☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Virginia | 54-1265373 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Trading Symbol | ||
Common Stock, $5.00 par value | OPOF | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||
Emerging growth company | ☐ |
PART I | Page | |
Item 1. | ||
Item 1A. | 12 | |
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. | ||
2019 Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2019 |
ALLL | Allowance for Loan and Lease Losses |
ASC | Accounting Standards Codification |
ASU | Accounting Standards Update |
Bank | The Old Point National Bank of Phoebus |
The CARES Act | The Coronavirus Aid, Relief, and Economic Security Act |
CET1 | Common Equity Tier 1 |
Citizens | Citizens National Bank |
Company | Old Point Financial Corporation and its subsidiaries |
CBB | Community Bankers Bank |
CBLRF | Community Bank Leverage Ratio Framework |
EPS | earnings per share |
ESPP | Employee Stock Purchase Plan |
Exchange Act | Securities Exchange Act of 1934, as amended |
FASB | Financial Accounting Standards Board |
FHLB | Federal Home Loan Bank |
Federal Reserve | Board of Governors of the Federal Reserve System |
FRB | Federal Reserve Bank |
GAAP | Generally Accepted Accounting Principles |
Incentive Stock Plan | Old Point Financial Corporation 2016 Incentive Stock Plan |
OAEM | Other Assets Especially Mentioned |
OREO | Other Real Estate Owned |
PPP | Paycheck Protection Program |
PPPLF | Paycheck Protection Program Liquidity Facility |
SEC | Securities and Exchange Commission |
SBA | Small Business Administration |
TDR | Troubled Debt Restructuring |
Trust | Old Point Trust & Financial Services N.A. |
Item 1. | Business |
Item 1A. | Risk Factors |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
Name (Age) And Present Position | Served in Current Position Since | Principal Occupation During Past Five Years |
Robert F. Shuford, | ||
Chairman, President & Chief Executive Officer Old Point Financial Corporation | Chairman of the Board, President & Chief Executive Officer of the Company | |
since 2020. Executive Vice President/Bank of the Company since 2015; Chief Operating Officer & Senior Vice President/Operations of the Company from 2003 to 2015 President & Chief Executive Officer of the Bank since 2015; Senior Executive Vice President & Chief Operating Officer of the Bank from 2012 to 2015; Executive Vice President & Chief Operating Officer of the Bank from 2003 to 2012; Chairman of the Board of the Bank | ||
Elizabeth T. Beale (48) | ||
Chief Financial Officer & Senior Vice President/Finance Old Point Financial Corporation | Chief Financial Officer & Senior Vice President/Finance of the Company; a Certified Public Chief Financial Officer & Executive Vice President of the Bank | |
Donald S. Buckless (56) | ||
Chief Lending Officer & Senior Vice President Old Point Financial Corporation | 2016 | Chief Lending Officer & Senior Vice President of the Company since 2016 Chief Lending Officer & Executive Vice President of the Bank since 2016; Chief Lending Officer & Senior Vice President of the Bank from 2015 to 2016; Senior Vice President/Commercial Lending Officer of the Bank from May 2012 to 2015; Senior Vice President of SunTrust from December 2000 to May 2012 |
Thomas L. Hotchkiss (65) | ||
Chief Credit Officer & Executive Vice President Old Point National Bank | 2019 | Chief Credit Officer & Executive Vice President of the Bank since 2019; Chief Credit Officer of finanical institution in Maryland from February 2015 to February 2019; Managing director of Hotchkiss & Associates Analytics, LLC from June 2011 to January 2015 |
Eugene M. Jordan, II | ||
Secretary to the Board & Executive Vice President/Trust Old Point Financial Corporation | 2003 | Secretary to the Board & Executive Vice President/Trust of the Company since 2015; Executive Vice President/ Trust of the Company from 2003 to 2015 President and Chief Executive Officer of Trust since 2003; Chairman of the Trust Board |
Susan R. | ||
Chief Old Point National Bank | 2019 | Chief Operating Officer & Executive Vice President of the Bank since 2019; President & Founder of Ralston Coaching and Consulting, LLC from 2018 to 2019; Chief Operating Officer & Senior Vice President of Dollar Bank from 2016 to 2018; President & Chief Executive Officer of Bank @lantec from 2004 to 2016 |
Joseph R. Witt (60) | ||
Executive Vice President/Financial Service Old Point Financial Corporation | 2008 | Executive Vice President/Financial Services beginning in 2020. Chief Business Development Officer & Senior Vice President of the Company since 2015; Chief Administrative Officer & Senior Vice President/Administration of the Company from 2012 to 2015; Senior Vice President/ Corporate Banking/Human Resources of the Company from 2010 to 2012; Senior Vice President/Corporate Banking of the Company from 2008 to 2010 Chief Strategy Officer & President, Financial Services of the Bank beginning in 2020. Senior Executive Vice President & Chief Business Development Officer of the Bank |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Item 6. | Selected Financial Data |
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
At and for the Years ended December 31, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(dollars in thousands except per share data) | ||||||||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||||||
Interest income | $ | 38,257 | $ | 32,934 | $ | 29,826 | $ | 30,295 | $ | 30,289 | ||||||||||
Interest expense | 4,969 | 3,012 | 2,574 | 3,632 | 3,849 | |||||||||||||||
Net interest income | 33,288 | 29,922 | 27,252 | 26,663 | 26,440 | |||||||||||||||
Provision for loan losses | 2,861 | 4,160 | 1,930 | 1,025 | 600 | |||||||||||||||
Net interest income after provision for loan losses | 30,427 | 25,762 | 25,322 | 25,638 | 25,840 | |||||||||||||||
Noninterest income | 13,271 | 13,307 | 12,746 | 12,382 | 11,862 | |||||||||||||||
Noninterest expenses | 38,500 | 39,195 | 34,111 | 34,332 | 33,390 | |||||||||||||||
Income before income taxes | 5,198 | (126 | ) | 3,957 | 3,688 | 4,312 | ||||||||||||||
Income tax expense | 279 | (97 | ) | 160 | 54 | 196 | ||||||||||||||
Net income (loss) | $ | 4,919 | $ | (29 | ) | $ | 3,797 | $ | 3,634 | $ | 4,116 | |||||||||
FINANCIAL CONDITION | ||||||||||||||||||||
Total assets | $ | 1,038,183 | $ | 981,826 | $ | 902,966 | $ | 896,787 | $ | 876,280 | ||||||||||
Securities available for sale, at fair value | 148,247 | 157,121 | 199,365 | 214,192 | 139,346 | |||||||||||||||
Loans held for investment, net of deferred fees and costs | 774,009 | 738,540 | 603,882 | 568,475 | 535,994 | |||||||||||||||
Allowance for loan losses | 10,111 | 9,448 | 8,245 | 7,738 | 7,075 | |||||||||||||||
Deposits | 843,144 | 783,594 | 784,502 | 746,471 | 716,654 | |||||||||||||||
Total borrowings | 88,325 | 98,193 | 18,704 | 50,950 | 67,816 | |||||||||||||||
Total liabilities | 936,177 | 885,438 | 808,976 | 803,611 | 787,783 | |||||||||||||||
Stockholders' equity | 102,006 | 96,388 | 93,990 | 93,176 | 88,497 | |||||||||||||||
PERTINENT RATIOS | ||||||||||||||||||||
Return on average assets | 0.48 | % | 0.00 | % | 0.43 | % | 0.41 | % | 0.47 | % | ||||||||||
Return on average equity | 4.93 | % | (0.03 | %) | 3.99 | % | 4.02 | % | 4.81 | % | ||||||||||
Net interest margin (FTE) (1) | 3.62 | % | 3.64 | % | 3.66 | % | 3.56 | % | 3.57 | % | ||||||||||
Efficiency ratio | 82.69 | % | 90.67 | % | 85.28 | % | 87.93 | % | 87.18 | % | ||||||||||
Tier 1 capital to risk weighted assets | 11.44 | % | 11.18 | % | 13.39 | % | 13.78 | % | 14.36 | % | ||||||||||
Total capital to risk weighted assets | 12.59 | % | 12.28 | % | 14.51 | % | 14.89 | % | 15.44 | % | ||||||||||
Leverage ratio | 9.77 | % | 9.98 | % | 10.68 | % | 10.93 | % | 10.75 | % | ||||||||||
Tangible common equity / tangible assets | 9.65 | % | 9.76 | % | 10.41 | % | 10.39 | % | 10.10 | % | ||||||||||
Cash dividends declared | $ | 0.44 | $ | 0.44 | $ | 0.40 | $ | 0.34 | $ | 0.26 | ||||||||||
Book value | $ | 19.68 | $ | 19.20 | $ | 18.94 | $ | 18.79 | $ | 17.85 | ||||||||||
ASSET QUALITY | ||||||||||||||||||||
Nonaccrual loans | $ | 12,141 | $ | 12,882 | $ | 7,159 | $ | 4,582 | $ | 5,570 | ||||||||||
OREO | $ | 83 | $ | - | $ | 1,067 | $ | 2,741 | $ | 5,106 | ||||||||||
ALLL / total outstanding loans | 1.31 | % | 1.28 | % | 1.37 | % | 1.36 | % | 1.32 | % | ||||||||||
Nonaccrual loans / total loans | 1.57 | % | 1.74 | % | 1.19 | % | 0.81 | % | 1.04 | % | ||||||||||
ALLL / nonaccrual loans | 83.28 | % | 73.34 | % | 115.17 | % | 168.88 | % | 127.02 | % | ||||||||||
NPAs / total outstanding loans | 1.90 | % | 2.18 | % | 1.84 | % | 1.88 | % | 2.20 | % | ||||||||||
Net charge-offs / total average loans | 0.29 | % | 0.44 | % | 0.24 | % | 0.06 | % | 0.07 | % | ||||||||||
Provision / total average loans | 0.37 | % | 0.62 | % | 0.33 | % | 0.18 | % | 0.12 | % | ||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.96 | $ | (0.01 | ) | $ | 0.77 | $ | 0.73 | $ | 0.83 | |||||||||
Diluted earnings (loss) per share | $ | 0.96 | $ | (0.01 | ) | $ | 0.77 | $ | 0.73 | $ | 0.83 | |||||||||
Cash dividends declared | $ | 0.44 | $ | 0.44 | $ | 0.40 | $ | 0.34 | $ | 0.26 | ||||||||||
Market value per share | $ | 21.83 | $ | 29.75 | $ | 25.00 | $ | 17.16 | $ | 15.00 | ||||||||||
Book value per share | $ | 19.68 | $ | 19.20 | $ | 18.94 | $ | 18.79 | $ | 17.85 | ||||||||||
Tangible book value per share | $ | 19.28 | $ | 19.08 | $ | 18.94 | $ | 18.79 | $ | 17.85 | ||||||||||
Price to earnings ratio, diluted | 22.74 | (2,975.00 | ) | 32.47 | 23.51 | 18.07 | ||||||||||||||
Price to book value ratio | 1.11 | 1.55 | 1.32 | 0.91 | 0.84 | |||||||||||||||
Dividend payout ratio | 45.83 | % | (4,400.00 | %) | 51.95 | % | 46.58 | % | 31.33 | % | ||||||||||
Weighted average shares outstanding, basic | 5,141,364 | 4,991,060 | 4,959,173 | 4,959,009 | 4,959,009 | |||||||||||||||
Weighted average shares outstanding, diluted | 5,141,429 | 4,991,060 | 4,960,934 | 4,959,009 | 4,959,009 | |||||||||||||||
(1) Computed on the fully tax-equivalent basis using a 21% rate for 2018 and a 34% rate for 2017, 2016, 2015, and 2014. |
Years ended December 31, | ||||||||||||||||||||
(dollars in thousands except per share data) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||||||
Interest income | $ | 40,009 | $ | 40,241 | $ | 38,219 | $ | 32,934 | $ | 29,826 | ||||||||||
Interest expense | 5,292 | 6,422 | 4,969 | 3,012 | 2,574 | |||||||||||||||
Net interest income | 34,717 | 33,819 | 33,250 | 29,922 | 27,252 | |||||||||||||||
Provision for loan losses | 1,000 | 318 | 2,861 | 4,160 | 1,930 | |||||||||||||||
Net interest income after provision for loan losses | 33,717 | 33,501 | 30,389 | 25,762 | 25,322 | |||||||||||||||
Noninterest income | 14,698 | 14,077 | 13,309 | 13,307 | 12,746 | |||||||||||||||
Noninterest expenses | 42,505 | 38,638 | 38,500 | 39,195 | 34,111 | |||||||||||||||
Income before income taxes | 5,910 | 8,940 | 5,198 | (126 | ) | 3,957 | ||||||||||||||
Income tax expense | 521 | 1,080 | 279 | (97 | ) | 160 | ||||||||||||||
Net income (loss) | $ | 5,389 | $ | 7,860 | $ | 4,919 | $ | (29 | ) | $ | 3,797 | |||||||||
FINANCIAL CONDITION | ||||||||||||||||||||
Total assets | $ | 1,226,191 | $ | 1,054,488 | $ | 1,038,183 | $ | 981,826 | $ | 902,966 | ||||||||||
Securities available for sale, at fair value | 186,409 | 145,715 | 148,247 | 157,121 | 199,365 | |||||||||||||||
Loans held for investment | 836,300 | 747,865 | 774,009 | 738,540 | 603,882 | |||||||||||||||
Allowance for loan losses | 9,541 | 9,660 | 10,111 | 9,448 | 8,245 | |||||||||||||||
Deposits | 1,067,236 | 889,496 | 843,144 | 783,594 | 784,502 | |||||||||||||||
Total borrowings | 36,519 | 50,402 | 88,325 | 98,193 | 18,704 | |||||||||||||||
Total liabilities | 1,109,046 | 944,732 | 936,177 | 885,438 | 808,976 | |||||||||||||||
Stockholders’ equity | 117,145 | 109,756 | 102,006 | 96,388 | 93,990 | |||||||||||||||
PERTINENT RATIOS | ||||||||||||||||||||
Return on average assets | 0.45 | % | 0.76 | % | 0.48 | % | 0.00 | % | 0.43 | % | ||||||||||
Return on average equity | 4.68 | % | 7.33 | % | 4.93 | % | -0.03 | % | 3.99 | % | ||||||||||
Net interest margin (FTE) (1) | 3.19 | % | 3.61 | % | 3.62 | % | 3.64 | % | 3.66 | % | ||||||||||
Efficiency ratio | 86.02 | % | 80.67 | % | 82.69 | % | 90.67 | % | 85.28 | % | ||||||||||
Tier 1 capital (to risk weighted assets) (2) | 11.69 | % | 11.73 | % | 10.90 | % | 11.18 | % | 13.39 | % | ||||||||||
Total capital (to risk weighted assets) (2) | 12.77 | % | 12.86 | % | 12.06 | % | 12.28 | % | 14.51 | % | ||||||||||
Leverage Ratio (2) | 8.56 | % | 9.73 | % | 9.34 | % | 9.98 | % | 10.68 | % | ||||||||||
Cash dividends declared | $ | 0.48 | $ | 0.48 | $ | 0.44 | $ | 0.44 | $ | 0.40 | ||||||||||
ASSET QUALITY | ||||||||||||||||||||
Nonaccrual loans | $ | 1,214 | $ | 6,037 | $ | 12,141 | $ | 12,882 | $ | 7,159 | ||||||||||
OREO | - | - | 83 | - | 1,067 | |||||||||||||||
ALL/total outstanding loans | 1.14 | % | 1.29 | % | 1.31 | % | 1.28 | % | 1.37 | % | ||||||||||
Nonaccrual loans/total loans | 0.15 | % | 0.81 | % | 1.57 | % | 1.74 | % | 1.19 | % | ||||||||||
ALL/nonaccrual loans | 785.91 | % | 160.01 | % | 83.28 | % | 73.34 | % | 115.17 | % | ||||||||||
NPAs/total outstanding loans | 0.23 | % | 0.95 | % | 1.90 | % | 2.18 | % | 1.84 | % | ||||||||||
Net charge-offs/total average loans | 0.13 | % | 0.10 | % | 0.29 | % | 0.44 | % | 0.24 | % | ||||||||||
Provision/total average loans | 0.12 | % | 0.04 | % | 0.37 | % | 0.62 | % | 0.33 | % | ||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.03 | $ | 1.51 | $ | 0.96 | $ | (0.01 | ) | $ | 0.77 | |||||||||
Diluted earnings (loss) per share | 1.03 | 1.51 | 0.96 | (0.01 | ) | 0.77 | ||||||||||||||
Cash dividends declared | 0.48 | 0.48 | 0.44 | 0.44 | 0.40 | |||||||||||||||
Market value per share | 18.96 | 27.49 | 21.83 | 29.75 | 25.00 | |||||||||||||||
Book value per share | 22.42 | 21.11 | 19.68 | 19.20 | 18.94 | |||||||||||||||
Price to earnings ratio, diluted | 18.35 | 18.18 | 22.74 | (2,975.00 | ) | 32.47 | ||||||||||||||
Price to book value ratio | 0.85 | 1.30 | 1.11 | 1.55 | 1.32 | |||||||||||||||
Dividend payout ratio | 46.46 | % | 31.74 | % | 45.83 | % | -4400.00 | % | 51.95 | % | ||||||||||
Weighted average shares outstanding, basic | 5,216,237 | 5,196,812 | 5,141,364 | 4,991,060 | 4,959,173 | |||||||||||||||
Weighted average shares outstanding, diluted | 5,216,441 | 5,196,853 | 5,141,429 | 4,991,060 | 4,960,934 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
TABLE I | ||||||||||||||||||||||||
AVERAGE BALANCE SHEETS, NET INTEREST INCOME* AND RATES* | ||||||||||||||||||||||||
Years ended December 31, | 2018 | 2017 | ||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans * | $ | 768,960 | $ | 34,504 | 4.49 | % | $ | 673,015 | $ | 29,318 | 4.36 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 95,752 | 2,080 | 2.17 | % | 102,644 | 1,964 | 1.91 | % | ||||||||||||||||
Tax-exempt * | 50,426 | 1,547 | 3.07 | % | 67,403 | 2,426 | 3.60 | % | ||||||||||||||||
Total investment securities | 146,178 | 3,627 | 2.48 | % | 170,047 | 4,390 | 2.58 | % | ||||||||||||||||
Interest-bearing due from banks | 9,358 | 198 | 2.12 | % | 1,343 | 15 | 1.12 | % | ||||||||||||||||
Federal funds sold | 1,150 | 21 | 1.83 | % | 921 | 8 | 0.87 | % | ||||||||||||||||
Other investments | 4,083 | 291 | 7.13 | % | 2,348 | 155 | 6.60 | % | ||||||||||||||||
Total earning assets | 929,729 | 38,641 | 4.16 | % | 847,674 | 33,886 | 4.00 | % | ||||||||||||||||
Allowance for loan losses | (10,254 | ) | (8,950 | ) | ||||||||||||||||||||
919,475 | 838,724 | |||||||||||||||||||||||
Cash and due from banks | 21,518 | 20,723 | ||||||||||||||||||||||
Bank premises and equipment, net | 37,531 | 38,428 | ||||||||||||||||||||||
Other assets | 42,051 | 41,171 | ||||||||||||||||||||||
Total assets | $ | 1,020,575 | $ | 939,046 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 28,246 | $ | 10 | 0.04 | % | $ | 27,909 | $ | 10 | 0.04 | % | ||||||||||||
Money market deposit accounts | 242,025 | 542 | 0.22 | % | 233,295 | 291 | 0.12 | % | ||||||||||||||||
Savings accounts | 87,534 | 76 | 0.09 | % | 82,872 | 41 | 0.05 | % | ||||||||||||||||
Time deposits | 228,800 | 2,916 | 1.27 | % | 208,095 | 2,208 | 1.06 | % | ||||||||||||||||
Total time and savings deposits | 586,605 | 3,544 | 0.60 | % | 552,171 | 2,550 | 0.46 | % | ||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 28,427 | 131 | 0.46 | % | 25,743 | 38 | 0.15 | % | ||||||||||||||||
Federal Home Loan Bank advances | 66,151 | 1,294 | 1.96 | % | 32,301 | 424 | 1.31 | % | ||||||||||||||||
Total interest-bearing liabilities | 681,183 | 4,969 | 0.73 | % | 610,215 | 3,012 | 0.49 | % | ||||||||||||||||
Demand deposits | 236,249 | 226,951 | ||||||||||||||||||||||
Other liabilities | 3,378 | 5,359 | ||||||||||||||||||||||
Total liabilities | 920,810 | 842,525 | ||||||||||||||||||||||
Stockholders' equity | 99,765 | 96,521 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,020,575 | $ | 939,046 | ||||||||||||||||||||
Net interest margin * | $ | 33,672 | 3.62 | % | $ | 30,874 | 3.64 | % |
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Loans* | $ | 834,247 | $ | 36,061 | 4.32 | % | $ | 757,677 | $ | 35,771 | 4.72 | % | $ | 768,960 | $ | 34,504 | 4.49 | % | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||
Taxable | 145,029 | 3,068 | 2.12 | % | 116,930 | 2,827 | 2.42 | % | 95,752 | 2,080 | 2.17 | % | ||||||||||||||||||||||||
Tax-exempt* | 18,270 | 654 | 3.58 | % | 29,425 | 955 | 3.25 | % | 50,426 | 1,547 | 3.07 | % | ||||||||||||||||||||||||
Total investment securities | 163,299 | 3,722 | 2.28 | % | 146,355 | 3,782 | 2.58 | % | 146,178 | 3,627 | 2.48 | % | ||||||||||||||||||||||||
Interest-bearing due from banks | 91,160 | 267 | 0.29 | % | 34,592 | 689 | 1.99 | % | 9,358 | 198 | 2.12 | % | ||||||||||||||||||||||||
Federal funds sold | 841 | 12 | 1.45 | % | 1,546 | 31 | 2.01 | % | 1,150 | 21 | 1.83 | % | ||||||||||||||||||||||||
Other investments | 3,020 | 134 | 4.43 | % | 3,484 | 221 | 6.36 | % | 4,083 | 253 | 6.20 | % | ||||||||||||||||||||||||
Total earning assets | 1,092,567 | $ | 40,196 | 3.68 | % | 943,654 | $ | 40,494 | 4.29 | % | 929,729 | $ | 38,603 | 4.15 | % | |||||||||||||||||||||
Allowance for loan losses | (9,723 | ) | (10,562 | ) | (10,254 | ) | ||||||||||||||||||||||||||||||
Other nonearning assets | 104,414 | 105,422 | 101,100 | |||||||||||||||||||||||||||||||||
