Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | BAYK | |
Entity Registrant Name | BAY BANKS OF VIRGINIA INC | |
Entity Central Index Key | 1,034,594 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,223,096 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | [1] | |
ASSETS | ||||
Cash and due from banks | $ 7,774 | $ 9,396 | ||
Interest-bearing deposits | 52,564 | 41,971 | ||
Certificates of deposit | 3,224 | 3,224 | ||
Federal funds sold | 3,358 | 6,961 | ||
Available-for-sale securities, at fair value | 75,434 | 77,153 | ||
Restricted securities | 5,510 | 5,787 | ||
Loans receivable, net of allowance for loan losses of $7,923 and $7,770, respectively | 782,965 | 758,726 | ||
Loans held for sale | 414 | 1,651 | ||
Premises and equipment, net | 17,661 | 17,463 | ||
Accrued interest receivable | 2,844 | 3,194 | ||
Other real estate owned, net | 2,593 | 4,284 | ||
Bank owned life insurance | 18,900 | 18,773 | ||
Goodwill | 10,374 | 10,374 | ||
Mortgage servicing rights | 930 | 999 | ||
Core deposit intangible | 2,780 | 2,991 | ||
Other assets | 7,351 | 7,609 | ||
Total assets | 994,676 | 970,556 | ||
LIABILITIES | ||||
Noninterest-bearing deposits | 124,572 | 103,037 | ||
Savings and interest-bearing demand deposits | 299,216 | 299,820 | ||
Time deposits | 373,163 | 358,989 | ||
Total deposits | 796,951 | 761,846 | ||
Securities sold under repurchase agreements | 6,551 | 9,498 | ||
Federal Home Loan Bank advances | 60,000 | 70,000 | ||
Subordinated notes, net of issuance costs | 6,881 | 6,877 | ||
Other liabilities | 9,374 | 7,781 | ||
Total liabilities | 879,757 | 856,002 | ||
SHAREHOLDERS' EQUITY | ||||
Common stock ($5 par value; authorized - 30,000,000 shares; outstanding - 13,223,096 and 13,203,605 shares, respectively) | [2] | 66,115 | 66,018 | |
Additional paid-in capital | 37,189 | 37,142 | ||
Unearned employee stock ownership plan shares | (1,088) | (1,129) | ||
Retained earnings | 14,803 | 13,679 | ||
Accumulated other comprehensive loss, net | (2,100) | (1,156) | ||
Total shareholders' equity | 114,919 | 114,554 | ||
Total liabilities and shareholders' equity | $ 994,676 | $ 970,556 | ||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. | |||
[2] | Preferred stock is authorized; however, none was outstanding as of March 31, 2018 and December 31, 2017. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Loans, allowance for loan losses | $ 7,923 | $ 7,770 | [1] |
Common stock, par value | $ 5 | $ 5 | [1] |
Common stock, authorized shares | 30,000,000 | 30,000,000 | [1] |
Common stock, outstanding shares | 13,223,096 | 13,203,605 | [1] |
Preferred stock, outstanding shares | 0 | 0 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
INTEREST INCOME | ||
Loans, including fees | $ 9,984 | $ 4,388 |
Securities: | ||
Taxable | 397 | 269 |
Tax-exempt | 120 | 114 |
Federal funds sold | 74 | 1 |
Interest-bearing deposit accounts | 98 | 7 |
Certificates of deposit | 19 | 19 |
Total interest income | 10,692 | 4,798 |
INTEREST EXPENSE | ||
Deposits | 1,607 | 630 |
Federal funds purchased | 10 | |
Securities sold under repurchase agreements | 3 | |
Subordinated notes | 128 | 117 |
Federal Home Loan Bank advances | 313 | 154 |
Total interest expense | 2,048 | 914 |
Net interest income | 8,644 | 3,884 |
Provision for loan losses | 320 | 190 |
Net interest income after provision for loan losses | 8,324 | 3,694 |
NON-INTEREST INCOME | ||
Income from fiduciary activities | 247 | 245 |
Service charges and fees on deposit accounts | 135 | 212 |
Non-deposit product income | 132 | 80 |
Other service charges and fees | 50 | 171 |
Secondary market lending income | 133 | 115 |
Increase in cash surrender value of bank owned life insurance | 127 | 75 |
Net losses on sale of available-for-sale securities | (5) | |
Net losses on disposition of other assets | (69) | |
Gain on curtailment of post-retirement benefit plan | 352 | |
Other income | 91 | 60 |
Total non-interest income | 1,198 | 953 |
NON-INTEREST EXPENSE | ||
Salaries and employee benefits | 4,106 | 2,824 |
Occupancy | 795 | 439 |
Data processing | 548 | 204 |
Bank franchise tax | 176 | 76 |
Telecommunications | 106 | 28 |
FDIC assessments | 183 | 85 |
Foreclosed property | 12 | 10 |
Consulting | 383 | 54 |
Advertising and marketing | 68 | 95 |
Directors' fees | 168 | 111 |
Audit and accounting fees | 363 | 83 |
Merger related | 363 | 300 |
Intangible amortization | 211 | |
Net other real estate owned (gains) losses | (141) | 96 |
Other | 807 | 540 |
Total non-interest expense | 8,148 | 4,945 |
Income (loss) before income taxes | 1,374 | (298) |
Income tax expense (benefit) | 250 | (121) |
Net income (loss) | $ 1,124 | $ (177) |
Basic and diluted earnings (loss) per share | $ 0.09 | $ (0.04) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ 1,124 | $ (177) |
Other comprehensive (loss) income: | ||
Unrealized holding (loss) gain on available-for-sale securities arising during the period | (1,192) | 40 |
Deferred tax benefit (expense) | 248 | (13) |
Reclassification of net available-for-sale securities loss recognized in net income | 5 | |
Deferred tax benefit | (2) | |
Total other comprehensive (loss) income | (944) | 30 |
Comprehensive income (loss) | $ 180 | $ (147) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned Employee Stock Ownership Plan Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Balance at beginning of period at Dec. 31, 2017 | $ 114,554 | [1] | $ 66,018 | $ 37,142 | $ (1,129) | $ 13,679 | $ (1,156) |
Balance at beginning of period, Shares at Dec. 31, 2017 | 13,203,605 | [1] | 13,203,605 | ||||
Net income | $ 1,124 | 1,124 | |||||
Other comprehensive income | (944) | (944) | |||||
Stock options exercised | 113 | $ 97 | 16 | ||||
Stock options exercised, Shares | 19,491 | ||||||
ESOP compensation expense | 41 | 41 | |||||
Stock-based compensation expense | 31 | 31 | |||||
Balance at end of period at Mar. 31, 2018 | $ 114,919 | $ 66,115 | $ 37,189 | $ (1,088) | $ 14,803 | $ (2,100) | |
Balance at end of period, Shares at Mar. 31, 2018 | 13,223,096 | 13,223,096 | |||||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 1,124 | $ (177) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 382 | 274 |
Net premium accretion and discount amortization of securities | 111 | 92 |
Amortization of subordinated debt issuance costs | 4 | 4 |
Amortization of core deposit intangible | 211 | |
Accretion of fair value adjustment of time deposits | (68) | |
Accretion of fair value adjustments (discounts) of loans | (503) | |
Provision for loan losses | 320 | 190 |
Share-based compensation and ESOP expense | 72 | 59 |
Loss on sale of available-for-sale securities | 5 | |
Increase in other real estate owned valuation allowance | 78 | 97 |
Gain on sale of other real estate owned | (219) | (1) |
Loss on disposal of fixed and other assets | 69 | |
Decrease (increase) in value of mortgage servicing rights | 69 | (21) |
Loan originations for sale | (7,189) | (3,471) |
Loan sales | 8,544 | 3,766 |
Gain on sold loans | (118) | (19) |
Increase in cash surrender value of bank owned life insurance | (127) | (75) |
Gain on curtailment of post-retirement benefit plan | (352) | |
Decrease in accrued interest receivable and other assets | 787 | 33 |
Increase in other liabilities | 1,945 | 146 |
Net cash provided by operating activities | 5,140 | 902 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 816 | 993 |
Proceeds from sales and calls of available-for-sale securities | 995 | |
Maturities of certificates of deposit | 744 | |
Purchases of available-for-sale securities and certificates of deposit | (400) | (693) |
Sales (purchases) of restricted securities, net | 277 | (1,107) |
Increase in federal funds sold | 3,603 | 2,014 |
Loan (originations) and principal collections, net | (24,103) | (19,971) |
Proceeds from sale of other real estate owned | 1,879 | 12 |
Proceeds from sale of equipment | 6 | |
Purchases of premises and equipment | (580) | (295) |
Net cash used in investing activities | (18,508) | (17,302) |
Cash Flows From Financing Activities | ||
Net increase (decrease) in demand, savings, and other interest-bearing deposits | 20,931 | (7,272) |
Net increase in time deposits | 14,242 | 8,054 |
Stock options exercised | 113 | |
Net decrease in securities sold under repurchase agreements | (2,947) | (9,821) |
(Decrease) increase in Federal Home Loan Bank advances | (10,000) | 25,000 |
Net cash provided by financing activities | 22,339 | 15,961 |
Net increase (decrease) in cash and due from banks | 8,971 | (439) |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 51,367 | 12,352 |
Cash and cash equivalents (including interest-earning deposits) at end of period | 60,338 | 11,913 |
Cash paid for: | ||
Interest | 2,166 | 1,019 |
Income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Unrealized (loss) gain on available-for-sale securities | (1,192) | 45 |
Loans transferred to other real estate owned | 47 | 50 |
Changes in deferred taxes resulting from other comprehensive income transactions | $ 248 | $ (15) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation | Note 1: Basis of Presentation Bay Banks of Virginia, Inc. (the “Company”) is the holding company for Virginia Commonwealth Bank, formerly known as Bank of Lancaster (the “Bank” or “VCB”), for VCB Financial Group, Inc., formerly known as Bay Trust Company (“VCBFG”), and for Steptoes Holdings, LLC (“Steptoes Holdings”). The consolidated financial statements of the Company include the accounts of Bay Banks of Virginia, Inc., the Bank, VCBFG, and Steptoes Holdings. On April 1, 2017, the Company completed the merger with Virginia BanCorp Inc., which is further discussed in Note 3, and as such, the consolidated financial statements presented herein reflect the combined operations of the business combination since the effective time of the merger. In August 2017, the Company completed a private placement of 3,783,784 shares of common stock at an offering price of $9.25 per share to certain existing shareholders, institutional investors, and other accredited investors. Proceeds from the offering, net of offering expenses, were $32.9 million. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to the general practices within the banking industry. In management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the consolidated financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year or for any other interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share, or shareholders’ equity as previously reported. All dollar amounts included in the tables in these notes are in thousands, except per share data, unless otherwise stated. |
Amendments to the Accounting St
Amendments to the Accounting Standards Codification | 3 Months Ended |
Mar. 31, 2018 | |
Amendments to the Accounting Standards Codification | Note 2: Amendments to the Accounting Standards Codification In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“AOCI”). In March 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718). In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), off-balance held-to-maturity available-for-sale available-for-sale available-for-sale In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall 825-10), available-for-sale available-for In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), 2016-10, Identifying Performance Obligations and Licensing, 2016-12, Narrow-Scope Improvements and Practical Expedients, 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2018 | |
