☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
54-1265373 | ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
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 ☐ |
Page | ||
Item 1. | 1 | |
1 | ||
2 | ||
3 | ||
4 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II - OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
2020 Annual Report on Form 10-K | Annual Report on Form 10-K for the year ended December 31, 2020 |
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 |
CBLR | Community Bank Leverage Ratio |
EGRRCPA | Economic Growth, Regulatory Relief, and Consumer Protection Act |
EPS | earnings per share |
ESPP | Employee Stock Purchase Plan |
Exchange Act | Securities Exchange Act of |
FASB | Financial Accounting Standards Board |
FDIC | Federal Deposit Insurance Corporation |
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 |
NIM | Net Interest Margin |
Notes | The Company’s 3.50% fixed-to-floating rate subordinated notes due 2031 |
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 |
SOFR | Secured overnight financing rate |
TDR | Troubled Debt Restructuring |
Trust | Old Point Trust & Financial Services N.A. |
Item 1. | Financial Statements. |
September 30, 2017 | December 31, 2016 | June 30, | December 31, | |||||||||||||
(dollars in thousands except per share data) | ||||||||||||||||
(dollars in thousands, except share data) | 2021 | 2020 | ||||||||||||||
(unaudited) | * | (unaudited) | ||||||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 12,496 | $ | 21,885 | $ | 21,118 | $ | 21,799 | ||||||||
Interest-bearing due from banks | 1,648 | 1,667 | 134,377 | 98,633 | ||||||||||||
Federal funds sold | 1,291 | 2,302 | 3 | 5 | ||||||||||||
Cash and cash equivalents | 15,435 | 25,854 | 155,498 | 120,437 | ||||||||||||
Securities available-for-sale, at fair value | 164,112 | 199,365 | 213,211 | 186,409 | ||||||||||||
Restricted securities, at cost | 2,890 | 970 | 1,033 | 1,367 | ||||||||||||
Loans held for sale, at fair value | 981 | - | ||||||||||||||
Loans held for investment, net of allowance for loan losses of $8,951 and $8,245 | 692,045 | 595,637 | ||||||||||||||
Loans held for sale | 2,284 | 14,413 | ||||||||||||||
Loans, net | 823,200 | 826,759 | ||||||||||||||
Premises and equipment, net | 37,750 | 39,324 | 32,419 | 33,613 | ||||||||||||
Premises and equipment, held for sale | 871 | 0 | ||||||||||||||
Bank-owned life insurance | 25,802 | 25,206 | 28,817 | 28,386 | ||||||||||||
Other real estate owned, net of valuation allowance | - | 1,067 | ||||||||||||||
Goodwill | 1,650 | 1,650 | ||||||||||||||
Core deposit intangible, net | 297 | 319 | ||||||||||||||
Other assets | 15,482 | 15,543 | 15,531 | 12,838 | ||||||||||||
Total assets | $ | 954,497 | $ | 902,966 | $ | 1,274,811 | $ | 1,226,191 | ||||||||
Liabilities & Stockholders' Equity | ||||||||||||||||
Liabilities & Stockholders’ Equity | ||||||||||||||||
Deposits: | ||||||||||||||||
Noninterest-bearing deposits | $ | 223,442 | $ | 228,641 | $ | 398,908 | $ | 360,602 | ||||||||
Savings deposits | 344,654 | 344,452 | 555,744 | 512,936 | ||||||||||||
Time deposits | 214,349 | 211,409 | 179,365 | 193,698 | ||||||||||||
Total deposits | 782,445 | 784,502 | 1,134,017 | 1,067,236 | ||||||||||||
Federal funds purchased | 2,000 | - | ||||||||||||||
Overnight repurchase agreements | 21,885 | 18,704 | 12,239 | 6,619 | ||||||||||||
Federal Home Loan Bank advances | 45,000 | - | ||||||||||||||
Federal Reserve Bank borrowings | 3,313 | 28,550 | ||||||||||||||
Other borrowings | 0 | 1,350 | ||||||||||||||
Accrued expenses and other liabilities | 5,526 | 5,770 | 5,314 | 5,291 | ||||||||||||
Total liabilities | 856,856 | 808,976 | 1,154,883 | 1,109,046 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Stockholders' equity: | ||||||||||||||||
Common stock, $5 par value, 10,000,000 shares authorized; 5,009,630 and 4,961,258 shares outstanding (includes 2,245 and zero shares of nonvested restricted stock) | 25,037 | 24,806 | ||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Common stock, $5 par value, 10,000,000 shares authorized; 5,244,635 and 5,224,019 shares outstanding (includes 39,103 and 29,576 of nonvested restricted stock, respectively) | 26,028 | 25,972 | ||||||||||||||
Additional paid-in capital | 17,112 | 16,427 | 21,372 | 21,245 | ||||||||||||
Retained earnings | 58,179 | 56,965 | 69,457 | 65,859 | ||||||||||||
Accumulated other comprehensive loss, net | (2,687 | ) | (4,208 | ) | ||||||||||||
Total stockholders' equity | 97,641 | 93,990 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 954,497 | $ | 902,966 | ||||||||||||
Accumulated other comprehensive income, net | 3,071 | 4,069 | ||||||||||||||
Total stockholders’ equity | 119,928 | 117,145 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,274,811 | $ | 1,226,191 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
(unaudited, dollars in thousands except per share data) | ||||||||||||||||||||||||||||||||
(unaudited, dollars in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Interest and Dividend Income: | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 7,642 | $ | 6,646 | $ | 21,532 | $ | 19,619 | ||||||||||||||||||||||||
Interest on due from banks | 4 | 25 | 12 | 30 | ||||||||||||||||||||||||||||
Interest on federal funds sold | 1 | 2 | 6 | 4 | ||||||||||||||||||||||||||||
Interest on securities: | ||||||||||||||||||||||||||||||||
Loans, including fees | $ | 8,814 | $ | 8,924 | $ | 18,768 | $ | 17,751 | ||||||||||||||||||||||||
Due from banks | 52 | 32 | 95 | 183 | ||||||||||||||||||||||||||||
Federal funds sold | 0 | 0 | 0 | 12 | ||||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Taxable | 487 | 357 | 1,474 | 1,376 | 791 | 712 | 1,561 | 1,576 | ||||||||||||||||||||||||
Tax-exempt | 385 | 371 | 1,232 | 1,131 | 191 | 137 | 372 | 223 | ||||||||||||||||||||||||
Dividends and interest on all other securities | 49 | 35 | 98 | 76 | 11 | 43 | 41 | 89 | ||||||||||||||||||||||||
Total interest and dividend income | 8,568 | 7,436 | 24,354 | 22,236 | 9,859 | 9,848 | 20,837 | 19,834 | ||||||||||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||||||||||
Interest on savings deposits | 103 | 56 | 240 | 165 | ||||||||||||||||||||||||||||
Interest on time deposits | 560 | 538 | 1,599 | 1,572 | ||||||||||||||||||||||||||||
Interest on federal funds purchased, securities sold under agreements to repurchase and other borrowings | 13 | 6 | 26 | 20 | ||||||||||||||||||||||||||||
Interest on Federal Home Loan Bank advances | 161 | 33 | 233 | 177 | ||||||||||||||||||||||||||||
Checking and savings deposits | 235 | 298 | 450 | 638 | ||||||||||||||||||||||||||||
Time deposits | 511 | 883 | 1,095 | 1,855 | ||||||||||||||||||||||||||||
Federal funds purchased, securities sold under agreements to repurchase and other borrowings | 7 | 15 | 30 | 37 | ||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 0 | 179 | 0 | 413 | ||||||||||||||||||||||||||||
Total interest expense | 837 | 633 | 2,098 | 1,934 | 753 | 1,375 | 1,575 | 2,943 | ||||||||||||||||||||||||
Net interest income | 7,731 | 6,803 | 22,256 | 20,302 | 9,106 | 8,473 | 19,262 | 16,891 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 1,275 | (100 | ) | 2,925 | 1,300 | |||||||||||||||||||||||||||
Net interest income, after provision for (recovery of) loan losses | 6,456 | 6,903 | 19,331 | 19,002 | ||||||||||||||||||||||||||||
Provision for loan losses | 0 | 300 | 150 | 600 | ||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 9,106 | 8,173 | 19,112 | 16,291 | ||||||||||||||||||||||||||||
Noninterest Income: | ||||||||||||||||||||||||||||||||
Income from fiduciary activities | 903 | 858 | 2,820 | 2,636 | ||||||||||||||||||||||||||||
Fiduciary and asset management fees | 1,051 | 909 | 2,078 | 1,926 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 1,001 | 1,039 | 2,844 | 3,035 | 700 | 615 | 1,388 | 1,510 | ||||||||||||||||||||||||
Other service charges, commissions and fees | 1,050 | 968 | 3,141 | 3,019 | 1,120 | 980 | 2,068 | 1,923 | ||||||||||||||||||||||||
Income from bank-owned life insurance | 198 | 215 | 595 | 647 | ||||||||||||||||||||||||||||
Income from mortgage banking activities | 172 | 187 | 462 | 276 | ||||||||||||||||||||||||||||
Bank-owned life insurance income | 204 | 192 | 430 | 423 | ||||||||||||||||||||||||||||
Mortgage banking income | 381 | 223 | 1,569 | 380 | ||||||||||||||||||||||||||||
Gain on sale of available-for-sale securities, net | 2 | 7 | 89 | 522 | 0 | 184 | 0 | 184 | ||||||||||||||||||||||||
Gain on acquisition of Old Point Mortgage | - | - | 550 | - | ||||||||||||||||||||||||||||
Gain on sale of fixed assets | 0 | 818 | 0 | 818 | ||||||||||||||||||||||||||||
Other operating income | 35 | 53 | 114 | 143 | 82 | 37 | 139 | 72 | ||||||||||||||||||||||||
Total noninterest income | 3,361 | 3,327 | 10,615 | 10,278 | 3,538 | 3,958 | 7,672 | 7,236 | ||||||||||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 5,104 | 5,063 | 15,650 | 15,107 | 6,227 | 5,464 | 12,454 | 11,458 | ||||||||||||||||||||||||
Occupancy and equipment | 1,444 | 1,373 | 4,347 | 4,121 | 1,123 | 1,188 | 2,325 | 2,454 | ||||||||||||||||||||||||
Data processing | 473 | 419 | 1,328 | 1,276 | 1,197 | 804 | 2,240 | 1,623 | ||||||||||||||||||||||||
FDIC insurance | 128 | 66 | 322 | 387 | ||||||||||||||||||||||||||||
Customer development | 153 | 146 | 451 | 450 | 69 | 71 | 147 | 185 | ||||||||||||||||||||||||
Legal and audit expenses | 216 | 372 | 604 | 869 | ||||||||||||||||||||||||||||
Other outside service fees | 292 | 200 | 797 | 561 | ||||||||||||||||||||||||||||
Professional services | 620 | 590 | 1,165 | 1,065 | ||||||||||||||||||||||||||||
Employee professional development | 196 | 147 | 651 | 474 | 192 | 93 | 333 | 313 | ||||||||||||||||||||||||
Loan expenses | 302 | 46 | 483 | 103 | ||||||||||||||||||||||||||||
Capital stock tax | 141 | 128 | 422 | 390 | ||||||||||||||||||||||||||||
Other taxes | 171 | 158 | 422 | 308 | ||||||||||||||||||||||||||||
ATM and other losses | 103 | 131 | 435 | 301 | 17 | 60 | 156 | 158 | ||||||||||||||||||||||||
Prepayment fee on Federal Home Loan Bank advance | - | - | - | 391 | ||||||||||||||||||||||||||||
Loss (gain) on other real estate owned | - | 45 | (18 | ) | 153 | |||||||||||||||||||||||||||
Other operating expenses | 564 | 553 | 1,620 | 1,682 | 919 | 776 | 1,851 | 1,670 | ||||||||||||||||||||||||
Total noninterest expense | 9,116 | 8,689 | 27,092 | 26,265 | 10,535 | 9,204 | 21,093 | 19,234 | ||||||||||||||||||||||||
Income before income taxes | 701 | 1,541 | 2,854 | 3,015 | 2,109 | 2,927 | 5,691 | 4,293 | ||||||||||||||||||||||||
Income tax expense (benefit) | (56 | ) | 212 | (6 | ) | 113 | ||||||||||||||||||||||||||
Income tax expense | 267 | 433 | 837 | 549 | ||||||||||||||||||||||||||||
Net income | $ | 757 | $ | 1,329 | $ | 2,860 | $ | 2,902 | $ | 1,842 | $ | 2,494 | $ | 4,854 | $ | 3,744 | ||||||||||||||||
Basic earnings per share | ||||||||||||||||||||||||||||||||
Basic Earnings per Share: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 4,993,805 | 4,959,009 | 4,985,135 | 4,959,009 | 5,237,479 | 5,220,137 | 5,231,026 | 5,210,139 | ||||||||||||||||||||||||
Net income per share of common stock | $ | $0.15 | $ | $0.27 | $ | $0.57 | $ | $0.59 | $ | 0.35 | $ | 0.48 | $ | 0.93 | $ | 0.72 | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||||||||||||||
Diluted Earnings per Share: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 5,003,785 | 4,959,009 | 4,997,231 | 4,959,009 | 5,237,479 | 5,220,262 | 5,231,026 | 5,210,573 | ||||||||||||||||||||||||
Net income per share of common stock | $ | $0.15 | $ | $0.27 | $ | $0.57 | $ | $0.59 | $ | 0.35 | $ | 0.48 | $ | 0.93 | $ | 0.72 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
(unaudited, dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||||||||
Net income | $ | 757 | $ | 1,329 | $ | 2,860 | $ | 2,902 | $ | 1,842 | $ | 2,494 | $ | 4,854 | $ | 3,744 | ||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities | 57 | (299 | ) | 1,521 | 1,877 | 696 | 4,021 | (998 | ) | 3,576 | ||||||||||||||||||||||
Reclassification for gain included in net income | 0 | (145 | ) | 0 | (145 | ) | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 696 | 3,876 | (998 | ) | 3,431 | |||||||||||||||||||||||||||
Comprehensive income | $ | 814 | $ | 1,030 | $ | 4,381 | $ | 4,779 | $ | 2,538 | $ | 6,370 | $ | 3,856 | $ | 7,175 |
Shares of Common Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||
(unaudited, dollars in thousands except per share data) | ||||||||||||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2017 | ||||||||||||||||||||||||
Balance at beginning of period | 4,961,258 | $ | 24,806 | $ | 16,427 | $ | 56,965 | $ | (4,208 | ) | $ | 93,990 | ||||||||||||
Net income | - | - | - | 2,860 | - | 2,860 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 1,521 | 1,521 | ||||||||||||||||||
Exercise of stock options | 48,287 | 241 | 727 | - | - | 968 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 2,523 | 13 | 58 | - | - | 71 | ||||||||||||||||||