Total assets | $ | 1,187,258 | $ | 1,038,514 | $ | 1,020,575 | ||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 55,667 | $ | 12 | 0.02 | % | $ | 32,603 | $ | 11 | 0.03 | % | $ | 28,246 | $ | 10 | 0.04 | % | ||||||||||||||||||
Money market deposit accounts | 307,190 | 1,012 | 0.33 | % | 257,884 | 1,037 | 0.40 | % | 242,025 | 542 | 0.22 | % | ||||||||||||||||||||||||
Savings accounts | 96,149 | 56 | 0.06 | % | 86,787 | 88 | 0.10 | % | 87,534 | 76 | 0.09 | % | ||||||||||||||||||||||||
Time deposits | 209,727 | 3,337 | 1.59 | % | 231,774 | 3,845 | 1.66 | % | 228,800 | 2,916 | 1.27 | % | ||||||||||||||||||||||||
Total time and savings deposits | 668,733 | 4,417 | 0.66 | % | 609,048 | 4,981 | 0.82 | % | 586,605 | 3,544 | 0.60 | % | ||||||||||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 33,846 | 150 | 0.44 | % | 22,302 | 132 | 0.59 | % | 28,427 | 131 | 0.46 | % | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 38,942 | 725 | 1.86 | % | 50,397 | 1,309 | 2.60 | % | 66,151 | 1,294 | 1.96 | % | ||||||||||||||||||||||||
Total interest-bearing liabilities | 741,521 | 5,292 | 0.71 | % | 681,747 | 6,422 | 0.94 | % | 681,183 | 4,969 | 0.73 | % | ||||||||||||||||||||||||
Demand deposits | 325,596 | 245,518 | 236,249 | |||||||||||||||||||||||||||||||||
Other liabilities | 5,055 | 3,947 | 3,378 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 115,086 | 107,302 | 99,765 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,187,258 | $ | 1,038,514 | $ | 1,020,575 | ||||||||||||||||||||||||||||||
Net interest margin | $ | 34,904 | 3.19 | % | $ | 34,072 | 3.61 | % | $ | 33,634 | 3.62 | % |
TABLE II | ||||||||||||
VOLUME AND RATE ANALYSIS* | ||||||||||||
2018 vs. 2017 | ||||||||||||
Increase (Decrease) | ||||||||||||
Due to Changes in: | ||||||||||||
Volume | Rate | Total | ||||||||||
(in thousands) | ||||||||||||
EARNING ASSETS | ||||||||||||
Loans * | $ | 4,180 | $ | 1,006 | $ | 5,186 | ||||||
Investment securities: | ||||||||||||
Taxable | (132 | ) | 248 | 116 | ||||||||
Tax-exempt * | (611 | ) | (268 | ) | (879 | ) | ||||||
Total investment securities | (743 | ) | (20 | ) | (763 | ) | ||||||
Federal funds sold | 2 | 11 | 13 | |||||||||
Other investments | 449 | (130 | ) | 319 | ||||||||
Total earning assets | 3,888 | 867 | 4,755 | |||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||
Interest-bearing transaction accounts | - | - | - | |||||||||
Money market deposit accounts | 11 | 240 | 251 | |||||||||
Savings accounts | 2 | 33 | 35 | |||||||||
Time deposits | 220 | 488 | 708 | |||||||||
Total time and savings deposits | 233 | 761 | 994 | |||||||||
Federal funds purchased, repurchase | ||||||||||||
agreements and other borrowings | 4 | 89 | 93 | |||||||||
Federal Home Loan Bank advances | 444 | 426 | 870 | |||||||||
Total interest-bearing liabilities | 681 | 1,276 | 1,957 | |||||||||
Change in net interest income | $ | 3,207 | $ | (409 | ) | $ | 2,798 |
2020 vs. 2019 Increase (Decrease) Due to Changes in: | 2019 vs. 2018 Increase (Decrease) Due to Changes in: | |||||||||||||||||||||||
(dollars in thousands) | Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
EARNING ASSETS | ||||||||||||||||||||||||
Loans | $ | 3,723 | $ | (3,433 | ) | $ | 290 | $ | (520 | ) | $ | 1,787 | $ | 1,267 | ||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 689 | (448 | ) | 241 | 457 | 290 | 747 | |||||||||||||||||
Tax-exempt | (360 | ) | 59 | (301 | ) | (645 | ) | 53 | (592 | ) | ||||||||||||||
Total investment securities | 329 | (389 | ) | (60 | ) | (188 | ) | 343 | 155 | |||||||||||||||
Federal funds sold | (14 | ) | (5 | ) | (19 | ) | 7 | 3 | 10 | |||||||||||||||
Other investments | 1,345 | (1,854 | ) | (509 | ) | 827 | (368 | ) | 459 | |||||||||||||||
Total earning assets | 5,383 | (5,681 | ) | (298 | ) | 126 | 1,765 | 1,891 | ||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Interest-bearing transaction accounts | 8 | (7 | ) | 1 | 2 | (1 | ) | 1 | ||||||||||||||||
Money market deposit accounts | 202 | (227 | ) | (25 | ) | 35 | 460 | 495 | ||||||||||||||||
Savings accounts | 10 | (42 | ) | (32 | ) | (1 | ) | 13 | 12 | |||||||||||||||
Time deposits | (356 | ) | (152 | ) | (508 | ) | 37 | 892 | 929 | |||||||||||||||
Total time and savings deposits | (136 | ) | (428 | ) | (564 | ) | 73 | 1,364 | 1,437 | |||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 68 | (50 | ) | 18 | (28 | ) | 29 | 1 | ||||||||||||||||
Federal Home Loan Bank advances | (298 | ) | (286 | ) | (584 | ) | (309 | ) | 324 | 15 | ||||||||||||||
Total interest-bearing liabilities | (366 | ) | (764 | ) | (1,130 | ) | (264 | ) | 1,717 | 1,453 | ||||||||||||||
Change in net interest income | $ | 5,749 | $ | (4,917 | ) | $ | 832 | $ | 390 | $ | 48 | $ | 438 |
TABLE III | ||||||||||||||||
CHANGE IN NET INTEREST INCOME | ||||||||||||||||
As of December 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
% | $ | % | $ | |||||||||||||
Change in Interest Rates: | ||||||||||||||||
+300 basis points | 2.57 | 921 | (1.42 | ) | (462 | ) | ||||||||||
+200 basis points | 1.71 | 612 | (1.02 | ) | (332 | ) | ||||||||||
+100 basis points | 0.78 | 281 | (0.49 | ) | (160 | ) | ||||||||||
Unchanged | - | - | - | - | ||||||||||||
-100 basis points | (1.30 | ) | (466 | ) | (0.92 | ) | (297 | ) | ||||||||
-200 basis points | (3.03 | ) | (1,086 | ) | (1.98 | ) | (644 | ) |
TABLE IV | ||||||||
SECURITIES PORTFOLIO | ||||||||
As of December 31, | 2018 | 2017 | ||||||
(in thousands) | ||||||||
Available-for-sale securities, at fair value: | ||||||||
U.S. Treasury securities | $ | 12,328 | $ | - | ||||
Obligations of U.S. Government agencies | 10,714 | 9,435 | ||||||
Obligations of state and political subdivisions | 48,837 | 64,765 | ||||||
Mortgage-backed securities | 71,191 | 74,296 | ||||||
Money market investments | 1,897 | 1,194 | ||||||
Corporate bonds | 3,280 | 7,234 | ||||||
Other marketable equity securities | - | 197 | ||||||
$ | 148,247 | $ | 157,121 | |||||
Restricted securities: | ||||||||
Federal Home Loan Bank stock | $ | 3,429 | $ | 3,677 | ||||
Federal Reserve Bank stock | 382 | 169 | ||||||
Community Bankers' Bank stock | 42 | - | ||||||
$ | 3,853 | $ | 3,846 | |||||
Total | $ | 152,100 | $ | 160,967 |
As of December 31, | ||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | |||||||||
U.S. Treasury securities | $ | 7,043 | $ | 7,003 | $ | 12,328 | ||||||
Obligations of U.S. Government agencies | 36,696 | 33,604 | 10,714 | |||||||||
Obligations of state and policitcal subdivisions | 45,995 | 24,742 | 48,837 | |||||||||
Mortgage-backed securities | 73,501 | 71,908 | 71,191 | |||||||||
Money market investments | 4,743 | 3,825 | 1,897 | |||||||||
Corporate bonds and other securities | 18,431 | 4,633 | 3,280 | |||||||||
186,409 | 145,715 | 148,247 | ||||||||||
Restricted securities: | ||||||||||||
Federal Home Loan Bank stock | $ | 943 | 2,502 | 3,429 | ||||||||
Federal Reserve Bank stock | 382 | 382 | 382 | |||||||||
Community Bankers’ Bank stock | 42 | 42 | 42 | |||||||||
1,367 | 2,926 | 3,853 | ||||||||||
Total Securities | $ | 187,776 | $ | 148,641 | $ | 152,100 |
1 year | 1-5 | 5-10 | Over 10 | |||||||||||||||||||||||||||||||||||||
or less | years | years | years | Total | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 1 year or less 2020 | 1-5 years | 5-10 years | Over 10 years | Total | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 5,453 | $ | 6,875 | $ | - | $ | - | $ | 12,328 | $ | 7,043 | $ | - | $ | - | $ | - | $ | 7,043 | ||||||||||||||||||||
Weighted average yield | 2.65 | % | 2.50 | % | - | - | 2.57 | % | 2.50 | % | 0.00 | % | - | - | 2.50 | % | ||||||||||||||||||||||||
Obligations of U.S. Government Agencies | $ | 2,193 | $ | 2,472 | $ | 1,221 | $ | 4,828 | $ | 10,714 | ||||||||||||||||||||||||||||||
Obligations of U.S. Government agencies | $ | - | $ | 1,400 | $ | 4,164 | $ | 31,132 | $ | 36,696 | ||||||||||||||||||||||||||||||
Weighted average yield | 1.86 | % | 2.51 | % | 3.03 | % | 2.48 | % | 2.42 | % | 0.00 | % | 0.36 | % | 1.37 | % | 1.02 | % | 1.03 | % | ||||||||||||||||||||
Obligations of state and political subdivisions | $ | 3,435 | $ | 5,517 | $ | 13,827 | $ | 26,058 | $ | 48,837 | ||||||||||||||||||||||||||||||
Obligations of state and policitcal subdivisions | $ | - | $ | 2,474 | $ | 2,635 | $ | 40,886 | $ | 45,995 | ||||||||||||||||||||||||||||||
Weighted average yield | 2.25 | % | 2.28 | % | 3.02 | % | 3.29 | % | 3.02 | % | 0.00 | % | 3.54 | % | 3.27 | % | 2.87 | % | 2.93 | % | ||||||||||||||||||||
Mortgage-backed securities | $ | - | $ | 12,274 | $ | 12,788 | $ | 46,129 | $ | 71,191 | $ | - | $ | - | $ | 23,280 | $ | 50,221 | $ | 73,501 | ||||||||||||||||||||
Weighted average yield | - | 1.79 | % | 2.07 | % | 2.31 | % | 2.18 | % | - | 0.00 | % | 1.94 | % | 1.75 | % | 1.81 | % | ||||||||||||||||||||||
Money market investments | $ | 1,897 | $ | - | $ | - | $ | - | $ | 1,897 | $ | 4,743 | $ | - | $ | - | $ | - | $ | 4,743 | ||||||||||||||||||||
Weighted average yield | 2.39 | % | - | - | - | 2.39 | % | 0.36 | % | - | - | - | 0.36 | % | ||||||||||||||||||||||||||
Corporate bonds | $ | 199 | $ | 290 | $ | 2,791 | $ | - | $ | 3,280 | ||||||||||||||||||||||||||||||
Corporate bonds and other securities | $ | 102 | $ | 743 | $ | 17,586 | $ | - | $ | 18,431 | ||||||||||||||||||||||||||||||
Weighted average yield | 2.20 | % | 2.43 | % | 5.43 | % | - | 4.97 | % | 3.15 | % | 3.06 | % | 5.16 | % | - | 5.06 | % | ||||||||||||||||||||||
Federal Home Loan Bank stock - restricted | $ | - | $ | - | $ | - | $ | 3,429 | $ | 3,429 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | $ | - | $ | - | $ | - | $ | 943 | $ | 943 | ||||||||||||||||||||||||||||||
Weighted average yield | - | - | - | 6.19 | % | 6.19 | % | - | - | - | 3.90 | % | 3.90 | % | ||||||||||||||||||||||||||
Federal Reserve Bank stock - restricted | $ | - | $ | - | $ | - | $ | 382 | $ | 382 | ||||||||||||||||||||||||||||||
Federal Reserve Bank stock | $ | - | $ | - | $ | - | $ | 382 | $ | 382 | ||||||||||||||||||||||||||||||
Weighted average yield | - | - | - | 6.00 | % | 6.00 | % | - | - | - | 6.00 | % | 6.00 | % | ||||||||||||||||||||||||||
Community Bankers' Bank stock - restricted | $ | - | $ | - | $ | - | $ | 42 | $ | 42 | ||||||||||||||||||||||||||||||
Community Bankers’ Bank stock | $ | - | $ | - | $ | - | $ | 42 | $ | 42 | ||||||||||||||||||||||||||||||
Weighted average yield | - | - | - | - | - | - | - | - | 0.00 | % | 0.00 | % | ||||||||||||||||||||||||||||
Total securities | $ | 13,177 | $ | 27,428 | $ | 30,627 | $ | 80,868 | $ | 152,100 | ||||||||||||||||||||||||||||||
Total Securities | $ | 11,888 | $ | 4,617 | $ | 47,665 | $ | 123,606 | $ | 187,776 | ||||||||||||||||||||||||||||||
Weighted average yield | 2.37 | % | 2.14 | % | 2.84 | % | 2.79 | % | 2.65 | % | 1.65 | % | 2.10 | % | 3.15 | % | 1.95 | % | 2.24 | % |
TABLE V | ||||||||||||||||||||
LOAN PORTFOLIO | ||||||||||||||||||||
As of December 31, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Commercial | $ | 63,398 | $ | 60,398 | $ | 54,434 | $ | 43,197 | $ | 37,698 | ||||||||||
Real estate-construction | 32,383 | 27,489 | 23,116 | 19,685 | 9,082 | |||||||||||||||
Real estate-mortgage (1) | 500,441 | 465,231 | 448,408 | 437,159 | 435,914 | |||||||||||||||
Consumer | 169,138 | 174,225 | 58,907 | 50,427 | 30,493 | |||||||||||||||
Other | 8,649 | 11,197 | 19,017 | 18,007 | 22,807 | |||||||||||||||
Total | $ | 774,009 | $ | 738,540 | $ | 603,882 | $ | 568,475 | $ | 535,994 | ||||||||||
(1) The real estate-mortgage segment includes residential 1 – 4 family, commercial real estate, second mortgages and equity lines of credit. |
As of December 31, | ||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Commercial and industrial | $ | 141,746 | $ | 75,383 | $ | 63,398 | $ | 60,398 | $ | 54,434 | ||||||||||
Real estate-construction | 43,732 | 40,716 | 32,383 | 27,489 | 23,116 | |||||||||||||||
Real estate-mortgage (1) | 207,536 | 210,653 | 213,909 | 175,549 | 162,979 | |||||||||||||||
Real estate-commercial | 316,851 | 277,541 | 286,532 | 289,682 | 285,429 | |||||||||||||||
Consumer | 118,368 | 137,007 | 169,138 | 174,225 | 58,907 | |||||||||||||||
Other | 8,067 | 6,565 | 8,649 | 11,197 | 19,017 | |||||||||||||||
Ending Balance | $ | 836,300 | $ | 747,865 | $ | 774,009 | $ | 738,540 | $ | 603,882 |
TABLE VI | ||||||||||||||||
MATURITY SCHEDULE OF SELECTED LOANS | ||||||||||||||||
December 31, 2018 | Within 1 year | 1 to 5 years | After 5 years | Total | ||||||||||||
(in thousands) | ||||||||||||||||
Commercial | $ | 19,079 | $ | 24,934 | $ | 19,385 | $ | 63,398 | ||||||||
Real estate - construction | 21,744 | 10,623 | 16 | 32,383 | ||||||||||||
Total | $ | 40,823 | $ | 35,557 | $ | 19,401 | $ | 95,781 | ||||||||
Loans due after 1 year with: | ||||||||||||||||
Fixed interest rate | $ | 29,326 | $ | 13,222 | $ | 42,548 | ||||||||||
Variable interest rate | 6,231 | 6,179 | 12,410 | |||||||||||||
Total | $ | 35,557 | $ | 19,401 | $ | 54,958 |
As of December 31, 2020 | ||||||||||||||||
(Dollars in thousands) | Within 1 year | 1 to 5 years | After 5 years | Total | ||||||||||||
Commercial and industrial | $ | 8,563 | $ | 111,317 | $ | 21,866 | $ | 141,746 | ||||||||
Real estate-construction | 25,125 | 9,972 | 8,635 | 43,732 | ||||||||||||
Total | $ | 33,688 | $ | 121,289 | $ | 30,501 | $ | 185,478 | ||||||||
Loans due after 1 year with: | ||||||||||||||||
Fixed interest rate | $ | 111,087 | $ | 17,032 | $ | 128,119 | ||||||||||
Variable interest rate | 10,202 | 13,469 | 23,671 | |||||||||||||
Total | $ | 121,289 | $ | 30,501 | $ | 151,790 |
TABLE VII | ||||||||||||||||||||
NONPERFORMING ASSETS | ||||||||||||||||||||
As of December 31, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Nonaccrual loans | ||||||||||||||||||||
Commercial | $ | 298 | $ | 836 | $ | 231 | $ | 276 | $ | - | ||||||||||
Real estate-construction | 417 | 721 | - | - | 499 | |||||||||||||||
Real estate-mortgage (1) | 11,426 | 11,325 | 6,847 | 4,306 | 5,071 | |||||||||||||||
Consumer | - | - | 81 | - | - | |||||||||||||||
Total nonaccrual loans | 12,141 | 12,882 | 7,159 | 4,582 | 5,570 | |||||||||||||||
�� | ||||||||||||||||||||
Loans past due 90 days or more and accruing interest | ||||||||||||||||||||
Commercial | - | 471 | - | 164 | 10 | |||||||||||||||
Real estate-construction | 205 | - | - | - | - | |||||||||||||||
Real estate-mortgage (1) | 315 | 306 | 276 | 23 | 107 | |||||||||||||||
Consumer (2) | 1,965 | 2,401 | 2,603 | 3,163 | 1,019 | |||||||||||||||
Other | 12 | 4 | 5 | 6 | 5 | |||||||||||||||
Total loans past due 90 days or more and accruing interest | 2,497 | $ | 3,182 | 2,884 | 3,356 | 1,141 | ||||||||||||||
Restructured loans | ||||||||||||||||||||
Commercial | 217 | 98 | 144 | - | - | |||||||||||||||
Real estate-construction | 92 | 92 | 96 | 99 | 102 | |||||||||||||||
Real estate-mortgage (1) | 12,098 | 14,781 | 11,616 | 11,077 | 12,203 | |||||||||||||||
Consumer | - | - | - | 12 | 13 | |||||||||||||||
Total restructured loans | 12,407 | 14,971 | 11,856 | 11,188 | 12,318 | |||||||||||||||
Less nonaccrual restructured loans (included above) | 8,454 | 8,561 | 2,838 | 2,497 | 4,240 | |||||||||||||||
Less restructured loans in compliance (3) | 3,953 | 6,410 | 9,018 | 8,691 | 8,078 | |||||||||||||||
Net nonperforming restructured loans | - | - | - | - | - | |||||||||||||||
Other real estate owned | ||||||||||||||||||||
Construction, land development, and other land | 83 | - | 940 | 1,090 | 2,138 | |||||||||||||||
1-4 family residential properties | - | - | - | 724 | 884 | |||||||||||||||
Former branch sites | - | - | 127 | - | 886 | |||||||||||||||
Nonfarm nonresidential properties | - | - | - | 927 | 1,198 | |||||||||||||||
83 | - | 1,067 | 2,741 | 5,106 | ||||||||||||||||
Total nonperforming assets | $ | 14,721 | $ | 16,064 | $ | 11,110 | $ | 10,679 | $ | 11,817 | ||||||||||
Interest income that would have been recorded under original loan terms on nonaccrual loans included above | $ | 533 | $ | 474 | $ | 318 | $ | 196 | $ | 301 | ||||||||||
Interest income recorded for the period on nonaccrual loans included above | $ | 336 | $ | 281 | $ | 269 | $ | 141 | $ | 265 |
As of December 31, | ||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Nonaccrual loans | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | 257 | $ | 298 | $ | 836 | $ | 231 | ||||||||||
Real estate-construction | - | - | 417 | 721 | - | |||||||||||||||
Real estate-mortgage (1) | 311 | 5,780 | 1,772 | 1,857 | 814 | |||||||||||||||
Real estate-commercial | 903 | - | 9,654 | 9,468 | 6,033 | |||||||||||||||
Consumer loans | - | - | - | - | 81 | |||||||||||||||
Total nonaccrual loans | $ | 1,214 | $ | 6,037 | $ | 12,141 | $ | 12,882 | $ | 7,159 | ||||||||||
Loans past due 90 days or more and accruing interest | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | - | $ | - | $ | 471 | $ | - | ||||||||||
Real estate-construction | - | - | 205 | - | - | |||||||||||||||
Real estate-mortgage (1) | - | - | 315 | 306 | 276 | |||||||||||||||
Consumer loans (2) | 744 | 1,091 | 1,965 | 2,401 | 2,603 | |||||||||||||||
Other | - | - | 12 | 4 | 5 | |||||||||||||||
Total loans past due 90 days or more and accruing interest | $ | 744 | $ | 1,091 | $ | 2,497 | $ | 3,182 | $ | 2,884 | ||||||||||
Restructured loans | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | 257 | $ | 217 | $ | 98 | $ | 144 | ||||||||||
Real estate-construction | 83 | 88 | 92 | 92 | 96 | |||||||||||||||
Real estate-mortgage (1) | 492 | 6,754 | 1,956 | 2,458 | 2,731 | |||||||||||||||
Real estate-commercial | 1,352 | - | 10,142 | 12,323 | 8,885 | |||||||||||||||
Consumer loans | - | - | - | - | - | |||||||||||||||
Total restructured loans | $ | 1,927 | $ | 7,099 | $ | 12,407 | $ | 14,971 | $ | 11,856 | ||||||||||
Less nonaccrual restructured loans (included above) | 1,120 | 4,693 | 8,454 | 8,561 | 2,838 | |||||||||||||||
Less restructured loans currently in compliance (3) | 807 | 2,406 | 3,953 | 6,410 | 9,018 | |||||||||||||||
Net nonperforming, accruing restructured loans | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonperforming loans | $ | 1,958 | $ | 7,128 | $ | 14,638 | $ | 16,064 | $ | 10,043 | ||||||||||
Other real estate owned | ||||||||||||||||||||
Construction, land development, and other land | $ | - | $ | - | $ | 83 | $ | - | $ | 940 | ||||||||||
Former branch site | - | - | - | - | 127 | |||||||||||||||
Total other real estate owned | $ | - | $ | - | $ | 83 | $ | - | $ | 1,067 | ||||||||||
Total nonperforming assets | $ | 1,958 | $ | 7,128 | $ | 14,721 | $ | 16,064 | $ | 11,110 | ||||||||||