Business Combination | Note 3: Business Combination On April 1, 2017, the Company and Virginia BanCorp Inc. (“Virginia BanCorp”), a bank holding company conducting substantially all of its operations through its subsidiary, Virginia Commonwealth Bank, completed a merger pursuant to the Agreement and Plan of Merger, dated as of November 2, 2016, by and between the Company and Virginia BanCorp (“the Merger”). The Company is the surviving corporation in the Merger, and the former shareholders of Virginia BanCorp received 1.178 shares of the Company’s common stock for each share of Virginia BanCorp common stock they owned immediately prior to the merger, for a total issuance of 4,586,221 shares of the Company’s common stock valued at approximately $42.2 million at the time of closing. As of the completion of the Merger, the Company’s legacy shareholders owned approximately 51% of the outstanding common stock of the Company, and Virginia BanCorp’s former shareholders owned approximately 49% of the outstanding common stock of the Company. After the Merger of Virginia BanCorp with and into the Company, Virginia BanCorp’s subsidiary bank was merged with and into Bank of Lancaster, a wholly-owned subsidiary of the Company, and immediately thereafter Bank of Lancaster changed its name to Virginia Commonwealth Bank. The Merger was accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations The following table details the total consideration paid by the Company on April 1, 2017, in connection with the acquisition of Virginia BanCorp, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill: Fair Value As Recorded As Recorded Adjustments by the by Virginia BanCorp and Reclassifications Company Consideration paid: Bay Banks of Virginia, Inc. common stock $ 42,247 Identifiable assets acquired: Cash and due from banks $ 2,356 $ — $ 2,356 Interest-bearing deposits 12,342 — 12,342 Securities available-for-sale 22,088 — 22,088 Restricted securities 1,543 — 1,543 Loans receivable 272,479 (62,068 ) 210,411 Loans held for sale — 55,648 55,648 Deferred income taxes 1,325 255 1,580 Premises and equipment 3,333 2,703 6,036 Accrued interest receivable 1,253 (24 ) 1,229 Other real estate owned 3,113 — 3,113 Core deposit intangible — 3,670 3,670 Bank owned life insurance 8,430 — 8,430 Mortgage servicing rights 324 — 324 Other assets 365 — 365 Total identified assets acquired 328,951 184 329,135 Identifiable liabilities assumed: Noninterest-bearing deposits 21,119 — 21,119 Savings and interest-bearing demand deposits 124,640 — 124,640 Time deposits 121,437 733 122,170 Federal Home Loan Bank advances 25,000 — 25,000 Other liabilities 1,525 — 1,525 Total identifiable liabilities assumed 293,721 733 294,454 Total identifiable assets assumed $ 35,230 $ (549 ) $ 34,681 Goodwill resulting from acquisition $ 7,566 Fair value of the major categories of assets acquired and liabilities assumed were determined as follows: Loans Acquired loans were recorded at fair value at the acquisition date at $266.1 million without carryover of Virginia BanCorp’s allowance for loan losses. Where loans exhibited characteristics of performance, fair value was determined based on a discounted cash flow analysis, which included default estimates. For loans identified as purchased credit-impaired (“PCI”), fair value was determined based on the estimated values of the underlying collateral or discounted cash flows. When estimating the amount and timing of both principal and interest cash flows expected to be collected, a market-based discount rate was applied to the loans, which were segregated into pools based on loan type and credit risk. Loan type was determined based on collateral type and purpose, industry segment, and loan structure. Credit risk characteristics included risk rating groups of pass, special mention, substandard, and doubtful, plus lien position. For valuation purposes, these pools were further disaggregated by maturity and pricing characteristics (e.g., fixed-rate, adjustable-rate, balloon maturities). As of April 1, 2017, the gross contractual amounts receivable and the fair value for the PCI loans were $8.3 million, while the estimated cash flows expected to be collected were approximately $7.4 million. Information about the PCI loan portfolio at April 1, 2017 was as follows: April 1, 2017 Contractual principal and interest due $ 8,303 Nonaccretable difference 869 Expected cash flows 7,434 Accretable yield 1,354 Purchased credit impaired loans - estimated fair value $ 6,080 Acquired loans totaling approximately $55.4 million were held for sale as of April 1, 2017. In the third quarter of 2017, management withdrew these loans from held-for-sale status and classified them as held for investment. Premises and Equipment The fair value of Virginia BanCorp premises, including land, buildings and building improvements, was determined based upon appraisals by licensed appraisers. These appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of cost, sales comparison, and income capitalization approaches for each property appraised. The fair value of premises and equipment resulted in a $2.7 million fair value adjustment. Core Deposit Intangible The fair value of the core deposit intangible (“CDI”) was determined based on a combined discounted economic benefit and market approach. The economic benefit was calculated as the cost savings between maintaining the core deposit base and using an alternate funding source, such as Federal Home Loan Bank of Atlanta (“FHLB”) advances. The life of the deposit base and projected deposit attrition rates were determined using Virginia BanCorp’s historical deposit data. The CDI fair value was estimated at $3.7 million or 2.52% of acquired deposits, excluding time deposits. The CDI is being amortized over a weighted average life of 92 months using a sum-of-the-months’ Time Deposits The fair value adjustment of time deposits represents a premium over the value of the contractual repayments of fixed-maturity deposits using prevailing market interest rates for similar term time deposits. The resulting estimated fair value adjustment of time deposits ranging in maturity from one month to five years resulted in a $733 thousand premium that is being amortized into income on a level-yield basis over the weighted average remaining life. FHLB Advances The fair value of FHLB advances was considered to be equivalent to Virginia BanCorp’s recorded book balance as the advances matured in April 30, 2017. Deferred Tax Assets and Liabilities Certain deferred tax assets and liabilities were carried over to the Company from Virginia BanCorp based on the Company’s ability to utilize them in the future. Additionally, deferred tax assets and liabilities were established for acquisition accounting fair value adjustments as the future amortization/accretion of these adjustments represent temporary differences between book income and taxable income. Pro Forma Financial Information The table below illustrates the unaudited pro forma revenue and net income of the combined entities had the acquisition taken place on January 1, 2017. The unaudited combined pro forma revenue and net income combines the historical results of Virginia BanCorp with the Company’s consolidated statements of operations for the period noted, and while certain adjustments were made for the estimated effect of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition actually taken place on January 1, 2017. Merger related expenses of $363 thousand were included in the Company’s actual consolidated statements of operations for the three months ended March 31, 2018, but were excluded from the unaudited pro forma information below. Prior to the Merger, during the first three months of 2017, the Company incurred $300 thousand of merger related expenses, which were also excluded from the unaudited pro forma information below. Operational cost savings and other efficiencies expected to be achieved by the Company due to the Merger are also not reflected in the unaudited pro forma amounts. For the three months ended Net interest income $ 6,986 Net income 790 Impact of Certain Acquisition Accounting Adjustments The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from Virginia BanCorp had the following impact on the consolidated statements of operations for the period presented below. Three months ended Loans (1) $ 503 Core deposit intangible (2) (211 ) Time deposits (3) 68 Depreciation (4) (10 ) Net impact to income before income taxes $ 350 (1) Loan discount accretion is included in loans, including fees, in interest income in the consolidated statements of operations. (2) CDI amortization is included in other expense in non-interest (3) Time deposit premium amortization is included in deposits in interest expense in the consolidated statements of operations. (4) Depreciation on the fair value adjustment of fixed assets is included in occupancy expense in non-interest |
Securities
Securities | 3 Months Ended |
Mar. 31, 2018 | |
Securities | Note 4: Securities The aggregate amortized costs and fair values of available-for-sale Gross Gross Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 49,086 $ 11 $ (1,475 ) $ 47,622 State and municipal obligations 21,064 39 (406 ) 20,697 Corporate bonds 7,096 19 — 7,115 Total available-for-sale $ 77,246 $ 69 $ (1,881 ) $ 75,434 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 49,964 $ 6 $ (687 ) $ 49,283 State and municipal obligations 21,113 195 (155 ) 21,153 Corporate bonds 6,696 23 (2 ) 6,717 Total available-for-sale $ 77,773 $ 224 $ (844 ) $ 77,153 Average taxable equivalent yields on securities were 2.68% and 3.22% for the three months ended March 31, 2018 and 2017, respectively applying the statuatory rate for the respective periods. Securities with fair values of $19.1 million and $19.4 million were pledged as collateral for repurchase agreements and for other purposes as of March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018 and December 31, 2017, all the securities pledged for repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $6.6 million and $9.5 million as of March 31, 2018 and December 31, 2017, respectively, and are included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to fair value changes. Securities in an unrealized loss position at March 31, 2018 and December 31, 2017, by period of the unrealized loss, are shown below. The unrealized loss positions were primarily related to interest rate movements and not the credit quality of the issuers. All agency securities and states and municipal securities are investment grade or better, and their losses are considered temporary. Management does not intend to sell nor expect to be required to sell these securities, and all amortized cost bases are expected to be recovered. Securities with unrealized loss positions at March 31, 2018 included 40 U.S. government agencies and 48 state and municipal obligations. Securities with unrealized loss positions at December 31, 2017 included 36 U.S. government agencies, 34 state and municipal obligations, and one corporate bond. The following tables provide additional information on these securities as of the periods presented. Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2018 Value Loss Value Loss Value Loss U.S. Government agencies and mortgage backed securities $ 31,533 $ (885 ) $ 14,685 $ (590 ) $ 46,218 $ (1,475 ) States and municipal obligations 8,804 (86 ) 5,594 (320 ) 14,398 (406 ) Corporate bonds — — — — — — Total temporarily impaired securities $ 40,337 $ (971 ) $ 20,279 $ (910 ) $ 60,616 $ (1,881 ) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Loss Value Loss Value Loss U.S. Government agencies and mortgage backed securities $ 25,053 $ (353 ) $ 16,184 $ (334 ) $ 41,237 $ (687 ) States and municipal obligations 2,753 (15 ) 5,787 (140 ) 8,540 (155 ) Corporate bonds 498 (2 ) — — 498 (2 ) Total temporarily impaired securities $ 28,304 $ (370 ) $ 21,971 $ (474 ) $ 50,275 $ (844 ) The following table presents the amortized cost and fair value by contractual maturity of securities available for sale as of the dates stated. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities that are not due at a single maturity date and equity securities that do not have contractual maturities are shown separately. March 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value State and municipal obligations Due in one year or less $ 1,240 $ 1,236 $ 1,241 $ 1,237 Due after one year but less than five years 7,987 7,931 7,173 7,219 Due after five years but less than ten years 11,356 11,063 11,736 11,740 Due after ten years 481 467 963 957 U.S. Government agencies and mortgage backed securities 49,086 47,622 49,964 49,283 Corporate bonds 7,096 7,115 6,696 6,717 Total availible-for-sale $ 77,246 $ 75,434 $ 77,773 $ 77,153 Restricted Securities The Company’s investment in FHLB stock totaled $3.4 million and $3.7 million at March 31, 2018 and December 31, 2017, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $1.9 million at both March 31, 2018 and December 31, 2017. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership in the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter provisions related to the FHLB and FRB stock, all repurchase transactions of such stock must occur at par. Accordingly, these securities are carried at cost and are periodically evaluated for impairment. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2018 | |