Repurchase of common stock related to stock option exercises | (4,683 | ) | (23 | ) | (109 | ) | - | - | (132 | ) | ||||||||||||||
Stock-based compensation expense | - | - | 9 | - | - | 9 | ||||||||||||||||||
Cash dividends ($0.33 per share) | - | - | - | (1,646 | ) | - | (1,646 | ) | ||||||||||||||||
Balance at end of period | 5,007,385 | $ | 25,037 | $ | 17,112 | $ | 58,179 | $ | (2,687 | ) | $ | 97,641 | ||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2016 | ||||||||||||||||||||||||
Balance at beginning of period | 4,959,009 | $ | 24,795 | $ | 16,392 | $ | 55,151 | $ | (3,162 | ) | $ | 93,176 | ||||||||||||
Net income | - | - | - | 2,902 | - | 2,902 | ||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | - | 1,877 | 1,877 | ||||||||||||||||||
Cash dividends ($0.30 per share) | - | - | - | (1,488 | ) | - | (1,488 | ) | ||||||||||||||||
Balance at end of period | 4,959,009 | $ | 24,795 | $ | 16,392 | $ | 56,565 | $ | (1,285 | ) | $ | 96,467 |
(unaudited, 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 | ||||||||||||||||||
THREE MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||||||
Balance at March 31, 2020 | 5,195,719 | $ | 25,979 | $ | 21,324 | $ | 68,245 | $ | 2,375 | $ | 117,923 | |||||||||||||
Net income | - | 0 | 0 | 1,842 | 0 | 1,842 | ||||||||||||||||||
Other comprehensive income, net of tax | - | 0 | 0 | 0 | 696 | 696 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 1,292 | 6 | 22 | 0 | 0 | 28 | ||||||||||||||||||
Restricted stock vested | 8,521 | 43 | (43 | ) | 0 | 0 | 0 | |||||||||||||||||
Stock-based compensation expense | - | 0 | 69 | 0 | 0 | 69 | ||||||||||||||||||
Cash dividends ($0.12 per share) | - | 0 | 0 | (630 | ) | 0 | (630 | ) | ||||||||||||||||
Balance at end of period | 5,205,532 | $ | 26,028 | $ | 21,372 | $ | 69,457 | $ | 3,071 | $ | 119,928 | |||||||||||||
THREE MONTHS ENDED JUNE 30, 2020 | ||||||||||||||||||||||||
Balance at March 31, 2019 | 5,188,221 | $ | 25,941 | $ | 21,026 | $ | 63,601 | $ | (524 | ) | $ | 110,044 | ||||||||||||
Net income | - | 0 | 0 | 2,494 | 0 | 2,494 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | 3,876 | 3,876 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 1,735 | 9 | 16 | 0 | 0 | 25 | ||||||||||||||||||
Restricted stock vested | 1,261 | 6 | (6 | ) | 0 | 0 | 0 | |||||||||||||||||
Stock-based compensation expense | - | 0 | 57 | 0 | 0 | 57 | ||||||||||||||||||
Cash dividends ($0.12 per share) | - | 0 | 0 | (627 | ) | 0 | (627 | ) | ||||||||||||||||
Balance at end of period | 5,191,217 | $ | 25,956 | $ | 21,093 | $ | 65,468 | $ | 3,352 | $ | 115,869 |
(unaudited, 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 | ||||||||||||||||||
SIX MONTHS ENDED JUNE 30, 2021 | ||||||||||||||||||||||||
Balance at December 31, 2020 | 5,194,443 | $ | 25,972 | $ | 21,245 | $ | 65,859 | $ | 4,069 | $ | 117,145 | |||||||||||||
Net income | - | 0 | 0 | 4,854 | 0 | 4,854 | ||||||||||||||||||
Other comprehensive loss, net of tax | - | 0 | 0 | 0 | (998 | ) | (998 | ) | ||||||||||||||||
Employee Stock Purchase Plan share issuance | 2,568 | 13 | 40 | 0 | 0 | 53 | ||||||||||||||||||
Restricted stock vested | 8,521 | 43 | (43 | ) | 0 | 0 | 0 | |||||||||||||||||
Stock-based compensation expense | - | 0 | 130 | 0 | 0 | 130 | ||||||||||||||||||
Cash dividends ($0.24 per share) | - | 0 | 0 | (1,256 | ) | 0 | (1,256 | ) | ||||||||||||||||
Balance at end of period | 5,205,532 | $ | 26,028 | $ | 21,372 | $ | 69,457 | $ | 3,071 | $ | 119,928 | |||||||||||||
SIX MONTHS ENDED JUNE 30, 2020 | ||||||||||||||||||||||||
Balance at December 31, 2019 | 5,180,105 | $ | 25,901 | $ | 20,959 | $ | 62,975 | $ | (79 | ) | $ | 109,756 | ||||||||||||
Net income | - | 0 | 0 | 3,744 | 0 | 3,744 | ||||||||||||||||||
Other comprehensive income, net of tax | - | 0 | 0 | 0 | 3,431 | 3,431 | ||||||||||||||||||
Employee Stock Purchase Plan share issuance | 2,593 | 13 | 33 | 0 | 0 | 46 | ||||||||||||||||||
Restricted stock vested | 8,519 | 42 | (42 | ) | 0 | 0 | 0 | |||||||||||||||||
Stock-based compensation expense | - | 0 | 143 | 0 | 0 | 143 | ||||||||||||||||||
Cash dividends ($0.24 per share) | - | 0 | 0 | (1,251 | ) | 0 | (1,251 | ) | ||||||||||||||||
Balance at end of period | 5,191,217 | $ | 25,956 | $ | 21,093 | $ | 65,468 | $ | 3,352 | $ | 115,869 |
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | |||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||
(unaudited, dollars in thousands) | 2021 | 2020 | ||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 2,860 | $ | 2,902 | $ | 4,854 | $ | 3,744 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||
Depreciation and amortization | 2,081 | 2,034 | 1,052 | 1,070 | ||||||||||||
Amortization of right of use lease asset | 185 | 179 | ||||||||||||||
Accretion related to acquisition, net | (7 | ) | (40 | ) | ||||||||||||
Provision for loan losses | 2,925 | 1,300 | 150 | 600 | ||||||||||||
Net gain on sale of available-for-sale securities | (89 | ) | (522 | ) | ||||||||||||
Net amortization of securities | 1,727 | 1,595 | 438 | 300 | ||||||||||||
(Increase) in loans held for sale | (981 | ) | - | |||||||||||||
Net (gain) loss on disposal of premises and equipment | 4 | (3 | ) | |||||||||||||
Net (gain) loss on write-down/sale of other real estate owned | (18 | ) | 153 | |||||||||||||
Decrease (increase) in loans held for sale, net | 12,129 | (2,904 | ) | |||||||||||||
Income from bank owned life insurance | (595 | ) | (647 | ) | (430 | ) | (423 | ) | ||||||||
Stock compensation expense | 9 | - | 130 | 143 | ||||||||||||
Deferred tax benefit | (171 | ) | (256 | ) | (12 | ) | (1,030 | ) | ||||||||
Increase in other assets | (552 | ) | (942 | ) | ||||||||||||
Increase (decrease) in other liabilities | (244 | ) | 363 | |||||||||||||
Net cash provided by operating activities | 6,956 | 5,977 | ||||||||||||||
(Decrease) in other assets | (2,602 | ) | (201 | ) | ||||||||||||
Increase (decrease) in accrued expenses and other liabilities | 23 | (1,012 | ) | |||||||||||||
Net cash provided by (used in) operating activities | 15,910 | (576 | ) | |||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Purchases of available-for-sale securities | (25,220 | ) | (104,082 | ) | (49,310 | ) | (30,891 | ) | ||||||||
Proceeds from redemption (cash used in purchases) of restricted securities, net | (1,920 | ) | 196 | |||||||||||||
Proceeds from redemption (purchase) of restricted securities, net | 334 | (226 | ) | |||||||||||||
Proceeds from maturities and calls of available-for-sale securities | 46,625 | 42,330 | 8,280 | 5,316 | ||||||||||||
Proceeds from sales of available-for-sale securities | 7,030 | 106,761 | 3,130 | 9,385 | ||||||||||||
Paydowns on available-for-sale securities | 7,484 | 8,734 | 9,397 | 5,831 | ||||||||||||
(Purchases) paydowns of consumer installment loans, net | (7,275 | ) | - | |||||||||||||
Net increase in all other loans (including repayments on student loans) | (92,058 | ) | (26,703 | ) | ||||||||||||
Proceeds from sales of other real estate owned | 1,084 | 1,625 | ||||||||||||||
Payments for improvements to other real estate owned | - | (52 | ) | |||||||||||||
Net decrease (increase) in loans held for investment | 3,438 | (109,499 | ) | |||||||||||||
Purchases of premises and equipment | (510 | ) | (710 | ) | (760 | ) | (662 | ) | ||||||||
Net cash provided by (used in) investing activities | (64,760 | ) | 28,099 | |||||||||||||
Proceeds from sale of premises and equipment | 31 | 1,297 | ||||||||||||||
Net cash used in investing activities | (25,460 | ) | (119,449 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Increase (decrease) in noninterest-bearing deposits | (5,199 | ) | 10,930 | |||||||||||||
Increase in noninterest-bearing deposits | 38,306 | 81,165 | ||||||||||||||
Increase in savings deposits | 202 | 3,818 | 42,808 | 60,359 | ||||||||||||
Increase in time deposits | 2,940 | 3,278 | ||||||||||||||
Increase (decrease) in federal funds purchased and repurchase agreements, net | 5,181 | (7,711 | ) | |||||||||||||
Decrease in time deposits | (14,333 | ) | (19,100 | ) | ||||||||||||
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net | 4,270 | (3,780 | ) | |||||||||||||
Increase in Federal Home Loan Bank advances | 120,000 | 55,000 | 0 | 25,000 | ||||||||||||
Repayment of Federal Home Loan Bank advances | (75,000 | ) | (60,000 | ) | 0 | (20,000 | ) | |||||||||
Proceeds from exercise of stock options and ESPP issuance | 1,039 | - | ||||||||||||||
Repurchase and retirement of common stock | (132 | ) | - | |||||||||||||
Increase in Federal Reserve Bank borrowings | 0 | 37,515 | ||||||||||||||
Repayment of Federal Reserve Bank borrowings | (25,237 | ) | (175 | ) | ||||||||||||
Proceeds from ESPP issuance | 53 | 46 | ||||||||||||||
Cash dividends paid on common stock | (1,646 | ) | (1,488 | ) | (1,256 | ) | (1,251 | ) | ||||||||
Net cash provided by financing activities | 47,385 | 3,827 | 44,611 | 159,779 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (10,419 | ) | 37,903 | |||||||||||||
Net increase in cash and cash equivalents | 35,061 | 39,754 | ||||||||||||||
Cash and cash equivalents at beginning of period | 25,854 | 36,990 | 120,437 | 89,865 | ||||||||||||
Cash and cash equivalents at end of period | $ | 15,435 | $ | 74,893 | $ | 155,498 | $ | 129,619 | ||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||||||||
Cash payments for: | ||||||||||||||||
Interest | $ | 2,029 | $ | 1,948 | $ | 1,693 | $ | 3,059 | ||||||||
Income tax | $ | 750 | $ | - | ||||||||||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||||||||||||||||
Unrealized gain on securities available-for-sale | $ | 2,305 | $ | 2,844 | ||||||||||||
Former bank property transferred from fixed assets to foreclosed properties | $ | - | $ | 127 | ||||||||||||
Unrealized (loss) gain on securities available-for-sale | $ | 3,887 | $ | 4,343 | ||||||||||||
Loans transferred to other real estate owned | $ | 0 | $ | 254 | ||||||||||||
Former bank property transferred from fixed assets to held for sale assets | $ | 902 | $ | 0 | ||||||||||||
Right of use lease asset and liability | $ | 1,277 | $ | 789 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
September 30, 2017 | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 9,574 | $ | 11 | $ | (92 | ) | $ | 9,493 | |||||||
Obligations of state and political subdivisions | 67,815 | 771 | (152 | ) | 68,434 | |||||||||||
Mortgage-backed securities | 78,436 | - | (1,120 | ) | 77,316 | |||||||||||
Money market investments | 1,169 | - | - | 1,169 | ||||||||||||
Corporate bonds and other securities | 7,349 | 166 | (5 | ) | 7,510 | |||||||||||
Other marketable equity securities | 100 | 90 | - | 190 | ||||||||||||
Total | $ | 164,443 | $ | 1,038 | $ | (1,369 | ) | $ | 164,112 | |||||||
December 31, 2016 | ||||||||||||||||
U.S. Treasury securities | $ | 20,000 | $ | - | $ | - | $ | 20,000 | ||||||||
Obligations of U.S. Government agencies | 9,361 | - | (166 | ) | 9,195 | |||||||||||
Obligations of state and political subdivisions | 78,645 | 358 | (1,016 | ) | 77,987 | |||||||||||
Mortgage-backed securities | 85,649 | 18 | (1,973 | ) | 83,694 | |||||||||||
Money market investments | 647 | - | - | 647 | ||||||||||||
Corporate bonds and other securities | 7,598 | 92 | (12 | ) | 7,678 | |||||||||||
Other marketable equity securities | 100 | 64 | - | 164 | ||||||||||||
Total | $ | 202,000 | $ | 532 | $ | (3,167 | ) | $ | 199,365 |
June 30, 2021 | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 9,052 | $ | 0 | $ | (62 | ) | $ | 8,990 | |||||||
Obligations of U.S. Government agencies | 38,636 | 226 | (45 | ) | 38,817 | |||||||||||
Obligations of state and political subdivisions | 51,224 | 2,224 | (176 | ) | 53,272 | |||||||||||
Mortgage-backed securities | 83,475 | 1,943 | (393 | ) | 85,025 | |||||||||||
Money market investments | 3,893 | 0 | 0 | 3,893 | ||||||||||||
Corporate bonds and other securities | 23,043 | 219 | (48 | ) | 23,214 | |||||||||||
$ | 209,323 | $ | 4,612 | $ | (724 | ) | $ | 213,211 |
December 31, 2020 | ||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||
U.S. Treasury securities | $ | 6,980 | $ | 63 | $ | 0 | $ | 7,043 | ||||||||
Obligations of U.S. Government agencies | 36,858 | 35 | (197 | ) | 36,696 | |||||||||||
Obligations of state and political subdivisions | 43,517 | 2,478 | 0 | 45,995 | ||||||||||||
Mortgage-backed securities | 70,866 | 2,759 | (124 | ) | 73,501 | |||||||||||
Money market investments | 4,743 | 0 | 0 | 4,743 | ||||||||||||
Corporate bonds and other securities | 18,295 | 158 | (22 | ) | 18,431 | |||||||||||
$ | 181,259 | $ | 5,493 | $ | (343 | ) | $ | 186,409 |
June 30, 2021 | ||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 300 | $ | 302 | ||||
Due after one year through five years | 9,929 | 10,073 | ||||||
Due after five through ten years | 56,897 | 58,317 | ||||||
Due after ten years | 138,304 | 140,626 | ||||||
Other securities, restricted | 3,893 | 3,893 | ||||||
$ | 209,323 | $ | 213,211 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Securities Available-for-sale | ||||||||||||||||
Realized gains on sales of securities | $ | 2 | $ | 24 | $ | 89 | $ | 578 | ||||||||