Interest income that would have been recorded under original loan terms on nonaccrual loans above | $ | 45 | $ | 283 | $ | 533 | $ | 474 | $ | 318 | ||||||||||
Interest income recorded for the period on nonaccrual loans included above | $ | 34 | $ | 115 | $ | 336 | $ | 281 | $ | 269 |
1. | Specific identification (regardless of risk rating) |
2. | Pool–substandard |
3. | Pool–other assets especially mentioned (OAEM) (rated just above substandard) |
4. | Pool–pass loans (all other rated loans) |
TABLE VIII | ||||||||||||||||||||||||||||||||||||||||
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
As of December 31, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of period | $ | 9,448 | $ | 8,245 | $ | 7,738 | $ | 7,075 | $ | 6,831 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||
Balance, beginning | $ | 9,660 | $ | 10,111 | $ | 9,448 | $ | 8,245 | $ | 7,738 | ||||||||||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||||||||||||||
Commercial | 81 | 807 | 915 | 293 | 286 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 25 | - | 81 | 807 | 915 | |||||||||||||||||||||||||||||||||||
Real estate-construction | - | - | - | - | 51 | - | - | - | - | - | ||||||||||||||||||||||||||||||
Real estate-mortgage (1) | 1,625 | 1,934 | 504 | 321 | 563 | 149 | 170 | 325 | 273 | 473 | ||||||||||||||||||||||||||||||
Real estate-commercial | 654 | 27 | 1,300 | 1,661 | 31 | |||||||||||||||||||||||||||||||||||
Consumer | 769 | 279 | 204 | 92 | 163 | 822 | 776 | 769 | 279 | 204 | ||||||||||||||||||||||||||||||
Other | 367 | 267 | 147 | 191 | 175 | 355 | 425 | 367 | 267 | 147 | ||||||||||||||||||||||||||||||
Total charge-offs | 2,842 | 3,287 | 1,770 | 897 | 1,238 | 2,005 | 1,398 | 2,842 | 3,287 | 1,770 | ||||||||||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||||||||||||||
Commercial | 140 | 37 | 79 | 50 | 55 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 47 | 10 | 140 | 37 | 79 | |||||||||||||||||||||||||||||||||||
Real estate-construction | - | 104 | 3 | 1 | 173 | 10 | - | - | 104 | 3 | ||||||||||||||||||||||||||||||
Real estate-mortgage (1) | 158 | 45 | 197 | 393 | 524 | 69 | 113 | 111 | 44 | 196 | ||||||||||||||||||||||||||||||
Real estate-commercial | 317 | 87 | 47 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Consumer | 262 | 56 | 28 | 39 | 64 | 377 | 351 | 262 | 56 | 28 | ||||||||||||||||||||||||||||||
Other | 84 | 88 | 40 | 52 | 66 | 66 | 68 | 84 | 88 | 40 | ||||||||||||||||||||||||||||||
Total recoveries | 644 | 330 | 347 | 535 | 882 | 886 | 629 | 644 | 330 | 347 | ||||||||||||||||||||||||||||||
Net charge-offs | 2,198 | 2,957 | 1,423 | 362 | 356 | 1,119 | 769 | 2,198 | 2,957 | 1,423 | ||||||||||||||||||||||||||||||
Provision for loan losses | 2,861 | 4,160 | 1,930 | 1,025 | 600 | |||||||||||||||||||||||||||||||||||
Balance at end of period | $ | 10,111 | $ | 9,448 | $ | 8,245 | $ | 7,738 | $ | 7,075 | ||||||||||||||||||||||||||||||
Provision for loan | 1,000 | 318 | 2,861 | 4,160 | 1,930 | |||||||||||||||||||||||||||||||||||
Ending Balance | $ | 9,541 | $ | 9,660 | $ | 10,111 | $ | 9,448 | $ | 8,245 | ||||||||||||||||||||||||||||||
Selected loan loss statistics | ||||||||||||||||||||||||||||||||||||||||
Loans (net of unearned income): | ||||||||||||||||||||||||||||||||||||||||
End of period balance | $ | 774,009 | $ | 738,540 | $ | 603,882 | $ | 568,475 | $ | 535,994 | $ | 836,300 | $ | 747,865 | $ | 774,009 | $ | 738,540 | $ | 603,882 | ||||||||||||||||||||
Average balance | $ | 768,960 | $ | 673,015 | $ | 585,206 | $ | 563,534 | $ | 517,183 | $ | 834,247 | $ | 757,677 | $ | 768,960 | $ | 673,015 | $ | 585,206 | ||||||||||||||||||||
Net charge-offs to average total loans | 0.29 | % | 0.44 | % | 0.24 | % | 0.06 | % | 0.07 | % | 0.13 | % | 0.10 | % | 0.29 | % | 0.44 | % | 0.24 | % | ||||||||||||||||||||
Provision for loan losses to average total loans | 0.37 | % | 0.62 | % | 0.33 | % | 0.18 | % | 0.12 | % | 0.12 | % | 0.04 | % | 0.37 | % | 0.62 | % | 0.33 | % | ||||||||||||||||||||
Provision for loan losses to net charge-offs | 130.16 | % | 140.68 | % | 135.63 | % | 283.15 | % | 168.54 | % | 89.37 | % | 41.35 | % | 130.16 | % | 140.68 | % | 135.63 | % | ||||||||||||||||||||
Allowance for loan losses to period end loans | 1.31 | % | 1.28 | % | 1.37 | % | 1.36 | % | 1.32 | % | 1.14 | % | 1.29 | % | 1.31 | % | 1.28 | % | 1.37 | % | ||||||||||||||||||||
Earnings to loan loss coverage (2) | 3.67 | 1.36 | 4.14 | 13.02 | 13.80 | 6.18 | 12.04 | 3.67 | 1.36 | 4.14 | ||||||||||||||||||||||||||||||
Allowance for loan losses to nonperforming loans | 69.07 | % | 58.81 | % | 82.10 | % | 97.48 | % | 105.42 | % | 487.28 | % | 135.52 | % | 69.07 | % | 58.81 | % | 82.10 | % |
TABLE IX | ||||||||||||||||||||||||||||||||||||||||
ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||||||||||
As of December 31, | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||
Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | |||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 2,340 | 8.19 | % | $ | 1,889 | 8.18 | % | $ | 1,493 | 9.16 | % | $ | 633 | 7.60 | % | $ | 595 | 7.03 | % | ||||||||||||||||||||
Real estate-construction | 156 | 4.18 | % | 541 | 3.72 | % | 846 | 3.83 | % | 985 | 3.46 | % | 703 | 1.69 | % | |||||||||||||||||||||||||
Real estate-mortgage (1) | 5,956 | 64.66 | % | 5,217 | 62.99 | % | 5,267 | 74.25 | % | 5,628 | 76.90 | % | 5,347 | 81.33 | % | |||||||||||||||||||||||||
Consumer | 1,354 | 21.85 | % | 1,644 | 23.59 | % | 455 | 9.61 | % | 279 | 8.87 | % | 219 | 5.69 | % | |||||||||||||||||||||||||
Other | 305 | 1.12 | % | 157 | 1.52 | % | 184 | 3.15 | % | 213 | 3.17 | % | 211 | 4.26 | % | |||||||||||||||||||||||||
Total | $ | 10,111 | 100.00 | % | $ | 9,448 | 100.00 | % | $ | 8,245 | 100.00 | % | $ | 7,738 | 100.00 | % | $ | 7,075 | 100.00 | % |
As of December 31, | ||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | Amount | Percent of Loans to Total Loans | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 650 | 16.95 | % | $ | 1,244 | 10.08 | % | $ | 2,340 | 8.19 | % | $ | 1,889 | 8.18 | % | $ | 1,493 | 9.16 | % | ||||||||||||||||||||
Real estate-construction | 339 | 5.23 | % | 258 | 5.44 | % | 156 | 4.18 | % | 541 | 3.72 | % | 846 | 3.83 | % | |||||||||||||||||||||||||
Real estate-mortgage (1) | 2,560 | 24.82 | % | 2,505 | 28.17 | % | 2,497 | 27.64 | % | 2,779 | 23.77 | % | 2,656 | 26.98 | % | |||||||||||||||||||||||||
Real estate-commercial | 4,434 | 37.89 | % | 3,663 | 37.11 | % | 3,459 | 37.02 | % | 2,438 | 39.22 | % | 2,611 | 47.27 | % | |||||||||||||||||||||||||
Consumer | 1,302 | 14.15 | % | 1,694 | 18.32 | % | 1,354 | 21.85 | % | 1,644 | 23.59 | % | 455 | 9.61 | % | |||||||||||||||||||||||||
Other | 123 | 0.96 | % | 296 | 0.88 | % | 305 | 1.12 | % | 157 | 1.52 | % | 184 | 3.15 | % | |||||||||||||||||||||||||
Unallocated | 133 | 0.00 | % | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Ending Balance | $ | 9,541 | 100.00 | % | $ | 9,660 | 100.00 | % | $ | 10,111 | 100.00 | % | $ | 9,448 | 100.00 | % | $ | 8,245 | 100.00 | % |
TABLE X | ||||||||||||||||
DEPOSITS | ||||||||||||||||
Years ended December 31, | 2018 | 2017 | ||||||||||||||
Average | Average | Average | Average | |||||||||||||
Balance | Rate | Balance | Rate | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest-bearing transaction accounts | $ | 28,246 | 0.04 | % | $ | 27,909 | 0.04 | % | ||||||||
Money market deposit accounts | 242,025 | 0.22 | % | 233,295 | 0.12 | % | ||||||||||
Savings accounts | 87,534 | 0.09 | % | 82,872 | 0.05 | % | ||||||||||
Time deposits | 228,800 | 1.27 | % | 208,095 | 1.06 | % | ||||||||||
Total interest-bearing deposits | 586,605 | 0.60 | % | 552,171 | 0.46 | % | ||||||||||
Demand deposits | 236,249 | 226,951 | ||||||||||||||
Total deposits | $ | 822,854 | $ | 779,122 |
Years ended December 31, | ||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||||
Interest-bearing transaction | $ | 55,667 | 0.02 | % | $ | 32,603 | 0.03 | % | $ | 28,246 | 0.04 | % | ||||||||||||
Money market | 307,190 | 0.33 | % | 257,884 | 0.40 | % | 242,025 | 0.22 | % | |||||||||||||||
Savings | 96,149 | 0.06 | % | 86,787 | 0.10 | % | 87,534 | 0.09 | % | |||||||||||||||
Time deposits | 209,727 | 1.59 | % | 231,774 | 1.66 | % | 228,800 | 1.27 | % | |||||||||||||||
Total interest bearing | 668,733 | 0.66 | % | 609,048 | 0.82 | % | 586,605 | 0.60 | % | |||||||||||||||
Demand | 325,596 | 245,518 | 236,249 | |||||||||||||||||||||
Total deposits | $ | 994,329 | $ | 854,566 | $ | 822,854 |
TABLE XI | ||||||||
TIME DEPOSITS OF $100,000 OR MORE | ||||||||
As of December 31, | 2018 | 2017 | ||||||
(in thousands) | ||||||||
Maturing in: | ||||||||
Within 3 months | $ | 19,121 | $ | 25,136 | ||||
3 through 6 months | 8,699 | 11,192 | ||||||
6 through 12 months | 25,820 | 8,830 | ||||||
Greater than 12 months | 75,689 | 76,418 | ||||||
$ | 129,329 | $ | 121,576 |
As of December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Maturing in: | ||||||||
Within 3 months | $ | 26,494 | $ | 19,121 | ||||
4 through 6 months | 12,391 | 8,699 | ||||||
7 through 12 months | 20,751 | 25,820 | ||||||
Greater than 12 months | 46,672 | 75,689 | ||||||
$ | 106,308 | $ | 129,329 |
2018 Regulatory Minimums | 2018 | 2017 | ||||||||||
Common Equity Tier 1 Capital | 4.50 | % | 11.44 | % | 11.18 | % | ||||||
Tier 1 Capital | 6.00 | % | 11.44 | % | 11.18 | % | ||||||
Total Capital | 8.00 | % | 12.59 | % | 12.28 | % | ||||||
Tier 1 Leverage | 4.00 | % | 9.77 | % | 9.98 | % |
2020 Regulatory Minimums | December 31, 2020 | 2019 Regulatory Minimums | December 31, 2019 | |||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | 4.500 | % | 11.69 | % | 4.500 | % | 11.73 | % | ||||||||
Tier 1 Capital to Risk-Weighted Assets | 6.000 | % | 11.69 | % | 6.000 | % | 11.73 | % | ||||||||
Tier 1 Leverage to Average Assets | 4.000 | % | 8.56 | % | 4.000 | % | 9.73 | % | ||||||||
Total Capital to Risk-Weighted Assets | 8.000 | % | 12.77 | % | 8.000 | % | 12.86 | % | ||||||||
Capital Conservation Buffer | 2.500 | % | 4.77 | % | 2.500 | % | 4.86 | % | ||||||||
Risk-Weighted Assets (in thousands) | $ | 890,091 | $ | 863,905 |
LIQUIDITY SOURCES AND USES | ||||||||||||||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Total | In Use | Available | Total | In Use | Available | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
SOURCES | ||||||||||||||||||||||||
Federal funds lines of credit | $ | 55,000 | $ | - | $ | 55,000 | $ | 55,000 | $ | 10,000 | $ | 45,000 | ||||||||||||
Federal Home Loan Bank advances | 305,937 | 60,000 | 245,937 | 284,513 | 67,500 | 217,013 | ||||||||||||||||||
Federal funds sold & balances at the Federal Reserve | 20,673 | 586 | ||||||||||||||||||||||
Securities, available-for-sale and unpledged at fair value | 88,350 | 90,536 | ||||||||||||||||||||||
Total short-term funding sources | 409,960 | 353,135 | ||||||||||||||||||||||
USES | ||||||||||||||||||||||||
Unfunded loan commitments and lending lines of credit | 71,186 | 68,152 | ||||||||||||||||||||||
Letters of credit | 2,469 | 999 | ||||||||||||||||||||||
Commitments to purchase assets | - | - | ||||||||||||||||||||||
Total potential short-term funding uses | 73,655 | 69,151 | ||||||||||||||||||||||
Liquidity coverage ratio | 556.6 | % | 510.7 | % |
December 31, | ||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||
(dollars in thousands) | Total | In Use | Available | Total | In Use | Available | ||||||||||||||||||
Sources: | ||||||||||||||||||||||||
Federal funds lines of credit | $ | 100,000 | $ | - | $ | 100,000 | $ | 55,000 | $ | - | $ | 55,000 | ||||||||||||
Federal Home Loan Bank advances | 374,743 | - | 374,743 | 313,275 | 37,000 | 276,275 | ||||||||||||||||||
Federal funds sold & balances at the Federal Reserve | 93,727 | 50,665 | ||||||||||||||||||||||
Securities, available for sale and unpledged at fair value | 112,229 | 71,712 | ||||||||||||||||||||||
Total short-term funding sources | $ | 680,699 | $ | 453,652 | ||||||||||||||||||||
Uses: (1) | ||||||||||||||||||||||||
Unfunded loan commitments and available lending lines of credit | 71,742 | 66,986 | ||||||||||||||||||||||
Letters of credit | 1,452 | 2,317 | ||||||||||||||||||||||
Total potential short-term funding uses | 73,194 | 69,303 | ||||||||||||||||||||||
Liquidity coverage ratio | 930.0 | % | 654.6 | % |
Payments due by period | Payments due by period | Payments due by period | ||||||||||||||||||||||||||||||||||||||
Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||||||||||||||||||||||
Short-Term Debt Obligations | $ | 38,775 | $ | 38,775 | $ | - | $ | - | $ | - | $ | 6,619 | $ | 6,619 | $ | - | $ | - | $ | - | ||||||||||||||||||||
Long-Term Debt Obligations | 49,550 | 20,600 | 28,800 | 150 | - | 29,900 | 600 | 29,150 | 150 | - | ||||||||||||||||||||||||||||||
Operating Lease Obligations | 781 | 331 | 450 | - | - | 1,488 | 352 | 587 | 549 | - | ||||||||||||||||||||||||||||||
Total contractual cash obligations excluding deposits | 89,106 | 59,706 | 29,250 | 150 | - | 38,007 | 7,571 | 29,737 | 699 | - | ||||||||||||||||||||||||||||||
Deposits | 843,144 | 714,483 | 91,919 | 36,742 | - | 1,067,236 | 985,095 | 65,393 | 16,748 | - | ||||||||||||||||||||||||||||||
Total | $ | 932,250 | $ | 774,189 | $ | 121,169 | $ | 36,892 | $ | - | $ | 1,105,243 | $ | 992,666 | $ | 95,130 | $ | 17,447 | $ | - |
TABLE XII | ||||||||||||||||
SHORT-TERM BORROWINGS | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Balance | Rate | Balance | Rate | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Balance at December 31, | ||||||||||||||||
Federal funds purchased | $ | - | - | $ | 10,000 | 1.62 | % | |||||||||
Repurchase agreements | 25,775 | 0.10 | % | 20,693 | 0.10 | % | ||||||||||
Federal Home Loan Bank advances | 13,000 | 2.58 | % | 47,500 | 1.51 | % | ||||||||||
Average daily balance for the year ended December 31, | ||||||||||||||||
Federal funds purchased | $ | 358 | 1.75 | % | $ | 854 | 1.52 | % | ||||||||
Repurchase agreements | 26,163 | 0.10 | % | 24,889 | 0.10 | % | ||||||||||
Federal Home Loan Bank advances | 36,356 | 1.83 | % | 27,589 | 1.24 | % | ||||||||||
Maximum month-end outstanding balance: | ||||||||||||||||
Federal funds purchased | $ | 10,000 | $ | 10,000 | ||||||||||||
Repurchase agreements | 36,141 | 36,809 | ||||||||||||||
Federal Home Loan Bank advances | 68,500 | 47,500 |
Years Ended December 31, | ||||||||
(dollar in thousands, except per share data) | 2020 | 2019 | ||||||
Fully Taxable Equivalent Net Interest Income | ||||||||
Net interest income (GAAP) | $ | 34,717 | $ | 33,819 | ||||
FTE adjustment | 187 | 253 | ||||||
Net interest income (FTE) (non-GAAP) | $ | 34,904 | $ | 34,072 | ||||
Noninterest income (GAAP) | 14,698 | 14,077 | ||||||
Total revenue (FTE) (non-GAAP) | $ | 49,602 | $ | 48,149 | ||||
Noninterest expense (GAAP) | 42,505 | 38,638 | ||||||
Average earning assets | $ | 1,092,567 | $ | 943,654 | ||||
Net interest margin | 3.18 | % | 3.58 | % | ||||
Net interest margin (FTE) | 3.19 | % | 3.61 | % | ||||
Efficiency ratio | 86.02 | % | 80.67 | % | ||||
Efficiency ratio (FTE) | 85.69 | % | 80.25 | % | ||||
ALLL as a Percentage of Loans Held for Investment | ||||||||
Loans held for investment (net of deferred fees and costs) (GAAP) | $ | 836,300 | $ | 871,890 | ||||
Less PPP originations | 85,983 | 102,489 | ||||||
Loans held for investment, (net of deferred fees and costs), excluding PPP (non-GAAP) | $ | 750,317 | $ | 769,401 | ||||
ALLL | $ | 9,541 | $ | 9,920 | ||||
ALLL as a Percentage of Loans Held for Investment | 1.14 | % | 1.14 | % | ||||
ALLL as a Percentage of Loans Held for Investment, net of PPP originations | 1.27 | % | 1.29 | % |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
Item 8. | Financial Statements and Supplementary Data |
December 31, | ||||||||
2018 | 2017 | |||||||
(dollars in thousands, except per share data) | ||||||||
Assets | ||||||||
Cash and due from banks | $ | 19,915 | $ | 13,420 | ||||
Interest-bearing due from banks | 20,000 | 908 | ||||||
Federal funds sold | 2,302 | 84 | ||||||
Cash and cash equivalents | 42,217 | 14,412 | ||||||
Securities available-for-sale, at fair value | 148,247 | 157,121 | ||||||
Restricted stock, at cost | 3,853 | 3,846 | ||||||
Loans held for sale | 479 | 779 | ||||||
Loans, net | 763,898 | 729,092 | ||||||
Premises and equipment, net | 36,738 | 37,197 | ||||||
Bank-owned life insurance | 26,763 | 25,981 | ||||||
Other real estate owned, net | 83 | - | ||||||
Goodwill | 1,650 | 621 | ||||||
Core deposit intangible, net | 407 | - | ||||||
Other assets | 13,848 | 12,777 | ||||||
Total assets | $ | 1,038,183 | $ | 981,826 | ||||
Liabilities & Stockholders' Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing deposits | $ | 246,265 | $ | 225,716 | ||||
Savings deposits | 367,915 | 345,053 | ||||||
Time deposits | 228,964 | 212,825 | ||||||
Total deposits | 843,144 | 783,594 | ||||||
Federal funds purchased | - | 10,000 | ||||||
Overnight repurchase agreements | 25,775 | 20,693 | ||||||
Federal Home Loan Bank advances | 60,000 | 67,500 | ||||||
Other borrowings | 2,550 | - | ||||||
Accrued expenses and other liabilities | 4,708 | 3,651 | ||||||
Total liabilities | 936,177 | 885,438 | ||||||
Commitments and contingencies (Note 15) | ||||||||
Stockholders' equity: | ||||||||
Common stock, $5 par value, 10,000,000 shares authorized; 5,184,289 and 5,019,703 shares outstanding (includes 13,689 and 2,245 unvested restricted shares, respectively) | 25,853 | 25,087 | ||||||
Additional paid-in capital | 20,698 | 17,270 | ||||||
Retained earnings | 57,611 | 54,738 | ||||||
Accumulated other comprehensive loss, net | (2,156 | ) | (707 | ) | ||||
Total stockholders' equity | 102,006 | 96,388 | ||||||
Total liabilities and stockholders' equity | $ | 1,038,183 | $ | 981,826 | ||||
See Notes to Consolidated Financial Statements. |
December 31, | ||||||||
(dollars in thousands, except share data) | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 21,799 | $ | 37,280 | ||||
Interest-bearing due from banks | 98,633 | 48,610 | ||||||
Federal funds sold | 5 | 3,975 | ||||||
Cash and cash equivalents | 120,437 | 89,865 | ||||||
Securities available-for-sale, at fair value | 186,409 | 145,715 | ||||||
Restricted securities, at cost | 1,367 | 2,926 | ||||||
Loans held for sale | 14,413 | 590 | ||||||
Loans, net | 826,759 | 738,205 | ||||||
Premises and equipment, net | 33,613 | 35,312 | ||||||
Premises and equipment, held for sale | - | 907 | ||||||
Bank-owned life insurance | 28,386 | 27,547 | ||||||