Loans | Note 5: Loans Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, charge-offs, and acquisition accounting adjustments (discounts) on acquired loans. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, All interest accrued but not collected for loans that are placed on non-accrual The following is a summary of the balances of loans as of the periods presented: March 31, 2018 December 31, 2017 Mortgage loans on real estate: Construction, Land and Land Development $ 72,860 $ 66,042 Farmland 800 923 Commercial Mortgages (Non-Owner 149,206 146,757 Commercial Mortgages (Owner Occupied) 79,140 80,052 Residential First Mortgages 277,042 269,365 Residential Revolving and Junior Mortgages 45,376 46,498 Commercial and Industrial loans 129,225 114,093 Consumer loans 37,011 42,566 Total loans 790,660 766,296 Net unamortized deferred loan costs 228 200 Allowance for loan losses (7,923 ) (7,770 ) Loans, net $ 782,965 $ 758,726 The recorded investment for past due and nonaccruing loans is shown in the following tables as of the periods presented. A loan past due by 90 days or more is generally placed on nonaccrual unless it is both well-secured and in the process of collection. 90 Days or 30-89 More Past Total Past Days Due and Due and Total March 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 153 $ — $ 1,090 $ 1,243 $ 71,617 $ 72,860 Farmland — — — — 800 800 Commercial Mortgages (Non-Owner — — 447 447 148,759 149,206 Commercial Mortgages (Owner Occupied) 219 127 1,809 2,155 76,985 79,140 Residential First Mortgages 4,305 67 1,987 6,359 270,683 277,042 Residential Revolving and Junior Mortgages 13 20 1,342 1,375 44,001 45,376 Commercial and Industrial 101 — 101 202 129,023 129,225 Consumer loans 304 — 116 420 36,591 37,011 Total loans $ 5,095 $ 214 $ 6,892 $ 12,201 $ 778,459 $ 790,660 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 261 $ — $ 1,237 $ 1,498 $ 64,544 $ 66,042 Farmland — 48 — 48 875 923 Commercial Mortgages (Non-Owner 449 — — 449 146,308 146,757 Commercial Mortgages (Owner Occupied) 573 — 1,752 2,325 77,727 80,052 Residential First Mortgages 2,670 141 1,942 4,753 264,612 269,365 Residential Revolving and Junior Mortgages 449 20 1,338 1,807 44,691 46,498 Commercial and Industrial 331 — 92 423 113,670 114,093 Consumer loans 288 4 135 427 42,139 42,566 Total loans $ 5,021 $ 213 $ 6,496 $ 11,730 $ 754,566 $ 766,296 The following tables include an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of the periods presented, included in the tables above. 90 Days or 30-89 More Past Total Past Days Due and Due and PCI March 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 23 $ — $ — $ 23 $ 1,374 $ 1,397 Commercial Mortgages (Non-Owner — — — — 163 163 Commercial Mortgages (Owner Occupied) 30 127 — 157 156 313 Residential First Mortgages 105 67 — 172 3,549 3,721 Residential Revolving and Junior Mortgages — 20 — 20 26 46 Consumer loans — — — — 63 63 Total purchased credit-impaired loans $ 158 $ 214 $ — $ 372 $ 5,331 $ 5,703 90 Days or 30-89 More Past Total Past Days Due and Due and PCI December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial Mortgages (Non-Owner — — — — 171 171 Commercial Mortgages (Owner Occupied) 161 — — 161 160 321 Residential First Mortgages 349 141 — 490 3,320 3,810 Residential Revolving and Junior Mortgages — 20 — 20 29 49 Consumer loans — 4 — 4 65 69 Total purchased credit-imparied loans $ 510 $ 165 $ — $ 675 $ 5,150 $ 5,825 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Allowance for Loan Losses | Note 6: Allowance for Loan Losses The allowance for loan losses (“ALL”) reflects management’s judgment of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment and class of the portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each segment and class, considerations include historical loss experience, adverse situations that may affect a borrower’s ability to repay, credit scores, past due history, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures, including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; and (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as a troubled debt restructuring (“TDR”). A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates any loans not identified as impaired, which are typically smaller commercial loans, residential mortgages, and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in local and national economic indicators, such as unemployment rates, interest rates, gross domestic product growth, and real estate market trends; the level of past due and nonaccrual loans; risk ratings on individual loans; strength of credit policies and procedures; loan officer experience; borrower credit scores; and other intrinsic risks related to the types and geographic locations of loans. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. Changes in the allowance for loan losses and the related provision expense can materially affect net income. Loans Evaluated for Impairment The following tables show loans evaluated for impairment individually and collectively by segment as of the periods presented. Mortgage Commercial Consumer Loans and and Other March 31, 2018 on Real Estate Industrial Loans Total Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 1,043 $ 101 $ 141 $ 1,285 Loans collectively evaluated for impairment 3,147 942 2,549 6,638 Purchased credit impaired loans — — — — Total allowance on loan losses $ 4,190 $ 1,043 $ 2,690 $ 7,923 Loan balances applicable to: Loans individually evaluated for impairment $ 9,295 $ 101 $ 141 $ 9,537 Loans collectively evaluated for impairment 609,489 129,124 36,807 775,420 Purchased credit impaired loans 5,640 — 63 5,703 Total loans $ 624,424 $ 129,225 $ 37,011 $ 790,660 December 31, 2017 Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 861 $ 92 $ 141 $ 1,094 Loans collectively evaluated for impairment 3,003 786 2,887 6,676 Purchased credit impaired loans — — — — Total allowance on loan losses $ 3,864 $ 878 $ 3,028 $ 7,770 Loan balances applicable to: Loans individually evaluated for impairment $ 8,874 $ 92 $ 141 $ 9,107 Loans collectively evaluated for impairment 595,007 114,001 42,356 751,364 Purchased credit impaired loans 5,756 — 69 5,825 Total loans $ 609,637 $ 114,093 $ 42,566 $ 766,296 The following tables show an analysis of the change in the ALL by segment for the periods presented. Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the three months ended March 31, 2018 Beginning Balance $ 3,864 $ 878 $ 3,028 $ 7,770 (Charge-offs) (31 ) (14 ) (343 ) (388 ) Recoveries 27 — 194 221 Provision (benefit) 330 179 (189 ) 320 Ending Balance $ 4,190 $ 1,043 $ 2,690 $ 7,923 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the three months ended March 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 (Charge-offs) (132 ) — (8 ) (140 ) Recoveries 78 — 2 80 Provision (benefit) 157 35 (2 ) 190 Ending Balance $ 3,421 $ 528 $ 44 $ 3,993 Purchased Credit-Impaired Loans The following table presents the changes in the accretable yield for PCI loans for the period presented. Three months ended Balance as of December 31, 2017 $ 1,087 Accretion of acquisition accounting adjustment (85 ) Reclassifications from nonaccretable balance, net — Other changes, net — Balance as of March 31, 2018 $ 1,002 Internal Risk Rating Grades The Company’s loan portfolio, with the exception of pooled consumer loans, is risk graded using loan risk grading software that employs a variety of algorithms based on detailed account characteristics to include borrower’s payment history on a total relationship basis as well as loan to value exposure. For non-homogenous loans, With the exception of purchased consumer loan pools, all loans are risk rated using loan risk grading software that employs a variety of algorithms based on detailed account characteristics, which include a borrower’s payment history on a total relationship basis, as well as loan to value exposure. For non-homogeneous Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The tables below show the risk ranking of loans as of the periods presented. March 31, 2018 Construction, Farmland Residential Residential Commercial (Non-Owner Commercial Commercial Consumer Total Grade: Pass $ 62,812 $ 800 $ 263,932 $ 42,581 $ 143,118 $ 67,724 $ 125,493 $ 11,208 $ 717,668 Watch 6,991 — 8,807 1,393 5,445 9,113 2,385 25,457 59,591 Special mention — — 923 — — 112 1,246 141 2,422 Substandard 3,057 — 3,380 1,402 643 2,191 101 205 10,979 Doubtful — — — — — — — — — Total loans $ 72,860 $ 800 $ 277,042 $ 45,376 $ 149,206 $ 79,140 $ 129,225 $ 37,011 $ 790,660 December 31, 2017 Construction, Farmland Residential Residential Commercial (Non-Owner Commercial Commercial Consumer Total Grade: Pass $ 55,949 $ 923 $ 256,614 $ 43,659 $ 140,625 $ 67,732 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 8,624 1,376 5,931 10,076 2,373 29,917 64,987 Special mention 172 — 205 — — — 1,347 — 1,724 Substandard 3,231 — 3,922 1,463 201 2,244 92 218 11,371 Doubtful — — — — — — — — — Total loans $ 66,042 $ 923 $ 269,365 $ 46,498 $ 146,757 $ 80,052 $ 114,093 $ 42,566 $ 766,296 Impaired Loans The following tables show the Company’s recorded investment and the borrowers’ unpaid principal balances for impaired loans, excluding PCI loans, with the associated ALL amount, if applicable, as of the periods presented. As of March 31, 2018 As of December 31, 2017 Recorded Borrowers’ Unpaid Related Recorded Borrowers’ Unpaid Related With no related allowance: Construction, Land and Land Development $ 726 $ 1,275 $ — $ 900 $ 1,378 $ — Residential First Mortgages 1,533 1,533 — 1,488 1,488 — Residential Revolving and Junior Mortgages 414 414 — 414 414 — Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 1,778 2,028 — 1,721 1,971 — Commercial and Industrial — — — — — — Consumer-Other — — — — — — Total impaired loans with no related allowance 4,451 5,250 — 4,523 5,251 — With an allowance recorded: Construction, Land and Land Development 526 526 189 550 621 137 Residential First Mortgages 2,402 2,404 498 1,914 1,914 367 Residential Revolving and Junior Mortgages 1,374 1,374 222 1,340 1,340 162 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 542 542 134 547 586 195 Commercial and Industrial 101 101 101 92 92 92 Consumer-Other 141 141 141 141 141 141 Total impaired loans with allowance recorded 5,086 5,088 1,285 4,584 4,694 1,094 Total Impaired Loans: Construction, Land and Land Development 1,252 1,801 189 1,450 1,999 137 Residential First Mortgages 3,935 3,937 498 3,402 3,402 367 Residential Revolving and Junior Mortgages 1,788 1,788 222 1,754 1,754 162 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 2,320 2,570 134 2,268 2,557 195 Commercial and Industrial 101 101 101 92 92 92 Consumer-Other 141 141 141 141 141 141 Total Impaired Loans $ 9,537 $ 10,338 $ 1,285 $ 9,107 $ 9,945 $ 1,094 The following table shows the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, for the periods presented. For the three months ended March 31, 2018 March 31, 2017 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 851 $ 1 $ 1,493 $ 13 Residential First Mortgages 1,510 17 2,108 5 Residential Revolving and Junior Mortgages 414 1 995 10 Commercial Mortgages (Non-owner — — 248 4 Commercial Mortgages (Owner occupied) 1,777 7 2,159 5 Commercial and Industrial — — — — Consumer - Other — 1 — — Total impaired loans with no allowance 4,552 27 7,003 37 With an allowance recorded: Construction, land and land development 500 5 241 1 Residential First Mortgages 2,159 10 1,946 24 Residential Revolving and Junior Mortgages 1,357 3 527 5 Commercial Mortgages (Non-owner — — — — Commercial Mortgages (Owner occupied) 544 6 406 — Commercial and Industrial 97 — 92 — Total impaired loans with allowance recorded 4,657 24 3,212 30 Total Impaired Loans: Construction, land and land development 1,351 6 1,734 14 Residential First Mortgages 3,669 27 4,054 29 Residential Revolving and Junior Mortgages 1,771 4 1,522 15 Commercial Mortgages (Non-owner — — 248 4 Commercial Mortgages (Owner occupied) 2,321 13 2,565 5 Commercial and Industrial 97 1 92 — Total impaired loans $ 9,209 $ 51 $ 10,215 $ 67 The following table presents a reconciliation of nonaccrual loans to impaired loans as of the periods presented. March 31, 2018 December 31, 2017 Nonaccrual loans $ 6,892 $ 6,496 Nonaccrual loans not individually evaluated for impairment (1,673 ) (854 ) Nonaccrual impaired loans 5,219 5,642 TDRs on accrual 2,955 2,214 Other impaired loans on accrual 1,363 1,251 Total impaired loans $ 9,537 $ 9,107 Troubled Debt Restructuring In some situations, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to a borrower that it would not otherwise consider. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal or an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risks, the related loan is classified as a troubled debt restructuring. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. Management measures all TDRs for impairment as noted below for impaired loans. Loans modified as TDRs are considered impaired and are individually evaluated for impairment for the ALL. The following table presents, by segment, information related to loans modified as TDRs. For the three months ended For the three months ended March 31, 2018 March 31, 2017 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 3 $ 560 $ 562 — $ — $ — (1) Modifications were an extension of the loan terms. No loans designated as TDRs subsequently defaulted in the first three months 2018 or 2017. The following table presents a rollforward of accruing and nonaccruing TDRs for the period presented. Accruing Nonaccruing Total Balance as of December 31, 2017 $ 2,214 $ 1,850 $ 4,064 Charge-offs — — — Payments and other adjustments (15 ) 124 109 New TDR designation 562 — 562 Release TDR designation — — — Transfer — — — Balance as of March 31, 2018 $ 2,761 $ 1,974 $ 4,735 |
Other Real Estate Owned, Net
Other Real Estate Owned, Net | 3 Months Ended |
Mar. 31, 2018 | |
