
|
401
|
|
|
$
|
880
|
|
|
$
|
1,308
|
|
|
$
|
451
|
|
|
$
|
1,295
|
|
Allowance for loan loss to total loans
|
1.31
|
%
|
|
1.68
|
%
|
|
2.01
|
%
|
|
2.28
|
%
|
|
2.42
|
%
|
|||||
Nonperforming loans to total loans
|
0.10
|
%
|
|
0.36
|
%
|
|
0.76
|
%
|
|
2.34
|
%
|
|
4.14
|
%
|
|||||
Nonperforming assets to total assets
|
0.13
|
%
|
|
0.38
|
%
|
|
0.71
|
%
|
|
1.58
|
%
|
|
2.80
|
%
|
|||||
Net charge-offs (recoveries) to average loans
|
(0.08
|
)%
|
|
(0.12
|
)%
|
|
0.06
|
%
|
|
1.02
|
%
|
|
2.44
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Capital Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shareholders' equity as a percentage of average total assets
|
6.69
|
%
|
|
7.98
|
%
|
|
8.42
|
%
|
|
8.06
|
%
|
|
8.33
|
%
|
|||||
Leverage (Tier 1) capital (1)
|
7.65
|
%
|
|
7.67
|
%
|
|
9.45
|
%
|
|
9.04
|
%
|
|
9.09
|
%
|
|||||
Tier 1 risk based capital (2)
|
9.35
|
%
|
|
10.16
|
%
|
|
13.04
|
%
|
|
13.52
|
%
|
|
13.63
|
%
|
|||||
Total risk based capital (2)
|
13.10
|
%
|
|
14.34
|
%
|
|
14.30
|
%
|
|
14.78
|
%
|
|
14.89
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of banking centers (including main branch)
|
11
|
|
|
12
|
|
|
12
|
|
|
13
|
|
|
13
|
|
|||||
Full time equivalent employees
|
130
|
|
|
134
|
|
|
140
|
|
|
138
|
|
|
142
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1)
|
$
|
541,918
|
|
|
$
|
23,762
|
|
|
4.38
|
%
|
|
$
|
502,981
|
|
|
$
|
22,684
|
|
|
4.51
|
%
|
|
$
|
436,321
|
|
|
$
|
21,160
|
|
|
4.85
|
%
|
Taxable investment securities
|
148,852
|
|
|
2,904
|
|
|
1.95
|
%
|
|
139,587
|
|
|
2,430
|
|
|
1.74
|
%
|
|
175,487
|
|
|
3,118
|
|
|
1.78
|
%
|
||||||
Tax-exempt investment securities (2)
|
11,229
|
|
|
566
|
|
|
5.04
|
%
|
|
13,959
|
|
|
741
|
|
|
5.31
|
%
|
|
19,698
|
|
|
1,008
|
|
|
5.12
|
%
|
||||||
Other interest-earning assets
|
13,981
|
|
|
79
|
|
|
0.57
|
%
|
|
12,775
|
|
|
40
|
|
|
0.31
|
%
|
|
7,369
|
|
|
25
|
|
|
0.34
|
%
|
||||||
Total interest-earning assets
|
715,980
|
|
|
27,311
|
|
|
3.81
|
%
|
|
669,302
|
|
|
25,895
|
|
|
3.87
|
%
|
|
638,875
|
|
|
25,311
|
|
|
3.96
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
(8,546
|
)
|
|
|
|
|
|
|
|
(9,551
|
)
|
|
|
|
|
|
|
|
(10,058
|
)
|
|
|
|
|
|
|
||||||
Other assets
|
42,751
|
|
|
|
|
|
|
|
|
41,774
|
|
|
|
|
|
|
|
|
43,095
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
750,185
|
|
|
|
|
|
|
|
|
$
|
701,525
|
|
|
|
|
|
|
|
|
$
|
671,912
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
$
|
234,847
|
|
|
$
|
558
|
|
|
0.24
|
%
|
|
$
|
214,318
|
|
|
$
|
568
|
|
|
0.27
|
%
|
|
$
|
219,142
|
|
|
$
|
629
|
|
|
0.29
|
%
|
Savings deposits
|
86,804
|
|
|
90
|
|
|
0.10
|
%
|
|
79,276
|
|
|
84
|
|
|
0.11
|
%
|
|
78,559
|
|
|
84
|
|
|
0.11
|
%
|
||||||
Time deposits
|
149,067
|
|
|
1,644
|
|
|
1.10
|
%
|
|
141,071
|
|
|
1,416
|
|
|
1.00
|
%
|
|
129,685
|
|
|
1,094
|
|
|
0.84
|
%
|
||||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
5,255
|
|
|
254
|
|
|
4.83
|
%
|
||||||
FHLB-NY borrowings
|
38,288
|
|
|
716
|
|
|
1.87
|
%
|
|
47,837
|
|
|
850
|
|
|
1.78
|
%
|
|
32,503
|
|
|
642
|
|
|
1.98
|
%
|
||||||
Subordinated Debentures and Subordinated Notes
|
23,219
|
|
|
1,505
|
|
|
6.48
|
%
|
|
12,736
|
|
|
908
|
|
|
7.13
|
%
|
|
7,217
|
|
|
504
|
|
|
6.98
|
%
|
||||||
Total interest-bearing liabilities
|
532,225
|
|
|
4,513
|
|
|
0.85
|
%
|
|
495,238
|
|
|
3,826
|
|
|
0.77
|
%
|
|
472,361
|
|
|
3,207
|
|
|
0.68
|
%
|
||||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits
|
165,348
|
|
|
|
|
|
|
|
|
147,756
|
|
|
|
|
|
|
|
|
140,384
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
2,396
|
|
|
|
|
|
|
|
|
2,554
|
|
|
|
|
|
|
|
|
2,591
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
50,216
|
|
|
|
|
|
|
|
|
55,977
|
|
|
|
|
|
|
|
|
56,576
|
|
|
|
|
|
|
|
||||||
Total liabilities and Shareholders' equity
|
$
|
750,185
|
|
|
|
|
|
|
|
|
$
|
701,525
|
|
|
|
|
|
|
|
|
$
|
671,912
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income (taxable
equivalent basis)
|
|
|
|
22,798
|
|
|
|
|
|
|
|
|
22,069
|
|
|
|
|
|
|
|
|
22,104
|
|
|
|
|
||||||
Tax equivalent adjustment
|
|
|
|
(226
|
)
|
|
|
|
|
|
|
|
(286
|
)
|
|
|
|
|
|
|
|
(377
|
)
|
|
|
|
||||||
Net interest income
|
|
|
|
$
|
22,572
|
|
|
|
|
|
|
|
|
$
|
21,783
|
|
|
|
|
|
|
|
|
$
|
21,727
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest spread (taxable
equivalent basis)
|
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
|
|
3.28
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net yield on interest-earning
assets (taxable equivalent basis) (3)
|
|
|
|
|
|
|
3.18
|
%
|
|
|
|
|
|
|
|
3.30
|
%
|
|
|
|
|
|
|
|
3.46
|
%
|
|
2016 Versus 2015
|
|
2015 Versus 2014
|
||||||||||||||||||||
|
Increase (Decrease)
Due to Change in
|
|
|
|
Increase (Decrease)
Due to Change in |
|
|
||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans
|
$
|
1,720
|
|
|
$
|
(642
|
)
|
|
$
|
1,078
|
|
|
$
|
3,077
|
|
|
$
|
(1,553
|
)
|
|
$
|
1,524
|
|
Taxable investment securities
|
168
|
|
|
306
|
|
|
474
|
|
|
(626
|
)
|
|
(62
|
)
|
|
(688
|
)
|
||||||
Tax-exempt investment securities
|
(139
|
)
|
|
(36
|
)
|
|
(175
|
)
|
|
(304
|
)
|
|
37
|
|
|
(267
|
)
|
||||||
Other interest-earning assets
|
4
|
|
|
35
|
|
|
39
|
|
|
17
|
|
|
(2
|
)
|
|
15
|
|
||||||
Total interest-earning assets
|
1,753
|
|
|
(337
|
)
|
|
1,416
|
|
|
2,164
|
|
|
(1,580
|
)
|
|
584
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
52
|
|
|
(62
|
)
|
|
(10
|
)
|
|
(14
|
)
|
|
(47
|
)
|
|
(61
|
)
|
||||||
Savings deposits
|
8
|
|
|
(2
|
)
|
|
6
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
||||||
Time deposits
|
83
|
|
|
145
|
|
|
228
|
|
|
102
|
|
|
220
|
|
|
322
|
|
||||||
Repurchase agreements
|
—
|
|
|
—
|
|
|
—
|
|
|
(127
|
)
|
|
(127
|
)
|
|
(254
|
)
|
||||||
FHLB borrowings
|
(177
|
)
|
|
43
|
|
|
(134
|
)
|
|
278
|
|
|
(70
|
)
|
|
208
|
|
||||||
Subordinated Debentures and
Subordinated Notes
|
687
|
|
|
(90
|
)
|
|
597
|
|
|
393
|
|
|
11
|
|
|
404
|
|
||||||
Total interest-bearing liabilities
|
653
|
|
|
34
|
|
|
687
|
|
|
633
|
|
|
(14
|
)
|
|
619
|
|
||||||
Net change in net interest income
|
$
|
1,100
|
|
|
$
|
(371
|
)
|
|
$
|
729
|
|
|
$
|
1,531
|
|
|
$
|
(1,566
|
)
|
|
$
|
(35
|
)
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Real estate mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential (1)
|
$
|
84,321
|
|
|
$
|
82,955
|
|
|
$
|
77,836
|
|
|
$
|
77,540
|
|
|
$
|
67,200
|
|
Commercial (1)
|
407,226
|
|
|
348,724
|
|
|
295,278
|
|
|
256,480
|
|
|
252,087
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
82,065
|
|
|
64,860
|
|
|
75,852
|
|
|
73,890
|
|
|
89,414
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Installment (2)
|
10,713
|
|
|
10,262
|
|
|
12,174
|
|
|
13,327
|
|
|
16,544
|
|
|||||
Home equity
|
19,566
|
|
|
19,425
|
|
|
15,950
|
|
|
12,538
|
|
|
14,912
|
|
|||||
Other
|
192
|
|
|
251
|
|
|
230
|
|
|
234
|
|
|
266
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total gross loans
|
604,083
|
|
|
526,477
|
|
|
477,320
|
|
|
434,009
|
|
|
440,423
|
|
|||||
Less: Allowance for loan losses
|
7,905
|
|
|
8,823
|
|
|
9,602
|
|
|
9,915
|
|
|
10,641
|
|
|||||
Deferred loan (fees) costs
|
226
|
|
|
98
|
|
|
19
|
|
|
(168
|
)
|
|
(50
|
)
|
|||||
Net loans
|
$
|
595,952
|
|
|
$
|
517,556
|
|
|
$
|
467,699
|
|
|
$
|
424,262
|
|
|
$
|
429,832
|
|
|
Within 1 Year
|
|
After 1 Year But
Within 5 Years
|
|
After 5
Years
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Real estate mortgage
|
$
|
17,107
|
|
|
$
|
16,419
|
|
|
$
|
458,021
|
|
|
$
|
491,547
|
|
Commercial
|
32,760
|
|
|
26,132
|
|
|
23,173
|
|
|
82,065
|
|
||||
Consumer
|
162
|
|
|
1,985
|
|
|
28,324
|
|
|
30,471
|
|
||||
Total gross loans
|
$
|
50,029
|
|
|
$
|
44,536
|
|
|
$
|
509,518
|
|
|
$
|
604,083
|
|
|
Predetermined
Rates
|
|
Adjustable
Rates
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Real estate mortgage
|
$
|
88,804
|
|
|
$
|
385,636
|
|
|
$
|
474,440
|
|
Commercial
|
18,749
|
|
|
30,556
|
|
|
49,305
|
|
|||
Consumer
|
10,693
|
|
|
19,616
|
|
|
30,309
|
|
|||
Total gross loans
|
$
|
118,246
|
|
|
$
|
435,808
|
|
|
$
|
554,054
|
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,080
|
|
Residential real estate
|
—
|
|
|
—
|
|
|
96
|
|
|
755
|
|
|
413
|
|
|||||
Commercial real estate
|
528
|
|
|
484
|
|
|
1,284
|
|
|
6,592
|
|
|
10,083
|
|
|||||
Commercial
|
—
|
|
|
1,314
|
|
|
1,923
|
|
|
2,255
|
|
|
3,635
|
|
|||||
Consumer
|
78
|
|
|
84
|
|
|
325
|
|
|
617
|
|
|
800
|
|
|||||
Total nonaccrual loans
|
606
|
|
|
1,882
|
|
|
3,628
|
|
|
10,219
|
|
|
18,011
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans past due ninety days or more and accruing: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
237
|
|
|||||
Total loans past due ninety days or more and accruing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
237
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming loans
|
606
|
|
|
1,882
|
|
|
3,628
|
|
|
10,219
|
|
|
18,248
|
|
|||||
Other real estate owned
|
401
|
|
|
880
|
|
|
1,308
|
|
|
451
|
|
|
1,058
|
|
|||||
Total nonperforming assets
|
$
|
1,007
|
|
|
$
|
2,762
|
|
|
$
|
4,936
|
|
|
$
|
10,670
|
|
|
$
|
19,306
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
7,905
|
|
|
$
|
8,823
|
|
|
$
|
9,602
|
|
|
$
|
9,915
|
|
|
$
|
10,641
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming loans to total gross loans (3)
|
0.10
|
%
|
|
0.36
|
%
|
|
0.76
|
%
|
|
2.34
|
%
|
|
4.14
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets
|
0.13
|
%
|
|
0.38
|
%
|
|
0.71
|
%
|
|
1.58
|
%
|
|
2.80
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses to total gross loans
|
1.31
|
%
|
|
1.68
|
%
|
|
2.01
|
%
|
|
2.28
|
%
|
|
2.42
|
%
|
|
December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at beginning of period
|
$
|
8,823
|
|
|
$
|
9,602
|
|
|
$
|
9,915
|
|
|
$
|
10,641
|
|
|
$
|
11,604
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
394
|
|
|||||
Residential real estate
|
—
|
|
|
—
|
|
|
7
|
|
|
83
|
|
|
21
|
|
|||||
Commercial real estate
|
96
|
|
|
—
|
|
|
1,110
|
|
|
3,785
|
|
|
3,577
|
|
|||||
Commercial
|
72
|
|
|
600
|
|
|
262
|
|
|
983
|
|
|
7,144
|
|
|||||
Consumer and other
|
14
|
|
|
2
|
|
|
6
|
|
|
146
|
|
|
74
|
|
|||||
Total loans charged-off
|
182
|
|
|
602
|
|
|
1,385
|
|
|
5,021
|
|
|
11,210
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries of loans previously charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
—
|
|
|
552
|
|
|
48
|
|
|
26
|
|
|
6
|
|
|||||
Residential real estate
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial real estate
|
162
|
|
|
151
|
|
|
858
|
|
|
112
|
|
|
—
|
|
|||||
Commercial
|
446
|
|
|
465
|
|
|
216
|
|
|
355
|
|
|
240
|
|
|||||
Consumer and other
|
6
|
|
|
4
|
|
|
—
|
|
|
27
|
|
|
6
|
|
|||||
Total recoveries of loans previously charged-off
|
614
|
|
|
1,198
|
|
|
1,122
|
|
|
520
|
|
|
252
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loans charged-off (recovered)
|
(432
|
)
|
|
(596
|
)
|
|
263
|
|
|
4,501
|
|
|
10,958
|
|
|||||
Provisions charged (credited) to operations
|
(1,350
|
)
|
|
(1,375
|
)
|
|
(50
|
)
|
|
3,775
|
|
|
9,995
|
|
|||||
Balance at end of period
|
$
|
7,905
|
|
|
$
|
8,823
|
|
|
$
|
9,602
|
|
|
$
|
9,915
|
|
|
$
|
10,641
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries) during the period to average loans outstanding during the period
|
(0.08
|
)%
|
|
(0.12
|
)%
|
|
0.06
|
%
|
|
1.02
|
%
|
|
2.44
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance of allowance for loan losses at the end of
year to gross year end loans
|
1.31
|
%
|
|
1.68
|
%
|
|
2.01
|
%
|
|
2.28
|
%
|
|
2.42
|
%
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
to Total (1)
|
|
Amount
|
|
Percent
to Total (1)
|
|
Amount
|
|
Percent
to Total (1)
|
|
Amount
|
|
Percent
to Total (1)
|
|
Amount
|
|
Percent
to Total (1)
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Real estate -
residential
|
$
|
66
|
|
|
14.0
|
%
|
|
$
|
109
|
|
|
15.8
|
%
|
|
$
|
142
|
|
|
16.3
|
%
|
|
$
|
460
|
|
|
17.9
|
%
|
|
$
|
308
|
|
|
15.3
|
%
|
Real estate -
commercial
|
5,089
|
|
|
67.4
|
%
|
|
4,774
|
|
|
66.2
|
%
|
|
5,167
|
|
|
61.9
|
%
|
|
5,782
|
|
|
59.1
|
%
|
|
5,105
|
|
|
57.2
|
%
|
|||||
Commercial
|
2,663
|
|
|
13.6
|
%
|
|
3,698
|
|
|
12.3
|
%
|
|
3,704
|
|
|
15.9
|
%
|
|
3,373
|
|
|
17.0
|
%
|
|
4,832
|
|
|
20.3
|
%
|
|||||
Consumer
|
75
|
|
|
5.0
|
%
|
|
121
|
|
|
5.7
|
%
|
|
191
|
|
|
5.9
|
%
|
|
291
|
|
|
6.0
|
%
|
|
355
|
|
|
7.2
|
%
|
|||||
Unallocated
|
12
|
|
|
—
|
%
|
|
121
|
|
|
—
|
%
|
|
398
|
|
|
—
|
%
|
|
9
|
|
|
—
|
%
|
|
41
|
|
|
—
|
%
|
|||||
Total allowance for loan losses
|
$
|
7,905
|
|
|
100.0
|
%
|
|
$
|
8,823
|
|
|
100.0
|
%
|
|
$
|
9,602
|
|
|
100.0
|
%
|
|
$
|
9,915
|
|
|
100.0
|
%
|
|
$
|
10,641
|
|
|
100.0
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Carrying
Value
|
|
Percent
|
|
Carrying
Value
|
|
Percent
|
|
Carrying
Value
|
|
Percent
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