Goodwill | 1,650 | 1,650 | ||||||
Core deposit intangible, net | 319 | 363 | ||||||
Other assets | 12,838 | 11,408 | ||||||
Total assets | $ | 1,226,191 | $ | 1,054,488 | ||||
Liabilities & Stockholders’ Equity | ||||||||
Deposits: | ||||||||
Noninterest-bearing deposits | $ | 360,602 | $ | 262,558 | ||||
Savings deposits | 512,936 | 399,020 | ||||||
Time deposits | 193,698 | 227,918 | ||||||
Total deposits | 1,067,236 | 889,496 | ||||||
Overnight repurchase agreements | 6,619 | 11,452 | ||||||
Federal Home Loan Bank advances | - | 37,000 | ||||||
Federal Reserve Bank borrowings | 28,550 | - | ||||||
Other borrowings | 1,350 | 1,950 | ||||||
Accrued expenses and other liabilities | 5,291 | 4,834 | ||||||
Total liabilities | 1,109,046 | 944,732 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $5 par value, 10,000,000 shares authorized; 5,224,019 and 5,200,038 shares outstanding (includes 29,576 and 19,933 of nonvested restricted stock, respectively) | 25,972 | 25,901 | ||||||
Additional paid-in capital | 21,245 | 20,959 | ||||||
Retained earnings | 65,859 | 62,975 | ||||||
Accumulated other comprehensive income (loss), net | 4,069 | (79 | ) | |||||
Total stockholders’ equity | 117,145 | 109,756 | ||||||
Total liabilities and stockholders’ equity | $ | 1,226,191 | $ | 1,054,488 |
Years Ended December 31, | Years Ended December 31 | |||||||||||||||
2018 | 2017 | |||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||
(dollars in thousands, except per share data) | 2020 | 2019 | ||||||||||||||
Interest and Dividend Income: | ||||||||||||||||
Loans, including fees | $ | 34,446 | $ | 29,191 | $ | 36,012 | $ | 35,718 | ||||||||
Due from banks | 198 | 15 | 267 | 689 | ||||||||||||
Federal funds sold | 21 | 8 | 12 | 31 | ||||||||||||
Securities: | ||||||||||||||||
Taxable | 2,080 | 1,964 | 3,068 | 2,827 | ||||||||||||
Tax-exempt | 1,221 | 1,601 | 516 | 755 | ||||||||||||
Dividends and interest on all other securities | 291 | 155 | 134 | 221 | ||||||||||||
Total interest and dividend income | 38,257 | 32,934 | 40,009 | 40,241 | ||||||||||||
Interest Expense: | ||||||||||||||||
Savings deposits | 628 | 342 | ||||||||||||||
Checking and savings deposits | 1,080 | 1,136 | ||||||||||||||
Time deposits | 2,916 | 2,208 | 3,337 | 3,845 | ||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other borrowings | 131 | 38 | 150 | 132 | ||||||||||||
Federal Home Loan Bank advances | 1,294 | 424 | 725 | 1,309 | ||||||||||||
Total interest expense | 4,969 | 3,012 | 5,292 | 6,422 | ||||||||||||
Net interest income | 33,288 | 29,922 | 34,717 | 33,819 | ||||||||||||
Provision for loan losses | 2,861 | 4,160 | 1,000 | 318 | ||||||||||||
Net interest income, after provision for loan losses | 30,427 | 25,762 | ||||||||||||||
Net interest income after provision for loan losses | 33,717 | 33,501 | ||||||||||||||
Noninterest Income: | ||||||||||||||||
Fiduciary and asset management fees | 3,726 | 3,786 | 3,877 | 3,850 | ||||||||||||
Service charges on deposit accounts | 4,157 | 3,874 | 2,872 | 4,085 | ||||||||||||
Other service charges, commissions and fees | 3,547 | 3,431 | 4,028 | 3,925 | ||||||||||||
Bank-owned life insurance income | 782 | 774 | 839 | 784 | ||||||||||||
Mortgage banking income | 788 | 645 | 1,781 | 884 | ||||||||||||
Gain on sale of available-for-sale securities, net | 120 | 96 | 264 | 314 | ||||||||||||
Gain on acquisition of Old Point Mortgage | - | 550 | ||||||||||||||
Gain(loss) on sale of fixed assets | 818 | - | ||||||||||||||
Other operating income | 151 | 151 | 219 | 235 | ||||||||||||
Total noninterest income | 13,271 | 13,307 | 14,698 | 14,077 | ||||||||||||
Noninterest Expense: | ||||||||||||||||
Salaries and employee benefits | 22,580 | 20,863 | 25,512 | 24,024 | ||||||||||||
Pension termination settlement | - | 3,350 | ||||||||||||||
Occupancy and equipment | 6,021 | 5,864 | 4,852 | 5,628 | ||||||||||||
Data processing | 1,327 | 1,032 | 3,478 | 1,798 | ||||||||||||
FDIC insurance | 701 | 478 | ||||||||||||||
Customer development | 611 | 575 | 381 | 552 | ||||||||||||
Professional services | 2,296 | 2,069 | 2,196 | 2,311 | ||||||||||||
Employee professional development | 749 | 794 | 658 | 791 | ||||||||||||
Other taxes | 580 | 563 | 661 | 592 | ||||||||||||
ATM and other losses | 407 | 667 | 871 | 291 | ||||||||||||
Loss (gain) on other real estate owned | 86 | (18 | ) | |||||||||||||
Merger expenses | 655 | 241 | ||||||||||||||
Loss on extinguishment of borrowings | 490 | - | ||||||||||||||
(Gain) on other real estate owned | (62 | ) | (2 | ) | ||||||||||||
Loss on sale of loans | 99 | - | ||||||||||||||
Other operating expenses | 2,487 | 2,717 | 3,369 | 2,653 | ||||||||||||
Total noninterest expense | 38,500 | 39,195 | 42,505 | 38,638 | ||||||||||||
Income (loss) before income taxes | 5,198 | (126 | ) | |||||||||||||
Income tax expense (benefit) | 279 | (97 | ) | |||||||||||||
Net income (loss) | $ | 4,919 | $ | (29 | ) | |||||||||||
Income before income taxes | 5,910 | 8,940 | ||||||||||||||
Income tax expense | 521 | 1,080 | ||||||||||||||
Net income | $ | 5,389 | $ | 7,860 | ||||||||||||
Basic earnings (loss) per share: | ||||||||||||||||
Basic Earnings per Share: | ||||||||||||||||
Weighted average shares outstanding | 5,141,364 | 4,991,060 | 5,216,237 | 5,196,812 | ||||||||||||
Net income (loss) per share of common stock | $ | 0.96 | $ | (0.01 | ) | |||||||||||
Net income per share of common stock | $ | 1.03 | $ | 1.51 | ||||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||
Diluted Earnings per Share: | ||||||||||||||||
Weighted average shares outstanding | 5,141,429 | 4,991,060 | 5,216,441 | 5,196,853 | ||||||||||||
Net income (loss) per share of common stock | $ | 0.96 | $ | (0.01 | ) | |||||||||||
See Notes to Consolidated Financial Statements. | ||||||||||||||||
Net income per share of common stock | $ | 1.03 | $ | 1.51 |
Years Ended December 31, | ||||||||
(unaudited, dollars in thousands) | 2020 | 2019 | ||||||
Net income | $ | 5,389 | $ | 7,860 | ||||
Other comprehensive income, net of tax | ||||||||
Net unrealized gain on available-for-sale securities | 4,357 | 2,325 | ||||||
Reclassification for gain included in net income | (209 | ) | (248 | ) | ||||
Other comprehensive income, net of tax | 4,148 | 2,077 | ||||||
Comprehensive income | $ | 9,537 | $ | 9,937 |
Old Point Financial Corporation and Subsidiaries | ||||||||
Consolidated Statements of Comprehensive Income | ||||||||
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
(dollars in thousands) | ||||||||
Net income (loss) | $ | 4,919 | $ | (29 | ) | |||
Other comprehensive income (loss), net of tax | ||||||||
Net unrealized gain (loss) on available-for-sale securities | (1,233 | ) | 1,032 | |||||
Changes in defined benefit plan assets and benefit obligations | - | 2,469 | ||||||
Other comprehensive income (loss), net of tax | (1,233 | ) | 3,501 | |||||
Comprehensive income | $ | 3,686 | $ | 3,472 | ||||
See Notes to Consolidated Financial Statements. |
Shares of Common Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2016 | 4,961,258 | $ | 24,806 | $ | 16,427 | $ | 56,965 | $ | (4,208 | ) | $ | 93,990 | ||||||||||||
Net loss | - | - | - | (29 | ) | - | (29 | ) | ||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 3,501 | 3,501 | ||||||||||||||||||
Exercise of stock options | 58,105 | 290 | 875 | - | - | 1,165 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 3,548 | 18 | 81 | - | - | 99 | ||||||||||||||||||
Repurchase of common stock related to stock option exercises | (5,453 | ) | (27 | ) | (130 | ) | - | - | (157 | ) | ||||||||||||||
Stock-based compensation expense | - | - | 17 | - | - | 17 | ||||||||||||||||||
Cash dividends ($0.44 per share) | - | - | - | (2,198 | ) | - | (2,198 | ) | ||||||||||||||||
Balance at December 31, 2017 | 5,017,458 | $ | 25,087 | $ | 17,270 | $ | 54,738 | $ | (707 | ) | $ | 96,388 | ||||||||||||
Net income | - | - | - | 4,919 | - | 4,919 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | - | - | - | (1,233 | ) | (1,233 | ) | ||||||||||||||||
Issuance of common stock related to acquisition | 149,625 | 748 | 3,199 | - | - | 3,947 | ||||||||||||||||||
Reclassification of the stranded income tax effects of the Tax Cuts and Jobs Act from AOCI | - | - | - | 139 | (139 | ) | - | |||||||||||||||||
Reclassification of net unrealized gains on equity securities from AOCI per ASU 2016-01 | - | - | - | 77 | (77 | ) | - | |||||||||||||||||
Employee Stock Purchase Plan share issuance | 3,517 | 18 | 69 | - | - | 87 | ||||||||||||||||||
Stock-based compensation expense | - | - | 160 | - | - | 160 | ||||||||||||||||||
Cash dividends ($0.44 per share) | - | - | - | (2,262 | ) | - | (2,262 | ) | ||||||||||||||||
Balance at December 31, 2018 | 5,170,600 | $ | 25,853 | $ | 20,698 | $ | 57,611 | $ | (2,156 | ) | $ | 102,006 | ||||||||||||
See Notes to Consolidated Financial Statements. |
(dollars in thousands, except share and per share data) | Shares of Common Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||
YEAR ENDED DECEMBER 31, 2020 | ||||||||||||||||||||||||
Balance at December 31, 2019 | 5,180,105 | $ | 25,901 | $ | 20,959 | $ | 62,975 | $ | (79 | ) | $ | 109,756 | ||||||||||||
Net income | - | - | - | 5,389 | - | 5,389 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 4,148 | 4,148 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 5,819 | 29 | 67 | - | - | 96 | ||||||||||||||||||
Restricted stock vested | 8,519 | 42 | (42 | ) | - | - | - | |||||||||||||||||
Stock-based compensation expense | - | - | 261 | - | - | 261 | ||||||||||||||||||
Cash dividends ($.48 per share) | - | - | - | (2,505 | ) | - | (2,505 | ) | ||||||||||||||||
Balance at end of period | 5,194,443 | $ | 25,972 | $ | 21,245 | $ | 65,859 | $ | 4,069 | $ | 117,145 | |||||||||||||
YEAR ENDED DECEMBER 31, 2019 | ||||||||||||||||||||||||
Balance at December 31, 2018 | 5,170,600 | $ | 25,853 | $ | 20,698 | $ | 57,611 | $ | (2,156 | ) | $ | 102,006 | ||||||||||||
Net income | - | - | - | 7,860 | - | 7,860 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 2,077 | 2,077 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 3,666 | 19 | 66 | - | - | 85 | ||||||||||||||||||
Restricted stock vested | 5,839 | 29 | (29 | ) | - | - | - | |||||||||||||||||
Stock-based compensation expense | - | - | 224 | - | - | 224 | ||||||||||||||||||
Cash dividends ($.48 per share) | - | - | - | (2,496 | ) | - | (2,496 | ) | ||||||||||||||||
Balance at end of period | 5,180,105 | $ | 25,901 | $ | 20,959 | $ | 62,975 | $ | (79 | ) | $ | 109,756 |
Years Ended December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 5,389 | $ | 7,860 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 2,145 | 2,220 | ||||||
Amortization of right of use lease asset | 380 | 319 | ||||||
Accretion related to acquisition, net | (176 | ) | (239 | ) | ||||
Provision for loan losses | 1,000 | 318 | ||||||
Gain on sale of securities, net | (264 | ) | (314 | ) | ||||
Net amortization of securities | 627 | 1,103 | ||||||
(Increase) in loans held for sale, net | (13,823 | ) | (111 | ) | ||||
Net (gain) loss on disposal of premises and equipment | (818 | ) | 82 | |||||
Net gain on write-down/sale of other real estate owned | (62 | ) | (2 | ) | ||||
Income from bank owned life insurance | (839 | ) | (784 | ) | ||||
Stock compensation expense | 261 | 224 | ||||||
Deferred tax benefit | (634 | ) | 352 | |||||
(Decrease) increase in other assets | (966 | ) | 1,967 | |||||
Decrease in accrued expenses and other liabilities | (855 | ) | (625 | ) | ||||
Net cash (used in) provided by operating activities | (8,635 | ) | 12,370 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of available-for-sale securities | (73,057 | ) | (103,036 | ) | ||||
Proceeds from redemption restricted securities, net | 1,559 | 927 | ||||||
Proceeds from maturities and calls of available-for-sale securities | 10,747 | 29,725 | ||||||
Proceeds from sales of available-for-sale securities | 13,944 | 65,699 | ||||||
Paydowns on available-for-sale securities | 12,559 | 11,984 | ||||||
Net (increase) decrease in loans held for investment | (89,588 | ) | 25,529 | |||||
Proceeds from sales of other real estate owned | 316 | 85 | ||||||
Purchases of premises and equipment | (924 | ) | (1,782 | ) | ||||
Proceeds from sale of premises and equipment | 2,203 | - | ||||||
Net cash (used in) provided by investing activities | (122,241 | ) | 29,131 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Increase in noninterest-bearing deposits | 98,044 | 16,293 | ||||||
Increase in savings deposits | 113,916 | 31,105 | ||||||
Decrease in time deposits | (34,220 | ) | (917 | ) | ||||
Decrease in federal funds purchased, repurchase agreements and other borrowings, net | (5,433 | ) | (14,923 | ) | ||||
Increase in Federal Home Loan Bank advances | 25,000 | 10,000 | ||||||
Repayment of Federal Home Loan Bank advances | (62,000 | ) | (33,000 | ) | ||||
Increase in Federal Reserve Bank borrowings | 37,515 | - | ||||||
Repayment of Federal Reserve Bank borrowings | (8,965 | ) | - | |||||
Proceeds from ESPP issuance | 96 | 85 | ||||||
Cash dividends paid on common stock | (2,505 | ) | (2,496 | ) | ||||
Net cash provided by financing activities | 161,448 | 6,147 | ||||||
Net increase in cash and cash equivalents | 30,572 | 47,648 | ||||||
Cash and cash equivalents at beginning of period | 89,865 | 42,217 | ||||||
Cash and cash equivalents at end of period | $ | 120,437 | $ | 89,865 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash payments for: | ||||||||
Interest | $ | 5,528 | $ | 6,396 | ||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||||||||
Unrealized gain on securities available-for-sale | $ | 5,250 | $ | 2,629 | ||||
Loans transferred to other real estate owned | $ | 254 | $ | - | ||||
Former bank property transferred from fixed assets to held for sale assets | $ | - | $ | 906 | ||||
Right of use lease asset and liability | $ | 1,312 | $ | 751 |
Years Ended December 31, | 2018 | 2017 | ||||||
(dollars in thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 4,919 | $ | (29 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,469 | 2,742 | ||||||
Accretion related to acquisition, net | (341 | ) | - | |||||
Provision for loan losses | 2,861 | 4,160 | ||||||
Gain on sale of securities, net | (120 | ) | (96 | ) | ||||
Net amortization of securities | 1,687 | 2,247 | ||||||
(Increase) decrease in loans held for sale, net | 300 | (779 | ) | |||||
Net (gain) loss on disposal of premises and equipment | 9 | 4 | ||||||
Net (gain) loss on write-down/sale of other real estate owned | 86 | (18 | ) | |||||
Income from bank owned life insurance | (782 | ) | (774 | ) | ||||
Stock compensation expense | 160 | 17 | ||||||
Deferred tax benefit | (164 | ) | (117 | ) | ||||
(Increase) decrease in other assets | 338 | 458 | ||||||
Increase (decrease) in accrued expenses and other liabilities | 732 | 3,177 | ||||||
Pension plan contribution | - | (1,554 | ) | |||||
Net cash provided by operating activities | 12,154 | 9,438 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of available-for-sale securities | (26,002 | ) | (23,095 | ) | ||||
Proceeds from redemption (cash used in purchases) of restricted securities, net | 270 | (2,876 | ) | |||||
Proceeds from maturities and calls of available-for-sale securities | 10,990 | 50,290 | ||||||
Proceeds from sales of available-for-sale securities | 12,536 | 4,480 | ||||||
Paydowns on available-for-sale securities | 10,183 | 9,981 | ||||||
Proceeds from sale of loans held for investment | 8,746 | - | ||||||
Net increase in loans held for investment | (3,568 | ) | (137,615 | ) | ||||
Proceeds from sales of other real estate owned | 210 | 1,084 | ||||||
Purchases of premises and equipment | (478 | ) | (619 | ) | ||||
Cash paid in acquisition | (3,164 | ) | - | |||||
Cash acquired in acquisition | 2,304 | - | ||||||
Net cash provided by (used in) investing activities | 12,027 | (98,370 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Increase (decrease) in noninterest-bearing deposits | 14,236 | (2,925 | ) | |||||
Increase in savings deposits | 15,487 | 601 | ||||||
Increase (decrease) in time deposits | (14,056 | ) | 1,416 | |||||
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net | (2,368 | ) | 11,989 | |||||
Increase in Federal Home Loan Bank advances | 140,500 | 167,500 | ||||||
Repayment of Federal Home Loan Bank advances | (148,000 | ) | (100,000 | ) | ||||
Proceeds from exercise of stock options and ESPP issuance | 87 | 1,264 | ||||||
Repurchase and retirement of common stock | - | (157 | ) | |||||
Cash dividends paid on common stock | (2,262 | ) | (2,198 | ) | ||||
Net cash provided by (used in) financing activities | 3,624 | 77,490 | ||||||
Net increase (decrease) in cash and cash equivalents | 27,805 | (11,442 | ) | |||||
Cash and cash equivalents at beginning of period | 14,412 | 25,854 | ||||||
Cash and cash equivalents at end of period | $ | 42,217 | $ | 14,412 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash payments for: | ||||||||
Interest | $ | 4,735 | $ | 2,880 | ||||
Income tax | - | 600 | ||||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||||||||
Unrealized gain (loss) on securities available-for-sale | $ | (1,560 | ) | $ | 1,563 | |||
Loans transferred to other real estate owned | 203 | - | ||||||
Decrease in pension liability | - | 3,741 | ||||||
TRANSACTIONS RELATED TO ACQUISITIONS | ||||||||
Assets acquired | $ | 50,406 | $ | - | ||||
Liabilities assumed | 44,324 | - | ||||||
Common stock issued in acquisition | 3,947 | - | ||||||
See Notes to Consolidated Financial Statements. |
Management determines the asset to be uncollectible; |
Repayment is deemed to be protracted beyond reasonable time frames; |
The asset has been classified as a loss by either the internal loan review process or external examiners; |
The borrower has filed for bankruptcy protection and the loss becomes evident due to a lack of borrower assets; or |
The loan is 120 days or more past due unless the loan is both well secured and in the process of collection. |
As Recorded by Citizens | Fair Value Adjustments | As Recorded by the Company | ||||||||||
Consideration paid: | ||||||||||||
Cash | $ | 3,164 | ||||||||||
Company common stock | 3,947 | |||||||||||
Total purchase price | $ | 7,111 | ||||||||||
Identifiable assets acquired: | ||||||||||||
Cash and cash equivalents | $ | 2,304 | $ | - | $ | 2,304 | ||||||