Other Real Estate Owned, Net | Note 7: Other Real Estate Owned, net The table below details the properties included in other real estate owned (“OREO”) as of the periods presented. March 31, 2018 December 31, 2017 Number of Carrying Number of Carrying Properties Value Properties Value Residential 2 $ 404 5 $ 443 Land lots 20 1,653 20 3,223 Convenience store 1 55 1 55 Restaurant — — 1 36 Commerical properties 2 481 2 527 Total other real estate owned 25 $ 2,593 29 $ 4,284 There was one $47 thousand collateralized consumer land loan and one $27 thousand collateralized residential mortgage loan in the process of foreclosure as of March 31, 2018. |
Earnings (loss) per share
Earnings (loss) per share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings (loss) per share | Note 8: Earnings (loss) per share The following table shows the weighted average number of shares used in computing earnings (loss) per share and the effect on the weighted average number of shares of dilutive potential common stock. Basic earnings (loss) per share amounts are computed by dividing the income (loss) (the numerator) by the weighted average number of common shares outstanding (the denominator). Diluted earnings (loss) per share amounts assume the conversion, exercise, or issuance of all potential common stock instruments, unless the effect is to reduce the loss or increase the income per common share. For both computations, the weighted average number of employee stock ownership plan (“ESOP”) shares committed to be released to participant accounts purchased by the ESOP and unvested restricted shares are not assumed to be outstanding. The weighted average ESOP shares committed to be released which were excluded from the computation, were 161,369 for the three months ended March 31, 2018. There were no ESOP shares committed to be released excluded for the three months ended March 31, 2017. For the three months ended March 31, 2018 and 2017, options on 87,548 and 91,368 shares, respectively, were not included in computing diluted earnings (loss) per share because their effects would have been anti-dilutive, and 3,603 and no restricted shares for the three months ended March 31, 2018 and 2017, respectively, because their effects would have been anti-dilutive. For the three months ended March 31, 2018 March 31, 2017 Net income (loss) $ 1,124 $ (177 ) Weighted average shares outstanding, basic 13,038,593 4,776,800 Dilutive shares: Stock options 67,596 — Restricted shares 25 — Weighted average shares outstanding, dilutive 13,106,214 4,776,800 Basic and diluted earnings (loss) per share $ 0.09 $ (0.04 ) |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Employee Benefit Plans | Note 9: Employee Benefit Plans The Company has a non-contributory, The Company also sponsored a post-retirement benefit plan covering retirees who were age 55 with 10 years of service or age 65 with five years of service prior to March 1, 2018, when the plan was frozen. The post-retirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The plan is unfunded and funded as benefits are paid. The following table shows the components of net periodic cost (benefit) for the periods presented. Pension benefits Post-retirement benefits For the three months ended March 31, 2018 2017 2018 2017 Service cost $ — $ — $ 1 $ 5 Interest cost 23 31 1 5 Expected return on plan assets (38 ) (45 ) — — Settlement loss 46 13 — — Amortization of net gain 13 — (7 ) (2 ) Curtailment gain (at 3/1/2018) — — (352 ) — Recognized net actuarial loss — 19 — — Net periodic cost (benefit) $ 44 $ 18 $ (357 ) $ 8 The Company expects to make no contribution to its pension plan and $6 thousand to its post-retirement benefit plan during the remainder of 2018. Payments to retirees under the post-retirement plan are considered contributions, and the Company has made $2 thousand of such payments during the first three months of 2018. The Company recognized a gain on the curtailment of the post-retirement plan of $352 thousand at March 1, 2018, which is included in other income in the consolidated statements of operations for the three months ended March 31, 2018. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Borrowings | Note 10: Borrowings FHLB Borrowings As of March 31, 2018, the Bank had $60.0 million of outstanding FHLB borrowings, consisting of two advances. As of December 31, 2017, two advances totaling $70.0 million were outstanding. Advances on the FHLB lines are secured by a blanket lien on qualified one-to-four Further information regarding the two advances outstanding as of March 31, 2018 are shown in the following table: Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000 4/12/2013 4.10 % 4/13/2020 Fixed Rate Credit 50,000 3/5/2018 1.63 % 4/2/2018 Total FHLB Borrowings $ 60,000 2.04 % Subordinated Notes On May 28, 2015, the Company entered into a purchase agreement with 29 accredited investors under which the Company issued an aggregate of $7.0 million of subordinated notes (the “notes”) to the accredited investors. The notes have a maturity date of May 28, 2025 and bear interest, payable on the first of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The notes are not convertible into common stock or preferred stock and are not callable by the holders. The Company has the right to redeem the notes, in whole or in part, without premium or penalty, at any interest payment date on or after May 28, 2020, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a note may declare the principal amount of the notes to be due and immediately payable. The notes are unsecured, subordinated obligations of the Company and rank junior in right of payment to the Company’s existing and future senior indebtedness. The notes qualify as Tier 2 capital for regulatory reporting. The aggregate carrying value of the notes, including capitalized debt issuance costs, was $6.9 million at both March 31, 2018 and December 31, 2017. For the three-month periods ended March 31, 2018 and 2017, the effective interest rate on the notes was 6.86% and 6.82%, respectively. ESOP Debt The aggregate carrying value of debt secured by shares of stock, issued and outstanding, in the Company’s ESOP was $1.1 million at March 31, 2018 and December 31, 2017 and included in other liabilities on the consolidated balance sheets. The debt is comprised of five fixed rate amortizing notes, four of which carry an interest rate of 3.25% and one which carries an interest rate of 4.50% with maturity dates ranging from March 1, 2019 to December 31, 2027. Shares that collateralize these loans are not allocated to participants’ accounts. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Measurements | Note 11: Fair Value Measurements The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value also assumes that the reporting entity would sell the asset or transfer the liability in the principal or most advantageous market. Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Available-for-sale Available-for-sale available-for-sale Mortgage servicing rights (“MSR”) A model is used to determine fair value, which establishes pools of performing loans, calculates cash flows for each pool and applies a discount rate to each pool. Loans are segregated into 14 pools based on each loan’s term and seasoning (age). All loans have fixed interest rates. Cash flows are then estimated by utilizing assumed service costs and prepayment speeds. Monthly service costs were assumed to be $6.50 per loan as of March 31, 2018 and as of December 31, 2017. Prepayment speeds are determined primarily based on the average interest rate of the loans in each pool. The prepayment scale used is the Public Securities Association (“PSA”) model, where “100% PSA” means prepayments are zero in the first month, then increase by 0.2% of the loan balance each month until reaching 6.0% in month 30. Thereafter, the 100% PSA model assumes an annual prepayment of 6.0% of the remaining loan balance. The average PSA speed assumption in the fair value model is 131% and 150% as of March 31, 2018 and December 31, 2017, respectively. A discount rate of 13.0% was then applied to each pool as of March 31, 2018 and as of December 31, 2017. The discount rate is intended to represent the estimated market yield for the highest quality grade of comparable servicing. This MSR is classified as Level 3. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of the end of the periods presented. Balance as of Fair Value Measurements as of March 31, 2018 Using Level 1 Level 2 Level 3 Available-for-sale U. S. Government agencies and mortgage backed securities $ 47,622 $ — $ 47,622 $ — State and municipal obligations 20,697 — 20,697 — Corporate bonds 7,115 — — 7,115 Total available for sale securities: $ 75,434 $ — $ 68,319 $ 7,115 Mortgage servicing rights $ 930 $ — $ — $ 930 Balance as of Fair Value Measurements as of December 31, 2017 Using Level 1 Level 2 Level 3 Available-for-sale U. S. Government agencies and mortgage backed securities $ 49,283 $ — $ 49,283 $ — State and municipal obligations 21,153 — 21,153 — Corporate bonds 6,717 — — 6,717 Total available for sale securities: $ 77,153 $ — $ 70,436 $ 6,717 Mortgage servicing rights $ 999 $ — $ — $ 999 The reconciliation of items using Level 3 inputs is as follows: MSR Corporate Balance, December 31, 2017 $ 999 $ 6,717 Purchases — 400 Fair value adjustments (69 ) (2 ) Sales — — Balance, March 31, 2018 $ 930 $ 7,115 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans: Other Real Estate Owned: The following table summarizes the Company’s assets that were measured at fair value on a non-recurring Fair Value Measurements as of March 31, 2018 Using Balance as of Level 1 Level 2 Level 3 Impaired loans $ 3,803 $ — $ — $ 3,803 Other real estate owned 2,593 — — 2,593 Fair Value Measurements as of December 31, 2017 Using Balance as of Level 1 Level 2 Level 3 Impaired loans $ 3,491 $ — $ — $ 3,491 Other real estate owned 4,284 — — 4,284 The following table displays quantitative information about Level 3 Fair Value Measurements as of March 31, 2018: Balance as of Valuation Unobservable Range Impaired loans $ 3,803 Discounted appraised value Selling Cost Lack of Marketability 10%-20% (15%) 50%-100% (68%) Discounted cash flows Discount rate 5% Other real estate owned 2,593 Discounted appraised value Selling Cost Lack of Marketability 3%-13% 10%-100% (15%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2017: Balance as of Valuation Unobservable Range Impaired loans $ 3,491 Discounted appraised value Selling Cost Lack of Marketability 6%-20% (16%) 50%-90% (65%) Discounted cash flows Discount rate 5%-6% (6%) Other real estate owned 4,284 Discounted appraised value Selling Cost Lack of Marketability 3%-13% 10%-100% (16%) In 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall 825-10), The following table summarizes the Company’s assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of periods presented. Fair Value Measurements as of March 31, 2018 Using Carrying value as of Fair Value as of March 31, 2018 March 31, 2018 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,774 $ 7,774 $ 7,774 $ — $ — Interest-bearing deposits 52,564 52,564 52,564 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 3,358 3,358 3,358 — — Restricted securities 5,510 5,510 — 5,510 — Loans receivable, net 782,965 770,564 — — 770,564 Loans held for sale 414 414 — 414 — Accrued interest receivable 2,844 2,844 — — 2,844 Financial Liabilities: Noninterest-bearing liabilities 124,572 124,572 124,572 — — Savings and interest-bearing demand deposits 299,216 299,216 — 299,216 — Time deposits 373,163 373,809 — 373,809 — Securities sold under repurchase agreements 6,551 6,551 — 6,551 — FHLB advances 60,000 60,422 — 60,422 — Subordinated notes 6,881 7,055 — 7,055 — Fair Value Measurements as of December 31, 2017 Using Carrying value as of Fair Value as of December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,396 $ 9,396 $ 9,396 $ — $ — Interest-bearing deposits 41,971 41,971 41,971 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 6,961 6,961 6,961 — — Restricted securities 5,787 5,787 — 5,787 — Loans receivable, net 758,726 774,099 — — 774,099 Loans held for sale 1,651 1,651 — 1,651 — Accrued interest receivable 3,194 3,194 — — 3,194 Financial Liabilities: Noninterest-bearing liabilities $ 103,037 $ 103,037 $ 103,037 $ — $ — Savings and interest-bearing demand deposits 299,820 299,820 — 299,820 — Time deposits 358,989 356,450 — — 356,450 Securities sold under repurchase agreements 9,498 9,498 — 9,498 — FHLB advances 70,000 70,486 — 70,486 — Subordinated notes 6,877 7,000 — — 7,000 The carrying values of cash and due from banks, interest-bearing deposits, certificates of deposit, federal funds sold or purchased, accrued interest receivable, loans held for sale, and non-interest-bearing The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. The fair value of performing loans is estimated by discounting the future cash flows using two sets of data sources. First, recent originations, occurring over the prior twelve months, were evaluated, and second, market data showing originations over the prior three months was evaluated. The selected rate was the greater of the two sources. For all loans other than a selective consumer loan portfolio, credit loss severity rates were calculated using the probability of default and the loss given default percentages derived from market data. For the consumer loan portfolio, historical delinquency data was obtained by the servicer of the portfolio. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. The fair value of loans does consider the lack of liquidity and uncertainty in the market that might affect the valuation. Time deposits are presented at estimated fair value by discounting the future cash flows using recent issuance rates over the prior three months and a market rate analysis of recent offering rates. The fair value of the Company’s subordinated notes is estimated by utilizing recent issuance rates for subordinated debt offerings of similar issuer size. The fair value of the FHLB advances is estimated by discounting the future cash flows using current interest rates offered for similar advances. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At March 31, 2018 and December 31, 2017, the fair value of loan commitments and standby letters of credit was immaterial, and therefore not included in the table above. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 12: Changes in Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) net of taxes are shown in the following tables for the periods presented: For the three months ended March 31, 2018 Net Unrealized Pension and Post-retirement Accumulated Other Balance as of January 1, 2018 $ (489 ) $ (667 ) $ (1,156 ) Change in net unrealized holding loss on available for sale securities, net of tax benefit of $248 (944 ) — (944 ) Balance as of March 31, 2018 $ (1,433 ) $ (667 ) $ (2,100 ) |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table details the total consideration paid by the Company on April 1, 2017, in connection with the acquisition of Virginia BanCorp, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill: Fair Value As Recorded As Recorded Adjustments by the by Virginia BanCorp and Reclassifications Company Consideration paid: Bay Banks of Virginia, Inc. common stock $ 42,247 Identifiable assets acquired: Cash and due from banks $ 2,356 $ — $ 2,356 Interest-bearing deposits 12,342 — 12,342 Securities available-for-sale 22,088 — 22,088 Restricted securities 1,543 — 1,543 Loans receivable 272,479 (62,068 ) 210,411 Loans held for sale — 55,648 55,648 Deferred income taxes 1,325 255 1,580 Premises and equipment 3,333 2,703 6,036 Accrued interest receivable 1,253 (24 ) 1,229 Other real estate owned 3,113 — 3,113 Core deposit intangible — 3,670 3,670 Bank owned life insurance 8,430 — 8,430 Mortgage servicing rights 324 — 324 Other assets 365 — 365 Total identified assets acquired 328,951 184 329,135 Identifiable liabilities assumed: Noninterest-bearing deposits 21,119 — 21,119 Savings and interest-bearing demand deposits 124,640 — 124,640 Time deposits 121,437 733 122,170 Federal Home Loan Bank advances 25,000 — 25,000 Other liabilities 1,525 — 1,525 Total identifiable liabilities assumed 293,721 733 294,454 Total identifiable assets assumed $ 35,230 $ (549 ) $ 34,681 Goodwill resulting from acquisition $ 7,566 |
Schedule of Information about the PCI Impaired Loan | Information about the PCI loan portfolio at April 1, 2017 was as follows: April 1, 2017 Contractual principal and interest due $ 8,303 Nonaccretable difference 869 Expected cash flows 7,434 Accretable yield 1,354 Purchased credit impaired loans - estimated fair value $ 6,080 |
Schedule of Unaudited Pro Forma Financial Information | Operational cost savings and other efficiencies expected to be achieved by the Company due to the Merger are also not reflected in the unaudited pro forma amounts. For the three months ended Net interest income $ 6,986 Net income 790 |
Schedule of Impact of Certain Acquisition Accounting Adjustments | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments to assets acquired and liabilities assumed from Virginia BanCorp had the following impact on the consolidated statements of operations for the period presented below. Three months ended Loans (1) $ 503 Core deposit intangible (2) (211 ) Time deposits (3) 68 Depreciation (4) (10 ) Net impact to income before income taxes $ 350 (1) Loan discount accretion is included in loans, including fees, in interest income in the consolidated statements of operations. (2) CDI amortization is included in other expense in non-interest (3) Time deposit premium amortization is included in deposits in interest expense in the consolidated statements of operations. (4) Depreciation on the fair value adjustment of fixed assets is included in occupancy expense in non-interest |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities | The aggregate amortized costs and fair values of available-for-sale Gross Gross Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 49,086 $ 11 $ (1,475 ) $ 47,622 State and municipal obligations 21,064 39 (406 ) 20,697 Corporate bonds 7,096 19 — 7,115 Total available-for-sale $ 77,246 $ 69 $ (1,881 ) $ 75,434 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 49,964 $ 6 $ (687 ) $ 49,283 State and municipal obligations 21,113 195 (155 ) 21,153 Corporate bonds 6,696 23 (2 ) 6,717 Total available-for-sale $ 77,773 $ 224 $ (844 ) $ 77,153 |
Unrealized Loss Positions | The following tables provide additional information on these securities as of the periods presented. Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2018 Value Loss Value Loss Value Loss U.S. Government agencies and mortgage backed securities $ 31,533 $ (885 ) $ 14,685 $ (590 ) $ 46,218 $ (1,475 ) States and municipal obligations 8,804 (86 ) 5,594 (320 ) 14,398 (406 ) Corporate bonds — — — — — — Total temporarily impaired securities $ 40,337 $ (971 ) $ 20,279 $ (910 ) $ 60,616 $ (1,881 ) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Loss Value Loss Value Loss U.S. Government agencies and mortgage backed securities $ 25,053 $ (353 ) $ 16,184 $ (334 ) $ 41,237 $ (687 ) States and municipal obligations 2,753 (15 ) 5,787 (140 ) 8,540 (155 ) Corporate bonds 498 (2 ) — — 498 (2 ) Total temporarily impaired securities $ 28,304 $ (370 ) $ 21,971 $ (474 ) $ 50,275 $ (844 ) |
Summary of Amortized Cost and Fair Value by Contractual Maturity of Securities Available for Sale | The following table presents the amortized cost and fair value by contractual maturity of securities available for sale as of the dates stated. Expected maturities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities that are not due at a single maturity date and equity securities that do not have contractual maturities are shown separately. March 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value State and municipal obligations Due in one year or less $ 1,240 $ 1,236 $ 1,241 $ 1,237 Due after one year but less than five years 7,987 7,931 7,173 7,219 Due after five years but less than ten years 11,356 11,063 11,736 11,740 Due after ten years 481 467 963 957 U.S. Government agencies and mortgage backed securities 49,086 47,622 49,964 49,283 Corporate bonds 7,096 7,115 6,696 6,717 Total availible-for-sale $ 77,246 $ 75,434 $ 77,773 $ 77,153 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Balances of Loans | The following is a summary of the balances of loans as of the periods presented: March 31, 2018 December 31, 2017 Mortgage loans on real estate: Construction, Land and Land Development $ 72,860 $ 66,042 Farmland 800 923 Commercial Mortgages (Non-Owner 149,206 146,757 Commercial Mortgages (Owner Occupied) 79,140 80,052 Residential First Mortgages 277,042 269,365 Residential Revolving and Junior Mortgages 45,376 46,498 Commercial and Industrial loans 129,225 114,093 Consumer loans 37,011 42,566 Total loans 790,660 766,296 Net unamortized deferred loan costs 228 200 Allowance for loan losses (7,923 ) (7,770 ) Loans, net $ 782,965 $ 758,726 |
Recorded Investment for Past Due and Non-accruing Loans | The recorded investment for past due and nonaccruing loans is shown in the following tables as of the periods presented. A loan past due by 90 days or more is generally placed on nonaccrual unless it is both well-secured and in the process of collection. 90 Days or 30-89 More Past Total Past Days Due and Due and Total March 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 153 $ — $ 1,090 $ 1,243 $ 71,617 $ 72,860 Farmland — — — — 800 800 Commercial Mortgages (Non-Owner — — 447 447 148,759 149,206 Commercial Mortgages (Owner Occupied) 219 127 1,809 2,155 76,985 79,140 Residential First Mortgages 4,305 67 1,987 6,359 270,683 277,042 Residential Revolving and Junior Mortgages 13 20 1,342 1,375 44,001 45,376 Commercial and Industrial 101 — 101 202 129,023 129,225 Consumer loans 304 — 116 420 36,591 37,011 Total loans $ 5,095 $ 214 $ 6,892 $ 12,201 $ 778,459 $ 790,660 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 261 $ — $ 1,237 $ 1,498 $ 64,544 $ 66,042 Farmland — 48 — 48 875 923 Commercial Mortgages (Non-Owner 449 — — 449 146,308 146,757 Commercial Mortgages (Owner Occupied) 573 — 1,752 2,325 77,727 80,052 Residential First Mortgages 2,670 141 1,942 4,753 264,612 269,365 Residential Revolving and Junior Mortgages 449 20 1,338 1,807 44,691 46,498 Commercial and Industrial 331 — 92 423 113,670 114,093 Consumer loans 288 4 135 427 42,139 42,566 Total loans $ 5,021 $ 213 $ 6,496 $ 11,730 $ 754,566 $ 766,296 |
PCI Loans | |
Recorded Investment for Past Due and Non-accruing Loans | The following tables include an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of the periods presented, included in the tables above. 90 Days or 30-89 More Past Total Past Days Due and Due and PCI March 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ 23 $ — $ — $ 23 $ 1,374 $ 1,397 Commercial Mortgages (Non-Owner — — — — 163 163 Commercial Mortgages (Owner Occupied) 30 127 — 157 156 313 Residential First Mortgages 105 67 — 172 3,549 3,721 Residential Revolving and Junior Mortgages — 20 — 20 26 46 Consumer loans — — — — 63 63 Total purchased credit-impaired loans $ 158 $ 214 $ — $ 372 $ 5,331 $ 5,703 90 Days or 30-89 More Past Total Past Days Due and Due and PCI December 31, 2017 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage Loans on Real Estate: Construction, Land and Land Development $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial Mortgages (Non-Owner — — — — 171 171 Commercial Mortgages (Owner Occupied) 161 — — 161 160 321 Residential First Mortgages 349 141 — 490 3,320 3,810 Residential Revolving and Junior Mortgages — 20 — 20 29 49 Consumer loans — 4 — 4 65 69 Total purchased credit-imparied loans $ 510 $ 165 $ — $ 675 $ 5,150 $ 5,825 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loans Evaluated for Impairment Individually and Collectively by Segment | The following tables show loans evaluated for impairment individually and collectively by segment as of the periods presented. Mortgage Commercial Consumer Loans and and Other March 31, 2018 on Real Estate Industrial Loans Total Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 1,043 $ 101 $ 141 $ 1,285 Loans collectively evaluated for impairment 3,147 942 2,549 6,638 Purchased credit impaired loans — — — — Total allowance on loan losses $ 4,190 $ 1,043 $ 2,690 $ 7,923 Loan balances applicable to: Loans individually evaluated for impairment $ 9,295 $ 101 $ 141 $ 9,537 Loans collectively evaluated for impairment 609,489 129,124 36,807 775,420 Purchased credit impaired loans 5,640 — 63 5,703 Total loans $ 624,424 $ 129,225 $ 37,011 $ 790,660 December 31, 2017 Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 861 $ 92 $ 141 $ 1,094 Loans collectively evaluated for impairment 3,003 786 2,887 6,676 Purchased credit impaired loans — — — — Total allowance on loan losses $ 3,864 $ 878 $ 3,028 $ 7,770 Loan balances applicable to: Loans individually evaluated for impairment $ 8,874 $ 92 $ 141 $ 9,107 Loans collectively evaluated for impairment 595,007 114,001 42,356 751,364 Purchased credit impaired loans 5,756 — 69 5,825 Total loans $ 609,637 $ 114,093 $ 42,566 $ 766,296 |
ALL by Portfolio Segment | The following tables show an analysis of the change in the ALL by segment for the periods presented. Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the three months ended March 31, 2018 Beginning Balance $ 3,864 $ 878 $ 3,028 $ 7,770 (Charge-offs) (31 ) (14 ) (343 ) (388 ) Recoveries 27 — 194 221 Provision (benefit) 330 179 (189 ) 320 Ending Balance $ 4,190 $ 1,043 $ 2,690 $ 7,923 Mortgage Commercial Loans on and Consumer Real Estate Industrial Loans Total For the three months ended March 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 (Charge-offs) (132 ) — (8 ) (140 ) Recoveries 78 — 2 80 Provision (benefit) 157 35 (2 ) 190 Ending Balance $ 3,421 $ 528 $ 44 $ 3,993 |
Schedule of Changes in Accretable Yield for PCI Loans | The following table presents the changes in the accretable yield for PCI loans for the period presented. Three months ended Balance as of December 31, 2017 $ 1,087 Accretion of acquisition accounting adjustment (85 ) Reclassifications from nonaccretable balance, net — Other changes, net — Balance as of March 31, 2018 $ 1,002 |