U.S. government-sponsored agencies
|
$
|
17,445
|
|
|
17.7
|
%
|
|
$
|
30,954
|
|
|
33.2
|
%
|
|
$
|
30,274
|
|
|
24.2
|
%
|
Obligation of state and political subdivisions
|
3,096
|
|
|
3.1
|
%
|
|
1,410
|
|
|
1.5
|
%
|
|
1,400
|
|
|
1.1
|
%
|
|||
Mortgage-backed securities
|
52,046
|
|
|
52.8
|
%
|
|
45,237
|
|
|
48.4
|
%
|
|
76,743
|
|
|
61.5
|
%
|
|||
Asset-backed securities (a)
|
8,267
|
|
|
8.4
|
%
|
|
9,701
|
|
|
10.4
|
%
|
|
9,915
|
|
|
7.9
|
%
|
|||
Corporate debt
|
14,037
|
|
|
14.2
|
%
|
|
2,419
|
|
|
2.6
|
%
|
|
2,997
|
|
|
2.4
|
%
|
|||
Other equity investments
|
3,692
|
|
|
3.8
|
%
|
|
3,633
|
|
|
3.9
|
%
|
|
3,589
|
|
|
2.9
|
%
|
|||
Total
|
$
|
98,583
|
|
|
100.0
|
%
|
|
$
|
93,354
|
|
|
100.0
|
%
|
|
$
|
124,918
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
U.S. Treasury
|
$
|
999
|
|
|
1.9
|
%
|
|
$
|
999
|
|
|
1.6
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. government-sponsored agencies
|
19,162
|
|
|
36.6
|
%
|
|
15,109
|
|
|
24.9
|
%
|
|
11,962
|
|
|
21.7
|
%
|
|||
Obligations of state and political
subdivisions
|
7,102
|
|
|
13.6
|
%
|
|
11,219
|
|
|
18.5
|
%
|
|
15,636
|
|
|
28.4
|
%
|
|||
Mortgage-backed securities
|
25,067
|
|
|
47.9
|
%
|
|
33,411
|
|
|
55.0
|
%
|
|
27,499
|
|
|
49.9
|
%
|
|||
Total
|
$
|
52,330
|
|
|
100.0
|
%
|
|
$
|
60,738
|
|
|
100.0
|
%
|
|
$
|
55,097
|
|
|
100.0
|
%
|
|
Within
1 Year
|
|
After 1 Year
Through
5 Years
|
|
After
5 Years
Through
10 Years
|
|
After
10 Years
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
U.S. government-sponsored agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
$
|
500
|
|
|
$
|
3,451
|
|
|
$
|
8,005
|
|
|
$
|
5,489
|
|
|
$
|
17,445
|
|
Yield
|
1.00
|
%
|
|
1.47
|
%
|
|
2.23
|
%
|
|
1.87
|
%
|
|
1.93
|
%
|
|||||
Obligations of state and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
—
|
|
|
971
|
|
|
1,845
|
|
|
280
|
|
|
3,096
|
|
|||||
Yield
|
0.00
|
%
|
|
1.62
|
%
|
|
1.70
|
%
|
|
2.75
|
%
|
|
1.77
|
%
|
|||||
Corporate debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
—
|
|
|
2,559
|
|
|
11,478
|
|
|
—
|
|
|
14,037
|
|
|||||
Yield
|
0.00
|
%
|
|
1.82
|
%
|
|
3.45
|
%
|
|
0.00
|
%
|
|
3.16
|
%
|
|||||
Total carrying value
|
$
|
500
|
|
|
$
|
6,981
|
|
|
$
|
21,328
|
|
|
$
|
5,769
|
|
|
$
|
34,578
|
|
Weighted average yield
|
1.00
|
%
|
|
1.62
|
%
|
|
2.84
|
%
|
|
1.91
|
%
|
|
2.41
|
%
|
|
Within
1 Year
|
|
After 1 Year
Through
5 Years
|
|
After
5 Years
Through
10 Years
|
|
After
10 Years
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
U.S. Treasury:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
$
|
—
|
|
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
999
|
|
Yield
|
0.00
|
%
|
|
1.41
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
1.41
|
%
|
|||||
U.S. government-sponsored agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
251
|
|
|
1,024
|
|
|
17,887
|
|
|
—
|
|
|
19,162
|
|
|||||
Yield
|
4.59
|
%
|
|
2.20
|
%
|
|
2.06
|
%
|
|
0.00
|
%
|
|
2.10
|
%
|
|||||
Obligations of state and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying value
|
1,714
|
|
|
4,706
|
|
|
176
|
|
|
506
|
|
|
7,102
|
|
|||||
Yield
|
3.24
|
%
|
|
3.97
|
%
|
|
3.75
|
%
|
|
1.70
|
%
|
|
3.63
|
%
|
|||||
Total carrying value
|
$
|
1,965
|
|
|
$
|
6,729
|
|
|
$
|
18,063
|
|
|
$
|
506
|
|
|
$
|
27,263
|
|
Weighted average yield
|
3.41
|
%
|
|
3.32
|
%
|
|
2.08
|
%
|
|
1.70
|
%
|
|
2.47
|
%
|
|
December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Non-interest bearing demand
|
$
|
169,306
|
|
|
25.7
|
%
|
|
$
|
147,828
|
|
|
24.5
|
%
|
|
$
|
136,721
|
|
|
24.6
|
%
|
Interest-bearing demand
|
242,278
|
|
|
36.8
|
%
|
|
228,737
|
|
|
37.8
|
%
|
|
210,225
|
|
|
37.8
|
%
|
|||
Savings deposits
|
90,677
|
|
|
13.7
|
%
|
|
81,836
|
|
|
13.5
|
%
|
|
76,422
|
|
|
13.7
|
%
|
|||
Certificates of deposit
|
156,669
|
|
|
23.8
|
%
|
|
146,352
|
|
|
24.2
|
%
|
|
133,108
|
|
|
23.9
|
%
|
|||
Total
|
$
|
658,930
|
|
|
100.0
|
%
|
|
$
|
604,753
|
|
|
100.0
|
%
|
|
$
|
556,476
|
|
|
100.0
|
%
|
|
|
Balances
|
||
|
|
(In thousands)
|
||
|
Three months or less
|
$
|
14,683
|
|
|
Four months through six months
|
5,920
|
|
|
|
Seven months through twelve months
|
29,150
|
|
|
|
Over twelve months
|
47,019
|
|
|
|
|
$
|
96,772
|
|
|
Three
Months or
Less
|
|
More than
Three
Months
Through
One Year
|
|
After One
Year
|
|
Noninterest
Sensitive
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate Mortgage
|
$
|
49,826
|
|
|
$
|
63,553
|
|
|
$
|
378,168
|
|
|
$
|
—
|
|
|
$
|
491,547
|
|
Commercial
|
41,764
|
|
|
9,770
|
|
|
30,531
|
|
|
—
|
|
|
82,065
|
|
|||||
Consumer
|
16,811
|
|
|
4,560
|
|
|
9,100
|
|
|
—
|
|
|
30,471
|
|
|||||
Mortgages held for sale
|
773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
773
|
|
|||||
Investment securities (1)
|
27,256
|
|
|
16,269
|
|
|
110,903
|
|
|
—
|
|
|
154,428
|
|
|||||
Other assets
|
172
|
|
|
—
|
|
|
—
|
|
|
36,079
|
|
|
36,251
|
|
|||||
Total assets
|
$
|
136,602
|
|
|
$
|
94,152
|
|
|
$
|
528,702
|
|
|
$
|
36,079
|
|
|
$
|
795,535
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Source of funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing demand
|
$
|
242,278
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
242,278
|
|
Savings
|
90,677
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,677
|
|
|||||
Certificates of deposit
|
22,054
|
|
|
55,769
|
|
|
78,846
|
|
|
—
|
|
|
156,669
|
|
|||||
FHLB-NY advances
|
16,200
|
|
|
10,000
|
|
|
33,000
|
|
|
—
|
|
|
59,200
|
|
|||||
Subordinated Debentures
|
—
|
|
|
—
|
|
|
23,252
|
|
|
—
|
|
|
23,252
|
|
|||||
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
172,072
|
|
|
172,072
|
|
|||||
Shareholders' equity
|
—
|
|
|
—
|
|
|
—
|
|
|
51,387
|
|
|
51,387
|
|
|||||
Total source of funds
|
$
|
371,209
|
|
|
$
|
65,769
|
|
|
$
|
135,098
|
|
|
$
|
223,459
|
|
|
$
|
795,535
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate sensitivity gap
|
$
|
(234,607
|
)
|
|
$
|
28,383
|
|
|
$
|
393,604
|
|
|
$
|
(187,380
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cumulative interest rate sensitivity gap
|
$
|
(234,607
|
)
|
|
$
|
(206,224
|
)
|
|
$
|
187,380
|
|
|
$
|
—
|
|
|
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents - beginning
|
$
|
10,910
|
|
|
$
|
10,086
|
|
Operating activities:
|
|
|
|
|
|
||
Net income
|
4,736
|
|
|
4,200
|
|
||
Adjustments to reconcile net income
to net cash provided by (used in) operating activities
|
1,168
|
|
|
(2,999
|
)
|
||
Net cash provided by operating activities
|
5,904
|
|
|
1,201
|
|
||
Net cash used in investing activities
|
(77,943
|
)
|
|
(22,102
|
)
|
||
Net cash provided by financing activities
|
72,809
|
|
|
21,725
|
|
||
Net increase in cash and cash equivalents
|
770
|
|
|
824
|
|
||
Cash and cash equivalents - ending
|
$
|
11,680
|
|
|
$
|
10,910
|
|
|
|
|
Payment Due By Period
|
||||||||||||||||
|
Total
|
|
Less than
1 Year
|
|
1 - 3
Years
|
|
3 - 5
Years
|
|
After 5
Years
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Contractual obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating lease obligations
|
$
|
3,927
|
|
|
$
|
664
|
|
|
$
|
1,266
|
|
|
$
|
827
|
|
|
$
|
1,170
|
|
Total contracted cost obligations
|
$
|
3,927
|
|
|
$
|
664
|
|
|
$
|
1,266
|
|
|
$
|
827
|
|
|
$
|
1,170
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other long-term liabilities/long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Time deposits
|
$
|
156,669
|
|
|
$
|
77,823
|
|
|
$
|
59,381
|
|
|
$
|
19,465
|
|
|
$
|
—
|
|
Federal Home Loan Bank advances
|
59,200
|
|
|
26,200
|
|
|
28,000
|
|
|
5,000
|
|
|
—
|
|
|||||
Subordinated Debentures
|
7,217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,217
|
|
|||||
Subordinated Notes
|
16,035
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,035
|
|
|||||
Total other long-term liabilities/long-term debt
|
$
|
239,121
|
|
|
$
|
104,023
|
|
|
$
|
87,381
|
|
|
$
|
24,465
|
|
|
$
|
23,252
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other commitments - off balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Letters of credit
|
$
|
695
|
|
|
$
|
543
|
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
52
|
|
Commitments to extend credit
|
13,446
|
|
|
13,446
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unused lines of credit
|
87,213
|
|
|
87,213
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total off balance sheet arrangements and
contractual obligations
|
$
|
101,354
|
|
|
$
|
101,202
|
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
52
|
|
|
Actual
|
|
Required for
Capital
Adequacy
Purposes
|
|
To Be Well
Capitalized
Under Prompt
Corrective
Action
Regulations
|
|||
Tier 1 Leverage ratio
|
|
|
|
|
|
|
|
|
Corporation
|
7.65
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Bank
|
9.32
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
|
|
|
|
|
|||
Risk-based capital:
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
|
|
|
|
|
|
|
|
|
Corporation
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Bank
|
11.13
|
%
|
|
4.50
|
%
|
|
6.50
|
%
|
Tier 1
|
|
|
|
|
|
|
|
|
Corporation
|
9.35
|
%
|
|
4.00
|
%
|
|
N/A
|
|
Bank
|
11.13
|
%
|
|
6.00
|
%
|
|
8.00
|
%
|
Total
|
|
|
|
|
|
|
|
|
Corporation
|
13.10
|
%
|
|
8.00
|
%
|
|
N/A
|
|
Bank
|
12.34
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands)
|
||||||
Assets
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
11,508
|
|
|
$
|
10,731
|
|
Other interest-earning assets
|
172
|
|
|
179
|
|
||
Cash and cash equivalents
|
11,680
|
|
|
10,910
|
|
||
|
|
|
|
||||
Securities available-for-sale
|
98,583
|
|
|
93,354
|
|
||
Securities held to maturity; estimated fair value of $51,530 (2016)
and $61,281 (2015)
|
52,330
|
|
|
60,738
|
|
||
Federal Home Loan Bank of New York stock, at cost
|
3,515
|
|
|
2,608
|
|
||
Loans held for sale
|
773
|
|
|
1,522
|
|
||
Loans, net of allowance for loan losses of $7,905 (2016)
and $8,823 (2015)
|
595,952
|
|
|
517,556
|
|
||
Premises and equipment, net
|
6,566
|
|
|
6,799
|
|
||
Accrued interest receivable
|
2,133
|
|
|
1,967
|
|
||
Other real estate owned, net
|
401
|
|
|
880
|
|
||
Bank owned life insurance
|
16,558
|
|
|
14,111
|
|
||
Other assets
|
7,044
|
|
|
7,443
|
|
||
Total assets
|
$
|
795,535
|
|
|
$
|
717,888
|
|
|
|
|
|
||||
Liabilities and Shareholders' equity
|
|
|
|
|
|
||
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
||
Noninterest-bearing
|
$
|
169,306
|
|
|
$
|
147,828
|
|
Interest-bearing
|
489,624
|
|
|
456,925
|
|
||
Total deposits
|
658,930
|
|
|
604,753
|
|
||
|
|
|
|
||||
Federal Home Loan Bank of New York advances
|
59,200
|
|
|
40,000
|
|
||
Subordinated Debentures and Subordinated Notes
|
23,252
|
|
|
23,186
|
|
||
Accrued interest payable
|
794
|
|
|
791
|
|
||
Accrued expenses and other liabilities
|
1,972
|
|
|
1,585
|
|
||
Total liabilities
|
744,148
|
|
|
670,315
|
|
||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
|
|
||
Common stock, no par value; 10,000,000 shares authorized;
6,121,329 and 6,085,258 shares issued and outstanding
at December 31, 2016, and 2015, respectively
|
41,626
|
|
|
41,410
|
|
||
Retained earnings
|
11,082
|
|
|
7,008
|
|
||
Accumulated other comprehensive loss, net
|
(1,321
|
)
|
|
(845
|
)
|
||
Total Shareholders' equity
|
51,387
|
|
|
47,573
|
|
||
Total liabilities and Shareholders' equity
|
$
|
795,535
|
|
|
$
|
717,888
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands, except per share amounts)
|
||||||
Interest income:
|
|
|
|
|
|
||
Loans
|
$
|
23,724
|
|
|
$
|
22,644
|
|
Securities held to maturity:
|
|
|
|
|
|
||
Taxable
|
1,107
|
|
|
933
|
|
||
Nontaxable
|
345
|
|
|
471
|
|
||
Securities available-for-sale:
|
|
|
|
|
|
||
Taxable
|
1,673
|
|
|
1,374
|
|
||
Nontaxable
|
33
|
|
|
24
|
|
||
FHLB dividends
|
124
|
|
|
123
|
|
||
Other interest-earning assets
|
79
|
|
|
40
|
|
||
Total interest income
|
27,085
|
|
|
25,609
|
|
||
|
|
|
|
||||
Interest expense:
|
|
|
|
|
|
||
Deposits
|
2,292
|
|
|
2,068
|
|
||
FHLB-NY borrowings
|
716
|
|
|
850
|
|
||
Subordinated Debentures and Subordinated Notes
|
1,505
|
|
|
908
|
|
||
Total interest expense
|
4,513
|
|
|
3,826
|
|
||
Net interest income before provision for loan losses
|
22,572
|
|
|
21,783
|
|
||
Provision for loan losses
|
(1,350
|
)
|
|
(1,375
|
)
|
||
Net interest income after provision for loan losses
|
23,922
|
|
|
23,158
|
|
||
|
|
|
|
||||
Noninterest income:
|
|
|
|
|
|
||
Fees and service charges
|
2,159
|
|
|
2,135
|
|
||
Bank owned life insurance
|
447
|
|
|
403
|
|
||
Gain on calls and sales of securities, net
|
63
|
|
|
169
|
|
||
Gain on sales of mortgage loans
|
164
|
|
|
141
|
|
||
Gain on sale of other real estate owned
|
36
|
|
|
83
|
|
||
Miscellaneous
|
542
|
|
|
562
|
|
||
Total noninterest income
|
3,411
|
|
|
3,493
|
|
||
|
|
|
|
||||
Noninterest expenses:
|
|
|
|
|
|
||
Salaries and employee benefits
|
10,980
|
|
|
10,900
|
|
||
Occupancy, net
|