Realized losses on sales of securities | - | (17 | ) | - | (56 | ) | ||||||||||
Net realized gain | $ | 2 | $ | 7 | $ | 89 | $ | 522 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Securities Available-for-sale | ||||||||||||||||
Realized gains on sales of securities | $ | 0 | $ | 185 | $ | 0 | $ | 185 | ||||||||
Realized losses on sales of securities | 0 | (1 | ) | 0 | (1 | ) | ||||||||||
Net realized gain | $ | 0 | $ | 184 | $ | 0 | $ | 184 |
September 30, 2017 | ||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | ||||||||||||||||||||||||||
September 30, 2017 | 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 | ||||||||||||||||||||||||||||
Obligations of U.S. Government agencies | $ | 10 | $ | 4,393 | $ | 82 | $ | 3,120 | $ | 92 | $ | 7,513 | 11 | |||||||||||||||
Obligations of state and political subdivisions | 80 | 5,006 | 72 | 6,898 | 152 | 11,904 | 15 | |||||||||||||||||||||
Mortgage-backed securities | 257 | 32,054 | 863 | 45,262 | 1,120 | 77,316 | 24 | |||||||||||||||||||||
Corporate bonds | 1 | 1,299 | 4 | 295 | 5 | 1,594 | 10 | |||||||||||||||||||||
Total securities available-for-sale | $ | 348 | $ | 42,752 | $ | 1,021 | $ | 55,575 | $ | 1,369 | $ | 98,327 | 60 |
December 31, 2016 | ||||||||||||||||||||||||||||
Less Than Twelve Months | More Than Twelve Months | Total | ||||||||||||||||||||||||||
December 31, 2016 | 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 | ||||||||||||||||||||||||||||
Obligations of U.S. Government agencies | $ | 166 | $ | 9,195 | $ | - | $ | - | $ | 166 | $ | 9,195 | 6 | |||||||||||||||
Obligations of state and political subdivisions | 1,016 | 38,020 | - | - | 1,016 | 38,020 | 56 | |||||||||||||||||||||
Mortgage-backed securities | 1,973 | 80,680 | - | - | 1,973 | 80,680 | 23 | |||||||||||||||||||||
Corporate bonds | 11 | 1,787 | 1 | 100 | 12 | 1,887 | 13 | |||||||||||||||||||||
Total securities available-for-sale | $ | 3,166 | $ | 129,682 | $ | 1 | $ | 100 | $ | 3,167 | $ | 129,782 | 98 |
June 30, 2021 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(Dollars in thousands) | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
U.S. Treasury securities | $ | 62 | $ | 8,990 | $ | 0 | $ | 0 | $ | 62 | $ | 8,990 | ||||||||||||
Obligations of U.S. Government agencies | 10 | 3,908 | 35 | 5,674 | 45 | 9,582 | ||||||||||||||||||
Obligations of state and political subdivisions | 176 | 10,181 | 0 | 0 | 176 | 10,181 | ||||||||||||||||||
Mortgage-backed securities | 334 | 17,669 | 59 | 4,481 | 393 | 22,150 | ||||||||||||||||||
Corporate bonds and other securities | 48 | 7,202 | 0 | 0 | 48 | 7,202 | ||||||||||||||||||
Total securities available-for-sale | $ | 630 | $ | 47,950 | $ | 94 | $ | 10,155 | $ | 724 | $ | 58,105 |
December 31, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
(Dollars in thousands) | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | ||||||||||||||||||
Obligations of U.S. Government agencies | $ | 8 | $ | 2,810 | $ | 189 | $ | 17,191 | $ | 197 | $ | 20,001 | ||||||||||||
Mortgage-backed securities | 118 | 14,291 | 6 | 1,285 | 124 | 15,576 | ||||||||||||||||||
Corporate bonds and other securities | 22 | 5,977 | 0 | 0 | 22 | 5,977 | ||||||||||||||||||
Total securities available-for-sale | $ | 148 | $ | 23,078 | $ | 195 | $ | 18,476 | $ | 343 | $ | 41,554 |
September 30, 2017 | December 31, 2016 | |||||||
(in thousands) | ||||||||
Mortgage loans on real estate: | ||||||||
Residential 1-4 family | $ | 100,746 | $ | 94,827 | ||||
Commercial | 281,628 | 285,429 | ||||||
Construction | 23,715 | 23,116 | ||||||
Second mortgages | 17,557 | 17,128 | ||||||
Equity lines of credit | 54,029 | 51,024 | ||||||
Total mortgage loans on real estate | 477,675 | 471,524 | ||||||
Commercial and industrial loans | 60,003 | 54,434 | ||||||
Consumer automobile loans | 94,041 | 10,407 | ||||||
Other consumer loans | 56,386 | 48,500 | ||||||
Other | 12,891 | 19,017 | ||||||
Total loans, net of deferred fees (1) | 700,996 | 603,882 | ||||||
Less: Allowance for loan losses | (8,951 | ) | (8,245 | ) | ||||
Loans, net of allowance and deferred fees and costs (1) | $ | 692,045 | $ | 595,637 |
(dollars in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Mortgage loans on real estate: | ||||||||
Residential 1-4 family | $ | 117,887 | $ | 122,800 | ||||
Commercial - owner occupied | 171,881 | 153,955 | ||||||
Commercial - non-owner occupied | 165,460 | 162,896 | ||||||
Multifamily | 20,880 | 22,812 | ||||||
Construction | 50,814 | 43,732 | ||||||
Second mortgages | 9,707 | 11,178 | ||||||
Equity lines of credit | 51,238 | 50,746 | ||||||
Total mortgage loans on real estate | 587,867 | 568,119 | ||||||
Commercial and industrial loans | 119,911 | 141,746 | ||||||
Consumer automobile loans | 79,544 | 80,390 | ||||||
Other consumer loans | 36,990 | 37,978 | ||||||
Other (1) | 8,361 | 8,067 | ||||||
Total loans, net of deferred fees | 832,673 | 836,300 | ||||||
Less: Allowance for loan losses | 9,473 | 9,541 | ||||||
Loans, net of allowance and deferred fees (2) | $ | 823,200 | $ | 826,759 |
(1) | Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $254 thousand and $271 thousand at June 30, 2021 and December 31, 2020, respectively. |
(2) | Net deferred loan fees totaled $2.4 million and $2.1 million at June 30, 2021 and December 31, 2020, respectively. |
(dollars in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Outstanding principal balance | $ | 6,500 | $ | 8,671 | ||||
Carrying amount | 6,460 | 8,602 |
(dollars in thousands) | June 30, 2021 | June 30, 2020 | ||||||
Balance at January 1 | $ | 0 | $ | 72 | ||||
Accretion | 0 | (19 | ) | |||||
Balance at end of period | $ | 0 | $ | 53 |
• | Pass: Loans are of acceptable risk. |
• | Other Assets Especially Mentioned (OAEM): Loans have potential weaknesses that deserve management’s close attention. |
• | Substandard: Loans reflect significant deficiencies due to several adverse trends of a financial, economic or managerial nature. |
• | Doubtful: Loans have all the weaknesses inherent in a substandard loan with added characteristics that make collection or liquidation in full based on currently existing facts, conditions and values highly questionable or improbable. |
• | Loss: Loans have been identified for charge-off because they are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. |
Credit Quality Information | ||||||||||||||||||||
As of September 30, 2017 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pass | OAEM | Substandard | Doubtful | Total | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 98,829 | $ | - | $ | 1,917 | $ | - | $ | 100,746 | ||||||||||
Commercial | 256,898 | 11,696 | 13,034 | - | 281,628 | |||||||||||||||
Construction | 22,920 | 74 | 721 | - | 23,715 | |||||||||||||||
Second mortgages | 16,952 | 446 | 159 | - | 17,557 | |||||||||||||||
Equity lines of credit | 53,686 | - | 343 | - | 54,029 | |||||||||||||||
Total mortgage loans on real estate | 449,285 | 12,216 | 16,174 | - | 477,675 | |||||||||||||||
Commercial and industrial loans | 58,192 | 1,037 | 774 | - | 60,003 | |||||||||||||||
Consumer automobile loans | 93,984 | - | 57 | - | 94,041 | |||||||||||||||
Other consumer loans | 56,336 | - | 50 | - | 56,386 | |||||||||||||||
Other | 12,891 | - | - | - | 12,891 | |||||||||||||||
Total | $ | 670,688 | $ | 13,253 | $ | 17,055 | $ | - | $ | 700,996 |
Credit Quality Information | ||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Pass | OAEM | Substandard | Doubtful | Total | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 92,458 | $ | 1,138 | $ | 1,231 | $ | - | $ | 94,827 | ||||||||||
Commercial | 260,948 | 10,014 | 14,467 | - | 285,429 | |||||||||||||||
Construction | 22,219 | 162 | 735 | - | 23,116 | |||||||||||||||
Second mortgages | 16,445 | 475 | 208 | - | 17,128 | |||||||||||||||
Equity lines of credit | 50,387 | 500 | 137 | - | 51,024 | |||||||||||||||
Total mortgage loans on real estate | 442,457 | 12,289 | 16,778 | - | 471,524 | |||||||||||||||
Commercial and industrial loans | 49,979 | 2,278 | 2,177 | - | 54,434 | |||||||||||||||
Consumer automobile loans | 10,407 | - | - | - | 10,407 | |||||||||||||||
Other consumer loans | 48,334 | - | 166 | - | 48,500 | |||||||||||||||
Other | 19,017 | - | - | - | 19,017 | |||||||||||||||
Total | $ | 570,194 | $ | 14,567 | $ | 19,121 | $ | - | $ | 603,882 |
Credit Quality Information | ||||||||||||||||||||
As of June 30, 2021 | ||||||||||||||||||||
(dollars in thousands) | Pass | OAEM | Substandard | Doubtful | Total | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 117,714 | $ | 0 | $ | 173 | $ | 0 | $ | 117,887 | ||||||||||
Commercial - owner occupied | 168,615 | 2,422 | 844 | 0 | 171,881 | |||||||||||||||
Commercial - non-owner occupied | 164,549 | 726 | 185 | 0 | 165,460 | |||||||||||||||
Multifamily | 20,880 | 0 | 0 | 0 | 20,880 | |||||||||||||||
Construction | 49,574 | 1,110 | 130 | 0 | 50,814 | |||||||||||||||
Second mortgages | 9,707 | 0 | 0 | 0 | 9,707 | |||||||||||||||
Equity lines of credit | 51,238 | 0 | 0 | 0 | 51,238 | |||||||||||||||
Total mortgage loans on real estate | $ | 582,277 | $ | 4,258 | $ | 1,332 | $ | 0 | $ | 587,867 | ||||||||||
Commercial and industrial loans | 119,607 | 304 | 0 | 0 | 119,911 | |||||||||||||||
Consumer automobile loans | 79,263 | 0 | 281 | 0 | 79,544 | |||||||||||||||
Other consumer loans | 36,990 | 0 | 0 | 0 | 36,990 | |||||||||||||||
Other | 8,361 | 0 | 0 | 0 | 8,361 | |||||||||||||||
Total | $ | 826,498 | $ | 4,562 | $ | 1,613 | $ | 0 | $ | 832,673 |
Credit Quality Information | ||||||||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||
(dollars in thousands) | Pass | OAEM | Substandard | Doubtful | Total | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 122,621 | $ | 0 | $ | 179 | $ | 0 | $ | 122,800 | ||||||||||
Commercial - owner occupied | 148,738 | 2,462 | 2,755 | 0 | 153,955 | |||||||||||||||
Commercial - non-owner occupied | 162,148 | 748 | 0 | 0 | 162,896 | |||||||||||||||
Multifamily | 22,812 | 0 | 0 | 0 | 22,812 | |||||||||||||||
Construction | 42,734 | 998 | 0 | 0 | 43,732 | |||||||||||||||
Second mortgages | 11,178 | 0 | 0 | 0 | 11,178 | |||||||||||||||
Equity lines of credit | 50,746 | 0 | 0 | 0 | 50,746 | |||||||||||||||
Total mortgage loans on real estate | $ | 560,977 | $ | 4,208 | $ | 2,934 | $ | 0 | $ | 568,119 | ||||||||||
Commercial and industrial loans | 141,391 | 355 | 0 | 0 | 141,746 | |||||||||||||||
Consumer automobile loans | 79,997 | 0 | 393 | 0 | 80,390 | |||||||||||||||
Other consumer loans | 37,978 | 0 | 0 | 0 | 37,978 | |||||||||||||||
Other | 8,067 | 0 | 0 | 0 | 8,067 | |||||||||||||||
Total | $ | 828,410 | $ | 4,563 | $ | 3,327 | $ | 0 | $ | 836,300 |
Age Analysis of Past Due Loans as of September 30, 2017 | ||||||||||||||||||||||||||||
30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due | Total 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 | $ | 869 | $ | - | $ | 621 | $ | 1,490 | $ | 99,256 | $ | 100,746 | $ | 52 | ||||||||||||||
Commercial | 169 | 984 | 3,530 | 4,683 | 276,945 | 281,628 | 974 | |||||||||||||||||||||
Construction | 204 | - | - | 204 | 23,511 | 23,715 | - | |||||||||||||||||||||
Second mortgages | 79 | - | - | 79 | 17,478 | 17,557 | - | |||||||||||||||||||||
Equity lines of credit | 49 | - | 53 | 102 | 53,927 | 54,029 | - | |||||||||||||||||||||
Total mortgage loans on real estate | 1,370 | 984 | 4,204 | 6,558 | 471,117 | 477,675 | 1,026 | |||||||||||||||||||||
Commercial loans | 853 | 154 | 1,226 | 2,233 | 57,770 | 60,003 | 473 | |||||||||||||||||||||
Consumer automobile loans | 266 | 44 | 16 | 326 | 93,715 | 94,041 | 16 | |||||||||||||||||||||
Other consumer loans | 1,541 | 585 | 2,466 | 4,592 | 51,794 | 56,386 | 2,466 | |||||||||||||||||||||
Other | 91 | 8 | 2 | 101 | 12,790 | 12,891 | 2 | |||||||||||||||||||||
Total | $ | 4,121 | $ | 1,775 | $ | 7,914 | $ | 13,810 | $ | 687,186 | $ | 700,996 | $ | 3,983 |
Age Analysis of Past Due Loans as of June 30, 2021 | ||||||||||||||||||||||||||||
(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 | $ | 0 | $ | 14 | $ | 0 | $ | 0 | $ | 245 | $ | 117,628 | $ | 117,887 | ||||||||||||||
Commercial - owner occupied | 0 | 0 | 58 | 0 | 843 | 170,980 | 171,881 | |||||||||||||||||||||
Commercial - non-owner occupied | 0 | 0 | 0 | 0 | 185 | 165,275 | 165,460 | |||||||||||||||||||||
Multifamily | 0 | 0 | 0 | 0 | 0 | 20,880 | 20,880 | |||||||||||||||||||||
Construction | 65 | 0 | 0 | 0 | 130 | 50,619 | 50,814 | |||||||||||||||||||||
Second mortgages | 0 | 0 | 0 | 0 | 0 | 9,707 | 9,707 | |||||||||||||||||||||
Equity lines of credit | 0 | 0 | 0 | 0 | 0 | 51,238 | 51,238 | |||||||||||||||||||||
Total mortgage loans on real estate | $ | 65 | $ | 14 | $ | 58 | $ | 0 | $ | 1,403 | $ | 586,327 | $ | 587,867 | ||||||||||||||
Commercial and industrial loans | 0 | 0 | 0 | 0 | 0 | 119,911 | 119,911 | |||||||||||||||||||||
Consumer automobile loans | 591 | 132 | 306 | 0 | 0 | 78,515 | 79,544 | |||||||||||||||||||||
Other consumer loans | 539 | 201 | 626 | 0 | 0 | 35,624 | 36,990 | |||||||||||||||||||||
Other | 16 | 2 | 3 | 0 | 0 | 8,340 | 8,361 | |||||||||||||||||||||