Internal Risk Rating Grades | The tables below show the risk ranking of loans as of the periods presented. March 31, 2018 Construction, Farmland Residential Residential Commercial (Non-Owner Commercial Commercial Consumer Total Grade: Pass $ 62,812 $ 800 $ 263,932 $ 42,581 $ 143,118 $ 67,724 $ 125,493 $ 11,208 $ 717,668 Watch 6,991 — 8,807 1,393 5,445 9,113 2,385 25,457 59,591 Special mention — — 923 — — 112 1,246 141 2,422 Substandard 3,057 — 3,380 1,402 643 2,191 101 205 10,979 Doubtful — — — — — — — — — Total loans $ 72,860 $ 800 $ 277,042 $ 45,376 $ 149,206 $ 79,140 $ 129,225 $ 37,011 $ 790,660 December 31, 2017 Construction, Farmland Residential Residential Commercial (Non-Owner Commercial Commercial Consumer Total Grade: Pass $ 55,949 $ 923 $ 256,614 $ 43,659 $ 140,625 $ 67,732 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 8,624 1,376 5,931 10,076 2,373 29,917 64,987 Special mention 172 — 205 — — — 1,347 — 1,724 Substandard 3,231 — 3,922 1,463 201 2,244 92 218 11,371 Doubtful — — — — — — — — — Total loans $ 66,042 $ 923 $ 269,365 $ 46,498 $ 146,757 $ 80,052 $ 114,093 $ 42,566 $ 766,296 |
Company's Recorded Investment and Borrowers' Unpaid Principal Balances for Impaired Loans, Excluding PCI Loans, with Associated ALL Amount | The following tables show the Company’s recorded investment and the borrowers’ unpaid principal balances for impaired loans, excluding PCI loans, with the associated ALL amount, if applicable, as of the periods presented. As of March 31, 2018 As of December 31, 2017 Recorded Borrowers’ Unpaid Related Recorded Borrowers’ Unpaid Related With no related allowance: Construction, Land and Land Development $ 726 $ 1,275 $ — $ 900 $ 1,378 $ — Residential First Mortgages 1,533 1,533 — 1,488 1,488 — Residential Revolving and Junior Mortgages 414 414 — 414 414 — Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 1,778 2,028 — 1,721 1,971 — Commercial and Industrial — — — — — — Consumer-Other — — — — — — Total impaired loans with no related allowance 4,451 5,250 — 4,523 5,251 — With an allowance recorded: Construction, Land and Land Development 526 526 189 550 621 137 Residential First Mortgages 2,402 2,404 498 1,914 1,914 367 Residential Revolving and Junior Mortgages 1,374 1,374 222 1,340 1,340 162 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 542 542 134 547 586 195 Commercial and Industrial 101 101 101 92 92 92 Consumer-Other 141 141 141 141 141 141 Total impaired loans with allowance recorded 5,086 5,088 1,285 4,584 4,694 1,094 Total Impaired Loans: Construction, Land and Land Development 1,252 1,801 189 1,450 1,999 137 Residential First Mortgages 3,935 3,937 498 3,402 3,402 367 Residential Revolving and Junior Mortgages 1,788 1,788 222 1,754 1,754 162 Commercial Mortgages (Non-owner — — — — — — Commercial Mortgages (Owner occupied) 2,320 2,570 134 2,268 2,557 195 Commercial and Industrial 101 101 101 92 92 92 Consumer-Other 141 141 141 141 141 141 Total Impaired Loans $ 9,537 $ 10,338 $ 1,285 $ 9,107 $ 9,945 $ 1,094 The following table shows the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, for the periods presented. For the three months ended March 31, 2018 March 31, 2017 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 851 $ 1 $ 1,493 $ 13 Residential First Mortgages 1,510 17 2,108 5 Residential Revolving and Junior Mortgages 414 1 995 10 Commercial Mortgages (Non-owner — — 248 4 Commercial Mortgages (Owner occupied) 1,777 7 2,159 5 Commercial and Industrial — — — — Consumer - Other — 1 — — Total impaired loans with no allowance 4,552 27 7,003 37 With an allowance recorded: Construction, land and land development 500 5 241 1 Residential First Mortgages 2,159 10 1,946 24 Residential Revolving and Junior Mortgages 1,357 3 527 5 Commercial Mortgages (Non-owner — — — — Commercial Mortgages (Owner occupied) 544 6 406 — Commercial and Industrial 97 — 92 — Total impaired loans with allowance recorded 4,657 24 3,212 30 Total Impaired Loans: Construction, land and land development 1,351 6 1,734 14 Residential First Mortgages 3,669 27 4,054 29 Residential Revolving and Junior Mortgages 1,771 4 1,522 15 Commercial Mortgages (Non-owner — — 248 4 Commercial Mortgages (Owner occupied) 2,321 13 2,565 5 Commercial and Industrial 97 1 92 — Total impaired loans $ 9,209 $ 51 $ 10,215 $ 67 |
Reconciliation of Nonaccrual Loans to Impaired Loans | The following table presents a reconciliation of nonaccrual loans to impaired loans as of the periods presented. March 31, 2018 December 31, 2017 Nonaccrual loans $ 6,892 $ 6,496 Nonaccrual loans not individually evaluated for impairment (1,673 ) (854 ) Nonaccrual impaired loans 5,219 5,642 TDRs on accrual 2,955 2,214 Other impaired loans on accrual 1,363 1,251 Total impaired loans $ 9,537 $ 9,107 |
Summary of Troubled Debt Restructurings | The following table presents, by segment, information related to loans modified as TDRs. For the three months ended For the three months ended March 31, 2018 March 31, 2017 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 3 $ 560 $ 562 — $ — $ — (1) Modifications were an extension of the loan terms. |
Summary of Rollforward of Accruing and Nonaccruing TDRs | The following table presents a rollforward of accruing and nonaccruing TDRs for the period presented. Accruing Nonaccruing Total Balance as of December 31, 2017 $ 2,214 $ 1,850 $ 4,064 Charge-offs — — — Payments and other adjustments (15 ) 124 109 New TDR designation 562 — 562 Release TDR designation — — — Transfer — — — Balance as of March 31, 2018 $ 2,761 $ 1,974 $ 4,735 |
Other Real Estate Owned, Net (T
Other Real Estate Owned, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Properties Included in Other Real Estate Owned (OREO) | The table below details the properties included in other real estate owned (“OREO”) as of the periods presented. March 31, 2018 December 31, 2017 Number of Carrying Number of Carrying Properties Value Properties Value Residential 2 $ 404 5 $ 443 Land lots 20 1,653 20 3,223 Convenience store 1 55 1 55 Restaurant — — 1 36 Commerical properties 2 481 2 527 Total other real estate owned 25 $ 2,593 29 $ 4,284 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Weighted Average Number of Shares Used in Computing Earnings per Share | The following table shows the weighted average number of shares used in computing earnings (loss) per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended March 31, 2018 March 31, 2017 Net income (loss) $ 1,124 $ (177 ) Weighted average shares outstanding, basic 13,038,593 4,776,800 Dilutive shares: Stock options 67,596 — Restricted shares 25 — Weighted average shares outstanding, dilutive 13,106,214 4,776,800 Basic and diluted earnings (loss) per share $ 0.09 $ (0.04 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Components of Net Periodic Cost (Benefit) | The following table shows the components of net periodic cost (benefit) for the periods presented. Pension benefits Post-retirement benefits For the three months ended March 31, 2018 2017 2018 2017 Service cost $ — $ — $ 1 $ 5 Interest cost 23 31 1 5 Expected return on plan assets (38 ) (45 ) — — Settlement loss 46 13 — — Amortization of net gain 13 — (7 ) (2 ) Curtailment gain (at 3/1/2018) — — (352 ) — Recognized net actuarial loss — 19 — — Net periodic cost (benefit) $ 44 $ 18 $ (357 ) $ 8 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Advances of Borrowings | Further information regarding the two advances outstanding as of March 31, 2018 are shown in the following table: Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000 4/12/2013 4.10 % 4/13/2020 Fixed Rate Credit 50,000 3/5/2018 1.63 % 4/2/2018 Total FHLB Borrowings $ 60,000 2.04 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of the end of the periods presented. Balance as of Fair Value Measurements as of March 31, 2018 Using Level 1 Level 2 Level 3 Available-for-sale U. S. Government agencies and mortgage backed securities $ 47,622 $ — $ 47,622 $ — State and municipal obligations 20,697 — 20,697 — Corporate bonds 7,115 — — 7,115 Total available for sale securities: $ 75,434 $ — $ 68,319 $ 7,115 Mortgage servicing rights $ 930 $ — $ — $ 930 Balance as of Fair Value Measurements as of December 31, 2017 Using Level 1 Level 2 Level 3 Available-for-sale U. S. Government agencies and mortgage backed securities $ 49,283 $ — $ 49,283 $ — State and municipal obligations 21,153 — 21,153 — Corporate bonds 6,717 — — 6,717 Total available for sale securities: $ 77,153 $ — $ 70,436 $ 6,717 Mortgage servicing rights $ 999 $ — $ — $ 999 |
Reconciliation of Items Using Level Three Inputs | The reconciliation of items using Level 3 inputs is as follows: MSR Corporate Balance, December 31, 2017 $ 999 $ 6,717 Purchases — 400 Fair value adjustments (69 ) (2 ) Sales — — Balance, March 31, 2018 $ 930 $ 7,115 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s assets that were measured at fair value on a non-recurring Fair Value Measurements as of March 31, 2018 Using Balance as of Level 1 Level 2 Level 3 Impaired loans $ 3,803 $ — $ — $ 3,803 Other real estate owned 2,593 — — 2,593 Fair Value Measurements as of December 31, 2017 Using Balance as of Level 1 Level 2 Level 3 Impaired loans $ 3,491 $ — $ — $ 3,491 Other real estate owned 4,284 — — 4,284 |
Summary of Quantitative Fair Value Measurements for Level 3 | The following table displays quantitative information about Level 3 Fair Value Measurements as of March 31, 2018: Balance as of Valuation Unobservable Range Impaired loans $ 3,803 Discounted appraised value Selling Cost Lack of Marketability 10%-20% (15%) 50%-100% (68%) Discounted cash flows Discount rate 5% Other real estate owned 2,593 Discounted appraised value Selling Cost Lack of Marketability 3%-13% 10%-100% (15%) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2017: Balance as of Valuation Unobservable Range Impaired loans $ 3,491 Discounted appraised value Selling Cost Lack of Marketability 6%-20% (16%) 50%-90% (65%) Discounted cash flows Discount rate 5%-6% (6%) Other real estate owned 4,284 Discounted appraised value Selling Cost Lack of Marketability 3%-13% 10%-100% (16%) |
Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis | The following table summarizes the Company’s assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of periods presented. Fair Value Measurements as of March 31, 2018 Using Carrying value as of Fair Value as of March 31, 2018 March 31, 2018 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,774 $ 7,774 $ 7,774 $ — $ — Interest-bearing deposits 52,564 52,564 52,564 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 3,358 3,358 3,358 — — Restricted securities 5,510 5,510 — 5,510 — Loans receivable, net 782,965 770,564 — — 770,564 Loans held for sale 414 414 — 414 — Accrued interest receivable 2,844 2,844 — — 2,844 Financial Liabilities: Noninterest-bearing liabilities 124,572 124,572 124,572 — — Savings and interest-bearing demand deposits 299,216 299,216 — 299,216 — Time deposits 373,163 373,809 — 373,809 — Securities sold under repurchase agreements 6,551 6,551 — 6,551 — FHLB advances 60,000 60,422 — 60,422 — Subordinated notes 6,881 7,055 — 7,055 — Fair Value Measurements as of December 31, 2017 Using Carrying value as of Fair Value as of December 31, 2017 December 31, 2017 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,396 $ 9,396 $ 9,396 $ — $ — Interest-bearing deposits 41,971 41,971 41,971 — — Certificates of deposit 3,224 3,224 — 3,224 — Federal funds sold 6,961 6,961 6,961 — — Restricted securities 5,787 5,787 — 5,787 — Loans receivable, net 758,726 774,099 — — 774,099 Loans held for sale 1,651 1,651 — 1,651 — Accrued interest receivable 3,194 3,194 — — 3,194 Financial Liabilities: Noninterest-bearing liabilities $ 103,037 $ 103,037 $ 103,037 $ — $ — Savings and interest-bearing demand deposits 299,820 299,820 — 299,820 — Time deposits 358,989 356,450 — — 356,450 Securities sold under repurchase agreements 9,498 9,498 — 9,498 — FHLB advances 70,000 70,486 — 70,486 — Subordinated notes 6,877 7,000 — — 7,000 |
Changes in Accumulated Other 29
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Components of Accumulated Other Comprehensive Income (Loss) Net of Taxes | The components of accumulated other comprehensive income (loss) net of taxes are shown in the following tables for the periods presented: For the three months ended March 31, 2018 Net Unrealized Pension and Post-retirement Accumulated Other Balance as of January 1, 2018 $ (489 ) $ (667 ) $ (1,156 ) Change in net unrealized holding loss on available for sale securities, net of tax benefit of $248 (944 ) — (944 ) Balance as of March 31, 2018 $ (1,433 ) $ (667 ) $ (2,100 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended |
Aug. 31, 2017USD ($)$ / sharesshares | |
Stock issued during period, shares, new issue through private placement | shares | 3,783,784 |
Common stock offering price | $ / shares | $ 9.25 |