Securities available for sale | 1,959 | - | 1,959 | |||||||||
Restricted securities, at cost | 278 | - | 278 | |||||||||
Loans, net | 42,824 | (34 | ) | 42,790 | ||||||||
Premises and equipment | 1,070 | 450 | 1,520 | |||||||||
Other real estate owned | 237 | (61 | ) | 176 | ||||||||
Core deposit intangibles | - | 440 | 440 | |||||||||
Other assets | 1,055 | (116 | ) | 939 | ||||||||
Total assets | $ | 49,727 | $ | 679 | $ | 50,406 | ||||||
Identifiable liabilities assumed: | ||||||||||||
Deposits | $ | 43,754 | $ | 246 | $ | 44,000 | ||||||
Other liabilities | 324 | - | 324 | |||||||||
Total liabilities | $ | 44,078 | $ | 246 | $ | 44,324 | ||||||
Net assets acquired | $ | 6,082 | ||||||||||
Preliminary goodwill | $ | 1,029 |
Contractually required principal and interest payments | $ | 1,031 | ||
Nonaccretable difference | (211 | ) | ||
Cash flows expected to be collected | 820 | |||
Accretable yield | (110 | ) | ||
Fair value of purchased credit-impaired loans | $ | 710 |
Purchased performing loans | $ | 181 | ||
Purchased credit-impaired loans | 77 | |||
Certificate of deposit valuation | 116 | |||
Amortization of core deposit intangible | (33 | ) | ||
Net impact to income before income taxes | $ | 341 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | December 31, 2020 | ||||||||||||||||||||||||||||
(in thousands) | Gross | Gross | ||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cost | Gains | (Losses) | Value | ||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 12,323 | $ | 6 | $ | (1 | ) | $ | 12,328 | $ | 6,980 | $ | 63 | $ | - | $ | 7,043 | |||||||||||||||
Obligations of U.S. Government agencies | 10,868 | 2 | (156 | ) | 10,714 | 36,858 | 35 | (197 | ) | 36,696 | ||||||||||||||||||||||
Obligations of state and political subdivisions | 49,194 | 155 | (512 | ) | 48,837 | |||||||||||||||||||||||||||
Obligations of state and policitcal subdivisions | 43,517 | 2,478 | - | 45,995 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 73,444 | 93 | (2,346 | ) | 71,191 | 70,866 | 2,759 | (124 | ) | 73,501 | ||||||||||||||||||||||
Money market investments | 1,897 | - | - | 1,897 | 4,743 | - | - | 4,743 | ||||||||||||||||||||||||
Corporate bonds and other securities | 3,250 | 42 | (12 | ) | 3,280 | 18,295 | 158 | (22 | ) | 18,431 | ||||||||||||||||||||||
Total | $ | 150,976 | $ | 298 | $ | (3,027 | ) | $ | 148,247 | |||||||||||||||||||||||
$ | 181,259 | $ | 5,493 | $ | (343 | ) | $ | 186,409 | ||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||
Obligations of U.S. Government agencies | $ | 9,530 | $ | 27 | $ | (122 | ) | $ | 9,435 | |||||||||||||||||||||||
Obligations of state and political subdivisions | 64,413 | 489 | (137 | ) | 64,765 | |||||||||||||||||||||||||||
Mortgage-backed securities | 75,906 | - | (1,610 | ) | 74,296 | |||||||||||||||||||||||||||
Money market investments | 1,194 | - | - | 1,194 | ||||||||||||||||||||||||||||
Corporate bonds and other securities | 7,049 | 195 | (10 | ) | 7,234 | |||||||||||||||||||||||||||
Other marketable equity securities | 100 | 97 | - | 197 | ||||||||||||||||||||||||||||
Total | $ | 158,192 | $ | 808 | $ | (1,879 | ) | $ | 157,121 |
December 31, 2019 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Gains | (Losses) | Value | ||||||||||||
U.S. Treasury securities | $ | 6,925 | $ | 78 | $ | - | $ | 7,003 | ||||||||
Obligations of U.S. Government agencies | 33,998 | 9 | (403 | ) | 33,604 | |||||||||||
Obligations of state and policitcal subdivisions | 24,525 | 442 | (225 | ) | 24,742 | |||||||||||
Mortgage-backed securities | 72,000 | 460 | (552 | ) | 71,908 | |||||||||||
Money market investments | 3,825 | - | - | 3,825 | ||||||||||||
Corporate bonds and other securities | 4,542 | 94 | (3 | ) | 4,633 | |||||||||||
$ | 145,815 | $ | 1,083 | $ | (1,183 | ) | $ | 145,715 |
December 31, 2018 | ||||||||
Available-for-Sale | ||||||||
Amortized Cost | Fair Value | |||||||
(in thousands) | ||||||||
Due in one year or less | $ | 11,285 | $ | 11,281 | ||||
Due after one year through five years | 27,800 | 27,427 | ||||||
Due after five years through ten years | 31,214 | 30,628 | ||||||
Due after ten years | 78,780 | 77,014 | ||||||
Total debt securities | 149,079 | 146,350 | ||||||
Other securities without stated maturities | 1,897 | 1,897 | ||||||
Total securities | $ | 150,976 | $ | 148,247 |
December 31, 2020 | ||||||||
Amortized | Fair | |||||||
(Dollars in thousands) | Cost | Value | ||||||
Due in one year or less | $ | 7,080 | $ | 7,145 | ||||
Due after one year through five years | 4,430 | 4,617 | ||||||
Due after five through ten years | 45,981 | 47,665 | ||||||
Due after ten years | 119,025 | 122,239 | ||||||
Other securities, restricted | 4,743 | 4,743 | ||||||
$ | 181,259 | $ | 186,409 |
2018 | 2017 | |||||||
(in thousands) | ||||||||
Proceeds from sales | $ | 12,536 | $ | 4,480 | ||||
Gross realized gains | $ | 131 | $ | 96 | ||||
Gross realized losses | $ | 11 | $ | - |
Year Ended December 31, | ||||||||
(Dollars in thousands) | 2020 | 2019 | ||||||
Securities Available-for-sale | ||||||||
Realized gains on sales of securities | $ | 265 | $ | 575 | ||||
Realized losses on sales of securities | (1 | ) | (261 | ) | ||||
Net realized gain | $ | 264 | $ | 314 |
December 31, 2018 | ||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | ||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Number of Securities | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 1 | $ | 2,484 | $ | - | $ | - | $ | 1 | $ | 2,484 | 1 | |||||||||||||||
Obligations of U.S. Government agencies | 47 | 6,014 | 109 | 3,206 | 156 | 9,220 | 15 | |||||||||||||||||||||
Obligations of state and political subdivisions | 10 | 5,829 | 502 | 23,727 | 512 | 29,556 | 45 | |||||||||||||||||||||
Mortgage-backed securities | - | - | 2,346 | 63,930 | 2,346 | 63,930 | 24 | |||||||||||||||||||||
Corporate bonds and other securities | 1 | 100 | 11 | 389 | 12 | 489 | 3 | |||||||||||||||||||||
Total securities available-for-sale | $ | 59 | $ | 14,427 | $ | 2,968 | $ | 91,252 | $ | 3,027 | $ | 105,679 | 88 |
December 31, 2020 | ||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||
Gross | Gross | Gross | Number | |||||||||||||||||||||||||
Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | of | ||||||||||||||||||||||
(Dollars in thousands) | Losses | Value | Losses | Value | Losses | Value | Securities | |||||||||||||||||||||
Obligations of U.S. Government agencies | $ | 8 | $ | 2,810 | $ | 189 | $ | 17,191 | $ | 197 | $ | 20,001 | 15 | |||||||||||||||
Mortgage-backed securities | 118 | 14,291 | 6 | 1,285 | 124 | 15,576 | 7 | |||||||||||||||||||||
Corporate bonds and other securities | 22 | 5,977 | - | - | 22 | 5,977 | 7 | |||||||||||||||||||||
Total securities available-for-sale | $ | 148 | $ | 23,078 | $ | 195 | $ | 18,476 | $ | 343 | $ | 41,554 | 29 |
December 31, 2017 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Number of Securities | Gross | Gross | Gross | Number | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | of | |||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U. S. Government agencies | $ | 11 | $ | 3,189 | $ | 111 | $ | 3,089 | $ | 122 | $ | 6,278 | 13 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions | 32 | 11,141 | 105 | 10,999 | 137 | 22,140 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Losses | Value | Losses | Value | Losses | Value | Securities | |||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of U.S. Government agencies | $ | 349 | $ | 29,744 | $ | 54 | $ | 2,562 | $ | 403 | $ | 32,306 | 22 | |||||||||||||||||||||||||||||||||||||||||||
Obligations of state and policitcal subdivisions | 225 | 10,112 | - | - | 225 | 10,112 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 67 | 9,742 | 1,543 | 64,554 | 1,610 | 74,296 | 24 | 405 | 44,661 | 147 | 14,078 | 552 | 58,739 | 17 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 2 | 1,098 | 8 | 792 | 10 | 1,890 | 11 | - | - | 3 | 197 | 3 | 197 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | 112 | $ | 25,170 | $ | 1,767 | $ | 79,434 | $ | 1,879 | $ | 104,604 | 77 | $ | 979 | $ | 84,517 | $ | 204 | $ | 16,837 | $ | 1,183 | $ | 101,354 | 47 |
December 31, 2018 | December 31, 2017 | |||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 110,009 | $ | 101,021 | $ | 122,800 | $ | 118,561 | ||||||||
Commercial - owner occupied | 155,245 | 159,268 | 153,955 | 141,743 | ||||||||||||
Commercial - non-owner occupied | 131,287 | 107,514 | 162,896 | 135,798 | ||||||||||||
Multifamily | 28,954 | 22,900 | 22,812 | 25,865 | ||||||||||||
Construction | 32,383 | 27,489 | 43,732 | 40,716 | ||||||||||||
Second mortgages | 17,297 | 17,918 | 11,178 | 13,941 | ||||||||||||
Equity lines of credit | 57,649 | 56,610 | 50,746 | 52,286 | ||||||||||||
Total mortgage loans on real estate | 532,824 | 492,720 | 568,119 | 528,910 | ||||||||||||
Commercial and industrial loans | 63,398 | 60,398 | 141,746 | 75,383 | ||||||||||||
Consumer automobile loans | 120,796 | 119,251 | 80,390 | 97,294 | ||||||||||||
Other consumer loans | 48,342 | 54,974 | 37,978 | 39,713 | ||||||||||||
Other (1) | 8,649 | 11,197 | 8,067 | 6,565 | ||||||||||||
Total loans | 774,009 | 738,540 | ||||||||||||||
Total loans, net of deferred fees | 836,300 | 747,865 | ||||||||||||||
Less: Allowance for loan losses | (10,111 | ) | (9,448 | ) | 9,541 | 9,660 | ||||||||||
Loans, net of allowance and deferred fees (2) | $ | 763,898 | $ | 729,092 | $ | 826,759 | $ | 738,205 | ||||||||
(1) Overdrawn deposit accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $628 thousand and $424 thousand at December 31, 2018 and December 31, 2017, respectively. | ||||||||||||||||
(2) Net deferred loan costs totaled $864 thousand and $916 thousand at December 31, 2018 and December 31, 2017, respectively. |
(1) | Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $271 thousand and $449 thousand at December 31, 2020 and 2019, respectively. |
(2) | Net deferred loan costs totaled $2.1 million and $557 thousand at December 31, 2020 and 2019, respectively. |
(dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||
Outstanding principal balance | $ | 8,671 | $ | 16,850 | ||||
Carrying amount | 8,602 | 16,561 |
December 31, 2018 | ||||
(in thousands) | ||||
Outstanding principal balance | $ | 31,940 | ||
Carrying amount | 31,497 |
December 31, 2018 | ||||
(in thousands) | ||||
Outstanding principal balance | $ | 246 | ||
Carrying amount | 91 |
(dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||
Outstanding principal balance | $ | - | $ | 227 | ||||
Carrying amount | - | 85 |
December 31, 2018 | ||||
(in thousands) | ||||
Balance at January 1, 2018 | $ | - | ||
Additions from acquisition of Citizens | 110 | |||
Accretion | (98 | ) | ||
Other changes, net | - | |||
Ending balance | $ | 12 |
(dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||
Balance at January 1 | $ | 72 | $ | 12 | ||||
Accretion | (156 | ) | (27 | ) | ||||
Reclassification from nonaccretable difference | - | 125 | ||||||
Other changes, net | 84 | (38 | ) | |||||
Balance at end of period | $ | - | $ | 72 |
Credit Quality Information As of December 31, 2018 | ||||||||||||||||||||||||||||||||||||
Pass | OAEM | Substandard | Total | |||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Credit Quality Information | Credit Quality Information | |||||||||||||||||||||||||||||||||||
As of December 31, 2020 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Pass | OAEM | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 108,274 | $ | - | $ | 1,735 | $ | 110,009 | $ | 122,621 | $ | - | $ | 179 | $ | - | $ | 122,800 | ||||||||||||||||||
Commercial - owner occupied | 140,664 | 4,067 | 10,514 | 155,245 | 148,738 | 2,462 | 2,755 | - | 153,955 | |||||||||||||||||||||||||||
Commercial - non-owner occupied | 121,523 | 3,937 | 5,827 | 131,287 | 162,148 | 748 | - | - | 162,896 | |||||||||||||||||||||||||||
Multifamily | 28,954 | - | - | 28,954 | 22,812 | - | - | - | 22,812 | |||||||||||||||||||||||||||
Construction | 31,896 | 71 | 416 | 32,383 | 42,734 | 998 | - | - | 43,732 | |||||||||||||||||||||||||||
Second mortgages | 17,007 | - | 290 | 17,297 | 11,178 | - | - | - | 11,178 | |||||||||||||||||||||||||||
Equity lines of credit | 56,893 | - | 756 | 57,649 | 50,746 | - | - | - | 50,746 | |||||||||||||||||||||||||||
Total mortgage loans on real estate | 505,211 | 8,075 | 19,538 | 532,824 | $ | 560,977 | $ | 4,208 | $ | 2,934 | $ | - | $ | 568,119 | ||||||||||||||||||||||
Commercial and industrial loans | 60,967 | 1,987 | 444 | 63,398 | 141,391 | 355 | - | - | 141,746 | |||||||||||||||||||||||||||
Consumer automobile loans | 120,365 | - | 431 | 120,796 | 79,997 | - | 393 | - | 80,390 | |||||||||||||||||||||||||||
Other consumer loans | 48,298 | - | 44 | 48,342 | 37,978 | - | - | - | 37,978 | |||||||||||||||||||||||||||
Other | 8,649 | - | - | 8,649 | 8,067 | - | - | - | 8,067 | |||||||||||||||||||||||||||
Total | $ | 743,490 | $ | 10,062 | $ | 20,457 | $ | 774,009 | $ | 828,410 | $ | 4,563 | $ | 3,327 | $ | - | $ | 836,300 |
Credit Quality Information As of December 31, 2017 | ||||||||||||||||
Pass | OAEM | Substandard | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 98,656 | $ | - | $ | 2,365 | $ | 101,021 | ||||||||
Commercial - owner occupied | 142,778 | 4,944 | 11,546 | 159,268 | ||||||||||||
Commercial - non-owner occupied | 98,597 | 5,582 | 3,335 | 107,514 | ||||||||||||
Multifamily | 22,900 | - | - | 22,900 | ||||||||||||
Construction | 26,694 | 74 | 721 | 27,489 | ||||||||||||
Second mortgages | 17,211 | 431 | 276 | 17,918 | ||||||||||||
Equity lines of credit | 56,318 | - | 292 | 56,610 | ||||||||||||
Total mortgage loans on real estate | 463,154 | 11,031 | 18,535 | 492,720 | ||||||||||||
Commercial and industrial loans | 58,091 | 1,469 | 838 | 60,398 | ||||||||||||
Consumer automobile loans | 119,211 | - | 40 | 119,251 | ||||||||||||
Other consumer loans | 54,926 | - | 48 | 54,974 | ||||||||||||
Other | 11,197 | - | - | 11,197 | ||||||||||||
Total | $ | 706,579 | $ | 12,500 | $ | 19,461 | $ | 738,540 |
Credit Quality Information | ||||||||||||||||||||
As of December 31, 2019 | ||||||||||||||||||||
(dollars in thousands) | Pass | OAEM | Substandard | Doubtful | Total | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 116,380 | $ | - | $ | 2,181 | $ | - | $ | 118,561 | ||||||||||
Commercial - owner occupied | 134,570 | 1,618 | 5,555 | - | 141,743 | |||||||||||||||
Commercial - non-owner occupied | 132,851 | 1,622 | 1,325 | - | 135,798 | |||||||||||||||
Multifamily | 25,865 | - | - | - | 25,865 | |||||||||||||||
Construction | 40,716 | - | - | - | 40,716 | |||||||||||||||
Second mortgages | 13,837 | - | 104 | - | 13,941 | |||||||||||||||
Equity lines of credit | 52,286 | - | - | - | 52,286 | |||||||||||||||
Total mortgage loans on real estate | $ | 516,505 | $ | 3,240 | $ | 9,165 | $ | - | $ | 528,910 | ||||||||||
Commercial and industrial loans | 74,963 | 66 | 354 | - | 75,383 | |||||||||||||||
Consumer automobile loans | 96,907 | - | 387 | - | 97,294 | |||||||||||||||
Other consumer loans | 39,713 | - | - | - | 39,713 | |||||||||||||||
Other | 6,565 | - | - | - | 6,565 | |||||||||||||||
Total | $ | 734,653 | $ | 3,306 | $ | 9,906 | $ | - | $ | 747,865 |
Age Analysis of Past Due Loans as of December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due | Acquired Impaired | Total Current Loans (1) | Total Loans | Recorded Investment > 90 Days Past Due and Accruing | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due and still Accruing | PCI | Nonaccrual (2) | Total Current Loans (1) | Total Loans | |||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,165 | $ | 553 | $ | 536 | $ | - | $ | 107,755 | $ | 110,009 | $ | 179 | $ | 478 | $ | 164 | $ | - | $ | - | $ | 311 | $ | 121,847 | $ | 122,800 | ||||||||||||||||||||||||||||
Commercial - owner occupied | 1,059 | 83 | - | 91 | 154,012 | 155,245 | - | - | - | - | - | 903 | 153,052 | 153,955 | ||||||||||||||||||||||||||||||||||||||||||
Commercial - non-owner occupied | - | - | 2,970 | - | 128,317 | 131,287 | - | - | - | - | - | - | 162,896 | 162,896 | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 28,954 | 28,954 | - | - | - | - | - | - | 22,812 | 22,812 | ||||||||||||||||||||||||||||||||||||||||||
Construction | - | - | 622 | - | 31,761 | 32,383 | 205 | - | 88 | - | - | - | 43,644 | 43,732 | ||||||||||||||||||||||||||||||||||||||||||
Second mortgages | 65 | - | 135 | - | 17,097 | 17,297 | 136 | 41 | - | - | - | - | 11,137 | 11,178 | ||||||||||||||||||||||||||||||||||||||||||
Equity lines of credit | 60 | - | - | - | 57,589 | 57,649 | - | - | - | - | - | - | 50,746 | 50,746 | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans on real estate | 2,349 | 636 | 4,263 | 91 | 525,485 | 532,824 | 520 | $ | 519 | $ | 252 | $ | - | $ | - | $ | 1,214 | $ | 566,134 | $ | 568,119 | |||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 1,595 | - | - | - | 61,803 | 63,398 | - | 753 | - | - | - | - | 140,993 | 141,746 | ||||||||||||||||||||||||||||||||||||||||||
Consumer automobile loans | 1,645 | 291 | 114 | - | 118,746 | 120,796 | 113 | 1,159 | 190 | 196 | - | - | 78,845 | 80,390 | ||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | 1,333 | 621 | 1,852 | - | 44,536 | 48,342 | 1,852 | 1,120 | 555 | 548 | - | - | 35,755 | 37,978 | ||||||||||||||||||||||||||||||||||||||||||
Other | 133 | 8 | 12 | - | 8,496 | 8,649 | 12 | 24 | 3 | - | - | - | 8,040 | 8,067 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,055 | $ | 1,556 | $ | 6,241 | $ | 91 | $ | 759,066 | $ | 774,009 | $ | 2,497 | $ | 3,575 | $ | 1,000 | $ | 744 | $ | - | $ | 1,214 | $ | 829,767 | $ | 836,300 |
(1) |
(2) | For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. |
(dollars in thousands) | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due and still Accruing | PCI | Nonaccrual (2) | Total Current Loans (1) | Total Loans | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 891 | $ | - | $ | - | $ | - | $ | 1,459 | $ | 116,211 | $ | 118,561 | ||||||||||||||
Commercial - owner occupied | - | 319 | - | 85 | 2,795 | 138,544 | 141,743 | |||||||||||||||||||||
Commercial - non-owner occupied | - | - | - | - | 1,422 | 134,376 | 135,798 | |||||||||||||||||||||
Multifamily | - | - | - | - | - | 25,865 | 25,865 | |||||||||||||||||||||
Construction | 100 | - | - | - | - | 40,616 | 40,716 | |||||||||||||||||||||
Second mortgages | 49 | - | - | - | 104 | 13,788 | 13,941 | |||||||||||||||||||||
Equity lines of credit | 25 | - | - | - | - | 52,261 | 52,286 | |||||||||||||||||||||