Total | $ | 1,211 | $ | 349 | $ | 993 | $ | 0 | $ | 1,403 | $ | 828,717 | $ | 832,673 |
(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, 2016 | ||||||||||||||||||||||||||||
30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 or More Days Past Due | Total 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 | $ | 564 | $ | - | $ | 496 | $ | 1,060 | $ | 93,767 | $ | 94,827 | $ | 218 | ||||||||||||||
Commercial | 2,280 | 1,625 | 227 | 4,132 | 281,297 | 285,429 | - | |||||||||||||||||||||
Construction | 162 | - | - | 162 | 22,954 | 23,116 | - | |||||||||||||||||||||
Second mortgages | - | 200 | 188 | 388 | 16,740 | 17,128 | 58 | |||||||||||||||||||||
Equity lines of credit | 394 | 9 | 86 | 489 | 50,535 | 51,024 | - | |||||||||||||||||||||
Total mortgage loans on real estate | 3,400 | 1,834 | 997 | 6,231 | 465,293 | 471,524 | 276 | |||||||||||||||||||||
Commercial loans | 5 | - | 86 | 91 | 54,343 | 54,434 | - | |||||||||||||||||||||
Consumer automobile loans | - | 11 | - | 11 | 10,396 | 10,407 | - | |||||||||||||||||||||
Other consumer loans | 1,876 | 702 | 2,684 | 5,262 | 43,238 | 48,500 | 2,603 | |||||||||||||||||||||
Other | 41 | 12 | 5 | 58 | 18,959 | 19,017 | 5 | |||||||||||||||||||||
Total | $ | 5,322 | $ | 2,559 | $ | 3,772 | $ | 11,653 | $ | 592,229 | $ | 603,882 | $ | 2,884 |
Age Analysis of Past Due Loans as of December 31, 2020 | ||||||||||||||||||||||||||||
(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 | $ | 478 | $ | 164 | $ | 0 | $ | 0 | $ | 311 | $ | 121,847 | $ | 122,800 | ||||||||||||||
Commercial - owner occupied | 0 | 0 | 0 | 0 | 903 | 153,052 | 153,955 | |||||||||||||||||||||
Commercial - non-owner occupied | 0 | 0 | 0 | 0 | 0 | 162,896 | 162,896 | |||||||||||||||||||||
Multifamily | 0 | 0 | 0 | 0 | 0 | 22,812 | 22,812 | |||||||||||||||||||||
Construction | 0 | 88 | 0 | 0 | 0 | 43,644 | 43,732 | |||||||||||||||||||||
Second mortgages | 41 | 0 | 0 | 0 | 0 | 11,137 | 11,178 | |||||||||||||||||||||
Equity lines of credit | 0 | 0 | 0 | 0 | 0 | 50,746 | 50,746 | |||||||||||||||||||||
Total mortgage loans on real estate | $ | 519 | $ | 252 | $ | 0 | $ | 0 | $ | 1,214 | $ | 566,134 | $ | 568,119 | ||||||||||||||
Commercial and industrial loans | 753 | 0 | 0 | 0 | 0 | 140,993 | 141,746 | |||||||||||||||||||||
Consumer automobile loans | 1,159 | 190 | 196 | 0 | 0 | 78,845 | 80,390 | |||||||||||||||||||||
Other consumer loans | 1,120 | 555 | 548 | 0 | 0 | 35,755 | 37,978 | |||||||||||||||||||||
Other | 24 | 3 | 0 | 0 | 0 | 8,040 | 8,067 | |||||||||||||||||||||
Total | $ | 3,575 | $ | 1,000 | $ | 744 | $ | 0 | $ | 1,214 | $ | 829,767 | $ | 836,300 |
(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. |
Nonaccrual Loans by Class | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
(in thousands) | ||||||||
Mortgage loans on real estate | ||||||||
Residential 1-4 family | $ | 568 | $ | 598 | ||||
Commercial | 8,012 | 6,033 | ||||||
Construction | 518 | - | ||||||
Second mortgages | - | 129 | ||||||
Equity lines of credit | 343 | 87 | ||||||
Total mortgage loans on real estate | 9,441 | 6,847 | ||||||
Commercial loans | 771 | 231 | ||||||
Other consumer loans | - | 81 | ||||||
Total | $ | 10,212 | $ | 7,159 |
(dollars in thousands) | June 30, 2021 | December 31, 2020 | ||||||
Mortgage loans on real estate: | ||||||||
Residential 1-4 family | $ | 245 | $ | 311 | ||||
Commercial - owner occupied | 843 | 903 | ||||||
Commercial - non-owner occupied | 185 | 0 | ||||||
Construction | 130 | 0 | ||||||
Total mortgage loans on real estate | $ | 1,403 | $ | 1,214 | ||||
Total | $ | 1,403 | $ | 1,214 |
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | |||||||||||||||
(in thousands) | ||||||||||||||||
(dollars in thousand) | 2021 | 2020 | ||||||||||||||
Interest income that would have been recorded under original loan terms | $ | 311 | $ | 232 | $ | 61 | $ | 118 | ||||||||
Actual interest income recorded for the period | 179 | 182 | 0 | 8 | ||||||||||||
Reduction in interest income on nonaccrual loans | $ | 132 | $ | 50 | $ | 61 | $ | 110 |
Troubled Debt Restructurings by Class | ||||||||||||||||
For the Three Months Ended September 30, 2016 | ||||||||||||||||
Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on September 30, 2016 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | 4 | $ | 1,002 | $ | 1,002 | $ | 1,002 | |||||||||
Commercial | 1 | 150 | 150 | 150 | ||||||||||||
Second mortgages | 1 | 53 | 53 | 53 | ||||||||||||
Equity lines of credit | 1 | 93 | 93 | 93 | ||||||||||||
Total mortgage loans on real estate | 7 | 1,298 | 1,298 | 1,298 | ||||||||||||
Other consumer loans | 2 | 8 | 8 | 8 | ||||||||||||
Total | 9 | $ | 1,306 | $ | 1,306 | $ | 1,306 |
Troubled Debt Restructurings by Class | ||||||||||||||||
For the Nine Months Ended September 30, 2017 | ||||||||||||||||
Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on September 30, 2017 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | 1 | $ | 142 | $ | 142 | $ | 141 | |||||||||
Commercial | 2 | 3,663 | 3,663 | 3,653 | ||||||||||||
Total | 3 | $ | 3,805 | $ | 3,805 | $ | 3,794 |
Troubled Debt Restructurings by Class | ||||||||||||||||
For the Nine Months Ended September 30, 2016 | ||||||||||||||||
Number of Modifications | Recorded Investment Prior to Modification | Recorded Investment After Modification | Current Investment on September 30, 2016 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | 4 | $ | 1,002 | $ | 1,002 | $ | 1 | |||||||||
Commercial | 1 | 150 | 150 | 0 | ||||||||||||
Second mortgages | 1 | 53 | 53 | 0 | ||||||||||||
Equity lines of credit | 1 | 93 | 93 | 0 | ||||||||||||
Total mortgage loans on real estate | 7 | 1,298 | 1,298 | 1 | ||||||||||||
Commercial loans | 1 | 152 | 152 | 0 | ||||||||||||
Other consumer loans | 2 | 8 | 8 | 0 | ||||||||||||
Commercial loans | 10 | $ | 1,458 | $ | 1,458 | $ | 1 |
Impaired Loans by Class | ||||||||||||||||||||||||
As of September 30, 2017 | For the nine months ended September 30, 2017 | |||||||||||||||||||||||
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 | $ | 2,449 | $ | 1,980 | $ | 390 | $ | 75 | $ | 2,429 | $ | 74 | ||||||||||||
Commercial | 12,430 | 10,758 | 436 | 87 | 13,447 | 435 | ||||||||||||||||||
Construction | 93 | - | 93 | 18 | 269 | 4 | ||||||||||||||||||
Second mortgages | 359 | 201 | 137 | 15 | 461 | 12 | ||||||||||||||||||
Equity lines of credit | 344 | 53 | 290 | 61 | 250 | - | ||||||||||||||||||
Total mortgage loans on real estate | $ | 15,675 | $ | 12,992 | $ | 1,346 | $ | 256 | $ | 16,856 | $ | 525 | ||||||||||||
Commercial loans | 1,017 | 163 | 608 | 183 | 1,513 | 21 | ||||||||||||||||||
Other consumer loans | - | - | - | - | 54 | - | ||||||||||||||||||
Total | $ | 16,692 | $ | 13,155 | $ | 1,954 | $ | 439 | $ | 18,423 | $ | 546 |
Impaired Loans by Class | ||||||||||||||||||||||||
As of December 31, 2016 | For the Year Ended December 31, 2016 | |||||||||||||||||||||||
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 | $ | 2,496 | $ | 1,835 | $ | 622 | $ | 75 | $ | 2,741 | $ | 119 | ||||||||||||
Commercial | 16,193 | 11,095 | 4,274 | 415 | 11,885 | 727 | ||||||||||||||||||
Construction | 619 | 528 | 96 | 22 | 496 | 43 | ||||||||||||||||||
Second mortgages | 526 | 309 | 141 | 17 | 511 | 25 | ||||||||||||||||||
Equity lines of credit | 87 | 86 | - | - | 46 | 3 | ||||||||||||||||||
Total mortgage loans on real estate | $ | 19,921 | $ | 13,853 | $ | 5,133 | $ | 529 | $ | 15,679 | $ | 917 | ||||||||||||
Commercial loans | 1,077 | - | 989 | 271 | 827 | 74 | ||||||||||||||||||
Other consumer loans | 81 | 81 | - | - | 68 | 1 | ||||||||||||||||||
Total | $ | 21,079 | $ | 13,934 | $ | 6,122 | $ | 800 | $ | 16,574 | $ | 992 |
As of June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||||||||||||||||||
(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 | $ | 412 | $ | 72 | $ | 311 | $ | 36 | $ | 387 | $ | 0 | ||||||||||||
Commercial | 2,931 | 1,098 | 432 | 12 | 1,500 | 1 | ||||||||||||||||||
Construction | 212 | 130 | 81 | 0 | 212 | 2 | ||||||||||||||||||
Second mortgages | 131 | 0 | 129 | 3 | 130 | 3 | ||||||||||||||||||
Total mortgage loans on real estate | 3,686 | 1,300 | 953 | 51 | 2,229 | 6 | ||||||||||||||||||
Commercial and industrial loans | 4 | 3 | 0 | 0 | 4 | 0 | ||||||||||||||||||
Other consumer loans | 12 | 11 | 0 | 0 | 11 | 0 | ||||||||||||||||||
Total | $ | 3,702 | $ | 1,314 | $ | 953 | $ | 51 | $ | 2,244 | $ | 6 |
As of December 31, 2020 | For the Year Ended December 31, 2020 | |||||||||||||||||||||||
(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 | $ | 474 | $ | 366 | $ | 87 | $ | 1 | $ | 458 | $ | 10 | ||||||||||||
Commercial | 3,490 | 1,306 | 121 | 1 | 2,559 | 46 | ||||||||||||||||||
Construction | 83 | 0 | 83 | 0 | 84 | 5 | ||||||||||||||||||
Second mortgages | 133 | 0 | 133 | 9 | 134 | 5 | ||||||||||||||||||
Total mortgage loans on real estate | 4,180 | 1,672 | 424 | 11 | 3,235 | 66 | ||||||||||||||||||
Commercial and industrial loans | 6 | 6 | 0 | 0 | 7 | 0 | ||||||||||||||||||
Other consumer loans | 14 | 14 | 0 | 0 | 15 | 1 | ||||||||||||||||||
Total | $ | 4,200 | $ | 1,692 | $ | 424 | $ | 11 | $ | 3,257 | $ | 67 |
• | Commercial and industrial: Commercial and industrial loans carry risks associated with the successful operation of a business or project, in addition to other risks associated with the ownership of a business. The repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. |
• | Real estate-construction: Construction loans carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may at any point in time be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be the loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. |
• | Real estate-mortgage: Residential mortgage loans and equity lines of credit carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. Commercial real estate loans carry risks associated with the successful operation of a business if owner occupied. If non-owner occupied, the repayment of these loans may be dependent upon the profitability and cash flow from rent receipts. |
• | Consumer loans: Consumer loans carry risks associated with the continued credit-worthiness of the borrowers and the value of the collateral. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. |
• | Other loans: Other loans are loans to mortgage companies, loans for purchasing or carrying securities, and loans to insurance, investment and finance companies. These loans carry risks associated with the successful operation of a business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time, depend on interest rates or fluctuate in active trading markets. |
ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2017 | Commercial | Real Estate - Construction | Real Estate - Mortgage (1) | Consumer (2) | Other | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Balance at the beginning of period | $ | 1,493 | $ | 846 | $ | 5,267 | $ | 455 | $ | 184 | $ | 8,245 | ||||||||||||
Charge-offs | (629 | ) | - | (1,473 | ) | (228 | ) | (136 | ) | (2,466 | ) | |||||||||||||
Recoveries | 32 | 104 | 40 | 33 | 38 | 247 | ||||||||||||||||||
Provision for loan losses | 679 | (332 | ) | 1,573 | 909 | 96 | 2,925 | |||||||||||||||||
Ending balance | $ | 1,575 | $ | 618 | $ | 5,407 | $ | 1,169 | $ | 182 | $ | 8,951 | ||||||||||||
Ending balance individually evaluated for impairment | $ | 183 | $ | 18 | $ | 238 | $ | - | $ | - | $ | 439 | ||||||||||||
Ending balance collectively evaluated for impairment | 1,392 | 600 | 5,169 | 1,169 | 182 | 8,512 | ||||||||||||||||||
Ending balance | $ | 1,575 | $ | 618 | $ | 5,407 | $ | 1,169 | $ | 182 | $ | 8,951 | ||||||||||||
Loan Balances: | ||||||||||||||||||||||||
Ending balance individually evaluated for impairment | $ | 771 | $ | 93 | $ | 14,245 | $ | - | $ | - | $ | 15,109 | ||||||||||||
Ending balance collectively evaluated for impairment | 59,232 | 23,622 | 439,715 | 150,427 | 12,891 | 685,887 | ||||||||||||||||||
Ending balance | $ | 60,003 | $ | 23,715 | $ | 453,960 | $ | 150,427 | $ | 12,891 | $ | 700,996 |
For the Year Ended December 31, 2016 | Commercial | Real Estate - Construction | Real Estate - Mortgage (1) | Consumer | Other | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||||
Balance at the beginning of period | $ | 633 | $ | 985 | $ | 5,628 | $ | 279 | $ | 213 | $ | 7,738 | ||||||||||||
Charge-offs | (915 | ) | - | (504 | ) | (204 | ) | (147 | ) | (1,770 | ) | |||||||||||||
Recoveries | 79 | 3 | 197 | 28 | 40 | 347 | ||||||||||||||||||
Provision for loan losses | 1,696 | (142 | ) | (54 | ) | 352 | 78 | 1,930 | ||||||||||||||||
Ending balance | $ | 1,493 | $ | 846 | $ | 5,267 | $ | 455 | $ | 184 | $ | 8,245 | ||||||||||||
Ending balance individually evaluated for impairment | $ | 271 | $ | 22 | $ | 507 | $ | - | $ | - | $ | 800 | ||||||||||||
Ending balance collectively evaluated for impairment | 1,222 | 824 | 4,760 | 455 | 184 | 7,445 | ||||||||||||||||||
Ending balance | $ | 1,493 | $ | 846 | $ | 5,267 | $ | 455 | $ | 184 | $ | 8,245 | ||||||||||||
Loan Balances: | ||||||||||||||||||||||||
Ending balance individually evaluated for impairment | $ | 989 | $ | 624 | $ | 18,362 | $ | 81 | $ | - | $ | 20,056 | ||||||||||||