Proceeds from net of offering expenses | $ | $ 32.9 |
Amendments to the Accounting 31
Amendments to the Accounting Standards Codification - Additional Information (Detail) - Accounting Standards Update 2018-02 $ in Thousands | Dec. 31, 2017USD ($) |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of change in retained earnings and AOCI | $ 188 |
Accumulated Other Comprehensive Income (Loss) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of change in retained earnings and AOCI | $ (188) |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | [1] |
Business Acquisition [Line Items] | |||||
Goodwill during acquisition | $ 10,374 | $ 10,374 | |||
Loans acquired held for sale | 414 | $ 1,651 | |||
Acquisition related expenses | 363 | $ 300 | |||
Virginia BanCorp | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage by shareholders of acquiring entity | 51.00% | ||||
Ownership percentage by shareholders of acquired entity | 49.00% | ||||
Common stock exchange ratio | 1.178 | ||||
Business combination, number of shares exchanged | 4,586,221 | ||||
Business combination, value of shares exchanged | $ 42,200 | ||||
Goodwill during acquisition | 7,600 | ||||
Fair value of acquired loans not accounted for as debt securities | 266,100 | ||||
Loans acquired held for sale | 55,400 | ||||
Adjustment on Fair value of premises and equipment | $ 2,700 | ||||
Percentage of acquired deposit, excluding time deposit | 2.52% | ||||
Acquisition related expenses | $ 363 | $ 300 | |||
Virginia BanCorp | PCI Loans | |||||
Business Acquisition [Line Items] | |||||
Gross Contractual amount | $ 8,300 | ||||
Uncollectible receivables | $ 7,400 | ||||
Virginia BanCorp | Federal Home Loan Bank of Atlanta | |||||
Business Acquisition [Line Items] | |||||
Maturity Date | Apr. 30, 2017 | ||||
Virginia BanCorp | Minimum | |||||
Business Acquisition [Line Items] | |||||
Time deposit maturity period | 1 month | ||||
Virginia BanCorp | Maximum | |||||
Business Acquisition [Line Items] | |||||
Time deposit maturity period | 5 years | ||||
Virginia BanCorp | Certificates of Deposit | |||||
Business Acquisition [Line Items] | |||||
Adjustment on Fair value of premises and equipment | $ 733 | ||||
Virginia BanCorp | Core Deposits | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible, fair value | $ 3,700 | ||||
Weighted average life of core deposit intangible | 92 months | ||||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Business Combination - Schedule
Business Combination - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | [1] |
Identifiable liabilities assumed: | ||||
Goodwill resulting from acquisition | $ 10,374 | $ 10,374 | ||
As Recorded by the Company | ||||
Consideration paid: | ||||
Bay Banks of Virginia, Inc. common stock | $ 42,247 | |||
Identifiable assets acquired: | ||||
Cash and due from banks | 2,356 | |||
Interest-bearing deposits | 12,342 | |||
Securities available-for-sale | 22,088 | |||
Restricted securities | 1,543 | |||
Loans receivable | 210,411 | |||
Loans held for sale | 55,648 | |||
Deferred income taxes | 1,580 | |||
Premises and equipment | 6,036 | |||
Accrued interest receivable | 1,229 | |||
Other real estate owned | 3,113 | |||
Core deposit intangible | 3,670 | |||
Bank owned life insurance | 8,430 | |||
Mortgage servicing rights | 324 | |||
Other assets | 365 | |||
Total identified assets acquired | 329,135 | |||
Identifiable liabilities assumed: | ||||
Noninterest-bearing deposits | 21,119 | |||
Savings and interest-bearing demand deposits | 124,640 | |||
Time deposits | 122,170 | |||
Federal Home Loan Bank advances | 25,000 | |||
Other liabilities | 1,525 | |||
Total identifiable liabilities assumed | 294,454 | |||
Total identifiable assets assumed | 34,681 | |||
Goodwill resulting from acquisition | 7,566 | |||
Fair Value Adjustments and Reclassifications | ||||
Identifiable assets acquired: | ||||
Loans receivable | (62,068) | |||
Loans held for sale | 55,648 | |||
Deferred income taxes | 255 | |||
Premises and equipment | 2,703 | |||
Accrued interest receivable | (24) | |||
Core deposit intangible | 3,670 | |||
Total identified assets acquired | 184 | |||
Identifiable liabilities assumed: | ||||
Time deposits | 733 | |||
Total identifiable liabilities assumed | 733 | |||
Total identifiable assets assumed | (549) | |||
Virginia BanCorp | ||||
Identifiable assets acquired: | ||||
Cash and due from banks | 2,356 | |||
Interest-bearing deposits | 12,342 | |||
Securities available-for-sale | 22,088 | |||
Restricted securities | 1,543 | |||
Loans receivable | 272,479 | |||
Deferred income taxes | 1,325 | |||
Premises and equipment | 3,333 | |||
Accrued interest receivable | 1,253 | |||
Other real estate owned | 3,113 | |||
Bank owned life insurance | 8,430 | |||
Mortgage servicing rights | 324 | |||
Other assets | 365 | |||
Total identified assets acquired | 328,951 | |||
Identifiable liabilities assumed: | ||||
Noninterest-bearing deposits | 21,119 | |||
Savings and interest-bearing demand deposits | 124,640 | |||
Time deposits | 121,437 | |||
Federal Home Loan Bank advances | 25,000 | |||
Other liabilities | 1,525 | |||
Total identifiable liabilities assumed | 293,721 | |||
Total identifiable assets assumed | 35,230 | |||
Goodwill resulting from acquisition | $ 7,600 | |||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Business Combination - Summary
Business Combination - Summary of Information about the PCI loan portfolio (Detail) - Virginia BanCorp $ in Thousands | Apr. 01, 2017USD ($) |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Pci Loan Schedule [Line Items] | |
Purchased credit impaired loans - estimated fair value | $ 266,100 |
PCI Loans | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Pci Loan Schedule [Line Items] | |
Contractual principal and interest due | 8,303 |
Nonaccretable difference | 869 |
Expected cash flows | 7,434 |
Accretable yield | 1,354 |
Purchased credit impaired loans - estimated fair value | $ 6,080 |
Business Combination - Schedu35
Business Combination - Schedule of Pro Forma Financial Information (Detail) - Virginia Commonwealth Bank $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Net interest income | $ 6,986 |
Net income | $ 790 |
Business Combination - Summar36
Business Combination - Summary of impact of Certain Acquisition Accounting Adjustments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Business Acquisition, Pro Forma Information [Line Items] | |||
Income (loss) before income taxes | $ 1,374 | $ (298) | |
Virginia Commonwealth Bank | |||
Business Acquisition, Pro Forma Information [Line Items] | |||
Loans | [1] | 503 | |
Core deposit intangible | [2] | (211) | |
Time deposits | [3] | 68 | |
Depreciation | [4] | (10) | |
Income (loss) before income taxes | $ 350 | ||
[1] | Loan discount accretion is included in loans, including fees, in interest income in the consolidated statements of operations. | ||
[2] | CDI amortization is included in other expense in non-interest expense in the consolidated statements of operations. | ||
[3] | Time deposit premium amortization is included in deposits in interest expense in the consolidated statements of operations. | ||
[4] | Depreciation on the fair value adjustment of fixed assets is included in occupancy expense in non-interest expense in the consolidated statements of operations. |
Securities - Aggregate Amortize
Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 77,246 | $ 77,773 | |
Gross Unrealized Gains | 69 | 224 | |
Gross Unrealized (Losses) | (1,881) | (844) | |
Fair Value | 75,434 | 77,153 | [1] |
US Government Agencies Agencies and Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 49,086 | 49,964 | |
Gross Unrealized Gains | 11 | 6 | |
Gross Unrealized (Losses) | (1,475) | (687) | |
Fair Value | 47,622 | 49,283 | |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 21,064 | 21,113 | |
Gross Unrealized Gains | 39 | 195 | |
Gross Unrealized (Losses) | (406) | (155) | |
Fair Value | 20,697 | 21,153 | |
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 7,096 | 6,696 | |
Gross Unrealized Gains | 19 | 23 | |
Gross Unrealized (Losses) | (2) | ||
Fair Value | $ 7,115 | $ 6,717 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Securities - Additional Informa
Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($)Securities | Mar. 31, 2017 | Dec. 31, 2017USD ($)Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Average taxable equivalent yields on securities | 2.68% | 3.22% | ||
Fair value of securities | $ 19,100 | $ 19,400 | ||
Securities sold under repurchase agreements | 6,551 | 9,498 | [1] | |
Company's investment in Federal Home Loan Bank stock | 3,400 | 3,700 | ||
Company's investment in Federal Reserve Bank stock | $ 1,900 | $ 1,900 | ||
U.S. Government Agencies | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Securities with unrealized loss positions | Securities | 40 | 36 | ||
State and Municipal Obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Securities with unrealized loss positions | Securities | 48 | 34 | ||
Corporate Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Securities with unrealized loss positions | Securities | 1 | |||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 40,337 | $ 28,304 |
Less than 12 months, Unrealized Loss | (971) | (370) |
12 months or more, Fair Value | 20,279 | 21,971 |
12 months or more, Unrealized Loss | (910) | (474) |
Fair Value, Total | 60,616 | 50,275 |
Total Unrealized Loss | (1,881) | (844) |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 31,533 | 25,053 |
Less than 12 months, Unrealized Loss | (885) | (353) |
12 months or more, Fair Value | 14,685 | 16,184 |
12 months or more, Unrealized Loss | (590) | (334) |
Fair Value, Total | 46,218 | 41,237 |
Total Unrealized Loss | (1,475) | (687) |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 8,804 | 2,753 |
Less than 12 months, Unrealized Loss | (86) | (15) |
12 months or more, Fair Value | 5,594 | 5,787 |
12 months or more, Unrealized Loss | (320) | (140) |
Fair Value, Total | 14,398 | 8,540 |
Total Unrealized Loss | $ (406) | (155) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 498 | |
Less than 12 months, Unrealized Loss | (2) | |
Fair Value, Total | 498 | |
Total Unrealized Loss | $ (2) |
Securities - Summary of amortiz
Securities - Summary of amortized cost and fair value by contractual maturity of securities available for sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Total availible-for-sale securities, Amortized Cost | $ 77,246 | $ 77,773 | |
Total availible-for-sale securities, Fair Value | 75,434 | 77,153 | [1] |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Due in one year or less, Amortized Cost | 1,240 | 1,241 | |
Due after one year but less than five years, Amortized Cost | 7,987 | 7,173 | |
Due after five years but less than ten years, Amortized Cost | 11,356 | 11,736 | |
Due after ten years, Amortized Cost | 481 | 963 | |
Total availible-for-sale securities, Amortized Cost | 21,064 | 21,113 | |
Due in one year or less, Fair Value | 1,236 | 1,237 | |
Due after one year but less than five years, Fair Value | 7,931 | 7,219 | |
Due after five years but less than ten years, Fair Value | 11,063 | 11,740 | |
Due after ten years, Fair Value | 467 | 957 | |
Total availible-for-sale securities, Fair Value | 20,697 | 21,153 | |
US Government Agencies Agencies and Mortgage Backed Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total availible-for-sale securities, Amortized Cost | 49,086 | 49,964 | |
Total availible-for-sale securities, Fair Value | 47,622 | 49,283 | |
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total availible-for-sale securities, Amortized Cost | 7,096 | 6,696 | |
Total availible-for-sale securities, Fair Value | $ 7,115 | $ 6,717 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Loans - Summary of Balances of
Loans - Summary of Balances of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Summary of balances of loans | |||
Total loans | $ 790,660 | $ 766,296 | |
Net unamortized deferred loan costs | 228 | 200 | |
Allowance for loan losses | (7,923) | (7,770) | [1] |
Loans, net | 782,965 | 758,726 | [1] |
Construction, Land and Land Development | |||
Summary of balances of loans | |||
Total loans | 72,860 | 66,042 | |
Farmland | |||
Summary of balances of loans | |||
Total loans | 800 | 923 | |
Commercial Mortgages (Non-Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 149,206 | 146,757 | |
Commercial Mortgages (Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 79,140 | 80,052 | |
Residential First Mortgages | |||
Summary of balances of loans | |||
Total loans | 277,042 | 269,365 | |
Residential Revolving and Junior Mortgages | |||
Summary of balances of loans | |||
Total loans | 45,376 | 46,498 | |
Commercial and Industrial | |||
Summary of balances of loans | |||
Total loans | 129,225 | 114,093 | |
Consumer and Other Loans | |||
Summary of balances of loans | |||
Total loans | $ 37,011 | $ 42,566 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Loans - Additional Information