1,598
|
|
|
1,739
|
|
||
Equipment
|
609
|
|
|
655
|
|
||
Data processing
|
1,915
|
|
|
1,847
|
|
||
Advertising
|
669
|
|
|
839
|
|
||
FDIC insurance premium
|
317
|
|
|
423
|
|
||
Charitable contributions
|
375
|
|
|
290
|
|
||
Stationery and supplies
|
173
|
|
|
155
|
|
||
Legal
|
152
|
|
|
320
|
|
||
Bank-card related services
|
579
|
|
|
528
|
|
||
Other real estate owned, net
|
143
|
|
|
298
|
|
||
Miscellaneous
|
2,392
|
|
|
2,185
|
|
||
Total noninterest expenses
|
19,902
|
|
|
20,179
|
|
||
Income before income tax expense
|
7,431
|
|
|
6,472
|
|
||
Income tax expense
|
2,695
|
|
|
2,272
|
|
||
Net income
|
4,736
|
|
|
4,200
|
|
||
Dividends on preferred stock
|
—
|
|
|
456
|
|
||
Net income available to common shareholders
|
$
|
4,736
|
|
|
$
|
3,744
|
|
|
|
|
|
||||
Basic and diluted earnings per common share
|
$
|
0.78
|
|
|
$
|
0.62
|
|
|
|
|
|
||||
Weighted average number of basic and diluted common shares outstanding
|
6,109,983
|
|
|
6,077,657
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Net income
|
$
|
4,736
|
|
|
$
|
4,200
|
|
|
|
|
|
||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||
Change in unrealized holding gains (losses) on securities available-for-sale during the period
|
(594
|
)
|
|
(116
|
)
|
||
Reclassification adjustment for gains in net income
|
(39
|
)
|
|
(102
|
)
|
||
Accretion of unrealized loss on securities reclassified to held to maturity
|
120
|
|
|
179
|
|
||
Change in fair value of interest rate swap in a cash flow hedging relationship
|
37
|
|
|
151
|
|
||
|
|
|
|
||||
Total other comprehensive income (loss)
|
(476
|
)
|
|
112
|
|
||
|
|
|
|
||||
Total comprehensive income
|
$
|
4,260
|
|
|
$
|
4,312
|
|
|
Years Ended December 31, 2016 and 2015
|
|||||||||||||||||||||
|
|
|
|
|
|
|
Accumulated
|
|
|
|||||||||||||
|
|
|
|
|
|
|
Other
|
|
|
|||||||||||||
|
|
|
|
|
|
|
Compre-
|
|
|
|||||||||||||
|
|
|
|
|
|
|
hensive
|
|
|
|||||||||||||
|
Preferred
|
|
Common Stock
|
|
Retained
|
|
Income
|
|
|
|||||||||||||
|
Stock
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
(Loss), Net
|
|
Total
|
|||||||||||
|
(Dollars in thousands, except per share amounts)
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance – January 1, 2015
|
$
|
14,984
|
|
|
6,034,933
|
|
|
$
|
41,125
|
|
|
$
|
3,817
|
|
|
$
|
(957
|
)
|
|
$
|
58,969
|
|
Cash dividends declared ($0.08 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(486
|
)
|
|
—
|
|
|
(486
|
)
|
|||||
Payment of discount on dividend reinvestment plan
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Cash dividends declared on preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(456
|
)
|
|
—
|
|
|
(456
|
)
|
|||||
Common stock issued under dividend reinvestment plan
|
—
|
|
|
10,821
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
Common stock issued under stock plans
|
—
|
|
|
14,483
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||
Issuance of restricted stock
|
—
|
|
|
50,974
|
|
|
279
|
|
|
(279
|
)
|
|
—
|
|
|
—
|
|
|||||
Amortization of restricted stock
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
—
|
|
|
127
|
|
|||||
Tax benefit from restricted stock vesting
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Restricted stock forfeited
|
—
|
|
|
(25,683
|
)
|
|
(136
|
)
|
|
101
|
|
|
|
|
(35
|
)
|
||||||
Amortization of issuance costs
|
16
|
|
|
|
|
|
|
(16
|
)
|
|
|
|
—
|
|
||||||||
Repurchase of SBLF preferred stock
|
(15,000
|
)
|
|
|
|
|
|
|
|
|
|
(15,000
|
)
|
|||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
4,200
|
|
|
—
|
|
|
4,200
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
112
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance – December 31, 2015
|
—
|
|
|
6,085,528
|
|
|
41,410
|
|
|
7,008
|
|
|
(845
|
)
|
|
47,573
|
|
|||||
Cash dividends declared ($0.11 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(672
|
)
|
|
—
|
|
|
(672
|
)
|
|||||
Payment of discount on dividend reinvestment plan
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Common stock issued under dividend reinvestment plan
|
—
|
|
|
13,043
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
81
|
|
|||||
Common stock issued under stock plans
|
—
|
|
|
3,717
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Issuance of restricted stock
|
—
|
|
|
34,332
|
|
|
198
|
|
|
(198
|
)
|
|
—
|
|
|
—
|
|
|||||
Amortization of restricted stock
|
—
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
181
|
|
|||||
Tax benefit from restricted stock vesting
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Restricted stock forfeited
|
—
|
|
|
(15,291
|
)
|
|
(86
|
)
|
|
27
|
|
|
—
|
|
|
(59
|
)
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
4,736
|
|
|
—
|
|
|
4,736
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(476
|
)
|
|
(476
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance – December 31, 2016
|
$
|
—
|
|
|
6,121,329
|
|
|
$
|
41,626
|
|
|
$
|
11,082
|
|
|
$
|
(1,321
|
)
|
|
$
|
51,387
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
4,736
|
|
|
$
|
4,200
|
|
Adjustments to reconcile net income to
net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization of premises and equipment
|
380
|
|
|
392
|
|
||
Amortization of premiums and accretion of discounts, net
|
640
|
|
|
670
|
|
||
Amortization of restricted stock, net of forfeitures
|
122
|
|
|
92
|
|
||
Amortization of Subordinated Notes issuance cost
|
66
|
|
|
21
|
|
||
Accretion of deferred loan fees
|
118
|
|
|
102
|
|
||
Provision for loan losses
|
(1,350
|
)
|
|
(1,375
|
)
|
||
Originations of mortgage loans held for sale
|
(12,307
|
)
|
|
(10,764
|
)
|
||
Proceeds from sale of mortgage loans
|
13,220
|
|
|
9,383
|
|
||
Gain on sales of mortgage loans
|
(164
|
)
|
|
(141
|
)
|
||
Gain on sales and calls of securities
|
(63
|
)
|
|
(169
|
)
|
||
Gain on sale of other real estate owned
|
(36
|
)
|
|
(83
|
)
|
||
Deferred income tax expense
|
722
|
|
|
517
|
|
||
(Increase) decrease in accrued interest receivable
|
(166
|
)
|
|
27
|
|
||
Increase in accrued interest payable
|
3
|
|
|
483
|
|
||
Earnings on bank owned life insurance
|
(447
|
)
|
|
(403
|
)
|
||
Decrease in other assets
|
6
|
|
|
395
|
|
||
Increase (decrease) in other liabilities
|
424
|
|
|
(2,146
|
)
|
||
Net cash provided by operating activities
|
5,904
|
|
|
1,201
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchase of securities available-for-sale
|
(44,228
|
)
|
|
(13,404
|
)
|
||
Proceeds from maturities and principal repayments on securities available-for-sale
|
14,707
|
|
|
12,458
|
|
||
Proceeds from sales and calls on securities available-for-sale
|
22,853
|
|
|
31,845
|
|
||
Purchase of securities held to maturity
|
(35,448
|
)
|
|
(22,944
|
)
|
||
Proceeds from maturities and principal repayments on securities held to maturity
|
11,944
|
|
|
9,144
|
|
||
Proceeds from calls on securities held to maturity
|
31,955
|
|
|
8,250
|
|
||
Purchase of FHLB-NY stock
|
(2,180
|
)
|
|
(1,522
|
)
|
||
Sale of FHLB-NY stock
|
1,273
|
|
|
2,691
|
|
||
Net increase in loans
|
(77,568
|
)
|
|
(49,464
|
)
|
||
Proceeds from sale of other real estate owned
|
896
|
|
|
1,458
|
|
||
Purchase of bank owned life insurance
|
(2,000
|
)
|
|
—
|
|
||
Additions to premises and equipment
|
(147
|
)
|
|
(614
|
)
|
||
Net cash used in investing activities
|
(77,943
|
)
|
|
(22,102
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Net increase in noninterest-bearing deposits
|
21,478
|
|
|
11,107
|
|
||
Net increase in interest-bearing deposits
|
32,699
|
|
|
37,170
|
|
||
Increase in long term borrowings
|
18,000
|
|
|
—
|
|
||
Decrease in long term borrowings
|
(10,000
|
)
|
|
—
|
|
||
Net increase (decrease) in short term borrowings
|
11,200
|
|
|
(26,700
|
)
|
||
Cash dividends paid on common stock
|
(672
|
)
|
|
(486
|
)
|
||
Cash dividends paid on preferred stock
|
—
|
|
|
(456
|
)
|
||
Redemption of SBLF
|
—
|
|
|
(15,000
|
)
|
||
Payment of discount on dividend reinvestment plan
|
(4
|
)
|
|
(3
|
)
|
||
Proceeds from issuance of Subordinated Notes
|
—
|
|
|
15,948
|
|
||
Issuance of common stock
|
103
|
|
|
142
|
|
||
Tax benefit from restricted stock vesting
|
5
|
|
|
3
|
|
||
Net cash provided by financing activities
|
72,809
|
|
|
21,725
|
|
||
|
|
|
|
||||
Net increase in cash and cash equivalents
|
770
|
|
|
824
|
|
||
Cash and cash equivalents - beginning
|
10,910
|
|
|
10,086
|
|
||
Cash and cash equivalents - ending
|
$
|
11,680
|
|
|
$
|
10,910
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
Cash paid during the year for interest
|
$
|
4,510
|
|
|
$
|
3,342
|
|
Cash paid during the year for income taxes
|
$
|
1,589
|
|
|
$
|
2,301
|
|
Transfers from loans to other real estate owned
|
$
|
404
|
|
|
$
|
880
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
U.S. government-sponsored agencies
|
$
|
17,789
|
|
|
$
|
61
|
|
|
$
|
405
|
|
|
$
|
17,445
|
|
Obligations of state and political subdivisions
|
3,238
|
|
|
—
|
|
|
142
|
|
|
3,096
|
|
||||
Mortgage-backed securities
|
52,785
|
|
|
150
|
|
|
889
|
|
|
52,046
|
|
||||
Asset-backed securities (a)
|
8,392
|
|
|
—
|
|
|
125
|
|
|
8,267
|
|
||||
Corporate debt
|
14,504
|
|
|
50
|
|
|
517
|
|
|
14,037
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total debt securities
|
96,708
|
|
|
261
|
|
|
2,078
|
|
|
94,891
|
|
||||
Other equity investments
|
3,886
|
|
|
—
|
|
|
194
|
|
|
3,692
|
|
||||
Total
|
$
|
100,594
|
|
|
$
|
261
|
|
|
$
|
2,272
|
|
|
$
|
98,583
|
|
|
December 31, 2015
|
||||||||||||||
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
U.S. government-sponsored agencies
|
$
|
31,266
|
|
|
$
|
81
|
|
|
$
|
393
|
|
|
$
|
30,954
|
|
Obligations of state and political subdivisions
|
1,409
|
|
|
2
|
|
|
1
|
|
|
1,410
|
|
||||
Mortgage-backed securities
|
45,520
|
|
|
213
|
|
|
496
|
|
|
45,237
|
|
||||
Asset-backed securities (a)
|
9,877
|
|
|
—
|
|
|
176
|
|
|
9,701
|
|
||||
Corporate debt
|
2,500
|
|
|
—
|
|
|
81
|
|
|
2,419
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total debt securities
|
90,572
|
|
|
296
|
|
|
1,147
|
|
|
89,721
|
|
||||
Other equity investments
|
3,778
|
|
|
—
|
|
|
145
|
|
|
3,633
|
|
||||
Total
|
$
|
94,350
|
|
|
$
|
296
|
|
|
$
|
1,292
|
|
|
$
|
93,354
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
995
|
|
U.S. government-sponsored agencies
|
19,162
|
|
|
28
|
|
|
865
|
|
|
18,325
|
|
||||
Obligations of state and political subdivisions
|
7,102
|
|
|
75
|
|
|
30
|
|
|
7,147
|
|
||||
Mortgage-backed securities
|
25,067
|
|
|
163
|
|
|
167
|
|
|
25,063
|
|
||||
Total
|
$
|
52,330
|
|
|
$
|
266
|
|
|
$
|
1,066
|
|
|
$
|
51,530
|
|
|
December 31, 2015
|
||||||||||||||
|
Amortized
|
|
Gross Unrealized
|
|
Fair
|
||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
988
|
|
U.S. government-sponsored agencies
|
15,109
|
|
|
132
|
|
|
24
|
|
|
15,217
|
|
||||
Obligations of state and political subdivisions
|
11,219
|
|
|
268
|
|
|
—
|
|
|
11,487
|
|
||||
Mortgage-backed securities
|
33,411
|
|
|
295
|
|
|
117
|
|
|
33,589
|
|
||||
Total
|
$
|
60,738
|
|
|
$
|
695
|
|
|
$
|
152
|
|
|
$
|
61,281
|
|
|
December 31, 2016
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(In thousands)
|
||||||
Available-for-sale
|
|
|
|
|
|
||
Within one year
|
$
|
500
|
|
|
$
|
500
|
|
After one year, but within five years
|
7,037
|
|
|
6,981
|
|
||
After five years, but within ten years
|
21,988
|
|
|
21,328
|
|
||
After ten years
|
6,006
|
|
|
5,769
|
|
||
Mortgage-backed securities
|
52,785
|
|
|
52,046
|
|
||
Asset-backed securities
|
8,392
|
|
|
8,267
|
|
||
Total
|
$
|
96,708
|
|
|
$
|
94,891
|
|
|
|
|
|
||||
|
|
|
|
||||
Held to maturity
|
|
|
|
|
|
||
Within one year
|
$
|
1,965
|
|
|
$
|
1,985
|
|
After one year, but within five years
|
6,729
|
|
|
6,803
|
|
||
After five years, but within ten years
|
18,063
|
|
|
17,203
|
|
||
After ten years
|
506
|
|
|
476
|
|
||
Mortgage-backed securities
|
25,067
|
|
|
25,063
|
|
||
Total
|
$
|
52,330
|
|
|
$
|
51,530
|
|
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. government-
sponsored agencies
|
$
|
10,548
|
|
|
$
|
(260
|
)
|
|
$
|
3,402
|
|
|
$
|
(145
|
)
|
|
$
|
13,950
|
|
|
$
|
(405
|
)
|
Obligations of state and
political subdivisions
|
3,095
|
|
|
(142
|
)
|
|
—
|
|
|
—
|
|
|
3,095
|
|
|
(142
|
)
|
||||||
Mortgage-backed
securities
|
35,009
|
|
|
(779
|
)
|
|
3,360
|
|
|
(110
|
)
|
|
38,369
|
|
|
(889
|
)
|
||||||
Asset-backed securities
|
—
|
|
|
—
|
|
|
8,267
|
|
|
(125
|
)
|
|
8,267
|
|
|
(125
|
)
|
||||||
Corporate debt
|
8,031
|
|
|
(473
|
)
|
|
956
|
|
|
(44
|
)
|
|
8,987
|
|
|
(517
|
)
|
||||||
Other equity investments
|
—
|
|
|
—
|
|
|
3,632
|
|
|
(194
|
)
|
|
3,632
|
|
|
(194
|
)
|
||||||
Total temporarily
impaired securities
|
$
|
56,683
|
|
|
$
|
(1,654
|
)
|
|
$
|
19,617
|
|
|
$
|
(618
|
)
|
|
$
|
76,300
|
|
|
$
|
(2,272
|
)
|
December 31, 2015
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. government-
sponsored agencies
|