Total mortgage loans on real estate | $ | 1,065 | $ | 319 | $ | - | $ | 85 | $ | 5,780 | $ | 521,661 | $ | 528,910 | ||||||||||||||
Commercial and industrial loans | 211 | - | - | - | 257 | 74,915 | 75,383 | |||||||||||||||||||||
Consumer automobile loans | 1,115 | 299 | 203 | - | - | 95,677 | 97,294 | |||||||||||||||||||||
Other consumer loans | 1,032 | 891 | 888 | - | - | 36,902 | 39,713 | |||||||||||||||||||||
Other | 81 | 9 | - | - | - | 6,475 | 6,565 | |||||||||||||||||||||
Total | $ | 3,504 | $ | 1,518 | $ | 1,091 | $ | 85 | $ | 6,037 | $ | 735,630 | $ | 747,865 |
(1) | For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. |
(2) | For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. |
Age Analysis of Past Due Loans as of December 31, 2017 | ||||||||||||||||||||||||
30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due | Total Current Loans (1) | Total Loans | Recorded Investment > 90 Days Past Due and Accruing | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Mortgage loans on real estate: | �� | |||||||||||||||||||||||
Residential 1-4 family | $ | 229 | $ | 153 | $ | 1,278 | $ | 99,361 | $ | 101,021 | $ | 261 | ||||||||||||
Commercial - owner occupied | 194 | 595 | 1,753 | 156,726 | 159,268 | - | ||||||||||||||||||
Commercial - non-owner occupied | - | 176 | - | 107,338 | 107,514 | - | ||||||||||||||||||
Multifamily | - | - | - | 22,900 | 22,900 | - | ||||||||||||||||||
Construction | - | - | 721 | 26,768 | 27,489 | - | ||||||||||||||||||
Second mortgages | 15 | - | 163 | 17,740 | 17,918 | 45 | ||||||||||||||||||
Equity lines of credit | 75 | 19 | 53 | 56,463 | 56,610 | - | ||||||||||||||||||
Total mortgage loans on real estate | 513 | 943 | 3,968 | 487,296 | 492,720 | 306 | ||||||||||||||||||
Commercial and industrial loans | 709 | - | 1,060 | 58,629 | 60,398 | 471 | ||||||||||||||||||
Consumer automobile loans | 517 | 122 | 41 | 118,571 | 119,251 | 41 | ||||||||||||||||||
Other consumer loans | 2,222 | 544 | 2,360 | 49,848 | 54,974 | 2,360 | ||||||||||||||||||
Other | 84 | 9 | 4 | 11,100 | 11,197 | 4 | ||||||||||||||||||
Total | $ | 4,045 | $ | 1,618 | $ | 7,433 | $ | 725,444 | $ | 738,540 | $ | 3,182 |
December 31, 2018 | December 31, 2017 | |||||||
(in thousands) | ||||||||
Mortgage loans on real estate: | ||||||||
Residential 1-4 family | $ | 1,386 | $ | 1,447 | ||||
Commercial - owner occupied | 5,283 | 7,824 | ||||||
Commercial - non-owner occupied | 4,371 | 1,644 | ||||||
Construction | 417 | 721 | ||||||
Second mortgages | 155 | 118 | ||||||
Equity lines of credit | 231 | 292 | ||||||
Total mortgage loans on real estate | 11,843 | 12,046 | ||||||
Commercial and industrial loans | 298 | 836 | ||||||
Consumer loans | - | - | ||||||
Total | $ | 12,141 | $ | 12,882 |
(dollars in thousands) | December 31, 2020 | December 31, 2019 | ||||||
Mortgage loans on real estate: | ||||||||
Residential 1-4 family | $ | 311 | $ | 1,459 | ||||
Commercial - owner occupied | 903 | 2,795 | ||||||
Commercial - non-owner occupied | - | 1,422 | ||||||
Second mortgages | - | 104 | ||||||
Total mortgage loans on real estate | $ | 1,214 | $ | 5,780 | ||||
Commercial and industrial loans | - | 257 | ||||||
Total | $ | 1,214 | $ | 6,037 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||
2018 | 2017 | |||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousand) | 2020 | 2019 | ||||||||||||||
Interest income that would have been recorded under original loan terms | $ | 533 | $ | 474 | $ | 45 | $ | 283 | ||||||||
Actual interest income recorded for the period | 336 | 281 | 34 | 115 | ||||||||||||
Reduction in interest income on nonaccrual loans | $ | 197 | $ | 193 | $ | 11 | $ | 168 |
Troubled Debt Restructurings by Class For the Year Ended December 31, 2018 | ||||||||||||||||
Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on December 31, 2018 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | 1 | $ | 296 | $ | 187 | $ | 188 | |||||||||
Equity lines of credit | 1 | 248 | 231 | 231 | ||||||||||||
Total mortgage loans on real estate | 2 | 544 | 418 | 419 | ||||||||||||
Commercial and industrial loans | 1 | 146 | 138 | 139 | ||||||||||||
Total | 3 | $ | 690 | $ | 556 | $ | 558 |
Troubled Debt Restructurings by Class For the Year Ended December 31, 2017 | ||||||||||||||||||||||||||||||||
Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on December 31, 2017 | |||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
(dollars in thousand) | Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on December 31, 2020 | ||||||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 142 | $ | 142 | $ | 140 | 2 | $ | 512 | $ | 512 | $ | 506 | ||||||||||||||||||
Commercial - owner occupied | 2 | 3,663 | 3,663 | 3,663 | ||||||||||||||||||||||||||||
Commercial - non-owner occupied | 1 | 1,469 | 1,469 | 1,469 | ||||||||||||||||||||||||||||
Commercial and industrial | 1 | 75 | 75 | 75 | ||||||||||||||||||||||||||||
Total | 4 | $ | 5,274 | $ | 5,274 | $ | 5,272 | 3 | $ | 587 | $ | 587 | $ | 581 |
Impaired Loans by Class | ||||||||||||||||||||||||
As of December 31, 2018 | For the Year Ended December 31, 2018 | |||||||||||||||||||||||
Recorded Investment | ||||||||||||||||||||||||
Unpaid Principal Balance | Without Valuation Allowance | With Valuation Allowance | Associated Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||
Residential 1-4 family | $ | 2,057 | $ | 1,686 | $ | 239 | $ | 51 | $ | 2,073 | $ | 66 | ||||||||||||
Commercial | 15,254 | 12,721 | - | - | 14,232 | 455 | ||||||||||||||||||
Construction | 509 | 417 | 92 | 18 | 665 | 7 | ||||||||||||||||||
Second mortgages | 496 | 347 | 148 | 33 | 508 | 15 | ||||||||||||||||||
Equity lines of credit | 232 | - | 232 | 3 | 301 | 1 | ||||||||||||||||||
Total mortgage loans on real estate | $ | 18,548 | $ | 15,171 | $ | 711 | $ | 105 | $ | 17,779 | $ | 544 | ||||||||||||
Commercial and industrial loans | 384 | 78 | 220 | 11 | 446 | 5 | ||||||||||||||||||
Consumer loans | 38 | - | - | - | 43 | - | ||||||||||||||||||
Total | $ | 18,970 | $ | 15,249 | $ | 931 | $ | 116 | $ | 18,268 | $ | 549 |
Impaired Loans by Class | ||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2017 | For the Year Ended December 31, 2017 | For the Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | As of December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Without Valuation Allowance | With Valuation Allowance | Associated Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid Principal Balance | Without Valuation Allowance | With Valuation Allowance | Associated Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 2,873 | $ | 2,499 | $ | 316 | $ | 52 | $ | 2,525 | $ | 90 | $ | 474 | $ | 366 | $ | 87 | $ | 1 | $ | 458 | $ | 10 | ||||||||||||||||||||||||
Commercial | 15,262 | 11,622 | 1,644 | 1 | 13,541 | 579 | 3,490 | 1,306 | 121 | 1 | 2,559 | 46 | ||||||||||||||||||||||||||||||||||||
Construction | 814 | 721 | 92 | 18 | 406 | 23 | 83 | - | 83 | - | 84 | 5 | ||||||||||||||||||||||||||||||||||||
Second mortgages | 473 | 318 | 135 | 14 | 464 | 20 | 133 | - | 133 | 9 | 134 | 5 | ||||||||||||||||||||||||||||||||||||
Equity lines of credit | 293 | 53 | 239 | 10 | 261 | - | ||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans on real estate | $ | 19,715 | $ | 15,213 | $ | 2,426 | $ | 95 | $ | 17,197 | $ | 712 | 4,180 | 1,672 | 424 | 11 | 3,235 | 66 | ||||||||||||||||||||||||||||||
Commercial and industrial loans | 1,115 | 836 | - | - | 1,388 | 30 | 6 | 6 | - | - | 7 | - | ||||||||||||||||||||||||||||||||||||
Consumer loans | - | - | - | - | 41 | - | ||||||||||||||||||||||||||||||||||||||||||
Other consumer loans | 14 | 14 | - | - | 15 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 20,830 | $ | 16,049 | $ | 2,426 | $ | 95 | $ | $ 18,626 | $ | 742 | $ | 4,200 | $ | 1,692 | $ | 424 | $ | 11 | $ | 3,257 | $ | 67 |
For the Year Ended | ||||||||||||||||||||||||
As of December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||
(Dollars in thousands) | Unpaid Principal Balance | Without Valuation Allowance | With Valuation Allowance | Associated Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||
Residential 1-4 family | $ | 1,542 | $ | 1,519 | $ | 89 | $ | 39 | $ | 1,416 | $ | 11 | ||||||||||||
Commercial | 9,333 | 4,538 | 1,611 | 317 | 6,822 | 123 | ||||||||||||||||||
Construction | 89 | - | 88 | 14 | 88 | 4 | ||||||||||||||||||
Second mortgages | 247 | - | 245 | 111 | 246 | 6 | ||||||||||||||||||
Total mortgage loans on real estate | 11,211 | 6,057 | 2,033 | 481 | 8,572 | 144 | ||||||||||||||||||
Commercial and industrial loans | 362 | 354 | - | - | 273 | 4 | ||||||||||||||||||
Other consumer loans | 22 | - | - | - | 21 | 1 | ||||||||||||||||||
Total | $ | 11,595 | $ | 6,411 | $ | 2,033 | $ | 481 | $ | 8,866 | $ | 149 |
ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
For the Year Ended December 31, 2018 | Commercial | Real Estate - Construction | Real Estate - Mortgage | Consumer | Other | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Balance at the beginning of period | $ | 1,889 | $ | 541 | $ | 5,217 | $ | 1,644 | $ | 157 | $ | 9,448 | ||||||||||||
Charge-offs | (81 | ) | - | (1,625 | ) | (769 | ) | (367 | ) | (2,842 | ) | |||||||||||||
Recoveries | 140 | - | 158 | 262 | 84 | 644 | ||||||||||||||||||
Provision for loan losses | 392 | (385 | ) | 2,206 | 217 | 431 | 2,861 | |||||||||||||||||
Ending balance | 2,340 | 156 | 5,956 | 1,354 | 305 | 10,111 | ||||||||||||||||||
Ending balance individually evaluated for impairment | 11 | 18 | 87 | - | - | 116 | ||||||||||||||||||
Ending balance collectively evaluated for impairment | 2,329 | 138 | 5,869 | 1,354 | 305 | 9,995 | ||||||||||||||||||
Ending balance acquired impaired loans | - | - | - | - | - | - | ||||||||||||||||||
Ending balance | 2,340 | 156 | 5,956 | 1,354 | 305 | 10,111 | ||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 298 | 509 | 15,373 | - | - | 16,180 | ||||||||||||||||||
Ending balance collectively evaluated for impairment | 63,009 | 31,874 | 485,068 | 169,138 | 8,649 | 757,738 | ||||||||||||||||||
Ending balance acquired impaired loans | 91 | - | - | - | - | 91 | ||||||||||||||||||
Ending balance | $ | 63,398 | $ | 32,383 | $ | 500,441 | $ | 169,138 | $ | 8,649 | $ | 774,009 | ||||||||||||
For the Year Ended December 31, 2017 | Commercial | Real Estate - Construction | Real Estate - Mortgage | Consumer | Other | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Balance at the beginning of period | $ | 1,493 | $ | 846 | $ | 5,267 | $ | 455 | $ | 184 | $ | 8,245 | ||||||||||||
Charge-offs | (807 | ) | - | (1,934 | ) | (279 | ) | (267 | ) | (3,287 | ) | |||||||||||||
Recoveries | 37 | 104 | 45 | 56 | 88 | 330 | ||||||||||||||||||
Provision for loan losses | 1,166 | (409 | ) | 1,839 | 1,412 | 152 | 4,160 | |||||||||||||||||
Ending balance | 1,889 | 541 | 5,217 | 1,644 | 157 | 9,448 | ||||||||||||||||||
Ending balance individually evaluated for impairment | - | 18 | 77 | - | - | 95 | ||||||||||||||||||
Ending balance collectively evaluated for impairment | 1,889 | 523 | 5,140 | 1,644 | 157 | 9,353 | ||||||||||||||||||
Ending balance | 1,889 | 541 | 5,217 | 1,644 | 157 | 9,448 | ||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||
Ending balance individually evaluated for impairment | 836 | 813 | 16,826 | - | - | 18,475 | ||||||||||||||||||
Ending balance collectively evaluated for impairment | 59,562 | 26,676 | 448,405 | 174,225 | 11,197 | 720,065 | ||||||||||||||||||
Ending balance | $ | 60,398 | $ | 27,489 | $ | 465,231 | $ | 174,225 | $ | 11,197 | $ | 738,540 |
(Dollars in thousands) | Commercial and Industrial | Real Estate Construction | Real Estate - Mortgage (1) | Real Estate - Commercial | Consumer (2) | Other | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Balance, beginning | $ | 1,244 | $ | 258 | $ | 2,505 | $ | 3,663 | $ | 1,694 | $ | 296 | $ | - | $ | 9,660 | ||||||||||||||||
Charge-offs | (25 | ) | - | (149 | ) | (654 | ) | (822 | ) | (355 | ) | - | (2,005 | ) | ||||||||||||||||||
Recoveries | 47 | 10 | 69 | 317 | 377 | 66 | - | 886 | ||||||||||||||||||||||||
Provision for loan losses | (616 | ) | 71 | 135 | 1,108 | 53 | 116 | 133 | 1,000 | |||||||||||||||||||||||
Ending Balance | $ | 650 | $ | 339 | $ | 2,560 | $ | 4,434 | $ | 1,302 | $ | 123 | $ | 133 | $ | 9,541 | ||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | 10 | $ | 1 | $ | - | $ | - | $ | - | $ | 11 | ||||||||||||||||
Collectively evaluated for impairment | 650 | 339 | 2,550 | 4,433 | 1,302 | 123 | 133 | 9,530 | ||||||||||||||||||||||||
Purchased credit-impaired loans | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Ending Balance | $ | 650 | $ | 339 | $ | 2,560 | $ | 4,434 | $ | 1,302 | $ | 123 | $ | 133 | $ | 9,541 | ||||||||||||||||
Loans Balances: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 6 | 83 | 586 | 1,427 | 14 | - | - | 2,116 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 141,740 | 43,649 | 206,950 | 315,424 | 118,354 | 8,067 | - | 834,184 | ||||||||||||||||||||||||
Purchased credit-impaired loans | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Ending Balance | $ | 141,746 | $ | 43,732 | $ | 207,536 | $ | 316,851 | $ | 118,368 | $ | 8,067 | $ | - | $ | 836,300 |
(Dollars in thousands) | Commercial and Industrial | Real Estate Construction | Real Estate - Mortgage (1) | Real Estate - Commercial | Consumer (2) | Other | Unallocated | Total | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Balance, beginning | $ | 2,340 | $ | 156 | $ | 2,497 | $ | 3,459 | $ | 1,354 | $ | 305 | $ | - | $ | 10,111 | ||||||||||||||||
Charge-offs | - | - | (170 | ) | (27 | ) | (776 | ) | (425 | ) | - | (1,398 | ) | |||||||||||||||||||
Recoveries | 10 | - | 113 | 87 | 351 | 68 | - | 629 | ||||||||||||||||||||||||
Provision for loan losses | (1,106 | ) | 102 | 65 | 144 | 765 | 348 | - | 318 | |||||||||||||||||||||||
Ending Balance | $ | 1,244 | $ | 258 | $ | 2,505 | $ | 3,663 | $ | 1,694 | $ | 296 | $ | - | $ | 9,660 | ||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 14 | $ | 150 | $ | 317 | $ | - | $ | - | $ | - | $ | 481 | ||||||||||||||||
Collectively evaluated for impairment | 1,244 | 244 | 2,355 | 3,346 | 1,694 | 296 | - | 9,179 | ||||||||||||||||||||||||
Purchased credit-impaired loans | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Ending Balance | $ | 1,244 | $ | 258 | $ | 2,505 | $ | 3,663 | $ | 1,694 | $ | 296 | $ | - | $ | 9,660 | ||||||||||||||||
Loans Balances: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 354 | 88 | 1,853 | 6,149 | - | - | - | 8,444 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 74,944 | 40,628 | 208,800 | 271,392 | 137,007 | 6,565 | - | 739,336 | ||||||||||||||||||||||||
Purchased credit-impaired loans | 85 | - | - | - | - | - | 85 | |||||||||||||||||||||||||
Ending Balance | $ | 75,383 | $ | 40,716 | $ | 210,653 | $ | 277,541 | $ | 137,007 | $ | 6,565 | $ | - | $ | 747,865 |
(1) | The real estate – mortgage segment included residential 1-4 family, second mortgages and equity lines of credit. |
(2) | The consumer segment includes consumer automobile loans. |
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | - | $ | 2,093 | ||||
Transfers to OREO due to foreclosure | 203 | - | ||||||
Other additions to foreclosed properties | 176 | - | ||||||
Properties sold | (296 | ) | (2,093 | ) | ||||
Balance at end of year | $ | 83 | $ | - |
Years Ended December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Balance at beginning of year | $ | - | $ | 83 | ||||
Transfers to OREO due to foreclosure | 254 | - | ||||||
Properties sold | (254 | ) | (83 | ) | ||||
Balance at end of year | $ | - | $ | - |
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | - | $ | 1,026 | ||||
Additions and write-downs | - | - | ||||||
Reductions due to sales or increases in value | - | (1,026 | ) | |||||
Balance at end of year | $ | - | $ | - |
Years Ended December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Net gain on sales of real estate | $ | 62 | $ | 2 | ||||
Operating expenses, net of income (1) | (20 | ) | (2 | ) | ||||
Total Income | $ | 42 | $ | - |
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Net loss (gain) on sales of real estate | $ | 86 | $ | (18 | ) | |||
Provision for losses (net write-downs) | - | - | ||||||
Operating expenses, net of income (1) | (1 | ) | 10 | |||||
Total Expenses | $ | 85 | $ | (8 | ) | |||
(1) Included in other operating income and other operating expense on the Consolidated Statements of Operations. |
2018 | 2017 | Years Ended December 31, | ||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||
Land | $ | 8,098 | $ | 7,663 | $ | 7,709 | $ | 8,001 | ||||||||
Buildings | 39,132 | 37,944 | 37,530 | 37,900 | ||||||||||||
Construction in process | 161 | 137 | 239 | 958 | ||||||||||||
Leasehold improvements | 861 | 861 | ||||||||||||||
Leashold improvements | 867 | 861 | ||||||||||||||
Furniture, fixtures and equipment | 18,904 | 19,675 | 21,235 | 19,748 | ||||||||||||
67,156 | 66,280 | 67,580 | 67,468 | |||||||||||||
Less accumulated depreciation and amortization | 30,418 | 29,083 | 33,967 | 32,156 | ||||||||||||
$ | 36,738 | $ | 37,197 | |||||||||||||
Balance at end of year | $ | 33,613 | $ | 35,312 |
2019 | $ | 331 | ||
2020 | 256 | |||
2021 | 111 | |||
2022 | 83 | |||
Total | $ | 781 |
(dollars in thousands) | December 31, 2020 | |||
Lease liabilities | $ | 1,378 | ||
Right-of-use assets | $ | 1,364 | ||
Weighted average remaining lease term | 4.59 years | |||
Weighted average discount rate | 1.76 | % |
Years Ended December 31, | ||||||||
Lease cost (in thousands) | 2020 | 2019 | ||||||
Operating lease cost | $ | 380 | $ | 336 | ||||
Total lease cost | $ | 380 | $ | 336 | ||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 377 | $ | 331 |
As of | ||||
Lease payments due (in thousands) | December 31, 2020 | |||
Twelve months ending December 31, 2021 | $ | 352 | ||
Twelve months ending December 31, 2022 | 339 | |||
Twelve months ending December 31, 2023 | 248 | |||
Thereafter | 549 | |||
Total undiscounted cash flows | $ | 1,488 | ||
Discount | (110 | ) | ||
Lease liabilities | $ | 1,378 |
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
Tax credits received | $ | 496 | $ | 412 | ||||
Tax benefit from losses | 67 | 116 | ||||||
Total tax benefit | $ | 563 | $ | 528 |
Years Ended | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Tax credits and other benefits | ||||||||
Amortization of operating losses | $ | 688 | $ | 216 | ||||