Ending balance collectively evaluated for impairment | 53,445 | 22,492 | 430,046 | 58,826 | 19,017 | 583,826 | ||||||||||||||||||
Ending balance | $ | 54,434 | $ | 23,116 | $ | 448,408 | $ | 58,907 | $ | 19,017 | $ | 603,882 |
For the Six Months ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(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 | $ | 650 | $ | 339 | $ | 2,560 | $ | 4,434 | $ | 1,302 | $ | 123 | $ | 133 | $ | 9,541 | ||||||||||||||||
Charge-offs | (4 | ) | 0 | (1 | ) | 0 | (434 | ) | (186 | ) | 0 | (625 | ) | |||||||||||||||||||
Recoveries | 21 | 0 | 56 | 1 | 250 | 79 | 0 | 407 | ||||||||||||||||||||||||
Provision for loan losses | 54 | 77 | (150 | ) | (39 | ) | 170 | 148 | (110 | ) | 150 | |||||||||||||||||||||
Ending Balance | $ | 721 | $ | 416 | $ | 2,465 | $ | 4,396 | $ | 1,288 | $ | 164 | $ | 23 | $ | 9,473 | ||||||||||||||||
Individually evaluated for impairment | $ | 0 | $ | 0 | $ | 39 | $ | 12 | $ | 0 | $ | 0 | $ | 0 | $ | 51 | ||||||||||||||||
Collectively evaluated for impairment | 721 | 416 | 2,426 | 4,384 | 1,288 | 164 | 23 | 9,422 | ||||||||||||||||||||||||
Purchased credit-impaired loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Ending Balance | $ | 721 | $ | 416 | $ | 2,465 | $ | 4,396 | $ | 1,288 | $ | 164 | $ | 23 | $ | 9,473 | ||||||||||||||||
Loans Balances: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | 3 | 211 | 512 | 1,530 | 11 | 0 | 0 | 2,267 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 119,908 | 50,603 | 199,200 | 335,811 | 116,523 | 8,361 | 0 | 830,406 | ||||||||||||||||||||||||
Purchased credit-impaired loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Ending Balance | $ | 119,911 | $ | 50,814 | $ | 199,712 | $ | 337,341 | $ | 116,534 | $ | 8,361 | $ | 0 | $ | 832,673 |
(1) | The real estate-mortgage segment includes residential 1 – 4 family, second mortgages and equity lines of credit. |
(2) | The consumer segment includes consumer automobile loans. |
For the Year ended December 31, 2020 | ||||||||||||||||||||||||||||||||
(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 | $ | 0 | $ | 9,660 | ||||||||||||||||
Charge-offs | (25 | ) | 0 | (149 | ) | (654 | ) | (822 | ) | (355 | ) | 0 | (2,005 | ) | ||||||||||||||||||
Recoveries | 47 | 10 | 69 | 317 | 377 | 66 | 0 | 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 | $ | 0 | $ | 0 | $ | 10 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 11 | ||||||||||||||||
Collectively evaluated for impairment | 650 | 339 | 2,550 | 4,433 | 1,302 | 123 | 133 | 9,530 | ||||||||||||||||||||||||
Purchased credit-impaired loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
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 | 0 | 0 | 2,116 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 141,740 | 43,649 | 206,950 | 315,424 | 118,354 | 8,067 | 0 | 834,184 | ||||||||||||||||||||||||
Purchased credit-impaired loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||
Ending Balance | $ | 141,746 | $ | 43,732 | $ | 207,536 | $ | 316,851 | $ | 118,368 | $ | 8,067 | $ | 0 | $ | 836,300 |
(1) | The real estate-mortgage segment includes residential 1 – 4 family, second mortgages and equity lines of credit. |
(2) | The consumer segment includes consumer automobile loans. |
(dollars in thousands) | June 30, 2021 | |||
Lease liabilities | $ | 1,199 | ||
Right-of-use assets | $ | 1,179 | ||
Weighted average remaining lease term | 4.06 years | |||
Weighted average discount rate | 1.71 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Lease cost (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Operating lease cost | $ | 81 | $ | 91 | $ | 185 | $ | 179 | ||||||||
Total lease cost | $ | 81 | $ | 91 | $ | 185 | $ | 179 | ||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 84 | $ | 93 | $ | 187 | $ | 177 |
Calculated Provision Based on Current Quarter Methodology | Calculated Provision Based on Prior Quarter Methodology | Difference | ||||||||||
(in thousands) | ||||||||||||
Portfolio Segment: | ||||||||||||
Commercial | $ | 679 | $ | 970 | $ | (291 | ) | |||||
Real estate - construction | (332 | ) | (815 | ) | 483 | |||||||
Real estate - mortgage | 1,573 | 1,859 | (286 | ) | ||||||||
Consumer loans | 909 | 1,262 | (353 | ) | ||||||||
Other | 96 | 96 | - | |||||||||
Total | $ | 2,925 | $ | 3,372 | $ | (447 | ) |
Lease payments due (in thousands) | As of June 30, 2021 | |||
Six months ending December 31, 2021 | $ | 165 | ||
Twelve months ending December 31, 2022 | 339 | |||
Twelve months ending December 31, 2023 | 248 | |||
Twelve months ending December 31, 2024 | 240 | |||
Thereafter | 309 | |||
Total undiscounted cash flows | $ | 1,301 | ||
Discount | (102 | ) | ||
Lease liabilities | $ | 1,199 |
Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item on Consolidated Statements of Income | |||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
(in thousands) | |||||||||||||||||
Tax credits and other tax benefits | |||||||||||||||||
Amortization of operating losses | $ | 77 | $ | 73 | $ | 255 | $ | 220 | ATM and other losses | ||||||||
Tax benefit of operating losses* | 26 | 25 | 87 | 75 | Income tax expense | ||||||||||||
Tax credits | 113 | 101 | 346 | 273 | Income tax expense | ||||||||||||
Total tax benefits | $ | 139 | $ | 126 | $ | 433 | $ | 348 | |||||||||
* Computed using a 34% taxable rate |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Tax credits and other benefits | ||||||||||||||||
Amortization of operating losses | $ | 51 | $ | 46 | $ | 100 | $ | 91 | ||||||||
Tax benefit of operating losses* | 11 | 10 | 21 | 19 | ||||||||||||
Tax credits | 89 | 106 | 183 | 209 | ||||||||||||
Total tax benefits | $ | 100 | $ | 116 | $ | 204 | $ | 228 |
* | Computed using a 21% tax rate. |
September 30, 2017 | December 31, 2016 | |||||||||||||||
(in thousands) | ||||||||||||||||
Federal funds purchased | $ | 2,000 | $ | - | ||||||||||||
(dollar in thousands) | June 30, 2021 | December 31, 2020 | ||||||||||||||
Overnight repurchase agreements | 21,885 | 18,704 | $ | 12,239 | $ | 6,619 | ||||||||||
FHLB advances | 35,000 | - | ||||||||||||||
Total short-term borrowings | $ | 58,885 | $ | 18,704 | $ | 12,239 | $ | 6,619 | ||||||||
Maximum month-end outstanding balance | $ | 76,319 | $ | 68,864 | $ | 12,239 | $ | 9,080 | ||||||||
Average outstanding balance during the period | $ | 49,131 | $ | 39,364 | $ | 7,634 | $ | 21,092 | ||||||||
Average interest rate (year-to-date) | 0.66 | % | 0.59 | % | 0.10 | % | 0.19 | % | ||||||||
Average interest rate at end of period | 0.86 | % | 0.10 | % | 0.10 | % | 0.10 | % |
June 30, | December 31, | |||||||
(dollars in thousands) | 2021 | 2020 | ||||||
Commitments to extend credit: | ||||||||
Home equity lines of credit | $ | 70,163 | $ | 66,999 | ||||
Commercial real estate, construction and development loans committed but not funded | 44,929 | 20,258 | ||||||
Other lines of credit (principally commercial) | 67,726 | 64,329 | ||||||
Total | $ | 182,818 | $ | 151,586 | ||||
Letters of credit | $ | 4,796 | $ | 4,841 |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Options outstanding, January 1, 2017 | 60,605 | $ | 20.05 | |||||||||||||
Granted | - | - | ||||||||||||||
Exercised | (48,287 | ) | 20.05 | |||||||||||||
Canceled or expired | (1,250 | ) | 20.05 | |||||||||||||
Options outstanding, September 30, 2017 | 11,068 | $ | 20.05 | 0.04 | $ | 137 | ||||||||||
Options exercisable, September 30, 2017 | 11,068 | $ | 20.05 | 0.04 | $ | 137 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Nonvested, January 1, 2017 | - | $ | - | |||||
Issued | 2,245 | 33.60 | ||||||
Vested | - | - | ||||||
Forfeited | - | - | ||||||
Nonvested, September 30, 2017 | 2,245 | $ | 33.60 |
Three months ended September 30, | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Interest cost | $ | 67 | $ | 70 | ||||
Expected return on plan assets | (94 | ) | (98 | ) | ||||
Amortization of net loss | 123 | 140 | ||||||
Net periodic pension plan cost | $ | 96 | $ | 112 |
Nine months ended September 30, | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Interest cost | $ | 201 | $ | 210 | ||||
Expected return on plan assets | (282 | ) | (294 | ) | ||||
Amortization of net loss | 368 | 420 | ||||||
Net periodic pension plan cost | $ | 287 | $ | 336 |
Shares | Weighted Average Grant Date Fair Value | |||||||
Nonvested, January 1, 2021 | 29,576 | $ | 18.46 | |||||
Issued | 18,048 | 22.35 | ||||||
Vested | (8,521 | ) | 17.50 | |||||
Forfeited | 0 | 0 | ||||||
Nonvested, June 30, 2021 | 39,103 | $ | 20.46 |
Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item on Consolidated Statements of Income | |||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
(in thousands) | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Realized gains on sales of securities | $ | 2 | $ | 7 | $ | 89 | $ | 522 | Gain on sale of available-for-sale securities, net | ||||||||
Tax effect | 1 | 2 | 30 | 177 | Income tax expense | ||||||||||||
$ | 1 | $ | 5 | $ | 59 | $ | 345 |
Three Months Ended June 30, | Six Months Ended June 30, | Affected Line Item on Consolidated Statement of Income | |||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||
Available-for-sale securities | |||||||||||||||||
Realized gains on sales of securities | $ | 0 | $ | 184 | $ | 0 | $ | 184 | Gain on sale of available-for-sale securities, net | ||||||||
Tax effect | 0 | 39 | 0 | 39 | Income tax expense | ||||||||||||
$ | 0 | $ | 145 | $ | 0 | $ | 145 |
(dollars in thousands) | Unrealized Gains (Losses) on Available-for-Sale Securities | Accumulated Other Comprehensive Income | ||||||||||||||||||
Unrealized Gains (Losses) on Available-for-Sale Securities | Defined Benefit Pension Plans | Accumulated Other Comprehensive Loss | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||
Balance at beginning of period | $ | (1,739 | ) | $ | (2,469 | ) | $ | (4,208 | ) | $ | 4,069 | $ | 4,069 | |||||||
Net change for the period | 1,521 | - | 1,521 | |||||||||||||||||
Net other comprehensive loss | (998 | ) | (998 | ) | ||||||||||||||||
Balance at end of period | $ | (218 | ) | $ | (2,469 | ) | $ | (2,687 | ) | $ | 3,071 | $ | 3,071 | |||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||
Balance at beginning of period | $ | (576 | ) | $ | (2,586 | ) | $ | (3,162 | ) | $ | (79 | ) | $ | (79 | ) | |||||
Net change for the period | 1,877 | - | 1,877 | |||||||||||||||||
Net other comprehensive income | 3,431 | 3,431 | ||||||||||||||||||
Balance at end of period | $ | 1,301 | $ | (2,586 | ) | $ | (1,285 | ) | $ | 3,352 | $ | 3,352 |
(dollars in thousands) | Unrealized Gains (Losses) on Available-for-Sale Securities | Accumulated Other Comprehensive Income | ||||||
Three Months Ended June 30, 2021 | ||||||||
Balance at beginning of period | $ | 2,375 | $ | 2,375 | ||||
Net other comprehensive income | 696 | 696 | ||||||
Balance at end of period | $ | 3,071 | $ | 3,071 | ||||
Three Months Ended June 30, 2020 | ||||||||
Balance at beginning of period | $ | (524 | ) | $ | (524 | ) | ||
Net other comprehensive income | 3,876 | 3,876 | ||||||
Balance at end of period | $ | 3,352 | $ | 3,352 |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized holding gains arising during the period | $ | 881 | $ | 185 | $ | 696 | ||||||||||||||||||
Total change in accumulated other comprehensive income, net | $ | 881 | $ | 185 | $ | 696 | ||||||||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||
Pretax | Tax | Net-of-Tax | Three Months Ended June 30, 2020 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized holding gains arising during the period | $ | 2,394 | $ | 814 | $ | 1,580 | $ | 5,090 | $ | 1,069 | $ | 4,021 | ||||||||||||
Reclassification adjustment for gains recognized in income | (89 | ) | (30 | ) | (59 | ) | (184 | ) | (39 | ) | (145 | ) | ||||||||||||
Total change in accumulated other comprehensive loss, net | $ | 2,305 | $ | 784 | $ | 1,521 | ||||||||||||||||||
Total change in accumulated other comprehensive income, net | $ | 4,906 | $ | 1,030 | $ | 3,876 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||||||||||||||
Unrealized losses on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized holding losses arising during the period | $ | (1,263 | ) | $ | (265 | ) | $ | (998 | ) | |||||||||||||||
Total change in accumulated other comprehensive income, net | $ | (1,263 | ) | $ | (265 | ) | $ | (998 | ) | |||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||
Pretax | Tax | Net-of-Tax | Six Months Ended June 30, 2020 | |||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
(dollars in thousands) | Pretax | Tax | Net-of-Tax | |||||||||||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized holding gains arising during the period | $ | 3,366 | $ | 1,144 | $ | 2,222 | $ | 4,527 | $ | 951 | $ | 3,576 | ||||||||||||
Reclassification adjustment for gains recognized in income | (522 | ) | (177 | ) | (345 | ) | (184 | ) | (39 | ) | (145 | ) | ||||||||||||
Total change in accumulated other comprehensive loss, net | $ | 2,844 | $ | 967 | $ | 1,877 | ||||||||||||||||||