$
|
18,396
|
|
|
$
|
(183
|
)
|
|
$
|
7,296
|
|
|
$
|
(210
|
)
|
|
$
|
25,692
|
|
|
$
|
(393
|
)
|
Obligations of state and political subdivisions
|
984
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
984
|
|
|
(1
|
)
|
||||||
Mortgage-backed securities
|
8,599
|
|
|
(69
|
)
|
|
16,278
|
|
|
(427
|
)
|
|
24,877
|
|
|
(496
|
)
|
||||||
Asset-backed securities
|
6,791
|
|
|
(56
|
)
|
|
2,910
|
|
|
(120
|
)
|
|
9,701
|
|
|
(176
|
)
|
||||||
Corporate debt
|
—
|
|
|
—
|
|
|
1,419
|
|
|
(81
|
)
|
|
1,419
|
|
|
(81
|
)
|
||||||
Other equity investments
|
—
|
|
|
—
|
|
|
3,573
|
|
|
(145
|
)
|
|
3,573
|
|
|
(145
|
)
|
||||||
Total temporarily
impaired securities
|
$
|
34,770
|
|
|
$
|
(309
|
)
|
|
$
|
31,476
|
|
|
$
|
(983
|
)
|
|
$
|
66,246
|
|
|
$
|
(1,292
|
)
|
Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
995
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
995
|
|
|
$
|
(4
|
)
|
U.S. government-
sponsored agencies
|
17,022
|
|
|
(865
|
)
|
|
—
|
|
|
—
|
|
|
17,022
|
|
|
(865
|
)
|
||||||
Obligations of state and political subdivisions
|
476
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
476
|
|
|
(30
|
)
|
||||||
Mortgage-backed
securities
|
12,901
|
|
|
(167
|
)
|
|
—
|
|
|
—
|
|
|
12,901
|
|
|
(167
|
)
|
||||||
Total temporarily
impaired securities
|
$
|
31,394
|
|
|
$
|
(1,066
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,394
|
|
|
$
|
(1,066
|
)
|
December 31, 2015
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||||||||
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
|
Value
|
|
Losses
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
988
|
|
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
988
|
|
|
$
|
(11
|
)
|
U.S. government-
sponsored agencies
|
4,955
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
4,955
|
|
|
(24
|
)
|
||||||
Obligations of state and political subdivisions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage-backed
securities
|
15,183
|
|
|
(90
|
)
|
|
1,066
|
|
|
(27
|
)
|
|
16,249
|
|
|
(117
|
)
|
||||||
Total temporarily
impaired securities
|
$
|
21,126
|
|
|
$
|
(125
|
)
|
|
$
|
1,066
|
|
|
$
|
(27
|
)
|
|
$
|
22,192
|
|
|
$
|
(152
|
)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Commercial:
|
|
|
|
|
|
||
Secured by real estate
|
$
|
34,213
|
|
|
$
|
37,993
|
|
Other
|
47,852
|
|
|
26,867
|
|
||
Commercial real estate
|
382,551
|
|
|
334,489
|
|
||
Commercial construction
|
14,943
|
|
|
4,609
|
|
||
Residential real estate
|
84,321
|
|
|
82,955
|
|
||
Consumer:
|
|
|
|
|
|
||
Secured by real estate
|
30,176
|
|
|
29,224
|
|
||
Other
|
244
|
|
|
580
|
|
||
Government Guaranteed Loans - guaranteed portion
|
9,732
|
|
|
9,626
|
|
||
Other
|
51
|
|
|
134
|
|
||
Total gross loans
|
604,083
|
|
|
526,477
|
|
||
|
|
|
|
||||
Less: Deferred loan costs, net
|
226
|
|
|
98
|
|
||
Allowance for loan losses
|
7,905
|
|
|
8,823
|
|
||
|
8,131
|
|
|
8,921
|
|
||
|
|
|
|
||||
Loans, net
|
$
|
595,952
|
|
|
$
|
517,556
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
Balance
beginning of
period
|
|
Provision
charged to
operations
|
|
Loans
charged-off
|
|
Recoveries
of loans
charged-off
|
|
Balance
end of
period
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,698
|
|
|
$
|
(1,409
|
)
|
|
$
|
(72
|
)
|
|
$
|
446
|
|
|
$
|
2,663
|
|
Commercial real estate
|
4,660
|
|
|
8
|
|
|
(96
|
)
|
|
162
|
|
|
4,734
|
|
|||||
Commercial construction
|
114
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
355
|
|
|||||
Residential real estate
|
109
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
66
|
|
|||||
Consumer
|
118
|
|
|
(37
|
)
|
|
(11
|
)
|
|
5
|
|
|
75
|
|
|||||
Other
|
3
|
|
|
(1
|
)
|
|
(3
|
)
|
|
1
|
|
|
—
|
|
|||||
Unallocated
|
121
|
|
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Balance, ending
|
$
|
8,823
|
|
|
$
|
(1,350
|
)
|
|
$
|
(182
|
)
|
|
$
|
614
|
|
|
$
|
7,905
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
Balance
beginning of
period
|
|
Provision
charged to
operations
|
|
Loans
charged-off
|
|
Recoveries
of loans
charged-off
|
|
Balance
end of
period
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
3,704
|
|
|
$
|
129
|
|
|
$
|
(600
|
)
|
|
$
|
465
|
|
|
$
|
3,698
|
|
Commercial real estate
|
5,017
|
|
|
(508
|
)
|
|
—
|
|
|
151
|
|
|
4,660
|
|
|||||
Commercial construction
|
150
|
|
|
(588
|
)
|
|
—
|
|
|
552
|
|
|
114
|
|
|||||
Residential real estate
|
142
|
|
|
(59
|
)
|
|
—
|
|
|
26
|
|
|
109
|
|
|||||
Consumer
|
189
|
|
|
(75
|
)
|
|
—
|
|
|
4
|
|
|
118
|
|
|||||
Other
|
2
|
|
|
3
|
|
|
(2
|
)
|
|
—
|
|
|
3
|
|
|||||
Unallocated
|
398
|
|
|
(277
|
)
|
|
—
|
|
|
—
|
|
|
121
|
|
|||||
Balance, ending
|
$
|
9,602
|
|
|
$
|
(1,375
|
)
|
|
$
|
(602
|
)
|
|
$
|
1,198
|
|
|
$
|
8,823
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate
|
|
Commercial
Construction
|
|
Residential
Real Estate
|
|
Consumer
|
|
Government
Guaranteed
|
|
Other
Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Individually evaluated for
impairment
|
$
|
9
|
|
|
$
|
601
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
610
|
|
Collectively evaluated for impairment
|
2,654
|
|
|
4,133
|
|
|
355
|
|
|
66
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
7,295
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total ending allowance balance
|
$
|
2,663
|
|
|
$
|
4,734
|
|
|
$
|
355
|
|
|
$
|
66
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
7,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans individually evaluated for impairment
|
$
|
1,698
|
|
|
$
|
6,331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,107
|
|
Loans collectively evaluated for impairment
|
80,367
|
|
|
376,220
|
|
|
14,943
|
|
|
84,321
|
|
|
30,342
|
|
|
9,732
|
|
|
51
|
|
|
—
|
|
|
595,976
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total ending loan balance
|
$
|
82,065
|
|
|
$
|
382,551
|
|
|
$
|
14,943
|
|
|
$
|
84,321
|
|
|
$
|
30,420
|
|
|
$
|
9,732
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
604,083
|
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||||||
|
Commercial
|
|
Commercial
Real Estate
|
|
Commercial
Construction
|
|
Residential
Real Estate
|
|
Consumer
|
|
Government
Guaranteed
|
|
Other
Loans
|
|
Unallocated
|
|
Total
|
||||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending allowance balance attributable to loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Individually evaluated for
impairment
|
$
|
81
|
|
|
$
|
638
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
719
|
|
Collectively evaluated for impairment
|
3,617
|
|
|
4,022
|
|
|
114
|
|
|
109
|
|
|
118
|
|
|
—
|
|
|
3
|
|
|
121
|
|
|
8,104
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total ending allowance balance
|
$
|
3,698
|
|
|
$
|
4,660
|
|
|
$
|
114
|
|
|
$
|
109
|
|
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
121
|
|
|
$
|
8,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans individually evaluated for impairment
|
$
|
3,348
|
|
|
$
|
8,113
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,545
|
|
Loans collectively evaluated for impairment
|
61,512
|
|
|
326,376
|
|
|
4,609
|
|
|
82,955
|
|
|
29,720
|
|
|
9,626
|
|
|
134
|
|
|
—
|
|
|
514,932
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total ending loan balance
|
$
|
64,860
|
|
|
$
|
334,489
|
|
|
$
|
4,609
|
|
|
$
|
82,955
|
|
|
$
|
29,804
|
|
|
$
|
9,626
|
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
526,477
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Commercial:
|
|
|
|
|
|
||
Secured by real estate
|
$
|
—
|
|
|
$
|
1,300
|
|
Other
|
—
|
|
|
14
|
|
||
Commercial real estate
|
528
|
|
|
484
|
|
||
Consumer:
|
|
|
|
|
|
||
Secured by real estate
|
78
|
|
|
84
|
|
||
|
|
|
|
||||
Total nonaccrual loans
|
$
|
606
|
|
|
$
|
1,882
|
|
|
At And For The Year Ended December 31, 2016
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Allowance
for Loan
Losses
Allocated
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
$
|
1,481
|
|
|
$
|
1,353
|
|
|
|
|
|
$
|
2,018
|
|
|
$
|
92
|
|
|
Other
|
—
|
|
|
—
|
|
|
|
|
|
27
|
|
|
—
|
|
|||||
Commercial real estate
|
3,448
|
|
|
3,156
|
|
|
|
|
|
3,128
|
|
|
181
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
81
|
|
|
78
|
|
|
|
|
|
81
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
120
|
|
|
120
|
|
|
$
|
—
|
|
|
186
|
|
|
7
|
|
||||
Other
|
225
|
|
|
225
|
|
|
9
|
|
|
247
|
|
|
17
|
|
|||||
Commercial real estate
|
3,175
|
|
|
3,175
|
|
|
601
|
|
|
4,109
|
|
|
130
|
|
|||||
Total impaired loans
|
$
|
8,530
|
|
|
$
|
8,107
|
|
|
$
|
610
|
|
|
$
|
9,796
|
|
|
$
|
427
|
|
|
At And For The Year Ended December 31, 2015
|
||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Allowance
for Loan
Losses
Allocated
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
$
|
3,244
|
|
|
$
|
2,729
|
|
|
|
|
|
$
|
3,683
|
|
|
$
|
156
|
|
|
Other
|
137
|
|
|
137
|
|
|
|
|
|
61
|
|
|
2
|
|
|||||
Commercial real estate
|
3,245
|
|
|
2,885
|
|
|
|
|
|
2,890
|
|
|
121
|
|
|||||
Commercial construction
|
—
|
|
|
—
|
|
|
|
|
|
215
|
|
|
—
|
|
|||||
Residential real estate
|
—
|
|
|
—
|
|
|
|
|
|
74
|
|
|
—
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
84
|
|
|
84
|
|
|
|
|
|
226
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Secured by real estate
|
390
|
|
|
308
|
|
|
$
|
80
|
|
|
405
|
|
|
14
|
|
||||
Other
|
174
|
|
|
174
|
|
|
1
|
|
|
463
|
|
|
31
|
|
|||||
Commercial real estate
|
5,228
|
|
|
5,228
|
|
|
638
|
|
|
5,534
|
|
|
211
|
|
|||||
Total impaired loans
|
$
|
12,502
|
|
|
$
|
11,545
|
|
|
$
|
719
|
|
|
$
|
13,551
|
|
|
$
|
535
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days
Past Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,213
|
|
|
$
|
34,213
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,852
|
|
|
47,852
|
|
||||||
Commercial real estate
|
106
|
|
|
—
|
|
|
—
|
|
|
106
|
|
|
382,445
|
|
|
382,551
|
|
||||||
Commercial construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,943
|
|
|
14,943
|
|
||||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,321
|
|
|
84,321
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
6
|
|
|
—
|
|
|
40
|
|
|
46
|
|
|
30,130
|
|
|
30,176
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244
|
|
|
244
|
|
||||||
Government Guaranteed Loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,732
|
|
|
9,732
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
||||||
Total
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
152
|
|
|
$
|
603,931
|
|
|
$
|
604,083
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days
Past Due
|
|
Total Past
Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,011
|
|
|
$
|
1,011
|
|
|
$
|
36,982
|
|
|
$
|
37,993
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,867
|
|
|
26,867
|
|
||||||
Commercial real estate
|
271
|
|
|
—
|
|
|
—
|
|
|
271
|
|
|
334,218
|
|
|
334,489
|
|
||||||
Commercial construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,609
|
|
|
4,609
|
|
||||||
Residential real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82,955
|
|
|
82,955
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
112
|
|
|
—
|
|
|
41
|
|
|
153
|
|
|
29,071
|
|
|
29,224
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
580
|
|
|
580
|
|
||||||
Government Guaranteed Loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,626
|
|
|
9,626
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
134
|
|
||||||
Total
|
$
|
383
|
|
|
$
|
—
|
|
|
$
|
1,052
|
|
|
$
|
1,435
|
|
|
$
|
525,042
|
|
|
$
|
526,477
|
|
|
December 31, 2016
|
|||||||||
|
Number
of
Loans
|
|
Pre-
Modification
Recorded
Investment
|
|
Post-
Modification
Recorded
Investment
|
|||||
|
(Dollars in thousands)
|
|||||||||
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
||
Secured by real estate
|
2
|
|
|
$
|
786
|
|
|
$
|
786
|
|
Total
|
2
|
|
|
$
|
786
|
|
|
$
|
786
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
$
|
32,159
|
|
|
$
|
1,601
|
|
|
$
|
453
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,213
|
|
Other
|
46,865
|
|
|
404
|
|
|
583
|
|
|
—
|
|
|
—
|
|
|
47,852
|
|
||||||
Commercial real estate
|
366,251
|
|
|
14,345
|
|
|
1,955
|
|
|
—
|
|
|
—
|
|
|
382,551
|
|
||||||
Commercial construction
|
14,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,943
|
|
||||||
Total
|
$
|
460,218
|
|
|
$
|
16,350
|
|
|
$
|
2,991
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
479,559
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured by real estate
|
$
|
35,263
|
|
|
$
|
1,431
|
|
|
$
|
1,299
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,993
|
|
Other
|
25,725
|
|
|
745
|
|
|
397
|
|
|
—
|
|
|
—
|
|
|
26,867
|
|
||||||
Commercial real estate
|
326,737
|
|
|
4,034
|
|
|
3,718
|
|
|
—
|
|
|
—
|
|
|
334,489
|
|
||||||
Commercial construction
|
4,609
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,609
|
|
||||||
Total
|
$
|
392,334
|
|
|
$
|
6,210
|
|
|
$
|
5,414
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