Tax benefit of operating losses* | 144 | 45 | ||||||
Tax credits | 419 | 441 | ||||||
Total tax benefits | $ | 563 | $ | 486 | ||||
* Computed using a 21% tax rate. |
2019 | $ | 100,140 | ||||||
2020 | 64,152 | |||||||
(dollars in thousands) | ||||||||
2021 | 27,930 | $ | 111,557 | |||||
2022 | 17,051 | 40,569 | ||||||
2023 | 19,691 | 24,824 | ||||||
Total | $ | 228,964 | ||||||
2024 | 9,169 | |||||||
2025 | 7,579 | |||||||
Balance at end of year | $ | 193,698 |
December 31, 2018 | December 31, 2017 | |||||||||||||||
Federal funds purchased | $ | - | $ | 10,000 | ||||||||||||
(dollar in thousands) | December 31, 2020 | December 31, 2019 | ||||||||||||||
Overnight repurchase agreements | 25,775 | 20,693 | $ | 6,619 | $ | 11,452 | ||||||||||
Federal Home Loan Bank Advances | 13,000 | 47,500 | ||||||||||||||
Federal Home Loan Bank advances | - | - | ||||||||||||||
Total short-term borrowings | $ | 38,775 | $ | 78,193 | $ | 6,619 | $ | 11,452 | ||||||||
Maximum month-end outstanding balance | $ | 99,898 | $ | 79,819 | $ | 9,080 | $ | 38,138 | ||||||||
Average outstanding balance during the period | $ | 62,877 | $ | 53,165 | $ | 21,092 | $ | 27,382 | ||||||||
Average interest rate during the period | 1.11 | % | 0.72 | % | ||||||||||||
Average interest rate (year-to-date) | 0.19 | % | 0.71 | % | ||||||||||||
Average interest rate at end of period | 0.93 | % | 1.27 | % | 0.10 | % | 0.10 | % |
Long-term Type | Interest Rate | Maturity Date | Advance Amount | ||||||
Fixed Rate Hybrid | 1.54 | % | 2/28/2019 | $ | 10,000 | ||||
Fixed Rate Hybrid | 1.90 | % | 11/15/2019 | 10,000 | |||||
Fixed Rate Hybrid | 2.92 | % | 4/17/2020 | 10,000 | |||||
Fixed Rate Hybrid | 2.77 | % | 6/19/2020 | 10,000 | |||||
Fixed Rate Hybrid | 2.79 | % | 8/28/2020 | 3,500 | |||||
Fixed Rate Hybrid | 2.89 | % | 8/27/2021 | 3,500 | |||||
$ | 47,000 |
Long-term Type | Interest Rate | Maturity Date | Advance Amount | Interest Rate | Maturity Date | Advance Amount | ||||||||||||
Fixed Rate Hybrid | 1.54 | % | 2/28/2019 | $ | 10,000 | 2.92 | % | 4/17/2020 | $ | 10,000 | ||||||||
Fixed Rate Hybrid | 1.90 | % | 11/15/2019 | 10,000 | 2.77 | % | 6/19/2020 | 10,000 | ||||||||||
Fixed Rate Hybrid | 2.79 | % | 8/29/2020 | 3,500 | ||||||||||||||
Fixed Rate Hybrid | 2.63 | % | 2/26/2021 | 5,000 | ||||||||||||||
Fixed Rate Hybrid | 2.37 | % | 5/21/2021 | 5,000 | ||||||||||||||
Fixed Rate Hybrid | 2.89 | % | 8/27/2021 | 3,500 | ||||||||||||||
$ | 20,000 | $ | 37,000 |
Shares | Weighted Average Grant Date Fair Value | Weighted Average | ||||||||||||||
Nonvested, January 1, 2018 | 2,245 | $ | 33.60 | |||||||||||||
Grant Date | ||||||||||||||||
Shares | Fair Value | |||||||||||||||
Nonvested, January 1, 2020 | 19,933 | $ | 22.70 | |||||||||||||
Issued | 11,444 | 26.32 | 18,903 | 15.75 | ||||||||||||
Vested | - | - | (8,519 | ) | 22.10 | |||||||||||
Forfeited | - | - | (741 | ) | 21.68 | |||||||||||
Nonvested, December 31, 2018 | 13,689 | $ | 27.51 | |||||||||||||
Nonvested, Deceember 31, 2020 | 29,576 | $ | 18.46 |
Years Ended | ||||||||||||||||||
December 31, | Affected Line Item on Consolidated Statement of Income | |||||||||||||||||
2018 | 2017 | |||||||||||||||||
(in thousands) | ||||||||||||||||||
(dollars in thousands) | Years Ended December 31, | Affected Line Item on | ||||||||||||||||
2020 | 2019 | Consolidated Statement of Income | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||||
Realized gains (losses) on sales of securities | $ | 120 | $ | 96 | Gain on sale of available-for-sale securities, net | $ | 264 | $ | 314 | Gain on sale of available-for-sale securities, net | ||||||||
Tax effect | 25 | 33 | Income tax expense (benefit) | 55 | 66 | Income tax expense | ||||||||||||
$ | 95 | $ | 63 | $ | 209 | $ | 248 | |||||||||||
Defined-benefit pension plan | ||||||||||||||||||
Amortization of actuarial loss | $ | - | $ | (490 | ) | Salaries and employee benefits | ||||||||||||
Tax effect | - | (167 | ) | Income tax expense (benefit) | ||||||||||||||
$ | - | $ | (323 | ) | ||||||||||||||
Total reclassifications for the period | $ | 95 | $ | (260 | ) |
Unrealized Gains (Losses) on Available-for-Sale Securities | Defined Benefit Pension Plans (1) | Accumulated Other Comprehensive Loss | ||||||||||
Balance at December 31, 2016 | $ | (1,739 | ) | $ | (2,469 | ) | $ | (4,208 | ) | |||
Net change for the year ended December 31, 2017 | 1,032 | 2,469 | 3,501 | |||||||||
Balance at December 31, 2017 | $ | (707 | ) | $ | - | $ | (707 | ) | ||||
Net other comprehensive loss | (1,233 | ) | - | (1,233 | ) | |||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from AOCI | (139 | ) | - | (139 | ) | |||||||
Reclassification of net unrealized gains on equity securities from AOCI per ASU 2016-01 | (77 | ) | - | (77 | ) | |||||||
Net change for the year ended December 31, 2018 | (1,449 | ) | - | (1,449 | ) | |||||||
Balance at December 31, 2018 | $ | (2,156 | ) | $ | - | $ | (2,156 | ) | ||||
(1) Net change reflects termination and settlement of the pension plan during year ended December 31, 2017. |
(dollars in thousands) | Unrealized Gains (Losses) on Available-for-Sale Securities | Accumulated Other Comprehensive Income (Loss) | ||||||
Year Ended December 31, 2020 | ||||||||
Balance at beginning of period | $ | (79 | ) | $ | (79 | ) | ||
Net other comprehensive income | 4,148 | 4,148 | ||||||
Balance at end of period | $ | 4,069 | $ | 4,069 | ||||
�� | ||||||||
Year Ended December 31, 2019 | ||||||||
Balance at beginning of period | $ | (2,156 | ) | $ | (2,156 | ) | ||
Net other comprehensive income | 2,077 | 2,077 | ||||||
Balance at end of period | $ | (79 | ) | $ | (79 | ) |
Year Ended December 31, 2018 | ||||||||||||
Pretax | Tax Effect | Net-of-Tax | ||||||||||
(in thousands) | ||||||||||||
Unrealized losses on available-for-sale securities: | ||||||||||||
Unrealized holding losses arising during the period | $ | (1,440 | ) | $ | (302 | ) | $ | (1,138 | ) | |||
Reclassification adjustment for gains recognized in income | (120 | ) | (25 | ) | (95 | ) | ||||||
Total change in accumulated other comprehensive loss, net | $ | (1,560 | ) | $ | (327 | ) | $ | (1,233 | ) |
Year Ended December 31, 2020 | ||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||
Unrealized holding gains arising during the period | $ | 5,514 | $ | 1,157 | $ | 4,357 | ||||||
Reclassification adjustment for gains recognized in income | (264 | ) | (55 | ) | (209 | ) | ||||||
Total change in accumulated other comprehensive income, net | $ | 5,250 | $ | 1,102 | $ | 4,148 | ||||||
Year Ended December 31, 2019 | ||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||
Unrealized holding gains arising during the period | $ | 2,943 | $ | 618 | $ | 2,325 | ||||||
Reclassification adjustment for gains recognized in income | (314 | ) | (66 | ) | (248 | ) | ||||||
Total change in accumulated other comprehensive income, net | $ | 2,629 | $ | 552 | $ | 2,077 |
Year Ended December 31, 2017 | ||||||||||||
Pretax | Tax Effect | Net-of-Tax | ||||||||||
(in thousands) | ||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||
Unrealized holding gains arising during the period | $ | 1,659 | $ | 564 | $ | 1,095 | ||||||
Reclassification adjustment for gains recognized in income | (96 | ) | (33 | ) | (63 | ) | ||||||
Net change | 1,563 | 531 | 1,032 | |||||||||
Defined benefit pension plans: | ||||||||||||
Net actuarial loss for the period | (99 | ) | (34 | ) | (65 | ) | ||||||
Amortization of actuarial loss from prior period | 490 | 167 | 323 | |||||||||
Net change | 3,741 | 1,272 | 2,469 | |||||||||
Total change in accumulated other comprehensive loss, net | $ | 5,304 | $ | 1,803 | $ | 3,501 |
Net Income Available to Common Stockholders (Numerator) | Weighted Average Common Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||||||
Year Ended December 31, 2018 | ||||||||||||||||||||||||
(dollars in thousands except per share data) | Net Income Available to Common Shareholders (Numerator) | Weighted Average Common Shares (Denominator) | Per Share Amount | |||||||||||||||||||||
Year ended December 31, 2020 | ||||||||||||||||||||||||
Net income, basic | $ | 4,919 | 5,141 | $ | 0.96 | $ | 5,389 | 5,216 | $ | 1.03 | ||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | - | - | - | ||||||||||||||||||
Diluted | $ | 4,919 | 5,141 | $ | 0.96 | $ | 5,389 | 5,216 | $ | 1.03 | ||||||||||||||
Year Ended December 31, 2017 | ||||||||||||||||||||||||
Net loss, basic | $ | (29 | ) | 4,991 | $ | (0.01 | ) | |||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||
Net income, basic | $ | 7,860 | 5,197 | $ | 1.51 | |||||||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | - | - | - | ||||||||||||||||||
Diluted | $ | (29 | ) | 4,991 | $ | (0.01 | ) | $ | 7,860 | 5,197 | $ | 1.51 |
2018 | 2017 | |||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||
Balance, beginning of year | $ | 4,287 | $ | 4,354 | $ | 3,910 | $ | 4,012 | ||||||||
Additions | 25 | 351 | 3,531 | 297 | ||||||||||||
Reductions | (300 | ) | (418 | ) | (3,221 | ) | (399 | ) | ||||||||
Balance, end of year | $ | 4,012 | $ | 4,287 | $ | 4,220 | $ | 3,910 |
2018 | 2017 | |||||||
(in thousands) | ||||||||
Current income tax expense | $ | 443 | $ | 20 | ||||
Deferred income tax benefit | (164 | ) | (117 | ) | ||||
Reported income tax expense (benefit) | $ | 279 | $ | (97 | ) |
(dollars in thousands) | 2020 | 2019 | ||||||
Current income tax expense | $ | 1,155 | $ | 728 | ||||
Deferred income tax expense (benefit) | (634 | ) | 352 | |||||
Reported income tax expense | $ | 521 | $ | 1,080 |
Years Ended December 31, | ||||||||
2018 | 2017 | |||||||
(in thousands) | ||||||||
Expected tax (benefit) expense | $ | 1,092 | $ | (43 | ) | |||
Interest expense on tax-exempt assets | 18 | 23 | ||||||
Low-income housing tax credits | (496 | ) | (412 | ) | ||||
Tax-exempt interest, net | (303 | ) | (628 | ) | ||||
Bank-owned life insurance | (164 | ) | (263 | ) | ||||
Impact of Tax Act | - | 1,221 | ||||||
Other, net | 132 | 5 | ||||||
Reported income tax expense | $ | 279 | $ | (97 | ) |
Years Ended December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Expected tax expense | $ | 1,241 | $ | 1,877 | ||||
Interest expense on tax-exempt assets | 5 | 7 | ||||||
Low-income housing tax credit | (413 | ) | (440 | ) | ||||
Tax-exempt interest, net | (147 | ) | (201 | ) | ||||
Bank-owned life insurance | (176 | ) | (164 | ) | ||||
Other, net | 11 | 1 | ||||||
Reported tax expense | $ | 521 | $ | 1,080 |
December 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||
Deferred tax assets: | ||||||||||||||||
Allowance for loan losses | $ | 2,123 | $ | 1,984 | $ | 2,017 | $ | 2,029 | ||||||||
Nonaccrual loans | 112 | 82 | 9 | 17 | ||||||||||||
Acquistion accounting | 120 | - | ||||||||||||||
Other real estate owned | 21 | - | ||||||||||||||
Acquisition accounting | 14 | 61 | ||||||||||||||
Net operating losses | 712 | - | 643 | 677 | ||||||||||||
Investments in pass-through entities | 113 | 162 | 224 | 122 | ||||||||||||
Bank owned life insurance benefit | 59 | 55 | 68 | 64 | ||||||||||||
Securities available-for-sale | 573 | 225 | - | 21 | ||||||||||||
Stock awards | 55 | - | 97 | 67 | ||||||||||||
Alternative minimum tax | 292 | 1,344 | ||||||||||||||
Deferred compensation | 236 | 139 | 397 | 347 | ||||||||||||
Deferred loan fees and costs | 443 | - | ||||||||||||||
Other | 63 | 19 | 55 | 59 | ||||||||||||
$ | 4,479 | $ | 4,010 | |||||||||||||
$ | 3,967 | $ | 3,464 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Premises and equipment | $ | 389 | $ | 404 | $ | 363 | $ | 345 | ||||||||
Acquistion accounting | 86 | |||||||||||||||
Acquisition accounting | 67 | 76 | ||||||||||||||
Deferred loan fees and costs | 181 | 295 | - | 117 | ||||||||||||
Securities available-for-sale | 1,081 | - | ||||||||||||||
656 | 699 | 1,511 | 538 | |||||||||||||
Net deferred tax assets | $ | 3,823 | $ | 3,311 | $ | 2,456 | $ | 2,926 |
2018 | 2017 | |||||||
(in thousands) | ||||||||
Commitments to extend credit: | ||||||||
Home equity lines of credit | $ | 61,014 | $ | 56,486 | ||||
Commercial real estate, construction and development loans committed but not funded | 12,165 | 19,526 | ||||||
Other lines of credit (principally commercial) | 74,058 | 68,101 | ||||||
Total | $ | 147,237 | $ | 144,113 | ||||
Letters of credit | $ | 8,230 | $ | 3,331 |
December 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Commitments to extend credit: | ||||||||
Home equity lines of credit | $ | 66,999 | $ | 62,267 | ||||
Commercial real estate, construction and development loans committed but not funded | 20,258 | 15,637 | ||||||
Other lines of credit (principally commercial) | 64,329 | 62,321 | ||||||
Total | $ | 151,586 | $ | 140,225 | ||||
Letters of credit | $ | 4,841 | $ | 7,724 |
Level 1 – | Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. |
Level 2 – | Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. |
Level 3 – | Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. |
Fair Value Measurements at December 31, 2018 Using | Fair Value Measurements at December 31, 2020 Using | |||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||
Description | Balance | |||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 12,328 | $ | - | $ | 12,328 | $ | - | $ | 7,043 | ||||||||||||||||||||||
Obligations of U.S. Government agencies | 10,714 | - | 10,714 | - | 36,696 | - | 36,696 | - | ||||||||||||||||||||||||
Obligations of state and political subdivisions | 48,837 | - | 48,837 | - | 45,995 | - | 45,995 | - | ||||||||||||||||||||||||
Mortgage-backed securities | 71,191 | - | 71,191 | - | 73,501 | - | 73,501 | - | ||||||||||||||||||||||||
Money market investments | 1,897 | - | 1,897 | - | 4,743 | - | 4,743 | - | ||||||||||||||||||||||||
Corporate bonds | 3,280 | - | 3,280 | - | ||||||||||||||||||||||||||||
Corporate bonds and other securities | 18,431 | - | 18,431 | - | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | 148,247 | $ | - | $ | 148,247 | $ | - | $ | 186,409 | $ | - | $ | 186,409 | $ | - |
Fair Value Measurements at December 31, 2017 Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Description | Balance | |||||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 9,435 | $ | - | $ | 9,435 | $ | - | ||||||||
Obligations of state and political subdivisions | 64,765 | - | 64,765 | - | ||||||||||||
Mortgage-backed securities | 74,296 | - | 74,296 | - | ||||||||||||
Money market investments | 1,194 | - | 1,194 | - | ||||||||||||
Corporate bonds | 7,234 | - | 7,234 | - | ||||||||||||
Other marketable equity securities | 197 | - | 197 | - | ||||||||||||
Total available-for-sale securities | $ | 157,121 | $ | - | $ | 157,121 | $ | - |
Fair Value Measurements at December 31, 2019 Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
(dollars in thousands) | Balance | |||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Treasury securities | $ | 7,003 | $ | - | $ | 7,003 | $ | - | ||||||||
Obligations of U.S. Government agencies | 33,604 | - | 33,604 | - | ||||||||||||
Obligations of state and political subdivisions | 24,742 | - | 24,742 | - | ||||||||||||
Mortgage-backed securities | 71,908 | - | 71,908 | - | ||||||||||||
Money market investments | 3,825 | - | 3,825 | - | ||||||||||||
Corporate bonds and other securities | 4,633 | - | 4,633 | - | ||||||||||||
Total available-for-sale securities | $ | 145,715 | $ | - | $ | 145,715 | $ | - |
Carrying Value at December 31, 2018 Using | ||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in thousands) | ||||||||||||||||
Impaired loans | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 188 | $ | - | $ | - | $ | 188 | ||||||||
Construction | 74 | - | - | 74 | ||||||||||||
Equity lines of credit | 229 | - | - | 229 | ||||||||||||
Total | $ | 491 | $ | - | $ | - | $ | 491 | ||||||||
Loans held for sale | $ | 479 | $ | - | $ | 479 | $ | - | ||||||||
Other real estate owned | ||||||||||||||||
Construction | $ | 83 | $ | - | $ | - | $ | 83 | ||||||||
Total | $ | 83 | $ | - | $ | - | $ | 83 |
Carrying Value at December 31, 2020 | ||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Loans | ||||||||||||||||
Loans held for sale | $ | 14,413 | $ | - | $ | 14,413 | $ | - |
Carrying Value at December 31, 2017 Using | Carrying Value at December 31, 2019 | |||||||||||||||||||||||||||||||
Description | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||||||
Residential 1-4 family | $ | 264 | $ | - | $ | - | $ | 264 | $ | 74 | $ | - | $ | - | $ | 74 | ||||||||||||||||
Commercial | 1,294 | - | - | 1,294 | ||||||||||||||||||||||||||||
Construction | 74 | - | - | 74 | 74 | - | - | 74 | ||||||||||||||||||||||||
Equity lines of credit | 229 | - | - | 229 | ||||||||||||||||||||||||||||
Total mortgage loans on real estate | 1,442 | - | - | 1,442 | ||||||||||||||||||||||||||||
Total | $ | 567 | $ | - | $ | - | $ | 567 | $ | 1,442 | $ | - | $ | - | $ | 1,442 | ||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||
Loans held for sale | $ | 779 | $ | - | $ | 779 | $ | - | $ | 590 | $ | - | $ | 590 | $ | - |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||
Description | Fair Value at December 31, 2018 (dollars in thousands) | Valuation Techniques | Unobservable Input | Range (Average) | ||||||
Impaired loans | ||||||||||
Residential 1-4 family real estate | $ | 188 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Construction | 74 | Market comparables | Selling costs | 7.25 | % | |||||
Liquidation discount | 4.00 | % | ||||||||
Equity lines of credit | 229 | Market comparables | Selling costs | 7.25 | % | |||||
Liquidation discount | 4.00 | % | ||||||||
Other real estate owned | ||||||||||
Construction | 83 | Market comparables | Selling costs | 7.25 | % | |||||
Liquidation discount | 4.00 | % |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||
Description | Fair Value at December 31, 2017 (dollars in thousands) | Valuation Techniques | Unobservable Input | Range (Average) | ||||||
Impaired loans | ||||||||||
Residential 1-4 family real estate | $ | 264 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 0.00% - 4.00% (2.91 | %) | ||||||||
Construction | 74 | Market comparables | Selling costs | 7.25 | % | |||||
Liquidation discount | 4.00 | % | ||||||||
Equity lines of credit | 229 | Market comparables | Selling costs | 7.25 | % | |||||
Liquidation discount | 4.00 | % |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||
(dollars in thousands) | Fair Value at December 31, 2019 | Valuation Techniques | Unobservable Input | Range (Weighted Average) | ||||||