Total change in accumulated other comprehensive income, net | $ | 4,343 | $ | 912 | $ | 3,431 |
(dollars in thousands except per share data) | Net Income Available to Common Shareholders (Numerator) | Weighted Average Common Shares (Denominator) | Per Share Amount | |||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||
Net income, basic | $ | 1,842 | 5,237 | $ | 0.35 | |||||||||||||||||||
Diluted | $ | 1,842 | 5,237 | $ | 0.35 | |||||||||||||||||||
Net Income Available to Common Shareholders (Numerator) | Weighted Average Common Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||
Net income, basic | $ | 2,494 | 5,220 | $ | 0.48 | |||||||||||||||||||
Diluted | $ | 2,494 | 5,220 | $ | 0.48 | |||||||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||
Net income, basic | $ | 757 | 4,994 | $ | 0.15 | $ | 4,854 | 5,231 | $ | 0.93 | ||||||||||||||
Potentially dilutive common shares - stock options | - | 10 | - | |||||||||||||||||||||
Diluted | $ | 4,854 | 5,231 | $ | 0.93 | |||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||
Net income, basic | $ | 3,744 | 5,210 | $ | 0.72 | |||||||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | - | 1 | - | ||||||||||||||||||
Diluted | $ | 757 | 5,004 | $ | 0.15 | $ | 3,744 | 5,211 | $ | 0.72 | ||||||||||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||||||
Net income, basic | $ | 1,329 | 4,959 | $ | 0.27 | |||||||||||||||||||
Potentially dilutive common shares - stock options | - | - | - | |||||||||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | |||||||||||||||||||||
Diluted | $ | 1,329 | 4,959 | $ | 0.27 | |||||||||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||
Net income, basic | $ | 2,860 | 4,985 | $ | 0.57 | |||||||||||||||||||
Potentially dilutive common shares - stock options | - | 12 | - | |||||||||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | |||||||||||||||||||||
Diluted | $ | 2,860 | 4,997 | $ | 0.57 | |||||||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||
Net income, basic | $ | 2,902 | 4,959 | $ | 0.59 | |||||||||||||||||||
Potentially dilutive common shares - stock options | - | - | - | |||||||||||||||||||||
Potentially dilutive common shares - employee stock purchase program | - | - | - | |||||||||||||||||||||
Diluted | $ | 2,902 | 4,959 | $ | 0.59 |
Fair Value Measurements at September 30, 2017 Using | ||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
Obligations of U.S. Government agencies | $ | 9,493 | $ | - | $ | 9,493 | $ | - | ||||||||
Obligations of state and political subdivisions | 68,434 | - | 68,434 | - | ||||||||||||
Mortgage-backed securities | 77,316 | - | 77,316 | - | ||||||||||||
Money market investments | 1,169 | - | 1,169 | - | ||||||||||||
Corporate bonds | 7,510 | - | 7,510 | - | ||||||||||||
Other marketable equity securities | 190 | - | 190 | - | ||||||||||||
Total available-for-sale securities | $ | 164,112 | $ | - | $ | 164,112 | $ | - |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||||||
Balance | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Treasury securities | $ | 20,000 | $ | - | $ | 20,000 | $ | - | ||||||||
Obligations of U.S. Government agencies | 9,195 | - | 9,195 | - | ||||||||||||
Obligations of state and political subdivisions | 77,987 | - | 77,987 | - | ||||||||||||
Mortgage-backed securities | 83,694 | - | 83,694 | - | ||||||||||||
Money market investments | 647 | - | 647 | - | ||||||||||||
Corporate bonds | 7,678 | - | 7,678 | - | ||||||||||||
Other marketable equity securities | 164 | - | 164 | - | ||||||||||||
Total available-for-sale securities | $ | 199,365 | $ | - | $ | 199,365 | $ | - |
Carrying Value at September 30, 2017 Using | ||||||||||||||||
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 | $ | 316 | $ | - | $ | - | $ | 316 | ||||||||
Commercial | 349 | - | - | 349 | ||||||||||||
Construction | 74 | - | - | 74 | ||||||||||||
Equity lines of credit | 229 | - | - | 229 | ||||||||||||
Total mortgage loans on real estate | $ | 968 | $ | - | $ | - | $ | 968 | ||||||||
Loans | ||||||||||||||||
Loans held for sale | $ | 981 | $ | - | $ | 981 | $ | 0 |
Carrying Value at December 31, 2016 Using | ||||||||||||||||
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 | $ | 400 | $ | - | $ | - | $ | 400 | ||||||||
Commercial | 1,483 | - | - | 1,483 | ||||||||||||
Construction | 74 | - | - | 74 | ||||||||||||
Total mortgage loans on real estate | $ | 1,957 | $ | - | $ | - | $ | 1,957 | ||||||||
Commercial loans | 718 | - | - | 718 | ||||||||||||
Total | $ | 2,675 | $ | - | $ | - | $ | 2,675 | ||||||||
Other real estate owned | ||||||||||||||||
Construction | $ | 940 | $ | - | $ | - | $ | 940 |
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||
Fair Value at September 30, 2017 (dollars in thousands) | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||
Impaired loans | ||||||||||
Residential 1-4 family real estate | $ | 316 | Market comparables | Selling costs | 0.00% - 7.25% (3.36 | %) | ||||
Liquidation discount | 0.00% - 4.00% (3.12 | %) | ||||||||
Commercial real estate | $ | 349 | 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 | 6.07 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Quantitative Information About Level 3 Fair Value Measurements | ||||||||||
Fair Value at December 31, 2016 (dollars in thousands) | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||
Impaired loans | ||||||||||
Residential 1-4 family real estate | $ | 400 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Commercial real estate | $ | 1,483 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Construction | $ | 74 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 4.00 | % | ||||||||
Commercial loans | $ | 718 | Market comparables | Selling costs | 0.00 | % | ||||
Liquidation discount | 0.00% - 38.58% (32.40 | %) | ||||||||
Other real estate owned | ||||||||||
Construction | $ | 940 | Market comparables | Selling costs | 7.25 | % | ||||
Liquidation discount | 0.00 | % |
Fair Value Measurements at September 30, 2017 Using | ||||||||||||||||
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 | $ | 15,435 | $ | 15,435 | $ | - | $ | - | ||||||||
Securities available-for-sale | 164,112 | - | 164,112 | - | ||||||||||||
Restricted securities | 2,890 | - | 2,890 | - | ||||||||||||
Loans held for sale | 981 | - | 981 | - | ||||||||||||
Loans, net of allowances for loan losses | 692,045 | - | - | 691,615 | ||||||||||||
Bank-owned life insurance | 25,802 | - | 25,802 | - | ||||||||||||
Accrued interest receivable | 2,987 | - | 2,987 | - | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 782,445 | $ | - | $ | 782,315 | $ | - | ||||||||
Federal funds purchased | 2,000 | - | 2,000 | - | ||||||||||||
Overnight repurchase agreements | 21,885 | - | 21,885 | - | ||||||||||||
Federal Home Loan Bank advances | 45,000 | - | 44,959 | - | ||||||||||||
Accrued interest payable | 297 | - | 297 | - |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||||||
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 | $ | 25,854 | $ | 25,854 | $ | - | $ | - | ||||||||
Securities available-for-sale | 199,365 | - | 199,365 | - | ||||||||||||
Restricted securities | 970 | - | 970 | - | ||||||||||||
Loans, net of allowances for loan losses | 595,637 | - | - | 594,190 | ||||||||||||
Bank-owned life insurance | 25,206 | - | 25,206 | - | ||||||||||||
Accrued interest receivable | 3,189 | - | 3,189 | - | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 784,502 | $ | - | $ | 783,450 | $ | - | ||||||||
Overnight repurchase agreements | 18,704 | - | 18,704 | - | ||||||||||||
Accrued interest payable | 228 | - | 228 | - |
• | 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 June 30, 2021 Using | ||||||||||||||||
(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 | $ | 8,990 | $ | 0 | $ | 8,990 | $ | 0 | ||||||||
Obligations of U.S. Government agencies | 38,817 | 0 | 38,817 | 0 | ||||||||||||
Obligations of state and political subdivisions | 53,272 | 0 | 53,272 | 0 | ||||||||||||
Mortgage-backed securities | 85,025 | 0 | 85,025 | 0 | ||||||||||||
Money market investments | 3,893 | 0 | 3,893 | 0 | ||||||||||||
Corporate bonds and other securities | 23,214 | 0 | 23,214 | 0 | ||||||||||||
Total available-for-sale securities | $ | 213,211 | $ | 0 | $ | 213,211 | $ | 0 |
Fair Value Measurements at December 31, 2020 Using | ||||||||||||||||
(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 | $ | 7,043 | $ | 0 | $ | 7,043 | $ | 0 | ||||||||
Obligations of U.S. Government agencies | 36,696 | 0 | 36,696 | 0 | ||||||||||||
Obligations of state and political subdivisions | 45,995 | 0 | 45,995 | 0 | ||||||||||||
Mortgage-backed securities | 73,501 | 0 | 73,501 | 0 | ||||||||||||
Money market investments | 4,743 | 0 | 4,743 | 0 | ||||||||||||
Corporate bonds and other securities | 18,431 | 0 | 18,431 | 0 | ||||||||||||
Total available-for-sale securities | $ | 186,409 | $ | 0 | $ | 186,409 | $ | 0 |
Carrying Value at June 30, 2021 | ||||||||||||||||
(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 | $ | 2,284 | $ | 0 | $ | 2,284 | $ | 0 |
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 | $ | 0 | $ | 14,413 | $ | 0 |
Fair Value Measurements at June 30, 2021 Using | ||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 155,498 | $ | 155,498 | $ | 0 | $ | 0 | ||||||||
Securities available-for-sale | 213,211 | 0 | 213,211 | 0 | ||||||||||||
Restricted securities | 1,033 | 0 | 1,033 | 0 | ||||||||||||
Loans held for sale | 2,284 | 0 | 2,284 | 0 | ||||||||||||
Loans, net of allowances for loan losses | 823,200 | 0 | 0 | 825,967 | ||||||||||||
Bank owned life insurance | 28,817 | 0 | 28,817 | 0 | ||||||||||||
Accrued interest receivable | 2,404 | 0 | 2,404 | 0 | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 1,134,017 | $ | 0 | $ | 1,136,627 | $ | 0 | ||||||||
Overnight repurchase agreements | 12,239 | 0 | 12,239 | 0 | ||||||||||||
Federal Reserve Bank borrowings | 3,313 | 0 | 3,313 | 0 | ||||||||||||
Accrued interest payable | 266 | 0 | 266 | 0 |
Fair Value Measurements at December 31, 2020 Using | ||||||||||||||||
(dollars in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 120,437 | $ | 120,437 | $ | 0 | $ | 0 | ||||||||
Securities available-for-sale | 186,409 | 0 | 186,409 | 0 | ||||||||||||
Restricted securities | 1,367 | 0 | 1,367 | 0 | ||||||||||||
Loans held for sale | 14,413 | 0 | 14,413 | 0 | ||||||||||||
Loans, net of allowances for loan losses | 826,759 | 0 | 0 | 826,083 | ||||||||||||
Bank owned life insurance | 28,386 | 0 | 28,386 | 0 | ||||||||||||
Accrued interest receivable | 3,613 | 0 | 3,613 | 0 | ||||||||||||
Liabilities | ||||||||||||||||
Deposits | $ | 1,067,236 | $ | 0 | $ | 1,070,236 | $ | 0 | ||||||||
Overnight repurchase agreements | 6,619 | 0 | 6,619 | 0 | ||||||||||||
Federal Reserve Bank borrowings | 28,550 | 0 | 28,550 | 0 | ||||||||||||
Other borrowings | 1,350 | 0 | 1,350 | 0 | ||||||||||||
Accrued interest payable | 384 | 0 | 384 | 0 |
Three Months Ended September 30, 2017 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||
Bank | Trust | Parent | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Parent | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | $ | 8,550 | $ | 18 | $ | 898 | $ | (898 | ) | $ | 8,568 | $ | 9,853 | $ | 6 | $ | 2,029 | $ | (2,029 | ) | $ | 9,859 | ||||||||||||||||||
Income from fiduciary activities | - | 903 | - | - | 903 | 0 | 1,051 | 0 | 0 | 1,051 | ||||||||||||||||||||||||||||||
Other income | 2,275 | 198 | 50 | (65 | ) | 2,458 | 2,219 | 283 | 50 | (65 | ) | 2,487 | ||||||||||||||||||||||||||||
Total operating income | 10,825 | 1,119 | 948 | (963 | ) | 11,929 | 12,072 | 1,340 | 2,079 | (2,094 | ) | 13,397 | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Interest expense | 837 | - | - | - | 837 | 752 | 0 | 1 | 0 | 753 | ||||||||||||||||||||||||||||||
Provision for loan losses | 1,275 | - | - | - | 1,275 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Salaries and employee benefits | 4,343 | 657 | 104 | - | 5,104 | 5,299 | 764 | 164 | 0 | 6,227 | ||||||||||||||||||||||||||||||
Other expenses | 3,664 | 253 | 160 | (65 | ) | 4,012 | 3,999 | 252 | 122 | (65 | ) | 4,308 | �� | |||||||||||||||||||||||||||
Total operating expenses | 10,119 | 910 | 264 | (65 | ) | 11,228 | 10,050 | 1,016 | 287 | (65 | ) | 11,288 | ||||||||||||||||||||||||||||
Income before taxes | 706 | 209 | 684 | (898 | ) | 701 | 2,022 | 324 | 1,792 | (2,029 | ) | 2,109 | ||||||||||||||||||||||||||||
Income tax expense (benefit) | (55 | ) | 72 | (73 | ) | - | (56 | ) | 248 | 69 | (50 | ) | - | 267 | ||||||||||||||||||||||||||
Net income | $ | 761 | $ | 137 | $ | 757 | $ | (898 | ) | $ | 757 | $ | 1,774 | $ | 255 | $ | 1,842 | $ | (2,029 | ) | $ | 1,842 | ||||||||||||||||||
Capital expenditures | $ | 60 | $ | 6 | $ | - | $ | - | $ | 66 | $ | 598 | $ | 36 | $ | 0 | $ | 0 | $ | 634 | ||||||||||||||||||||
Total assets | $ | 948,377 | $ | 6,141 | $ | 97,645 | $ | (97,666 | ) | $ | 954,497 | $ | 1,267,532 | $ | 7,213 | $ | 120,000 | $ | (119,934 | ) | $ | 1,274,811 |
Three Months Ended September 30, 2016 | Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||