403,958
|
|
|
December 31, 2016
|
||||||||||
|
Current
|
|
Past Due and
Nonaccrual
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Residential real estate
|
$
|
84,321
|
|
|
$
|
—
|
|
|
$
|
84,321
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||
Secured by real estate
|
30,130
|
|
|
46
|
|
|
30,176
|
|
|||
Other
|
244
|
|
|
—
|
|
|
244
|
|
|||
Total
|
$
|
114,695
|
|
|
$
|
46
|
|
|
$
|
114,741
|
|
|
December 31, 2015
|
||||||||||
|
Current
|
|
Past Due and
Nonaccrual
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Residential real estate
|
$
|
82,955
|
|
|
$
|
—
|
|
|
$
|
82,955
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|||
Secured by real estate
|
29,070
|
|
|
154
|
|
|
29,224
|
|
|||
Other
|
580
|
|
|
—
|
|
|
580
|
|
|||
Total
|
$
|
112,605
|
|
|
$
|
154
|
|
|
$
|
112,759
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Land
|
$
|
3,240
|
|
|
$
|
3,240
|
|
Buildings and improvements
|
4,494
|
|
|
4,498
|
|
||
Leasehold improvements
|
1,902
|
|
|
2,077
|
|
||
Furniture, fixtures, and equipment
|
964
|
|
|
1,078
|
|
||
|
10,600
|
|
|
10,893
|
|
||
Less: accumulated depreciation and amortization
|
4,034
|
|
|
4,094
|
|
||
Total premises & equipment, net
|
$
|
6,566
|
|
|
$
|
6,799
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Acquired by foreclosure or deed in lieu of foreclosure
|
$
|
404
|
|
|
$
|
880
|
|
Allowance for losses on other real estate owned
|
(3
|
)
|
|
—
|
|
||
Other real estate, net
|
$
|
401
|
|
|
$
|
880
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Beginning of year
|
$
|
—
|
|
|
$
|
67
|
|
Additions charged to expense
|
23
|
|
|
218
|
|
||
Reductions from sales of other real estate owned
|
(20
|
)
|
|
(285
|
)
|
||
End of year
|
$
|
3
|
|
|
$
|
—
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Provision for unrealized losses
|
$
|
23
|
|
|
$
|
218
|
|
Operating expenses, net of rental income
|
120
|
|
|
80
|
|
||
End of year
|
$
|
143
|
|
|
$
|
298
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
169,306
|
|
|
$
|
147,828
|
|
|
|
|
|
||||
Interest-bearing checking accounts
|
199,672
|
|
|
182,310
|
|
||
Money market accounts
|
42,606
|
|
|
46,427
|
|
||
Total interest-bearing demand
|
242,278
|
|
|
228,737
|
|
||
|
|
|
|
||||
Statement savings and clubs
|
82,521
|
|
|
74,384
|
|
||
Business savings
|
8,156
|
|
|
7,452
|
|
||
Total savings
|
90,677
|
|
|
81,836
|
|
||
|
|
|
|
||||
IRA investment and variable rate savings
|
28,771
|
|
|
28,731
|
|
||
Brokered certificates
|
8,299
|
|
|
7,779
|
|
||
Money market certificates
|
119,599
|
|
|
109,842
|
|
||
Total certificates of deposit
|
156,669
|
|
|
146,352
|
|
||
|
|
|
|
||||
Total interest-bearing deposits
|
489,624
|
|
|
456,925
|
|
||
Total deposits
|
$
|
658,930
|
|
|
$
|
604,753
|
|
|
Year Ended
|
|
|
||
|
December 31,
|
|
Balances
|
||
|
|
|
(In thousands)
|
||
|
|
|
|
|
|
|
2017
|
|
$
|
77,072
|
|
|
2018
|
|
35,173
|
|
|
|
2019
|
|
24,959
|
|
|
|
2020
|
|
11,596
|
|
|
|
2021
|
|
7,869
|
|
|
|
|
|
$
|
156,669
|
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||
Advances Maturing
|
|
Amount
|
|
Weighted
Average
Rate
|
|
Amount
|
|
Weighted
Average
Rate
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||
Within one year
|
|
$
|
26,200
|
|
|
1.03
|
%
|
|
$
|
10,000
|
|
|
1.64
|
%
|
After one year, but within two years
|
|
15,000
|
|
|
1.73
|
%
|
|
15,000
|
|
|
1.25
|
%
|
||
After two years, but within three years
|
|
13,000
|
|
|
1.86
|
%
|
|
15,000
|
|
|
1.73
|
%
|
||
After three years, but within four years
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
After four years, but within five years
|
|
5,000
|
|
|
1.68
|
%
|
|
—
|
|
|
—
|
%
|
||
Total advances maturing
|
|
$
|
59,200
|
|
|
1.45
|
%
|
|
$
|
40,000
|
|
|
1.53
|
%
|
|
|
|
|
|
|
Carrying Amount
|
||||||
|
|
|
|
|
|
December 31,
|
||||||
Issue
|
|
Maturity
|
|
Rate
|
|
2016
|
|
2015
|
||||
|
|
|
|
|
|
(In thousands)
|
||||||
|
|
|
|
|
|
|
|
|
||||
9/17/2003
|
|
9/17/2033
|
|
Fixed / Floating Rate Junior Subordinated Debentures
|
|
$
|
7,217
|
|
|
$
|
7,217
|
|
8/28/2015
|
|
8/25/2025
|
|
Fixed Rate Subordinated Notes
|
|
16,035
|
|
|
15,969
|
|
||
|
|
|
|
Total
|
|
$
|
23,252
|
|
|
$
|
23,186
|
|
|
Actual
|
|
Required for Capital
Adequacy Purposes
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Regulations
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Corporation
|
$
|
59,591
|
|
|
7.65
|
%
|
|
$
|
31,151
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
72,355
|
|
|
9.32
|
%
|
|
31,055
|
|
|
4.00
|
%
|
|
$
|
38,818
|
|
|
5.00
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Corporation
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
72,355
|
|
|
11.13
|
%
|
|
29,263
|
|
|
4.50
|
%
|
|
42,269
|
|
|
6.50
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Corporation
|
59,591
|
|
|
9.35
|
%
|
|
25,504
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
72,355
|
|
|
11.13
|
%
|
|
39,018
|
|
|
6.00
|
%
|
|
52,024
|
|
|
8.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Corporation
|
83,531
|
|
|
13.10
|
%
|
|
51,008
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
80,260
|
|
|
12.34
|
%
|
|
52,024
|
|
|
8.00
|
%
|
|
65,030
|
|
|
10.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tier 1 Leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Corporation
|
$
|
55,331
|
|
|
7.67
|
%
|
|
$
|
28,842
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Bank
|
68,118
|
|
|
9.47
|
%
|
|
28,762
|
|
|
4.00
|
%
|
|
$
|
35,953
|
|
|
5.00
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Risk-based capital:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
68,118
|
|
|
12.41
|
%
|
|
24,698
|
|
|
4.50
|
%
|
|
35,675
|
|
|
6.50
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
55,331
|
|
|
10.16
|
%
|
|
21,791
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
68,118
|
|
|
12.41
|
%
|
|
32,930
|
|
|
6.00
|
%
|
|
43,907
|
|
|
8.00
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
78,135
|
|
|
14.34
|
%
|
|
43,583
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Bank
|
75,006
|
|
|
13.67
|
%
|
|
43,907
|
|
|
8.00
|
%
|
|
54,884
|
|
|
10.00
|
%
|
|
2016
|
|
2015
|
||||||||||
|
Number of
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
|
Number of
Shares
|
|
Weighted Average
Grant Date
Fair Value
|
||||||
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
64,970
|
|
|
$
|
5.29
|
|
|
49,661
|
|
|
$
|
5.01
|
|
Granted
|
34,332
|
|
|
5.76
|
|
|
50,974
|
|
|
5.47
|
|
||
Vested
|
(24,996
|
)
|
|
5.24
|
|
|
(16,065
|
)
|
|
5.01
|
|
||
Forfeited
|
(5,720
|
)
|
|
5.53
|
|
|
(19,600
|
)
|
|
5.26
|
|
||
Balance December 31
|
68,586
|
|
|
$
|
5.52
|
|
|
64,970
|
|
|
$
|
5.29
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(Dollars in thousands, except per share amounts)
|
||||||
|
|
|
|
||||
Net Income
|
$
|
4,736
|
|
|
$
|
4,200
|
|
Dividends on preferred stock and accretion
|
—
|
|
|
456
|
|
||
Net income available to common shareholders
|
$
|
4,736
|
|
|
$
|
3,744
|
|
|
|
|
|
||||
Weighted-average common shares outstanding - basic
|
6,109,983
|
|
|
6,077,657
|
|
||
Effect of dilutive securities - stock options
|
N/A
|
|
|
N/A
|
|
||
Weighted average common shares outstanding - diluted
|
6,109,983
|
|
|
6,077,657
|
|
||
|
|
|
|
||||
Basic earnings per common share
|
$
|
0.78
|
|
|
$
|
0.62
|
|
Diluted earnings per common share
|
$
|
0.78
|
|
|
$
|
0.62
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Current tax expense
|
|
|
|
|
|
||
Federal
|
$
|
1,394
|
|
|
$
|
1,278
|
|
State
|
579
|
|
|
477
|
|
||
|
1,973
|
|
|
1,755
|
|
||
Deferred tax expense
|
|
|
|
|
|
||
Federal
|
624
|
|
|
459
|
|
||
State
|
175
|
|
|
134
|
|
||
Valuation allowance
|
(77
|
)
|
|
(76
|
)
|
||
|
722
|
|
|
517
|
|
||
Total
|
$
|
2,695
|
|
|
$
|
2,272
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Federal income tax
|
$
|
2,527
|
|
|
$
|
2,200
|
|
Add (deduct) effect of:
|
|
|
|
|
|
||
State income taxes, net of federal income tax effect
|
533
|
|
|
443
|
|
||
Nontaxable interest income
|
(153
|
)
|
|
(194
|
)
|
||
Bank owned life insurance
|
(147
|
)
|
|
(141
|
)
|
||
Nondeductible expenses
|
12
|
|
|
14
|
|
||
Change in valuation reserve
|
(77
|
)
|
|
(50
|
)
|
||
Effective federal income taxes
|
$
|
2,695
|
|
|
$
|
2,272
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
|
|
||
Allowance for loan losses
|
$
|
3,157
|
|
|
$
|
3,524
|
|
Accrued compensation
|
83
|
|
|
124
|
|
||
Nonaccrual loan interest
|
3
|
|
|
302
|
|
||
Depreciation
|
340
|
|
|
379
|
|
||
Contribution carry forward
|
55
|
|
|
105
|
|
||
Restricted stock
|
55
|
|
|
42
|
|
||
Accrued contributions
|
144
|
|
|
82
|
|
||
Unrealized loss on fair value of interest rate swap
|
—
|
|
|
25
|
|
||
Unrealized loss on securities available-for-sale
|
335
|
|
|
385
|
|
||
Alternate minimum tax
|
270
|
|
|
347
|
|
||
|
4,442
|
|
|
5,315
|
|
||
Valuation reserve
|
(10
|
)
|
|
(87
|
)
|
||
|
4,432
|
|
|
5,228
|
|
||
Deferred tax liabilities
|
|
|
|
|
|
||
OREO reserve
|
1
|
|
|
—
|
|
||
Other
|
4
|
|
|
4
|
|
||
|
5
|
|
|
4
|
|
||
Net deferred tax assets
|
$
|
4,427
|
|
|
$
|
5,224
|
|
|
Year Ended
|
|
Minimum
|
|
||
|
December 31,
|
|
Rent
|
|
||
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
$
|
664
|
|
|
|
2018
|
|
669
|
|
|
|
|
2019
|
|
597
|
|
|
|
|
2020
|
|
502
|
|
|
|
|
2021
|
|
325
|
|
|
|
|
Thereafter
|
|
1,170
|
|
|
|
|
|
|
$
|
3,927
|
|
|
|
Year Ended December 31, 2016
|
||||||||||
|
Amount of Gain
Recognized in OCI
(Effective Portion)
|
|
Amount of Gain
(Loss) Reclassified
from OCI to Interest
income
|
|
Amount of Gain (Loss)
Recognized in Other
Noninterest Income
(Ineffective Portion)
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Interest rate contract
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Year Ended December 31, 2015
|
||||||||||
|
Amount of Gain
Recognized in OCI
(Effective Portion)
|
|
Amount of Gain
(Loss) Reclassified
from OCI to Interest
Income
|
|
Amount of Gain (Loss)
Recognized in Other
Noninterest Income
(Ineffective Portion)
|
||||||
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Interest rate contract
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
|
Carrying Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2016
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government -
sponsored agencies
|
$
|
17,445
|
|
|
$
|
—
|
|
|
$
|
17,445
|
|
|
$
|
—
|
|
Obligations of state and
political subdivisions
|
3,096
|
|
|
—
|
|
|
3,096
|
|
|
—
|
|
||||
Mortgage-backed securities
|
52,046
|
|
|
—
|
|
|
52,046
|
|
|
—
|
|
||||
Asset-backed securities
|
8,267
|
|
|
—
|
|
|
8,267
|
|
|
—
|
|
||||
Corporate bonds
|
14,037
|
|
|
—
|
|
|
14,037
|
|
|
—
|
|
||||
Other equity investments
|
3,692
|
|
|
3,632
|
|
|
60
|
|
|
—
|
|
||||
Total available-for-sale securities
|
$
|
98,583
|
|
|
$
|
3,632
|
|
|
$
|
94,951
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Fair Value Measurements Using
|
||||||||||||
|
Carrying Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2015
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. government -
sponsored agencies
|
$
|
30,954
|
|
|
$
|
—
|
|
|
$
|
30,954
|
|
|
$
|
—
|
|
Obligations of state and
political subdivisions
|
1,410
|
|
|
—
|
|
|
1,410
|
|
|
—
|
|
||||
Mortgage-backed securities
|
45,237
|
|
|
—
|
|
|
45,237
|
|
|
—
|
|
||||
Asset-backed securities
|
9,701
|
|
|
—
|
|
|
9,701
|
|
|
—
|
|
||||
Corporate bonds
|
2,419
|
|
|
—
|
|
|
2,419
|
|
|
—
|
|
||||
Other equity investments
|
3,633
|
|
|
3,573
|
|
|
60
|
|
|
—
|
|
||||
Total available-for-sale securities
|
$
|
93,354
|
|
|
$
|
3,573
|
|
|
$
|
89,781
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
|
|
|
Fair Value Measurements Using
|
|||||||||||
|
Carrying Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2016
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial real estate
|
$
|
528
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
528
|
|
Other real estate owned
|
401
|
|
|
—
|
|
|
—
|
|
|
401
|
|
||||
Total Assets
|
$
|
929
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
929
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Fair Value Measurements Using
|
|||||||||||
|
Carrying Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2015
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured by real estate
|
$
|
367
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
367
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Secured by real estate
|
84
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||
Other real estate owned
|
880
|
|
|
—
|
|
|
—
|
|
|
880
|
|
||||
Total assets
|
$
|
1,331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,331
|
|
December 31, 2016
|
||||||||||
Assets
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
||
(Dollars in thousands)
|
||||||||||
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
528
|
|
|
Comparable real estate sales and / or the income approach.