Impaired loans | ||||||||||
Residential 1-4 family real estate | $ | 74 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Commercial real estate | $ | 1,294 | Market comparables | Selling costs | 6.00 | % | ||||
Liquidation discount | 35.00 | % | ||||||||
Construction | $ | 74 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % |
Fair Value Measurements at December 31, 2018 Using | ||||||||||||||||
Description | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 42,217 | $ | 42,217 | $ | - | $ | - | ||||||||
Securities available-for-sale | 148,247 | - | 148,247 | - | ||||||||||||
Restricted securities | 3,853 | - | 3,853 | - | ||||||||||||
Loans held for sale | 479 | - | 479 | - | ||||||||||||
Loans, net of allowances for loan losses | 763,898 | - | - | 749,848 | ||||||||||||
Bank owned life insurance | 26,763 | - | 26,763 | - | ||||||||||||
Accrued interest receivable | 3,095 | - | 3,095 | - | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 843,144 | $ | - | $ | 843,818 | $ | - | ||||||||
Overnight repurchase agreements | 25,775 | - | 25,775 | - | ||||||||||||
Federal Home Loan Bank advances | 60,000 | - | 59,975 | - | ||||||||||||
Other borrowings | 2,550 | - | 2,550 | - | ||||||||||||
Accrued interest payable | 594 | - | 594 | - |
Fair Value Measurements at December 31, 2017 Using | Fair Value Measurements at December 31, 2020 Using | |||||||||||||||||||||||||||||||
Description | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Value | |||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 14,412 | $ | 14,412 | $ | - | $ | - | $ | 120,437 | $ | 120,437 | $ | - | $ | - | ||||||||||||||||
Securities available-for-sale | 157,121 | - | 157,121 | - | 186,409 | - | 186,409 | - | ||||||||||||||||||||||||
Restricted securities | 3,846 | - | 3,846 | - | 1,367 | - | 1,367 | - | ||||||||||||||||||||||||
Loans held for sale | 779 | - | 779 | - | 14,413 | - | 14,413 | - | ||||||||||||||||||||||||
Loans, net of allowances for loan losses | 729,092 | - | - | 722,464 | 826,759 | - | - | 825,963 | ||||||||||||||||||||||||
Bank owned life insurance | 25,981 | - | 25,981 | - | 28,386 | - | 28,386 | - | ||||||||||||||||||||||||
Accrued interest receivable | 3,254 | - | 3,254 | - | 3,613 | - | 3,613 | - | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Deposits | $ | 783,594 | $ | - | $ | 782,539 | $ | - | $ | 1,067,236 | $ | - | $ | 1,070,236 | $ | - | ||||||||||||||||
Federal funds purchased | 10,000 | - | 10,000 | - | ||||||||||||||||||||||||||||
Overnight repurchase agreements | 20,693 | - | 20,693 | - | 6,619 | - | 6,619 | - | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 67,500 | - | 67,329 | - | ||||||||||||||||||||||||||||
Federal Reserve Bank borrowings | 28,550 | - | 28,550 | - | ||||||||||||||||||||||||||||
Other borrowings | 1,350 | - | 1,350 | - | ||||||||||||||||||||||||||||
Accrued interest payable | 360 | - | 360 | - | 384 | - | 384 | - |
Fair Value Measurements at December 31, 2019 Using | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
(dollars in thousands) | Carrying Value | |||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 89,865 | $ | 89,865 | $ | - | $ | - | ||||||||
Securities available-for-sale | 145,715 | - | 145,715 | - | ||||||||||||
Restricted securities | 2,926 | - | 2,926 | - | ||||||||||||
Loans held for sale | 590 | - | 590 | - | ||||||||||||
Loans, net of allowances for loan losses | 738,205 | - | - | 734,932 | ||||||||||||
Bank owned life insurance | 27,547 | - | 27,547 | - | ||||||||||||
Accrued interest receivable | 2,762 | - | 2,762 | - | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 889,496 | $ | - | $ | 893,584 | $ | - | ||||||||
Overnight repurchase agreements | 11,452 | - | 11,452 | - | ||||||||||||
Federal Home Loan Bank advances | 37,000 | - | 36,747 | - | ||||||||||||
Other borrowings | 1,950 | - | 1,950 | - | ||||||||||||
Accrued interest payable | 620 | - | 620 | - |
Capital | Minimum Capital Requirement | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
December 31, 2018: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets | 106,651 | 12.06 | % | 70,756 | 8.00 | % | $ | 88,444 | 10.00 | % | ||||||||||||||
Tier 1 Capital to Risk Weighted Assets | 96,428 | 10.90 | % | 53,067 | 6.00 | % | 70,756 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 Capital to Risk Weighted Assets | 96,428 | 10.90 | % | 39,800 | 4.50 | % | 57,489 | 6.50 | % | |||||||||||||||
Tier 1 Capital to Average Assets | 96,428 | 9.34 | % | 41,217 | 4.00 | % | 51,521 | 5.00 | % | |||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||
Total Capital to Risk Weighted Assets | 97,194 | 11.30 | % | 68,803 | 8.00 | % | $ | 86,004 | 10.00 | % | ||||||||||||||
Tier 1 Capital to Risk Weighted Assets | 87,639 | 10.19 | % | 51,602 | 6.00 | % | 68,803 | 8.00 | % | |||||||||||||||
Common Equity Tier 1 Capital to Risk Weighted Assets | 87,639 | 10.19 | % | 38,702 | 4.50 | % | 55,902 | 6.50 | % | |||||||||||||||
Tier 1 Capital to Average Assets | 87,639 | 9.09 | % | 38,575 | 4.00 | % | 48,218 | 5.00 | % |
2020 | 2019 | |||||||||||||||
Regulatory | Regulatory | |||||||||||||||
Minimums | December 31, 2020 | Minimums | December 31, 2019 | |||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | 4.500 | % | 11.69 | % | 4.500 | % | 11.73 | % | ||||||||
Tier 1 Capital to Risk-Weighted Assets | 6.000 | % | 11.69 | % | 6.000 | % | 11.73 | % | ||||||||
Tier 1 Leverage to Average Assets | 4.000 | % | 8.56 | % | 4.000 | % | 9.73 | % | ||||||||
Total Capital to Risk-Weighted Assets | 8.000 | % | 12.77 | % | 8.000 | % | 12.86 | % | ||||||||
Capital Conservation Buffer | 2.500 | % | 4.77 | % | 2.500 | % | 4.86 | % | ||||||||
Risk-Weighted Assets (in thousands) | $ | 890,091 | $ | 863,905 |
2018 | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||
(in thousands) | Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | $ | 38,160 | $ | 95 | $ | 6,116 | $ | (6,114 | ) | $ | 38,257 | $ | 39,966 | $ | 43 | $ | 6,069 | $ | (6,069 | ) | $ | 40,009 | ||||||||||||||||||
Fiduciary and asset management fees | - | 3,726 | - | - | 3,726 | |||||||||||||||||||||||||||||||||||
Income from fiduciary activities | - | 3,877 | - | - | 3,877 | |||||||||||||||||||||||||||||||||||
Other income | 8,551 | 1,026 | 230 | (262 | ) | 9,545 | 9,899 | 983 | 200 | (261 | ) | 10,821 | ||||||||||||||||||||||||||||
Total operating income | 46,711 | 4,847 | 6,346 | (6,376 | ) | 51,528 | 49,865 | 4,903 | 6,269 | (6,330 | ) | 54,707 | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Interest expense | 4,870 | - | 99 | - | 4,969 | 5,237 | - | 55 | - | 5,292 | ||||||||||||||||||||||||||||||
Provision for loan losses | 2,861 | - | - | - | 2,861 | 1,000 | - | - | - | 1,000 | ||||||||||||||||||||||||||||||
Salaries and employee benefits | 19,150 | 2,977 | 453 | - | 22,580 | 21,652 | 3,191 | 669 | - | 25,512 | ||||||||||||||||||||||||||||||
Other expenses | 14,078 | 1,086 | 1,018 | (262 | ) | 15,920 | 15,840 | 1,078 | 336 | (261 | ) | 16,993 | ||||||||||||||||||||||||||||
Total operating expenses | 40,959 | 4,063 | 1,570 | (262 | ) | 46,330 | 43,729 | 4,269 | 1,060 | (261 | ) | 48,797 | ||||||||||||||||||||||||||||
Income (loss) before taxes | 5,752 | 784 | 4,776 | (6,114 | ) | 5,198 | ||||||||||||||||||||||||||||||||||
Income before taxes | 6,136 | 634 | 5,209 | (6,069 | ) | 5,910 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 256 | 166 | (143 | ) | - | 279 | 565 | 136 | (180 | ) | - | 521 | ||||||||||||||||||||||||||||
Net income (loss) | $ | 5,496 | $ | 618 | $ | 4,919 | $ | (6,114 | ) | $ | 4,919 | |||||||||||||||||||||||||||||
Net income | $ | 5,571 | $ | 498 | $ | 5,389 | $ | (6,069 | ) | $ | 5,389 | |||||||||||||||||||||||||||||
Capital expenditures | $ | 478 | $ | - | $ | - | $ | - | $ | 478 | $ | 901 | $ | 23 | $ | - | $ | - | $ | 924 | ||||||||||||||||||||
Total assets | $ | 1,032,676 | $ | 6,226 | $ | 104,592 | $ | (105,311 | ) | $ | 1,038,183 | $ | 1,218,766 | $ | 6,957 | $ | 118,558 | $ | (118,090 | ) | $ | 1,226,191 |
2017 | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 32,861 | $ | 71 | $ | 667 | $ | (665 | ) | $ | 32,934 | |||||||||
Fiduciary and asset management fees | - | 3,786 | - | - | 3,786 | |||||||||||||||
Other income | 8,638 | 944 | 200 | (261 | ) | 9,521 | ||||||||||||||
Total operating income | 41,499 | 4,801 | 867 | (926 | ) | 46,241 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 3,010 | - | - | 2 | 3,012 | |||||||||||||||
Provision for loan losses | 4,160 | - | - | - | 4,160 | |||||||||||||||
Salaries and employee benefits | 20,968 | 2,800 | 445 | - | 24,213 | |||||||||||||||
Other expenses | 13,358 | 1,075 | 811 | (262 | ) | 14,982 | ||||||||||||||
Total operating expenses | 41,496 | 3,875 | 1,256 | (260 | ) | 46,367 | ||||||||||||||
Income (loss) before taxes | 3 | 926 | (389 | ) | (666 | ) | (126 | ) | ||||||||||||
Income tax expense (benefit) | (65 | ) | 328 | (360 | ) | - | (97 | ) | ||||||||||||
Net income (loss) | $ | 68 | $ | 598 | $ | (29 | ) | $ | (666 | ) | $ | (29 | ) | |||||||
Capital expenditures | $ | 613 | $ | 6 | $ | - | $ | - | $ | 619 | ||||||||||
Total assets | $ | 975,991 | $ | 6,126 | $ | 96,406 | $ | (96,697 | ) | $ | 981,826 |
Year Ended December 31, 2019 | ||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 40,121 | $ | 120 | $ | 8,446 | $ | (8,446 | ) | $ | 40,241 | |||||||||
Income from fiduciary activities | - | 3,850 | - | - | 3,850 | |||||||||||||||
Other income | 9,260 | 1,028 | 200 | (261 | ) | 10,227 | ||||||||||||||
Total operating income | 49,381 | 4,998 | 8,646 | (8,707 | ) | 54,318 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 6,310 | - | 112 | - | 6,422 | |||||||||||||||
Provision for loan losses | 318 | - | - | - | 318 | |||||||||||||||
Salaries and employee benefits | 20,405 | 3,142 | 477 | - | 24,024 | |||||||||||||||
Other expenses | 13,508 | 1,015 | 352 | (261 | ) | 14,614 | ||||||||||||||
Total operating expenses | 40,541 | 4,157 | 941 | (261 | ) | 45,378 | ||||||||||||||
Income before taxes | 8,840 | 841 | 7,705 | (8,446 | ) | 8,940 | ||||||||||||||
Income tax expense (benefit) | 1,054 | 181 | (155 | ) | - | 1,080 | ||||||||||||||
Net income | $ | 7,786 | $ | 660 | $ | 7,860 | $ | (8,446 | ) | $ | 7,860 | |||||||||
Capital expenditures | $ | 1,756 | $ | 26 | $ | - | $ | - | $ | 1,782 | ||||||||||
Total assets | $ | 1,048,158 | $ | 6,695 | $ | 111,764 | $ | (112,129 | ) | $ | 1,054,488 |
December 31, | ||||||||
Balance Sheets | 2018 | 2017 | ||||||
(in thousands) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,352 | $ | 2,622 | ||||
Securities available-for-sale | - | 197 | ||||||
Investment in common stock of subsidiaries | 103,035 | 93,533 | ||||||
Other assets | 205 | 54 | ||||||
Total assets | $ | 104,592 | $ | 96,406 | ||||
Liabilities and Stockholders' Equity | ||||||||
Other borrowings | $ | 2,550 | $ | - | ||||
Other liabilities | 36 | 18 | ||||||
Common stock | 25,853 | 25,087 | ||||||
Additional paid-in capital | 20,698 | 17,270 | ||||||
Retained earnings | 57,611 | 54,738 | ||||||
Accumulated other comprehensive loss | (2,156 | ) | (707 | ) | ||||
Total liabilities and stockholders' equity | $ | 104,592 | $ | 96,406 |
Years Ended December 31, | ||||||||
Statements of Operations | 2018 | 2017 | ||||||
(in thousands) | ||||||||
Income: | ||||||||
Dividends from subsidiaries | $ | 2,500 | $ | 2,050 | ||||
Other income | 233 | 200 | ||||||
Total income | 2,733 | 2,250 | ||||||
Expenses: | ||||||||
Salaries and benefits | 453 | 445 | ||||||
Legal expenses | 143 | 285 | ||||||
Service fees | 166 | 210 | ||||||
Merger expenses | 655 | 241 | ||||||
Other operating expenses | 153 | 75 | ||||||
Total expenses | 1,570 | 1,256 | ||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 1,163 | 994 | ||||||
Income tax benefit | (143 | ) | (360 | ) | ||||
1,306 | 1,354 | |||||||
Equity in undistributed net income (loss) of subsidiaries | 3,613 | (1,383 | ) | |||||
Net income (loss) | $ | 4,919 | $ | (29 | ) |
Balance Sheets | December 31, | |||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,203 | $ | 1,399 | ||||
Securities available-for-sale | - | - | ||||||
Investment in common stock of subsidiaries | 116,848 | 110,057 | ||||||
Other assets | 507 | 308 | ||||||
Total assets | $ | 118,558 | $ | 111,764 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Other borrowings | $ | 1,350 | $ | 1,950 | ||||
Other liability | 63 | 58 | ||||||
Common stock | 25,972 | 25,901 | ||||||
Additional paid-in capital | 21,245 | 20,959 | ||||||
Retained earnings | 65,859 | 62,975 | ||||||
Accumulated other comprehensive income (loss) | 4,069 | (79 | ) | |||||
Total liabilities and stockholders’ equity | $ | 118,558 | $ | 111,764 |
Years Ended December 31, | ||||||||
Statements of Cash Flows | 2018 | 2017 | ||||||
(in thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 4,919 | $ | (29 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity in undistributed net (income) loss of subsidiaries | (3,613 | ) | 1,383 | |||||
Gain on sale of securities, net | (30 | ) | - | |||||
Stock compensation expense | 11 | 17 | ||||||
Increase in other assets | (13 | ) | (34 | ) | ||||
Increase in other liabilities | 18 | 10 | ||||||
Net cash provided by operating activities | 1,292 | 1,347 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of investment securities | 227 | - | ||||||
Cash paid in acquisition | (3,164 | ) | - | |||||
Cash acquired in acquisition | 2,304 | - | ||||||
Cash distributed to subsidiary | (2,304 | ) | - | |||||
Net cash used in investing activities | (2,937 | ) | - | |||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of stock | 87 | 1,107 | ||||||
Proceeds from borrowings | 3,000 | - | ||||||
Repayment of borrowings | (450 | ) | - | |||||
Cash dividends paid on common stock | (2,262 | ) | (2,198 | ) | ||||
Net cash provided by (used in) financing activities | 375 | (1,091 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (1,270 | ) | 256 | |||||
Cash and cash equivalents at beginning of year | 2,622 | 2,366 | ||||||
Cash and cash equivalents at end of year | $ | 1,352 | $ | 2,622 | ||||
Supplemental schedule of noncash transactions: | ||||||||
Unrealized gain on securities available-for-sale | $ | - | $ | 33 |
Statements of Income | Years Ended December 31, | |||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Income: | ||||||||
Dividends from subsidiary | $ | 3,425 | $ | 3,500 | ||||
Interest on investments | - | - | ||||||
Other income | 200 | 200 | ||||||
Total income | 3,625 | 3,700 | ||||||
Expenses: | ||||||||
Salary and benefits | 669 | 477 | ||||||
Legal expenses | 108 | 101 | ||||||
Service fees | 135 | 200 | ||||||
Other operating expenses | 148 | 163 | ||||||
Total expenses | 1,060 | 941 | ||||||
Income before income taxes and equity in undistributed net income of subsidiaries | 2,565 | 2,759 | ||||||
Income tax benefit | (180 | ) | (155 | ) | ||||
2,745 | 2,914 | |||||||
Equity in undistributed net income of subsidiaries | 2,644 | 4,946 | ||||||
Net income | $ | 5,389 | $ | 7,860 |
Statements of Cash Flows | Years Ended December 31, | |||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 5,389 | $ | 7,860 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity in undistributed net income of subsidiaries | (2,644 | ) | (4,946 | ) | ||||
Gain on sale of securities, net | - | - | ||||||
Stock compensation expense | 55 | 12 | ||||||
Increase in other assets | 8 | 110 | ||||||
Increase in other liabilities | 5 | 22 | ||||||
Net cash provided by operating activities | 2,813 | 3,058 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of investment securities | - | - | ||||||
Cash paid in acquisition | - | - | ||||||
Cash acquired in acquisition | - | - | ||||||
Cash distributed to subsidiary | - | - | ||||||
Net cash used in investing activities | - | - | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of stock | 96 | 85 | ||||||
Repayment of borrowings | (600 | ) | (600 | ) | ||||
Cash dividends paid on common stock | (2,505 | ) | (2,496 | ) | ||||
Net cash (used in) provided by financing activities | (3,009 | ) | (3,011 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (196 | ) | 47 | |||||
Cash and cash equivalents at beginning of year | 1,399 | 1,352 | ||||||
Cash and cash equivalents at end of year | $ | 1,203 | $ | 1,399 |
Item 9. |
Item 9A. |
Item 11. |
Item 12. |
Item 13. |
Item 14. |
Item 15. |
(a)(1) | Consolidated Financial Statements |
(a)(2) | Consolidated Financial Statement Schedules |
(a)(3) | Exhibits |
Exhibit No. | Description | |
2.1 | ||
3.1 | ||
3.1.1 | ||
3.2 | ||
4.0 | ||
10.4* | ||
10.5* | ||
10.7* | ||
10.8* | ||
10.9 | ||
10.10* | ||
10.11* | ||
10.12* | ||
10.14 | ||
10.15* | ||
10.16 |
10.22* | ||
10.24* | ||
10.25* | ||
10.26* | ||
10.27* | ||
10.28* | ||
10.29* | ||
10.30* | ||
10.31* | ||
10.32* | ||
21 | ||
23 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101 | The following materials from Old Point Financial Corporation’s annual report on Form 10-K for the year ended December 31, | |
* Denotes management |
OLD POINT FINANCIAL CORPORATION | ||
/s/Robert F. Shuford, | ||
Robert F. Shuford, | ||
Chairman, President & Chief Executive Officer | ||
Date: March |
/s/Robert F. Shuford, | Chairman, President & Chief Executive Officer and Director | |
Robert F. Shuford, | Principal Executive Officer | |
Date: March | ||
/s/ | Chief Financial Officer & Senior Vice President/Finance | |
Principal Financial & Accounting Officer | ||
Date: March | ||
/s/Stephen C. Adams | Director | |
Stephen C. Adams | ||
Date: March | ||
/s/James Reade Chisman | Director | |
James Reade Chisman | ||
Date: March | ||
/s/Russell S. Evans, Jr. | Director | |
Russell S. Evans, Jr. | ||
Date: March | ||
/s/Michael A. Glasser | Director | |
Michael A. Glasser | ||
Date: March | ||
/s/Dr. Arthur D. Greene | Director | |
Dr. Arthur D. Greene | ||
Date: March | ||
/s/John Cabot Ishon | Director | |
John Cabot Ishon | ||
Date: March | ||
/s/William F. Keefe | Director | |
William F. Keefe | ||
Date: March |
/s/Tom B. Langley | Director | |
Tom B. Langley | ||
Date: March | ||
/s/Robert F. Shuford, | ||
Robert F. Shuford, | ||
Director | ||
Date: March | ||
/s/Ellen Clark Thacker | ||
Ellen Clark Thacker | ||
Director | ||
Date: March | ||
/s/Elizabeth S. Wash | ||
Elizabeth S. Wash | ||
Director | ||
Date: March 30, 2021 | ||
/s/Joseph R. Witt | ||
Joseph R. Witt | ||
Director | ||
Date: March |