Bank | Trust | Parent | Eliminations | Consolidated | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Parent | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||
Interest and dividend income | $ | 7,420 | $ | 16 | $ | 1,572 | $ | (1,572 | ) | $ | 7,436 | $ | 9,837 | $ | 11 | $ | 2,679 | $ | (2,679 | ) | $ | 9,848 | ||||||||||||||||||
Income from fiduciary activities | - | 858 | - | - | 858 | 0 | 909 | 0 | 0 | 909 | ||||||||||||||||||||||||||||||
Other income | 2,277 | 207 | 50 | (65 | ) | 2,469 | 2,816 | 249 | 50 | (66 | ) | 3,049 | ||||||||||||||||||||||||||||
Total operating income | 9,697 | 1,081 | 1,622 | (1,637 | ) | 10,763 | 12,653 | 1,169 | 2,729 | (2,745 | ) | 13,806 | ||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||
Interest expense | 633 | - | - | - | 633 | 1,361 | 0 | 14 | 0 | 1,375 | ||||||||||||||||||||||||||||||
Recovery of loan losses | (100 | ) | - | - | - | (100 | ) | |||||||||||||||||||||||||||||||||
Provision for loan losses | 300 | 0 | 0 | 0 | 300 | |||||||||||||||||||||||||||||||||||
Salaries and employee benefits | 4,296 | 665 | 102 | - | 5,063 | 4,571 | 741 | 152 | 0 | 5,464 | ||||||||||||||||||||||||||||||
Other expenses | 3,114 | 262 | 315 | (65 | ) | 3,626 | 3,452 | 236 | 118 | (66 | ) | 3,740 | ||||||||||||||||||||||||||||
Total operating expenses | 7,943 | 927 | 417 | (65 | ) | 9,222 | 9,684 | 977 | 284 | (66 | ) | 10,879 | ||||||||||||||||||||||||||||
Income before taxes | 1,754 | 154 | 1,205 | (1,572 | ) | 1,541 | 2,969 | 192 | 2,445 | (2,679 | ) | 2,927 | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 284 | 53 | (125 | ) | - | 212 | 441 | 41 | (49 | ) | 0 | 433 | ||||||||||||||||||||||||||||
Net income | $ | 1,470 | $ | 101 | $ | 1,330 | $ | (1,572 | ) | $ | 1,329 | $ | 2,528 | $ | 151 | $ | 2,494 | $ | (2,679 | ) | $ | 2,494 | ||||||||||||||||||
Capital expenditures | $ | 234 | $ | - | $ | - | $ | - | $ | 234 | $ | 288 | $ | 6 | $ | 0 | $ | 0 | $ | 294 | ||||||||||||||||||||
Total assets | $ | 900,160 | $ | 5,814 | $ | 96,467 | $ | (96,685 | ) | $ | 905,756 | $ | 1,214,546 | $ | 7,008 | $ | 117,558 | $ | (117,867 | ) | $ | 1,221,245 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 20,826 | $ | 11 | $ | 5,177 | $ | (5,177 | ) | $ | 20,837 | |||||||||
Income from fiduciary activities | 0 | 2,078 | 0 | 0 | 2,078 | |||||||||||||||
Other income | 5,085 | 539 | 100 | (130 | ) | 5,594 | ||||||||||||||
Total operating income | 25,911 | 2,628 | 5,277 | (5,307 | ) | 28,509 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 1,570 | 0 | 5 | 0 | 1,575 | |||||||||||||||
Provision for loan losses | 150 | 0 | 0 | 0 | 150 | |||||||||||||||
Salaries and employee benefits | 10,619 | 1,507 | 328 | 0 | 12,454 | |||||||||||||||
Other expenses | 8,062 | 531 | 176 | (130 | ) | 8,639 | ||||||||||||||
Total operating expenses | 20,401 | 2,038 | 509 | (130 | ) | 22,818 | ||||||||||||||
Income before taxes | 5,510 | 590 | 4,768 | (5,177 | ) | 5,691 | ||||||||||||||
Income tax expense (benefit) | 798 | 125 | (86 | ) | 0 | 837 | ||||||||||||||
Net income | $ | 4,712 | $ | 465 | $ | 4,854 | $ | (5,177 | ) | $ | 4,854 | |||||||||
Capital expenditures | $ | 719 | $ | 41 | $ | 0 | $ | 0 | $ | 760 | ||||||||||
Total assets | $ | 1,267,532 | $ | 7,213 | $ | 120,000 | $ | (119,934 | ) | $ | 1,274,811 |
Six Months Ended June 30, 2020 | ||||||||||||||||||||
(dollars in thousands) | Bank | Trust | Unconsolidated Parent | Eliminations | Consolidated | |||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 19,800 | $ | 34 | $ | 4,118 | $ | (4,118 | ) | $ | 19,834 | |||||||||
Income from fiduciary activities | 0 | 1,926 | 0 | 0 | 1,926 | |||||||||||||||
Other income | 4,806 | 535 | 100 | (131 | ) | 5,310 | ||||||||||||||
Total operating income | 24,606 | 2,495 | 4,218 | (4,249 | ) | 27,070 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 2,909 | 0 | 34 | 0 | 2,943 | |||||||||||||||
Provision for loan losses | 600 | 0 | 0 | 0 | 600 | |||||||||||||||
Salaries and employee benefits | 9,559 | 1,555 | 344 | 0 | 11,458 | |||||||||||||||
Other expenses | 7,134 | 578 | 195 | (131 | ) | 7,776 | ||||||||||||||
Total operating expenses | 20,202 | 2,133 | 573 | (131 | ) | 22,777 | ||||||||||||||
Income before taxes | 4,404 | 362 | 3,645 | (4,118 | ) | 4,293 | ||||||||||||||
Income tax expense (benefit) | 570 | 78 | (99 | ) | 0 | 549 | ||||||||||||||
Net income | $ | 3,834 | $ | 284 | $ | 3,744 | $ | (4,118 | ) | $ | 3,744 | |||||||||
Capital expenditures | $ | 656 | $ | 6 | $ | 0 | $ | 0 | $ | 662 | ||||||||||
Total assets | $ | 1,214,546 | $ | 7,008 | $ | 117,558 | $ | (117,867 | ) | $ | 1,221,245 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Bank | Trust | Parent | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 24,300 | $ | 52 | $ | 3,251 | $ | (3,249 | ) | $ | 24,354 | |||||||||
Income from fiduciary activities | - | 2,820 | - | - | 2,820 | |||||||||||||||
Other income | 7,133 | 708 | 150 | (196 | ) | 7,795 | ||||||||||||||
Total operating income | 31,433 | 3,580 | 3,401 | (3,445 | ) | 34,969 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 2,097 | - | - | 1 | 2,098 | |||||||||||||||
Provision for loan losses | 2,925 | - | - | - | 2,925 | |||||||||||||||
Salaries and employee benefits | 13,252 | 2,068 | 330 | - | 15,650 | |||||||||||||||
Other expenses | 10,460 | 766 | 412 | (196 | ) | 11,442 | ||||||||||||||
Total operating expenses | 28,734 | 2,834 | 742 | (195 | ) | 32,115 | ||||||||||||||
Income before taxes | 2,699 | 746 | 2,659 | (3,250 | ) | 2,854 | ||||||||||||||
Income tax expense (benefit) | (60 | ) | 255 | (201 | ) | - | (6 | ) | ||||||||||||
Net income | $ | 2,759 | $ | 491 | $ | 2,860 | $ | (3,250 | ) | $ | 2,860 | |||||||||
Capital expenditures | $ | 504 | $ | 6 | $ | - | $ | - | $ | 510 | ||||||||||
Total assets | $ | 948,377 | $ | 6,141 | $ | 97,645 | $ | (97,666 | ) | $ | 954,497 |
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Bank | Trust | Parent | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Interest and dividend income | $ | 22,191 | $ | 45 | $ | 3,443 | $ | (3,443 | ) | $ | 22,236 | |||||||||
Income from fiduciary activities | - | 2,636 | - | - | 2,636 | |||||||||||||||
Other income | 6,954 | 734 | 150 | (196 | ) | 7,642 | ||||||||||||||
Total operating income | 29,145 | 3,415 | 3,593 | (3,639 | ) | 32,514 | ||||||||||||||
Expenses | ||||||||||||||||||||
Interest expense | 1,934 | - | - | - | 1,934 | |||||||||||||||
Provision for loan losses | 1,300 | - | - | - | 1,300 | |||||||||||||||
Salaries and employee benefits | 12,782 | 2,022 | 303 | - | 15,107 | |||||||||||||||
Other expenses | 9,913 | 774 | 667 | (196 | ) | 11,158 | ||||||||||||||
Total operating expenses | 25,929 | 2,796 | 970 | (196 | ) | 29,499 | ||||||||||||||
Income before taxes | 3,216 | 619 | 2,623 | (3,443 | ) | 3,015 | ||||||||||||||
Income tax expense (benefit) | 181 | 211 | (279 | ) | - | 113 | ||||||||||||||
Net income | $ | 3,035 | $ | 408 | $ | 2,902 | $ | (3,443 | ) | $ | 2,902 | |||||||||
Capital expenditures | $ | 706 | $ | 4 | $ | - | $ | - | $ | 710 | ||||||||||
Total assets | $ | 900,160 | $ | 5,814 | $ | 96,467 | $ | (96,685 | ) | $ | 905,756 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
AVERAGE BALANCE SHEETS, NET INTEREST INCOME* AND RATES* | ||||||||||||||||||||||||
For the quarter ended September 30, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate** | Balance | Expense | Rate** | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans held for investment* | $ | 693,693 | $ | 7,661 | 4.42 | % | $ | 590,964 | $ | 6,678 | 4.52 | % | ||||||||||||
Loans held for sale | 1,090 | 12 | 4.40 | % | 0 | 0 | 0.00 | % | ||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 101,612 | 487 | 1.92 | % | 88,462 | 357 | 1.61 | % | ||||||||||||||||
Tax-exempt* | 64,662 | 584 | 3.61 | % | 64,389 | 563 | 3.50 | % | ||||||||||||||||
Total investment securities | 166,274 | 1,071 | 2.58 | % | 152,851 | 920 | 2.41 | % | ||||||||||||||||
Interest-bearing due from banks | 1,093 | 4 | 1.46 | % | 19,671 | 25 | 0.51 | % | ||||||||||||||||
Federal funds sold | 457 | 1 | 0.88 | % | 1,596 | 2 | 0.50 | % | ||||||||||||||||
Other investments | 3,132 | 49 | 6.26 | % | 1,935 | 35 | 7.24 | % | ||||||||||||||||
Total earning assets | 865,739 | $ | 8,798 | 4.06 | % | 767,017 | $ | 7,660 | 3.99 | % | ||||||||||||||
Allowance for loan losses | (9,128 | ) | (8,048 | ) | ||||||||||||||||||||
Other non-earning assets | 97,420 | 141,759 | ||||||||||||||||||||||
Total assets | $ | 954,031 | $ | 900,728 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 27,705 | $ | 2 | 0.03 | % | $ | 27,404 | $ | 2 | 0.03 | % | ||||||||||||
Money market deposit accounts | 231,785 | 90 | 0.16 | % | 213,597 | 44 | 0.08 | % | ||||||||||||||||
Savings accounts | 84,220 | 11 | 0.05 | % | 78,997 | 10 | 0.05 | % | ||||||||||||||||
Time deposits | 207,491 | 560 | 1.08 | % | 212,057 | 538 | 1.01 | % | ||||||||||||||||
Total time and savings deposits | 551,201 | 663 | 0.48 | % | 532,055 | 594 | 0.45 | % | ||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 27,046 | 13 | 0.19 | % | 26,506 | 6 | 0.09 | % | ||||||||||||||||
Federal Home Loan Bank advances | 50,707 | 161 | 1.27 | % | 22,717 | 33 | 0.58 | % | ||||||||||||||||
Total interest-bearing liabilities | 628,954 | 837 | 0.53 | % | 581,278 | 633 | 0.44 | % | ||||||||||||||||
Demand deposits | 222,429 | 217,020 | ||||||||||||||||||||||
Other liabilities | 5,006 | 6,294 | ||||||||||||||||||||||
Stockholders' equity | 97,642 | 96,136 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 954,031 | $ | 900,728 | ||||||||||||||||||||
Net interest margin | $ | 7,961 | 3.68 | % | $ | 7,027 | 3.66 | % | ||||||||||||||||
*Computed on a fully tax-equivalent basis using a 34% rate; the tax-equivalent adjustment to interest income was $230 thousand and $224 thousand for the three months ended September 30, 2017 and 2016, respectively. | ||||||||||||||||||||||||
**Annualized |
For the quarter ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate** | Average Balance | Interest Income/ Expense | Yield/ Rate** | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans* | $ | 831,563 | $ | 8,826 | 4.26 | % | $ | 828,896 | $ | 8,937 | 4.34 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 162,859 | 791 | 1.95 | % | 134,372 | 712 | 2.13 | % | ||||||||||||||||
Tax-exempt* | 32,822 | 242 | 2.96 | % | 18,853 | 173 | 3.69 | % | ||||||||||||||||
Total investment securities | 195,681 | 1,033 | 2.12 | % | 153,225 | 885 | 2.32 | % | ||||||||||||||||
Interest-bearing due from banks | 150,995 | 52 | 0.14 | % | 82,399 | 32 | 0.15 | % | ||||||||||||||||
Federal funds sold | 4 | - | 0.02 | % | 6 | 0 | 0.02 | % | ||||||||||||||||
Other investments | 1,033 | 11 | 4.19 | % | 3,153 | 43 | 5.56 | % | ||||||||||||||||
Total earning assets | 1,179,276 | $ | 9,922 | 3.37 | % | 1,067,679 | $ | 9,897 | 3.73 | % | ||||||||||||||
Allowance for loan losses | (9,619 | ) | (9,626 | ) | ||||||||||||||||||||
Other non-earning assets | 106,058 | 116,890 | ||||||||||||||||||||||
Total assets | $ | 1,275,715 | $ | 1,174,943 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 70,532 | $ | 3 | 0.02 | % | $ | 56,465 | $ | 3 | 0.02 | % | ||||||||||||
Money market deposit accounts | 372,691 | 220 | 0.24 | % | 300,028 | 283 | 0.38 | % | ||||||||||||||||
Savings accounts | 113,963 | 12 | 0.04 | % | 93,307 | 12 | 0.05 | % | ||||||||||||||||
Time deposits | 183,936 | 511 | 1.11 | % | 212,386 | 883 | 1.67 | % | ||||||||||||||||
Total time and savings deposits | 741,122 | 746 | 0.40 | % | 662,186 | 1,181 | 0.72 | % | ||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 14,505 | 7 | 0.21 | % | 33,859 | 15 | 0.18 | % | ||||||||||||||||
Federal Home Loan Bank advances | - | - | 0.00 | % | 42,000 | 179 | 1.71 | % | ||||||||||||||||
Total interest-bearing liabilities | 755,627 | 753 | 0.40 | % | 738,045 | 1,375 | 0.75 | % | ||||||||||||||||
Demand deposits | 394,337 | 319,574 | ||||||||||||||||||||||
Other liabilities | 6,131 | 3,982 | ||||||||||||||||||||||
Stockholders’ equity | 119,620 | 113,342 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,275,715 | $ | 1,174,943 | ||||||||||||||||||||
Net interest margin | $ | 9,169 | 3.12 | % | $ | 8,522 | 3.21 | % |
For the six months ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans* | $ | 833,446 | $ | 18,791 | 4.55 | % | $ | 791,803 | $ | 17,776 | 4.51 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 161,196 | 1,561 | 1.95 | % | 138,613 | 1,576 | 2.29 | % | ||||||||||||||||
Tax-exempt* | 31,268 | 471 | 3.04 | % | 15,038 | 283 | 3.78 | % | ||||||||||||||||
Total investment securities | 192,464 | 2,032 | 2.13 | % | 153,651 | 1,859 | 2.43 | % | ||||||||||||||||
Interest-bearing due from banks | 137,744 | 95 | 0.14 | % | 65,165 | 183 | 0.56 | % | ||||||||||||||||
Federal funds sold | 4 | 0 | 0.03 | % | 1,687 | 12 | 1.45 | % | ||||||||||||||||
Other investments | 1,176 | 41 | 6.96 | % | 3,072 | 89 | 5.85 | % | ||||||||||||||||
Total earning assets | 1,164,834 | $ | 20,959 | 3.63 | % | 1,015,378 | $ | 19,919 | 3.94 | % | ||||||||||||||