|
|
Adjustments for differences between comparable sales and income data available.
|
|
5%
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Estimated selling costs.
|
|
7%
|
||
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
|
$
|
401
|
|
|
Comparable real estate sales and / or the income approach.
|
|
Adjustments for differences between comparable sales and income data available.
|
|
2%
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Estimated selling costs.
|
|
7%
|
December 31, 2015
|
||||||||||
Assets
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Inputs
|
|
Range
|
||
(Dollars in thousands)
|
||||||||||
Impaired loans
|
|
$
|
451
|
|
|
Comparable real estate sales and / or the income approach.
|
|
Adjustments for differences between comparable sales and income data available.
|
|
5% - 9%
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Estimated selling costs.
|
|
7%
|
||
|
|
|
|
|
|
|
|
|
||
Other real estate owned
|
|
$
|
990
|
|
|
Comparable real estate sales and / or the income approach.
|
|
Adjustments for differences between comparable sales and income data available.
|
|
—%
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Estimated selling costs.
|
|
7%
|
|
|
|
|
Fair Value Measurements Using
|
|||||||||||
|
Carrying Value
|
|
Quoted Prices in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2016
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
11,680
|
|
|
$
|
11,680
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
98,583
|
|
|
3,632
|
|
|
94,951
|
|
|
—
|
|
||||
Securities held to maturity
|
52,330
|
|
|
—
|
|
|
51,530
|
|
|
—
|
|
||||
FHLB-NY stock
|
3,515
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
||||
Mortgage loans held for sale
|
773
|
|
|
—
|
|
|
—
|
|
|
773
|
|
||||
Loans, net
|
595,952
|
|
|
—
|
|
|
—
|
|
|
596,506
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
658,930
|
|
|
503,949
|
|
|
154,724
|
|
|
—
|
|
||||
FHLB-NY advances
|
59,200
|
|
|
—
|
|
|
59,174
|
|
|
—
|
|
||||
Subordinated Debentures and
Subordinated Notes
|
23,252
|
|
|
—
|
|
|
—
|
|
|
23,230
|
|
|
|
|
|
Fair Value Measurements Using
|
|||||||||||
|
Carrying Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
December 31, 2015
|
||||||||||||||
|
(In thousands)
|
||||||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
10,910
|
|
|
$
|
10,910
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available-for-sale
|
93,354
|
|
|
3,573
|
|
|
89,781
|
|
|
—
|
|
||||
Securities held to maturity
|
60,738
|
|
|
—
|
|
|
61,281
|
|
|
—
|
|
||||
FHLB-NY stock
|
2,608
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
||||
Mortgage loans held for sale
|
1,522
|
|
|
—
|
|
|
—
|
|
|
1,522
|
|
||||
Loans, net
|
517,556
|
|
|
—
|
|
|
—
|
|
|
527,479
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
604,753
|
|
|
459,327
|
|
|
145,560
|
|
|
—
|
|
||||
FHLB-NY advances
|
40,000
|
|
|
—
|
|
|
40,222
|
|
|
—
|
|
||||
Subordinated Debentures and
Subordinated Notes
|
23,186
|
|
|
—
|
|
|
—
|
|
|
23,206
|
|
||||
Interest rate swap
|
62
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Assets
|
|
|
|
|
|||
|
|
|
|
||||
Cash and due from banks
|
$
|
264
|
|
|
$
|
1,322
|
|
Securities available-for-sale
|
1,926
|
|
|
997
|
|
||
Investment in subsidiary
|
71,564
|
|
|
67,830
|
|
||
Accrued interest receivable
|
10
|
|
|
2
|
|
||
Other assets
|
1,296
|
|
|
1,076
|
|
||
Total assets
|
$
|
75,060
|
|
|
$
|
71,227
|
|
|
|
|
|
||||
Liabilities and Shareholders' equity
|
|
|
|
|
|
||
|
|
|
|
||||
Subordinated Debentures
|
$
|
7,217
|
|
|
$
|
7,217
|
|
Subordinated Notes
|
16,035
|
|
|
15,969
|
|
||
Other liabilities
|
421
|
|
|
468
|
|
||
Shareholders' equity
|
51,387
|
|
|
47,573
|
|
||
Total liabilities and Shareholders' equity
|
$
|
75,060
|
|
|
$
|
71,227
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Interest income - securities available-for-sale
|
$
|
29
|
|
|
$
|
15
|
|
Dividend income
|
1,905
|
|
|
1,713
|
|
||
Other income
|
8
|
|
|
7
|
|
||
Total income
|
1,942
|
|
|
1,735
|
|
||
|
|
|
|
||||
Interest expense
|
1,505
|
|
|
908
|
|
||
Other expenses
|
290
|
|
|
318
|
|
||
Total expenses
|
1,795
|
|
|
1,226
|
|
||
|
|
|
|
||||
Income before income tax benefit
|
147
|
|
|
509
|
|
||
Tax benefit
|
(596
|
)
|
|
(408
|
)
|
||
Income before equity in undistributed earnings of subsidiary
|
743
|
|
|
917
|
|
||
Equity in undistributed earnings of subsidiary
|
3,993
|
|
|
3,283
|
|
||
Net income
|
4,736
|
|
|
4,200
|
|
||
Dividends on preferred stock and accretion
|
—
|
|
|
456
|
|
||
Net income available to common shareholders
|
$
|
4,736
|
|
|
$
|
3,744
|
|
|
Years Ended December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
|
|
|
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
4,736
|
|
|
$
|
4,200
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Equity in undistributed earnings of subsidiary
|
(3,993
|
)
|
|
(3,283
|
)
|
||
Amortization of Subordinated Notes issuance cost
|
66
|
|
|
21
|
|
||
Increase in accrued interest receivable
|
(8
|
)
|
|
—
|
|
||
Increase in other assets
|
(197
|
)
|
|
(114
|
)
|
||
Increase (decrease) in other liabilities
|
(9
|
)
|
|
209
|
|
||
Net cash provided by operating activities
|
595
|
|
|
1,033
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Purchase of securities available-for-sale
|
(4,498
|
)
|
|
—
|
|
||
Proceeds from calls on securities available-for-sale
|
3,500
|
|
|
—
|
|
||
Net cash used in investing activities
|
(998
|
)
|
|
—
|
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Cash dividends paid on common stock
|
(672
|
)
|
|
(486
|
)
|
||
Cash dividends paid on preferred stock
|
—
|
|
|
(456
|
)
|
||
Redemption of SBLF
|
—
|
|
|
(15,000
|
)
|
||
Payment of discount on dividend reinvestment plan
|
(4
|
)
|
|
(3
|
)
|
||
Restricted stock-forfeited
|
(82
|
)
|
|
(109
|
)
|
||
Proceeds from issuance of Subordinated Notes
|
—
|
|
|
15,948
|
|
||
Issuance of common stock
|
103
|
|
|
142
|
|
||
Net cash provided by (used in) financing activities
|
(655
|
)
|
|
36
|
|
||
|
|
|
|
||||
Net decrease in cash and cash equivalents
|
(1,058
|
)
|
|
1,069
|
|
||
Cash and cash equivalents - beginning
|
1,322
|
|
|
253
|
|
||
Cash and cash equivalents - ending
|
$
|
264
|
|
|
$
|
1,322
|
|
|
Years Ended
|
||||||||||||||||||||||
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Gross
|
|
Tax
Effect
|
|
Net
|
|
Gross
|
|
Tax
Effect
|
|
Net
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
7,431
|
|
|
$
|
(2,695
|
)
|
|
$
|
4,736
|
|
|
$
|
6,472
|
|
|
$
|
(2,272
|
)
|
|
$
|
4,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in unrealized holding gains (losses) on securities available-for-sale
|
(952
|
)
|
|
358
|
|
|
(594
|
)
|
|
(194
|
)
|
|
78
|
|
|
(116
|
)
|
||||||
Reclassification adjustment for gains in net income
|
(63
|
)
|
|
24
|
|
|
(39
|
)
|
|
(169
|
)
|
|
67
|
|
|
(102
|
)
|
||||||
Accretion of loss on securities reclassified to held to maturity
|
196
|
|
|
(76
|
)
|
|
120
|
|
|
290
|
|
|
(111
|
)
|
|
179
|
|
||||||
Change in fair value of
interest rate swap
|
62
|
|
|
(25
|
)
|
|
37
|
|
|
251
|
|
|
(100
|
)
|
|
151
|
|
||||||
Total other comprehensive
income
|
(757
|
)
|
|
281
|
|
|
(476
|
)
|
|
178
|
|
|
(66
|
)
|
|
112
|
|
||||||
Total comprehensive income
|
$
|
6,674
|
|
|
$
|
(2,414
|
)
|
|
$
|
4,260
|
|
|
$
|
6,650
|
|
|
$
|
(2,338
|
)
|
|
$
|
4,312
|
|
|
Year Ended December 31, 2016
|
||||||||||||||
|
Components of
Accumulated Other Comprehensive Income
|
|
Total
|
||||||||||||
|
Unrealized Gains
and (Losses) on
Available-for-Sale
(AFS) Securities
|
|
Loss on Securities
Reclassified from
Available-for-Sale
to Held to Maturity
|
|
Unrealized
Gains and
(Losses) on
Derivatives
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2015
|
$
|
(610
|
)
|
|
$
|
(198
|
)
|
|
$
|
(37
|
)
|
|
$
|
(845
|
)
|
Other comprehensive income (loss) before reclassifications
|
(594
|
)
|
|
120
|
|
|
37
|
|
|
(437
|
)
|
||||
Amounts reclassified from
other comprehensive income
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
||||
Other comprehensive income, net
|
(633
|
)
|
|
120
|
|
|
37
|
|
|
(476
|
)
|
||||
Balance at December 31, 2016
|
$
|
(1,243
|
)
|
|
$
|
(78
|
)
|
|
$
|
—
|
|
|
$
|
(1,321
|
)
|
|
Year Ended December 31, 2015
|
||||||||||||||
|
Components of
Accumulated Other Comprehensive Income
|
|
Total
|
||||||||||||
|
Unrealized Gains
and (Losses) on
Available-for-Sale
(AFS) Securities
|
|
Loss on Securities
Reclassified from
Available-for-Sale
to Held to Maturity
|
|
Unrealized
Gains and
(Losses) on
Derivatives
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
|
(In thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at December 31, 2014
|
$
|
(392
|
)
|
|
$
|
(377
|
)
|
|
$
|
(188
|
)
|
|
$
|
(957
|
)
|
Other comprehensive income (loss) before reclassifications
|
(116
|
)
|
|
179
|
|
|
151
|
|
|
214
|
|
||||
Amounts reclassified from
other comprehensive income
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
(102
|
)
|
||||
Other comprehensive income, net
|
(218
|
)
|
|
179
|
|
|
151
|
|
|
112
|
|
||||
Balance at December 31, 2015
|
$
|
(610
|
)
|
|
$
|
(198
|
)
|
|
$
|
(37
|
)
|
|
$
|
(845
|
)
|
|
|
Years Ended
|
|
|
||||||
Components of Accumulated Other
|
|
December 31,
|
|
Income Statement
|
||||||
Comprehensive Income (Loss)
|
|
2016
|
|
2015
|
|
Line Item
|
||||
|
|
(In thousands)
|
|
|
||||||
Unrealized gains on AFS securities
|
|
|
|
|
|
|
|
|
||
before tax
|
|
$
|
63
|
|
|
$
|
169
|
|
|
Gains on securities transactions, net
|
Tax effect
|
|
(24
|
)
|
|
(67
|
)
|
|
|
||
Total, net of tax
|
|
39
|
|
|
102
|
|
|
|
||
Total reclassifications, net of tax
|
|
$
|
39
|
|
|
$
|
102
|
|
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
6,449
|
|
|
$
|
6,979
|
|
|
$
|
6,657
|
|
|
$
|
7,000
|
|
|
$
|
27,085
|
|
Interest expense
|
1,173
|
|
|
1,124
|
|
|
1,113
|
|
|
1,103
|
|
|
4,513
|
|
|||||
Net interest income before provision for loan losses
|
5,276
|
|
|
5,855
|
|
|
5,544
|
|
|
5,897
|
|
|
22,572
|
|
|||||
Provision for loan losses
|
(350
|
)
|
|
(450
|
)
|
|
(250
|
)
|
|
(300
|
)
|
|
(1,350
|
)
|
|||||
Net interest income after provision for loan losses
|
5,626
|
|
|
6,305
|
|
|
5,794
|
|
|
6,197
|
|
|
23,922
|
|
|||||
Noninterest income
|
819
|
|
|
832
|
|
|
823
|
|
|
937
|
|
|
3,411
|
|
|||||
Noninterest expenses
|
4,902
|
|
|
4,999
|
|
|
4,999
|
|
|
5,002
|
|
|
19,902
|
|
|||||
Income before income tax expense
|
1,543
|
|
|
2,138
|
|
|
1,618
|
|
|
2,132
|
|
|
7,431
|
|
|||||
Income tax expense
|
552
|
|
|
776
|
|
|
583
|
|
|
784
|
|
|
2,695
|
|
|||||
Net income
|
$
|
991
|
|
|
$
|
1,362
|
|
|
$
|
1,035
|
|
|
$
|
1,348
|
|
|
$
|
4,736
|
|
Basic and diluted earnings per share
|
$
|
0.16
|
|
|
$
|
0.22
|
|
|
$
|
0.17
|
|
|
$
|
0.22
|
|
|
$
|
0.78
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
$
|
6,194
|
|
|
$
|
6,360
|
|
|
$
|
6,412
|
|
|
$
|
6,643
|
|
|
$
|
25,609
|
|
Interest expense
|
793
|
|
|
842
|
|
|
993
|
|
|
1,198
|
|
|
3,826
|
|
|||||
Net interest income before provision for loan losses
|
5,401
|
|
|
5,518
|
|
|
5,419
|
|
|
5,445
|
|
|
21,783
|
|
|||||
Provision for loan losses
|
(100
|
)
|
|
(600
|
)
|
|
(400
|
)
|
|
(275
|
)
|
|
(1,375
|
)
|
|||||
Net interest income after provision for loan losses
|
5,501
|
|
|
6,118
|
|
|
5,819
|
|
|
5,720
|
|
|
23,158
|
|
|||||
Noninterest income
|
918
|
|
|
882
|
|
|
838
|
|
|
855
|
|
|
3,493
|
|
|||||
Noninterest expenses
|
5,049
|
|
|
5,105
|
|
|
5,125
|
|
|
4,900
|
|
|
20,179
|
|
|||||
Income before income tax expense
|
1,370
|
|
|
1,895
|
|
|
1,532
|
|
|
1,675
|
|
|
6,472
|
|
|||||
Income tax expense
|
453
|
|
|
673
|
|
|
532
|
|
|
614
|
|
|
2,272
|
|
|||||
Net income
|
917
|
|
|
1,222
|
|
|
1,000
|
|
|
1,061
|
|
|
4,200
|
|
|||||
Dividends on preferred stock
|
171
|
|
|
171
|
|
|
114
|
|
|
—
|
|
|
456
|
|
|||||
Net income available to common shareholders
|
$
|
746
|
|
|
$
|
1,051
|
|
|
$
|
886
|
|
|
$
|
1,061
|
|
|
$
|
3,744
|
|
Basic and diluted earnings per share
|
$
|
0.12
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
$
|
0.17
|
|
|
$
|
0.62
|
|
(a)
|
Evaluation of internal controls and procedures
|
(b)
|
Management's Report on Internal Control over Financial Reporting
|
(c)
|
Changes in Internal Controls over Financial Reporting
|
Name and Age of Director
|
Principal Occupation During Past Five Years
|
Director of the Corporation Since
|
Director of the Bank Since
|
Wayne Aoki, 57
|
Mr. Aoki had a career as an accounting professional at Ernst and Young spanning more than 30 years, from 1981 to 2013. Mr. Aoki is currently retired.