Allowance for loan losses | (9,633 | ) | (9,631 | ) | ||||||||||||||||||||
Other nonearning assets | 101,615 | 109,995 | ||||||||||||||||||||||
Total assets | $ | 1,256,816 | $ | 1,115,742 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 69,153 | $ | 6 | 0.02 | % | $ | 52,844 | $ | 6 | 0.02 | % | ||||||||||||
Money market deposit accounts | 360,180 | 422 | 0.24 | % | 290,492 | 600 | 0.42 | % | ||||||||||||||||
Savings accounts | 111,128 | 22 | 0.04 | % | 89,956 | 32 | 0.07 | % | ||||||||||||||||
Time deposits | 187,597 | 1,095 | 1.18 | % | 217,756 | 1,855 | 1.71 | % | ||||||||||||||||
Total time and savings deposits | 728,058 | 1,545 | 0.43 | % | 651,048 | 2,493 | 0.77 | % | ||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 20,347 | 30 | 0.30 | % | 21,227 | 37 | 0.35 | % | ||||||||||||||||
Federal Home Loan Bank advances | - | - | 0.00 | % | 40,242 | 413 | 2.06 | % | ||||||||||||||||
Total interest-bearing liabilities | 748,405 | 1,575 | 0.42 | % | 712,517 | 2,943 | 0.83 | % | ||||||||||||||||
Demand deposits | 381,278 | 286,502 | ||||||||||||||||||||||
Other liabilities | 8,008 | 4,037 | ||||||||||||||||||||||
Stockholders’ equity | 119,125 | 112,686 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,256,816 | $ | 1,115,742 | ||||||||||||||||||||
Net interest margin | $ | 19,384 | 3.36 | % | $ | 16,976 | 3.36 | % |
AVERAGE BALANCE SHEETS, NET INTEREST INCOME* AND RATES* | ||||||||||||||||||||||||
For the nine months ended September 30, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||||
Balance | Expense | Rate** | Balance | Expense | Rate** | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans held for investment* | $ | 656,937 | $ | 21,607 | 4.39 | % | $ | 580,900 | $ | 19,717 | 4.53 | % | ||||||||||||
Loans held for sale | 373 | 20 | 7.15 | % | 0 | 0 | 0.00 | % | ||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 104,059 | 1,474 | 1.89 | % | 104,631 | 1,376 | 1.75 | % | ||||||||||||||||
Tax-exempt* | 69,274 | 1,867 | 3.59 | % | 65,610 | 1,713 | 3.48 | % | ||||||||||||||||
Total investment securities | 173,333 | 3,341 | 2.57 | % | 170,241 | 3,089 | 2.42 | % | ||||||||||||||||
Interest-bearing due from banks | 1,502 | 12 | 1.07 | % | 7,867 | 30 | 0.51 | % | ||||||||||||||||
Federal funds sold | 1,096 | 6 | 0.73 | % | 1,549 | 4 | 0.34 | % | ||||||||||||||||
Other investments | 2,075 | 98 | 6.30 | % | 1,491 | 76 | 6.80 | % | ||||||||||||||||
Total earning assets | 835,316 | $ | 25,084 | 4.00 | % | 762,048 | $ | 22,916 | 4.01 | % | ||||||||||||||
Allowance for loan losses | (8,851 | ) | (7,893 | ) | ||||||||||||||||||||
Other non-earning assets | 102,726 | 120,346 | ||||||||||||||||||||||
Total assets | $ | 929,191 | $ | 874,501 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Time and savings deposits: | ||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 28,121 | $ | 7 | 0.03 | % | $ | 17,559 | $ | 7 | 0.05 | % | ||||||||||||
Money market deposit accounts | 234,446 | 202 | 0.11 | % | 219,907 | 129 | 0.08 | % | ||||||||||||||||
Savings accounts | 82,160 | 31 | 0.05 | % | 78,033 | 29 | 0.05 | % | ||||||||||||||||
Time deposits | 206,150 | 1,599 | 1.03 | % | 209,654 | 1,572 | 1.00 | % | ||||||||||||||||
Total time and savings deposits | 550,877 | 1,839 | 0.45 | % | 525,153 | 1,737 | 0.44 | % | ||||||||||||||||
Federal funds purchased, repurchase agreements and other borrowings | 24,684 | 26 | 0.14 | % | 26,151 | 20 | 0.10 | % | ||||||||||||||||
Federal Home Loan Bank advances | 25,879 | 233 | 1.20 | % | 12,372 | 177 | 1.91 | % | ||||||||||||||||
Total interest-bearing liabilities | 601,440 | 2,098 | 0.47 | % | 563,676 | 1,934 | 0.46 | % | ||||||||||||||||
Demand deposits | 226,103 | 209,147 | ||||||||||||||||||||||
Other liabilities | 5,477 | 6,507 | ||||||||||||||||||||||
Stockholders' equity | 96,171 | 95,171 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 929,191 | $ | 874,501 | ||||||||||||||||||||
Net interest margin | $ | 22,986 | 3.67 | % | $ | 20,982 | 3.67 | % | ||||||||||||||||
*Computed on a fully tax-equivalent basis using a 34% rate; the tax-equivalent adjustment to interest income was $730 thousand and $680 thousand for the nine months ended September 30, 2017 and 2016, respectively. | ||||||||||||||||||||||||
**Annualized |
Loans Secured by 1 - 4 Family First Mortgages, | ||||||||
1 - 4 Family Open-end and 1 - 4 Family Junior Liens | ||||||||
As of September 30, 2017 | ||||||||
(dollars in thousands) | ||||||||
Amount | Percent | |||||||
Subprime | $ | 21,406 | 12.88 | % | ||||
Non-subprime | 144,829 | 87.12 | % | |||||
$ | 166,235 | 100.00 | % | |||||
Total loans | $ | 700,996 | ||||||
Percentage of Real Estate-Secured Subprime Loans to Total Loans | 3.05 | % |
NONPERFORMING ASSETS | ||||||||||||
September 30, | December 31, | Increase | ||||||||||
2017 | 2016 | (Decrease) | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans | ||||||||||||
Commercial | $ | 771 | $ | 231 | $ | 540 | ||||||
Real estate-construction | 518 | - | 518 | |||||||||
Real estate-mortgage (1) | 8,923 | 6,847 | 2,076 | |||||||||
Consumer loans | - | 81 | (81 | ) | ||||||||
Total nonaccrual loans | $ | 10,212 | $ | 7,159 | $ | 3,053 | ||||||
Loans past due 90 days or more and accruing interest | ||||||||||||
Commercial | $ | 473 | $ | - | $ | 473 | ||||||
Real estate-mortgage (1) | 1,026 | 276 | 750 | |||||||||
Consumer loans (2) | 2,482 | 2,603 | (121 | ) | ||||||||
Other | 2 | 5 | (3 | ) | ||||||||
Total loans past due 90 days or more and accruing interest | $ | 3,983 | $ | 2,884 | $ | 1,099 | ||||||
Restructured loans | ||||||||||||
Commercial | $ | 100 | $ | 144 | $ | (44 | ) | |||||
Real estate-construction | 93 | 96 | (3 | ) | ||||||||
Real estate-mortgage (1) | 13,586 | 11,616 | 1,970 | |||||||||
Total restructured loans | $ | 13,779 | $ | 11,856 | $ | 1,923 | ||||||
Less nonaccrual restructured loans (included above) | 8,321 | 2,838 | 5,483 | |||||||||
Less restructured loans currently in compliance (3) | 5,458 | 9,018 | (3,560 | ) | ||||||||
Net nonperforming, accruing restructured loans | $ | - | $ | - | $ | - | ||||||
Nonperforming loans | $ | 14,195 | $ | 10,043 | $ | 4,152 | ||||||
Other real estate owned | ||||||||||||
Construction, land development, and other land | $ | - | $ | 940 | $ | (940 | ) | |||||
Former bank building | - | 127 | (127 | ) | ||||||||
Total other real estate owned | $ | - | $ | 1,067 | $ | (1,067 | ) | |||||
Total nonperforming assets | $ | 14,195 | $ | 11,110 | $ | 3,085 | ||||||
(1) The real estate-mortgage segment includes residential 1 – 4 family, commercial real estate, second mortgages and equity lines of credit. | ||||||||||||
(2) Amounts listed include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The portion of these guaranteed loans that is past due 90 days or more totaled $4.1 million at September 30, 2017 and $4.8 million at December 31, 2016. | ||||||||||||
(3) As of September 30, 2017 and December 31, 2016, all of the Company's restructured accruing loans were performing in compliance with their modified terms. |
(dollars in thousands) | June 30, 2021 | December 31, 2020 | Increase (Decrease) | |||||||||
Nonaccrual loans | ||||||||||||
Real estate-mortgage (1) | $ | 245 | $ | 311 | $ | (66 | ) | |||||
Real estate-commercial | 1,028 | 903 | 125 | |||||||||
Construction | 130 | - | 130 | |||||||||
Total nonaccrual loans | $ | 1,403 | $ | 1,214 | $ | 189 | ||||||
Loans past due 90 days or more and accruing interest | ||||||||||||
Real estate-mortgage (1) | $ | 58 | $ | - | $ | 58 | ||||||
Consumer loans (2) | $ | 935 | $ | 744 | $ | 191 | ||||||
Total loans past due 90 days or more and accruing interest | $ | 993 | $ | 744 | $ | 249 | ||||||
Restructured loans | ||||||||||||
Real estate-construction | $ | 81 | $ | 83 | $ | (2 | ) | |||||
Real estate-mortgage (1) | 471 | 492 | (21 | ) | ||||||||
Real estate-commercial | 1,276 | 1,352 | (76 | ) | ||||||||
Total restructured loans | $ | 1,828 | $ | 1,927 | $ | (99 | ) | |||||
Less nonaccrual restructured loans (included above) | 1,047 | 1,120 | (73 | ) | ||||||||
Less restructured loans currently in compliance (3) | 781 | 807 | (26 | ) | ||||||||
Net nonperforming, accruing restructured loans | $ | - | $ | - | $ | - | ||||||
Nonperforming loans | $ | 2,396 | $ | 1,958 | $ | 438 | ||||||
Total nonperforming assets | $ | 2,396 | $ | 1,958 | $ | 438 |
2021 Regulatory Minimums | June 30, 2021 | |||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | 4.500 | % | 11.49 | % | ||||
Tier 1 Capital to Risk-Weighted Assets | 6.000 | % | 11.49 | % | ||||
Tier 1 Leverage to Average Assets | 4.000 | % | 8.52 | % | ||||
Total Capital to Risk-Weighted Assets | 8.000 | % | 12.51 | % | ||||
Capital Conservation Buffer | 2.500 | % | 4.51 | % | ||||
Risk-Weighted Assets (in thousands) | $ | 931,383 |
2017 Regulatory Minimums | September 30, 2017 | |||||||
Common Equity Tier 1 Capital | 4.500 | % | 12.06 | % | ||||
Tier 1 Capital | 6.000 | % | 12.06 | % | ||||
Tier 1 Leverage | 4.000 | % | 10.47 | % | ||||
Total Capital | 8.000 | % | 13.16 | % | ||||
Capital Conservation Buffer | 1.250 | % | 5.16 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(dollar in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Fully Taxable Equivalent Net Interest Income | ||||||||||||||||
Net interest income (GAAP) | $ | 9,106 | $ | 8,473 | $ | 19,262 | $ | 16,891 | ||||||||
FTE adjustment | 63 | 49 | 122 | 85 | ||||||||||||
Net interest income (FTE) (non-GAAP) | $ | 9,169 | $ | 8,522 | $ | 19,384 | $ | 16,976 | ||||||||
Noninterest income (GAAP) | 3,538 | 3,958 | 7,672 | 7,236 | ||||||||||||
Total revenue (FTE) (non-GAAP) | $ | 12,707 | $ | 12,480 | $ | 27,056 | $ | 24,212 | ||||||||
Noninterest expense (GAAP) | 10,535 | 9,204 | 21,093 | 19,234 | ||||||||||||
Average earning assets | $ | 1,179,276 | $ | 1,067,679 | $ | 1,164,834 | $ | 1,015,378 | ||||||||
Net interest margin | 3.10 | % | 3.19 | % | 3.33 | % | 3.35 | % | ||||||||
Net interest margin (FTE) (non-GAAP) | 3.12 | % | 3.21 | % | 3.36 | % | 3.36 | % | ||||||||
Efficiency ratio | 83.32 | % | 74.04 | % | 78.31 | % | 79.72 | % | ||||||||
Efficiency ratio (FTE) (non-GAAP) | 82.91 | % | 73.75 | % | 77.96 | % | 79.44 | % |
ALLL as a Percentage of Loans Held for Investment | June 30, 2021 | December 31, 2020 | ||||||
Loans held for investment (net of deferred fees and costs) (GAAP) | $ | 832,673 | $ | 836,300 | ||||
Less PPP originations | 6,306 | 85,983 | ||||||
Loans held for investment, (net of deferred fees and costs), excluding PPP (non-GAAP) | $ | 826,367 | $ | 750,317 | ||||
ALLL | $ | 9,473 | $ | 9,541 | ||||
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 | 1.23 | % | 1.27 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Change In Net Interest Income | ||||||||||||||||
As of September 30, | ||||||||||||||||
2017 | 2016 | |||||||||||||||
Change in interest Rates | % | $ | % | $ | ||||||||||||
+300 basis points | (0.29 | )% | (92 | ) | 1.06 | % | 285 | |||||||||
+200 basis points | (0.08 | )% | (26 | ) | 0.74 | % | 198 | |||||||||
+100 basis points | 0.10 | % | 30 | 0.46 | % | 122 | ||||||||||
Unchanged | 0.00 | % | 0 | 0.00 | % | 0 | ||||||||||
-50 basis points | (0.77 | )% | (242 | ) | (0.46 | )% | (122 | ) | ||||||||
-100 basis points | (1.52 | )% | (478 | ) | (0.64 | )% | (171 | ) |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||
July 1, 2017-July 31, 2017 | 0 | $ | 0 | n/a | n/a | |||||||||||
August 1, 2017-August 31, 2017 | 819 | 30.58 | n/a | n/a | ||||||||||||
September 1, 2017-September 30, 2017 | 264 | 30.49 | n/a | n/a | ||||||||||||
Total | 1,083 | $ | 30.56 |
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit No. | ||
Description | ||
Agreement and Plan of Reorganization, dated as of October 27, 2017, by and among Old Point Financial Corporation, The Old Point National Bank of Phoebus, and Citizens National Bank (incorporated by reference to Exhibit 2.1 to Form 8-K filed November 2, 2017) | ||
Form of Subordinated Note (incorporated by reference to Exhibit 4.1 to Form 8-K filed July 16, 2021) | ||
Form of Subordinated Note Purchase Agreement (incorporated by reference to Exhibit 10.1 to Form 8-K filed July 16, 2021) | ||
Amendment No. 1 to Settlement Agreement, dated August 12, 2021, among Old Point Financial Corporation, Financial Edge Fund, L.P., Financial Edge-Strategic Fund, L.P., PL Capital/Focused Fund, L.P., PL Capital, LLC, PL Capital Advisors, LLC, Goodbody/PL Capital, L.P., Goodbody/PL Capital, LLC, Mr. John W. Palmer and Mr. Richard J. Lashley, as Managing Members of PL Capital, LLC, PL Capital Advisors, LLC and Goodbody/PL Capital, LLC and Mr. William F. Keefe | ||
101 | The following materials from Old Point Financial | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2021, formatted in Inline XBRL (included with Exhibit 101) |
OLD POINT FINANCIAL CORPORATION | |||
August 16, 2021 | /s/Robert F. Shuford, | ||
Robert F. Shuford, | |||
Chairman, President & Chief Executive Officer | |||
(Principal Executive Officer) | |||
August 16, 2021 | /s/ | ||
Chief Financial Officer & Senior Vice President/Finance | |||
(Principal Financial & Accounting Officer) |