Mr. Aoki’s significant accounting and business experience provides, among other things, in-depth knowledge of generally accepted accounting principles and auditing standards to the Board of Directors.
|
2014
|
2014
|
Richard W. Culp, 64
Chairman
|
Mr. Culp was appointed Chairman of the Board of the Bank in April 2015 and Chairman of the Board of the Corporation in May 2015.
Mr. Culp is currently an Educational Management Consultant working as an adviser to school districts and education companies. From 2009 to 2014 Mr. Culp was an Executive Vice President of Pearson Education, the world’s leading educational publisher. During 2008, he was the Chief Executive Officer of Epic Learning. From 1980 to 2007, Mr. Culp held various positions with Pearson / Prentice Hall, rising to President of the Pearson Prentice Hall School Division in 2002.
Mr. Culp brings to the Board extensive executive level business experience and in-depth understanding of corporate strategic planning and human resource development as well as marketing and sales expertise.
|
2009
|
2009
|
William C. Hanse, 82
|
Mr. Hanse served as Chairman of the Board of the Bank from November 2006 until April 2015 and of the Corporation from November 2006 until May 2015.
Mr. Hanse is currently Of Counsel for the law firm Hanse Anderson LLP. Mr. Hanse was a partner of the law firm Hanse & Hanse from 1990 to 2010.
As an attorney who practiced for more than 40 years (including acting as outside general counsel for the Bank for more than 25 years), Mr. Hanse brings a long history of legal knowledge and business and banking expertise to the Board of Directors.
|
1997
|
1985
|
Name and Age of Director
|
Principal Occupation During Past Five Years
|
Director of the Corporation Since
|
Director of the Bank Since
|
Margo Lane, 66
|
Since 2008, Ms. Lane has been employed by Collagen Matrix, Inc., a company that develops and markets medical device implants for tissue and organ repair and regeneration. Since 2016, Ms. Lane serves as Director of Marketing and Sales for Collagen Matrix, Inc. and is responsible for directing the marketing team and developing the company’s global marketing plan. Previously, Ms. Lane served as Senior Manager of Sales and Marketing for the company. In addition, Ms. Lane is active in community and local government in the Bank’s market area.
Ms. Lane’s depth of business experience in corporate marketing and sales as well as her relevant knowledge and experience in community and local government affairs in the Bank’s service area enables her to provide valuable input as a member of the Board of Directors.
|
1997
|
1994
|
John C. Scoccola, 52
|
Since 2010, Mr. Scoccola has been employed by Verizon, formerly as a Solution Architect Manager and, currently, as a Senior Manager of Global Engineering for Verizon Enterprise Solutions. In his current role, Mr. Scoccola is responsible for supporting global engineering outsourcing services for Verizon Enterprise Solutions. Prior to joining Verizon, from 2008 to 2010, Mr. Scoccola was the Director for Sales IT Infrastructure for Worldwide Supply Inc.
Mr. Scoccola’s extensive business experience in information technology as well as project management enhances the Board of Directors’ scope of expertise.
|
2014
|
2014
|
John L. Steen, 79
|
Since 1972, Mr. Steen has been the president of Steen Sales, Inc., a textile company. From 1972 to 2009, Mr. Steen was president of Dutch Valley Throwing Co., a textile company.
Mr. Steen brings to the Board decades of relevant experience as a business owner and operator with extensive executive level experience in sales and marketing. In addition, Mr. Steen is an experienced investor in real estate. He has been a director of the Corporation since the Corporation’s inception and previously served as Vice Chairman of the Board. The Board is enhanced by Mr. Steen’s vast knowledge of the history of the Corporation and the Bank and his understanding of the banking industry.
|
1997
|
1985
|
Robert Turner, 75
Secretary
|
Since 1966 to 2002, Mr. Turner was the president of The Turner Group, an insurance brokerage company. Mr. Turner is currently retired.
Mr. Turner brings years of experience in corporate management to the Board of Directors. Mr. Turner's expertise in employee benefits and insurance products is a valuable asset to the Board of Directors.
|
1997
|
1985
|
Name and Age of Director
|
Principal Occupation During Past Five Years
|
Director of the Corporation Since
|
Director of the Bank Since
|
William J.
Vander Eems, 67
|
Since 1973, Mr. Vander Eems has been the president of William Vander Eems, Inc., a general contracting company.
Mr. Vander Eems’ construction background, experience as a business owner and investor in real estate, and extensive business contacts provides the Board of Directors with general business, management, and real estate market expertise.
|
1997
|
1991
|
Paul Van Ostenbridge, 64
President and Chief Executive Officer
|
Mr. Van Ostenbridge has served as President and Chief Executive Officer of the Corporation since 1997 and as President and Chief Executive Officer of the Bank since 1985.
Mr. Van Ostenbridge’s years of service with the Corporation and the Bank provides the Board with significant business and banking knowledge and expertise. Mr. Van Ostenbridge serves on various charitable organizations and provides the Board with a unique perspective on the local market area.
|
1997
|
1985
|
Michael Westra, 51
|
Since 1991, Mr. Westra has been General Manager of Wayne Tile Corporation, which engages in the import and wholesale and retail sale of tile and stone. In 2009, Mr. Westra was also named President of Wayne Tile Corporation.
Prior to joining Wayne Tile Corporation, Mr. Westra, as a certified public accountant, gained experience auditing national corporations. Mr. Westra brings to the Board of Directors in-depth knowledge of generally accepted accounting principles and auditing standards as well as insight into the local market area.
|
2005
|
2005
|
Howard R. Yeaton, 62
Vice Chairman
|
Since 2003, Mr. Yeaton has been Managing Principal of Financial Consulting Strategies LLC, a firm providing strategic financial advice and services to emerging companies. In addition, Mr. Yeaton served as Interim Chief Financial Officer of Energous Corporation from July 2014 to July 2015 and has served as Interim Chief Financial Officer of Propel Media, Inc. since 2014, both clients of Financial Consulting Strategies, LLC. Prior to establishing Financial Consulting Strategies LLC, Mr. Yeaton served in various leadership positions for an international public consumer products corporation.
Mr. Yeaton brings years of general business, managerial and financial expertise to the Board of Directors. Mr. Yeaton contributes in-depth knowledge of generally accepted accounting principles and auditing standards to the Board of Directors.
|
2005
|
2005
|
Name and Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($) (a)
|
Non-
Equity
Incentive
Plan
Compen-
sation
($) (b)
|
All Other
Compen-
sation
($)
|
Total
($)
|
Paul Van Ostenbridge
President and
Chief Executive Officer
|
2016
2015
|
310,000
307,006
|
750
550
|
42,282
48,906
|
28,296
42,282
|
38,085(c)
35,880(d)
|
419,413
434,624
|
|
|
|
|
|
|
|
|
Claire M. Chadwick
Executive Vice President and
Chief Financial Officer
|
2016
2015
|
203,464
197,948
|
600
550
|
21,332
23,275
|
17,190
21,332
|
32,735(e)
29,488(f)
|
275,321
272,593
|
|
|
|
|
|
|
|
|
William S. Clement (g)
Executive Vice President and
Chief Lending Officer
|
2016
2015
|
196,372
15,315
|
3,000
-
|
-
-
|
16,194
-
|
16,795(h)
-
|
231,361
15,315
|
(a)
|
Amounts shown reflect the aggregate grant date fair value of restricted stock awards in accordance with ASC Topic 718. Additional information concerning the accounting for restricted stock is included in Note 1 and Note 12 of the Notes to the Consolidated Financial Statements, which are included in our Annual Report on Form 10-K. Under the 2010 Stock Incentive Plan and based on the level of the prior year financial performance of the Corporation and achievement of corporate, departmental and individual performance goals and objectives, in March of 2016, 7,341 and 3,704 restricted shares of Common Stock having aggregate grant date values of $42,282 and $21,332 were issued to Mr. Van Ostenbridge and Ms. Chadwick, respectively. In March of 2015, 8,941 and 4,255 restricted shares of Common Stock having aggregate grant date values of $48,906 and $23,275 were issued to Mr. Van Ostenbridge and Ms. Chadwick, respectively. These awards of restricted shares of Common Stock will vest over a three-year period commencing on the first anniversary of the grant date.
|
(b)
|
Consists of bonuses accrued during the years reported, which were paid no later than the first quarter of the subsequent year.
|
(c)
|
The amounts disclosed for Mr. Van Ostenbridge for fiscal year 2016 include 401(k) plan contributions of $6,558, profit sharing plan contributions of $12,245, life insurance and long term disability and care premiums of $3,982, medical and vision insurance contributions of $10,547 and the imputed value of the car allowance of $4,753.
|
(d)
|
The amounts disclosed for Mr. Van Ostenbridge for fiscal year 2015 include 401(k) plan contributions of $6,807, profit sharing plan contributions of $10,119, life insurance and long term disability and care premiums of $3,980, medical and vision insurance contributions of $9,685 and the imputed value of the car allowance of $5,289.
|
(e)
|
The amounts disclosed for Ms. Chadwick for fiscal year 2016 include 401(k) plan contributions of $5,087, profit sharing plan contributions of $10,263, life insurance and long-term disability and care premiums of $2,094 and medical insurance contributions of $15,291.
|
(f)
|
The amounts disclosed for Ms. Chadwick for fiscal year 2015 include 401(k) plan contributions of $5,149, profit sharing plan contributions of $8,226, life insurance and long-term disability and care premiums of $2,092 and medical insurance contributions of $14,021.
|
(g)
|
Mr. Clement assumed his position with the Bank and the Corporation on December 8, 2015.
|
(h)
|
The amounts disclosed for Mr. Clement for fiscal year 2016 include 401(k) plan contributions of $2,722, life insurance and long-term disability and care premiums of $2,013 and medical insurance contributions of $12,060.
|
Name
|
Stock Awards
|
|
|
Number of
Shares of Stock
that Have Not
Vested
(#)
|
Market Value of
Shares of Stock
that Have Not
Vested
($)
|
Paul Van Ostenbridge
President and Chief Executive Officer
|
16,947
|
$166,081
|
|
|
|
Claire M. Chadwick
Executive Vice President and Chief Financial Officer
|
8,343
|
$81,761
|
|
|
|
William S. Clement
Executive Vice President and Chief Lending Officer
|
—
|
$—
|
Name
|
|
|
|
Fees Earned or
Paid in Cash ($) (a)
|
Wayne Aoki
|
|
|
|
31,800
|
Richard W. Culp
|
|
|
|
45,600
|
William C. Hanse
|
|
|
|
35,400
|
Margo Lane
|
|
|
|
28,500
|
John C. Scoccola
|
|
|
|
33,600
|
John L. Steen
|
|
|
|
33,750
|
Robert J. Turner
|
|
|
|
28,200
|
William J. Vander Eems
|
|
|
|
36,300
|
Michael Westra
|
|
|
|
34,950
|
Howard R. Yeaton
|
|
|
|
36,150
|
|
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 (a))
|
||||
|
(a)
|
|
(b)
|
|
(c)
|
||||
|
|
|
|
|
|
||||
Equity compensation plans
approved by security holders
|
—
|
|
|
$
|
—
|
|
|
261,406
|
|
Equity compensation plans
not approved by security holders
|
—
|
|
|
—
|
|
|
517,504
|
|
|
|
—
|
|
|
$
|
—
|
|
|
778,910
|
|
Name of Beneficial Owner (1)
|
Number of Shares
Beneficially Owned (2)
|
Percent
of Class
|
||
|
|
|
||
Abraham Van Wingerden (former Director) (3)
|
314,495
|
|
5.13
|
%
|
Wayne Aoki, Director
|
25,765
|
|
*
|
|
Richard W. Culp, Chairman
|
41,745
|
|
*
|
|
William C. Hanse, Director (4)
|
134,083
|
|
2.19
|
%
|
Margo Lane, Director (5)
|
69,534
|
|
1.13
|
%
|
John C. Scoccola
|
11,926
|
|
*
|
|
John L. Steen, Director
|
109,212
|
|
1.78
|
%
|
Robert J. Turner, Director and Secretary (6)
|
167,464
|
|
2.73
|
%
|
William J. Vander Eems, Director (7)
|
210,150
|
|
3.43
|
%
|
Paul Van Ostenbridge, President, Chief Executive
Officer and Director (8)
|
77,972
|
|
1.27
|
%
|
Michael Westra, Director
|
37,594
|
|
*
|
|
Howard R. Yeaton, Vice Chairman (9)
|
12,701
|
|
*
|
|
Claire M. Chadwick, Executive Vice President and
Chief Financial Officer (10)
|
14,630
|
|
*
|
|
William S. Clement, Executive Vice President and
Chief Lending Officer (11)
|
1,877
|
|
*
|
|
Directors and Executive Officers of the Corporation
and Bank as a group (17 persons)
|
962,184
|
|
15.69
|
%
|
*
|
Indicates less than 1% of the outstanding shares of the Corporation’s Common Stock.
|
(1)
|
Unless otherwise noted, the address of each beneficial owner is c/o Stewardship Financial Corporation, 630 Godwin Avenue, Midland Park, New Jersey 07432-1405.
|
(2)
|
Beneficial ownership as reported in the table above has been determined in accordance with Item 403 of Regulation S-K and Rule 13d-3 of the Securities Exchange Act of 1934 and based upon 6,132,774 shares of Common Stock outstanding as of the Record Date. Beneficially owned shares include shares over which the named person exercises either sole or shared voting power or sole or shared investment power. They also include shares owned (i) by a spouse, minor children or by relatives sharing the same home, (ii) by entities owned or controlled by the named person and (iii) if the named person has the right to acquire such shares within 60 days by the exercise of any right or option. Unless otherwise noted, all shares are owned of record and beneficially by the named person, either directly or through the Corporation’s dividend reinvestment plan for its shareholders.
|
(3)
|
Includes 246,586 shares held jointly by Mr. Van Wingerden and his spouse.
|
(4)
|
Includes 30,462 shares held jointly by Mr. Hanse and his spouse and 12,124 shares held by Mr. Hanse’s spouse in her own name. Mr. Hanse disclaims beneficial ownership of the shares held by his spouse.
|
(5)
|
Includes 17,186 shares held jointly by Ms. Lane and her spouse.
|
(6)
|
Includes 35,862 shares held jointly by Mr. Turner and his spouse and 4,653 shares held by Mr. Turner’s spouse in her own name. Mr. Turner disclaims beneficial ownership of the shares held by his spouse.
|
(7)
|
Includes 168,648 shares held by Mr. Vander Eem’s spouse in her own name. Mr. Vander Eems disclaims beneficial ownership of the shares held by his spouse.
|
(8)
|
Includes 11,144 restricted shares held by Mr. Van Ostenbridge and 3,345 shares held by Mr. Van Ostenbridge’s spouse in her name. Mr. Van Ostenbridge disclaims beneficial ownership of the shares held by his spouse.
|
(9)
|
Includes 477 shares held jointly by Mr. Yeaton and his spouse.
|
(10)
|
Includes 5,865 restricted shares.
|
(11)
|
Includes 1,824 restricted shares.
|
|
2016
|
|
2015
|
Audit Fees (1)
|
$240,000
|
|
$234,000
|
Audit Related Fees (2)
|
$0
|
|
$0
|
Tax Fees (3)
|
$34,000
|
|
$28,000
|
All Other Fees (4)
|
$0
|
|
$5,000
|
(1)
|
Audit fees consist principally of audit work performed on the consolidated financial statements, as well as quarterly reviews of financial statements included in the Corporation’s Forms 10-Q.
|
(2)
|
The Corporation generally does not engage KPMG LLP for “Audit Related” services.
|
(3)
|
Tax fees consist principally of tax compliance and reporting.
|
(4)
|
Fee associated with KPMG LLP consent for incorporation in a Registration Statement on Form S-3.
|
|
Report of Independent Registered Public Accounting Firm for Fiscal Year 2016
|
|
|
|
|
|
|
|
Consolidated Statements of Financial Condition as of December 31, 2016 and 2015
|
|
|
|
|
|
|
|
Consolidated Statements of Income for the years ended December 31, 2016 and 2015
|
|
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income for the years ended December 31, 2016 and 2015
|
|
|
|
|
|
|
|
Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2016 and 2015
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015
|
|
|
|
|
|
|
|
Notes to Consolidated Financial Statements
|
|
|
Exhibit
|
|
|
Number
|
Description of Exhibits
|
|
|
|
|
3(i).1
|
Restated Certificate of Incorporation of Stewardship Financial Corporation (1)
|
|
3(i).2
|
Certificate of Amendment to the Certificate of Incorporation of Stewardship Financial Corporation (2)
|
|
3(ii)
|
Amended and Restated By-Laws of Stewardship Financial Corporation (3)
|
|
4.1
|
Form of 6.75% Subordinated Note dated as of August 28, 2015 issued by Stewardship Financial Corporation (4)
|
|
10.1
|
Stewardship Financial Corporation 1995 Employee Stock Purchase Plan (5)
|
|
10.2
|
Amended and Restated Director Stock Plan (6)
|
|
10.3
|
Stewardship Financial Corporation Dividend Reinvestment Plan, as amended and restated effective May 21, 2015 (7)
|
|
10.4
|
Stewardship Financial Corporation 2010 Stock Incentive Plan (8)
|
|
10.5
|
Subordinated Note Purchase Agreement dated as of August 28, 2015 between the Corporation and the Purchasers identified therein (9)
|
|
10.6
|
Change in Control Severance Agreement dated November 12, 2013 between the Corporation and Paul Van Ostenbridge (10)
|
|
10.7
|
Change in Control Severance Agreement dated November 12, 2013 between the Corporation and Claire M. Chadwick (11)
|
|
10.8
|
Change in Control Severance Agreement dated March 26, 2015 between the Corporation and Peter Ameen (12)
|
|
10.9
|
Change in Control Severance Agreement dated March 21, 2017 between the Corporation and William S. Clement
|
|
10.10
|
Change in Control Severance Agreement dated March 21, 2017 between the Corporation and Julie E. Holland
|
|
10.11
|
Change in Control Severance Agreement dated March 21, 2017 between the Corporation and James H. Shields
|
|
10.12
|
Change in Control Severance Agreement dated March 21, 2017 between the Corporation and Gail K. Tilstra
|
|
13.0
|
Annual Report to Shareholders for the year ended December 31, 2016
|
|
21.0
|
Subsidiaries of the Registrant
|
|
23.0
|
Consent of KPMG LLP
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101
|
The following materials from Stewardship Financial Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Financial Condition, (ii) Consolidated Statements of Income, (iii) Consolidated Statement of Changes in Shareholders’ Equity, (iv) Consolidated Statements of Comprehensive Income, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements (13)
|
(1)
|
Incorporated by reference from Exhibit 3(i).1 to the Corporation’s Quarterly Report on Form 10-Q, filed May 15, 2009.
|
(2)
|
Incorporated by reference from Exhibit 3.1 to the Corporation’s Current Report on Form 8-K, filed September 7, 2011.
|
(3)
|
Incorporated by reference from Exhibit 3.1(i) to the Corporation’s Annual Report on Form 10-K, filed March 28, 2013.
|
(4)
|
Incorporated by reference to Exhibit 4.1 to the Corporation’s Current Report on Form 8-K filed with the SEC on September 1, 2015.
|
(5)
|
Incorporated by reference from Exhibit 4(c) to the Corporation’s Registration Statement on Form S-8, Registration No. 333-20793, filed January 31, 1997.
|
(6)
|
Incorporated by reference from Exhibit 10(viii) to the Corporation’s Annual Report on Form 10-KSB, filed March 31, 1999.
|
(7)
|
Incorporated by reference from Exhibit 4.2 to the Corporation’s Registration Statement on Form S-3D, Registration No. 333-204352, filed May 21, 2015.
|
(8)
|
Incorporated by reference from Exhibit 10.1 to the Corporation’s Current Report on Form 8-K, filed May 19, 2010.
|
(9)
|
Incorporated by reference to Exhibit 10.1 to the Corporation’s Current Report on Form 8-K filed with the SEC on September 1, 2015.
|
(10)
|
Incorporated by reference from Exhibit 10.1 to the Corporation’s Quarterly Report on Form 10-Q, filed November 13, 2013.
|
(11)
|
Incorporated by reference from Exhibit 10.2 to the Corporation’s Quarterly Report on Form 10-Q, filed November 13, 2013.
|
(12)
|
Incorporated by reference from Exhibit 10.13 to the Corporation's Annual Report on Form 10-K, filed March 27, 2015.
|
(13)
|
This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filing, except to the extent the Corporation specifically incorporates it by reference.
|
|
STEWARDSHIP FINANCIAL CORPORATION
|
|
|
|
|
|
By:
|
/s/ Paul Van Ostenbridge
|
|
|
Paul Van Ostenbridge
|
|
|
Chief Executive Officer and Director
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Paul Van Ostenbridge
|
|
Chief Executive Officer
|
|
March 22, 2017
|
|
Paul Van Ostenbridge
|
|
and Director
|
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
/s/ Claire M. Chadwick
|
|
Chief Financial Officer
|
|
March 22, 2017
|
|
Claire M. Chadwick
|
|
(Principal Financial Officer and
|
|
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
|
/s/ Wayne Aoki
|
|
Director
|
|
March 22, 2017
|
|
Wayne Aoki
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Richard W. Culp
|
|
Chairman
|
|
March 22, 2017
|
|
Richard W. Culp
|
|
|
|
|
|
|
|
|
|
|
|
/s/ William Hanse
|
|
Director
|
|
March 22, 2017
|
|
William Hanse
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Margo Lane
|
|
Director
|
|
March 22, 2017
|
|
Margo Lane
|
|
|
|
|
|
|
|
|
|
|
|
/s/ John C. Scoccola
|
|
Director
|
|
March 22, 2017
|
|
John C. Scoccola
|
|
|
|
|
|
|
|
|
|
|
|
/s/ John L. Steen
|
|
Director
|
|
March 22, 2017
|
|
John L. Steen
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Robert Turner
|
|
Secretary and Director
|
|
March 22, 2017
|
|
Robert Turner
|
|
|
|
|
|
|
|
|
|
|
|
/s/ William J. Vander Eems
|
|
Director
|
|
March 22, 2017
|
|
William J. Vander Eems
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Michael Westra
|
|
Director
|
|
March 22, 2017
|
|
Michael Westra
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Howard Yeaton
|
|
Vice Chairman
|
|
March 22, 2017
|
|
Howard Yeaton
|
|
|
|
|
To the Company
:
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Atlantic Stewardship Bank
630 Godwin Avenue
Midland Park, NJ 07432-1405
Attention: Human Resources Department
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To the Executive
:
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At the address (or to the facsimile number) last shown on the records of the Company
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•
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the New Jersey Conscientious Employee Protection Act;
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•
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the New Jersey Family Leave Act;
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•
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the New Jersey Wage Payment Law;
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•
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the New Jersey Wage and Hour Law;
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•
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Any federal, state or local laws against discrimination or protecting whistleblowers, or any other federal, state or local law or common law relating to employment, wages, hours, or any other terms and conditions of employment;
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To the Company
:
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Atlantic Stewardship Bank
630 Godwin Avenue
Midland Park, NJ 07432-1405
Attention: Human Resources Department
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To the Executive
:
|
At the address (or to the facsimile number) last shown on the records of the Company
|
•
|
the New Jersey Conscientious Employee Protection Act;
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•
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the New Jersey Family Leave Act;
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•
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the New Jersey Wage Payment Law;
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•
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the New Jersey Wage and Hour Law;
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•
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Any federal, state or local laws against discrimination or protecting whistleblowers, or any other federal, state or local law or common law relating to employment, wages, hours, or any other terms and conditions of employment;
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To the Company
:
|
Atlantic Stewardship Bank
630 Godwin Avenue
Midland Park, NJ 07432-1405
Attention: Human Resources Department
|
To the Executive
:
|
At the address (or to the facsimile number) last shown on the records of the Company
|
•
|
the New Jersey Conscientious Employee Protection Act;
|
•
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the New Jersey Family Leave Act;
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•
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the New Jersey Wage Payment Law;
|
•
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the New Jersey Wage and Hour Law;
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•
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Any federal, state or local laws against discrimination or protecting whistleblowers, or any other federal, state or local law or common law relating to employment, wages, hours, or any other terms and conditions of employment;
|
To the Company
:
|
Atlantic Stewardship Bank
630 Godwin Avenue
Midland Park, NJ 07432-1405
Attention: Human Resources Department
|
To the Executive
:
|
At the address (or to the facsimile number) last shown on the records of the Company
|
•
|
the New Jersey Conscientious Employee Protection Act;
|
•
|
the New Jersey Family Leave Act;
|
•
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the New Jersey Wage Payment Law;
|
•
|
the New Jersey Wage and Hour Law;
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•
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Any federal, state or local laws against discrimination or protecting whistleblowers, or any other federal, state or local law or common law relating to employment, wages, hours, or any other terms and conditions of employment;
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Parent
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Subsidiary
|
|
Percentage
of Ownership
|
|
State
of Incorporation or Organization
|
|
|
|
|
|
|
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Stewardship Financial Corporation
|
|
Atlantic Stewardship Bank
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Stewardship Financial Corporation
|
|
Stewardship Statutory Trust I
|
|
100%
|
|
Delaware
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Stewardship Investment Corporation
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Stewardship Realty, LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Atlantic Stewardship Insurance Co., LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
First Presidential Properties LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Valley View Properties I LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Triangle Corners LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Blue Meadow LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Haledon Park LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Sparrow Holdings LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Elsie Properties LLC
|
|
100%
|
|
New Jersey
|
|
|
|
|
|
|
|
Atlantic Stewardship Bank
|
|
Foundation Realty LLC
|
|
100%
|
|
New Jersey
|
1.
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I have reviewed this Annual Report on Form 10-K of Stewardship Financial Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
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The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
1.
|
I have reviewed this Annual Report on Form 10-K of Stewardship Financial Corporation;
|
2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(1)
|
the Annual Report on Form 10-K of the Corporation for the year ended December 31, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
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(2)
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
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Dated: March 22, 2017
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/s/ Paul Van Ostenbridge
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Paul Van Ostenbridge
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President and Chief Executive Officer
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Dated: March 22, 2017
|
/s/ Claire M. Chadwick
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Claire M. Chadwick
|
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Executive Vice President and
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Chief Financial Officer
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