Loans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of days past due for a loan to remain on accrual status | 90 days |
Loans - Recorded Investment for
Loans - Recorded Investment for Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $ 5,095 | $ 5,021 |
90 Days or More Past Due and Still Accruing | 214 | 213 |
Nonaccruals | 6,892 | 6,496 |
Total Past Due and Nonaccruals | 12,201 | 11,730 |
Current | 778,459 | 754,566 |
Total Loans | 790,660 | 766,296 |
Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 153 | 261 |
Nonaccruals | 1,090 | 1,237 |
Total Past Due and Nonaccruals | 1,243 | 1,498 |
Current | 71,617 | 64,544 |
Total Loans | 72,860 | 66,042 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
90 Days or More Past Due and Still Accruing | 48 | |
Total Past Due and Nonaccruals | 48 | |
Current | 800 | 875 |
Total Loans | 800 | 923 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 449 | |
Nonaccruals | 447 | |
Total Past Due and Nonaccruals | 447 | 449 |
Current | 148,759 | 146,308 |
Total Loans | 149,206 | 146,757 |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 219 | 573 |
90 Days or More Past Due and Still Accruing | 127 | |
Nonaccruals | 1,809 | 1,752 |
Total Past Due and Nonaccruals | 2,155 | 2,325 |
Current | 76,985 | 77,727 |
Total Loans | 79,140 | 80,052 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 4,305 | 2,670 |
90 Days or More Past Due and Still Accruing | 67 | 141 |
Nonaccruals | 1,987 | 1,942 |
Total Past Due and Nonaccruals | 6,359 | 4,753 |
Current | 270,683 | 264,612 |
Total Loans | 277,042 | 269,365 |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 13 | 449 |
90 Days or More Past Due and Still Accruing | 20 | 20 |
Nonaccruals | 1,342 | 1,338 |
Total Past Due and Nonaccruals | 1,375 | 1,807 |
Current | 44,001 | 44,691 |
Total Loans | 45,376 | 46,498 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 101 | 331 |
Nonaccruals | 101 | 92 |
Total Past Due and Nonaccruals | 202 | 423 |
Current | 129,023 | 113,670 |
Total Loans | 129,225 | 114,093 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 304 | 288 |
90 Days or More Past Due and Still Accruing | 4 | |
Nonaccruals | 116 | 135 |
Total Past Due and Nonaccruals | 420 | 427 |
Current | 36,591 | 42,139 |
Total Loans | $ 37,011 | $ 42,566 |
Loans - Summary of Recorded Inv
Loans - Summary of Recorded Investment of Purchased Impaired Loans (Detail) - PCI Loans - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | $ 158 | $ 510 |
90 Days or More Past Due and Still Accruing | 214 | 165 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 372 | 675 |
Current | 5,331 | 5,150 |
PCI Loans | 5,703 | 5,825 |
Construction, Land and Land Development | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 23 | |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 23 | |
Current | 1,374 | 1,405 |
PCI Loans | 1,397 | 1,405 |
Commercial Mortgages (Non-Owner Occupied) | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccruals | 0 | 0 |
Current | 163 | 171 |
PCI Loans | 163 | 171 |
Commercial Mortgages (Owner Occupied) | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 30 | 161 |
90 Days or More Past Due and Still Accruing | 127 | |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 157 | 161 |
Current | 156 | 160 |
PCI Loans | 313 | 321 |
Residential First Mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 105 | 349 |
90 Days or More Past Due and Still Accruing | 67 | 141 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 172 | 490 |
Current | 3,549 | 3,320 |
PCI Loans | 3,721 | 3,810 |
Residential Revolving and Junior Mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
90 Days or More Past Due and Still Accruing | 20 | 20 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 20 | 20 |
Current | 26 | 29 |
PCI Loans | 46 | 49 |
Consumer and Other Loans | ||
Financing Receivable, Impaired [Line Items] | ||
90 Days or More Past Due and Still Accruing | 4 | |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 4 | |
Current | 63 | 65 |
PCI Loans | $ 63 | $ 69 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired loans measurement | Impaired loans measured for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; and (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as a troubled debt restructuring ("TDR"). | ||
Loan Receivables | $ 790,660,000 | $ 766,296,000 | |
Percentage of excess loan balance for watch category | 90.00% | ||
Loans modified as TDRs | $ 0 | $ 0 | |
Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan Receivables | $ 10,979,000 | $ 11,371,000 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of days loans are past due | 90 days | ||
Minimum | Substandard | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan Receivables | $ 400,000 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans individually evaluated for impairment | $ 1,285 | $ 1,094 | ||
Loans collectively evaluated for impairment | 6,638 | 6,676 | ||
Purchased credit impaired loans | 0 | 0 | ||
Total allowance on loan losses | 7,923 | 7,770 | $ 3,993 | $ 3,863 |
Loans individually evaluated for impairment | 9,537 | 9,107 | ||
Loans collectively evaluated for impairment | 775,420 | 751,364 | ||
Purchased credit impaired loans | 5,703 | 5,825 | ||
Total Loans | 790,660 | 766,296 | ||
Mortgage Loans on Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans individually evaluated for impairment | 1,043 | 861 | ||
Loans collectively evaluated for impairment | 3,147 | 3,003 | ||
Purchased credit impaired loans | 0 | 0 | ||
Total allowance on loan losses | 4,190 | 3,864 | 3,421 | 3,318 |
Loans individually evaluated for impairment | 9,295 | 8,874 | ||
Loans collectively evaluated for impairment | 609,489 | 595,007 | ||
Purchased credit impaired loans | 5,640 | 5,756 | ||
Total Loans | 624,424 | 609,637 | ||
Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans individually evaluated for impairment | 101 | 92 | ||
Loans collectively evaluated for impairment | 942 | 786 | ||
Purchased credit impaired loans | 0 | 0 | ||
Total allowance on loan losses | 1,043 | 878 | 528 | 493 |
Loans individually evaluated for impairment | 101 | 92 | ||
Loans collectively evaluated for impairment | 129,124 | 114,001 | ||
Total Loans | 129,225 | 114,093 | ||
Consumer and Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans individually evaluated for impairment | 141 | 141 | ||
Loans collectively evaluated for impairment | 2,549 | 2,887 | ||
Purchased credit impaired loans | 0 | 0 | ||
Total allowance on loan losses | 2,690 | 3,028 | $ 44 | $ 52 |
Loans individually evaluated for impairment | 141 | 141 | ||
Loans collectively evaluated for impairment | 36,807 | 42,356 | ||
Purchased credit impaired loans | 63 | 69 | ||
Total Loans | $ 37,011 | $ 42,566 |
Allowance for Loan Losses - ALL
Allowance for Loan Losses - ALL by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 7,770 | $ 3,863 |
(Charge-offs) | (388) | (140) |
Recoveries | 221 | 80 |
Provision (benefit) | 320 | 190 |
Ending Balance | 7,923 | 3,993 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 3,864 | 3,318 |
(Charge-offs) | (31) | (132) |
Recoveries | 27 | 78 |
Provision (benefit) | 330 | 157 |
Ending Balance | 4,190 | 3,421 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 878 | 493 |
(Charge-offs) | (14) | |
Provision (benefit) | 179 | 35 |
Ending Balance | 1,043 | 528 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 3,028 | 52 |
(Charge-offs) | (343) | (8) |
Recoveries | 194 | 2 |
Provision (benefit) | (189) | (2) |
Ending Balance | $ 2,690 | $ 44 |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of Changes in Accretable Yield for PCI Loans (Detail) - PCI Loans $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Balance Beginning | $ 1,087 |
Accretion of acquisition accounting adjustment | (85) |
Reclassifications from nonaccretable balance, net | 0 |
Other changes, net | 0 |
Balance Ending | $ 1,002 |
Allowance for Loan Losses - Int
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 790,660 | $ 766,296 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 717,668 | 688,214 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 59,591 | 64,987 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,422 | 1,724 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 10,979 | 11,371 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 72,860 | 66,042 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 62,812 | 55,949 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 6,991 | 6,690 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 172 | |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,057 | 3,231 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 800 | 923 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 800 | 923 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 149,206 | 146,757 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 143,118 | 140,625 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,445 | 5,931 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 643 | 201 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 79,140 | 80,052 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 67,724 | 67,732 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 9,113 | 10,076 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 112 | |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,191 | 2,244 |
Commercial and Industrial | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 129,225 | 114,093 |
Commercial and Industrial | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 125,493 | 110,281 |
Commercial and Industrial | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,385 | 2,373 |
Commercial and Industrial | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,246 | 1,347 |
Commercial and Industrial | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 101 | 92 |
Residential First Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 277,042 | 269,365 |
Residential First Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 263,932 | 256,614 |
Residential First Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 8,807 | 8,624 |
Residential First Mortgages | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 923 | 205 |
Residential First Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,380 | 3,922 |
Residential Revolving and Junior Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 45,376 | 46,498 |
Residential Revolving and Junior Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 42,581 | 43,659 |
Residential Revolving and Junior Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,393 | 1,376 |
Residential Revolving and Junior Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,402 | 1,463 |
Consumer and Other Loans | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 37,011 | 42,566 |
Consumer and Other Loans | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 11,208 | 12,431 |
Consumer and Other Loans | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 25,457 | 29,917 |
Consumer and Other Loans | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 141 | |
Consumer and Other Loans | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 205 | $ 218 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Company's Recorded Investment and Borrowers' Unpaid Principal Balances for Impaired Loans, Excluding PCI Loans, with Associated ALL Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | $ 4,451 | $ 4,523 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 5,250 | 5,251 | |
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 5,086 | 4,584 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 5,088 | 4,694 | |
With an allowance recorded, Related Allowance | 1,285 | 1,094 | |
Total Impaired Loans, Recorded Investment | 9,537 | 9,107 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 10,338 | 9,945 | |
Total Impaired Loans, Related Allowance | 1,285 | 1,094 | |
With no related allowance, Average Recorded Investment | 4,552 | $ 7,003 | |
With no related allowance, Interest Income Recognized | 27 | 37 | |
With an allowance recorded, Average Recorded Investment | 4,657 | 3,212 | |
With an allowance recorded, Interest Income Recognized | 24 | 30 | |
Total, Average Recorded Investment | 9,209 | 10,215 | |
Total, Interest Income Recognized | 51 | 67 | |
Construction, Land and Land Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 726 | 900 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 1,275 | 1,378 | |
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 526 | 550 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 526 | 621 | |
With an allowance recorded, Related Allowance | 189 | 137 | |
Total Impaired Loans, Recorded Investment | 1,252 | 1,450 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 1,801 | 1,999 | |
Total Impaired Loans, Related Allowance | 189 | 137 | |
With no related allowance, Average Recorded Investment | 851 | 1,493 | |
With no related allowance, Interest Income Recognized | 1 | 13 | |
With an allowance recorded, Average Recorded Investment | 500 | 241 | |
With an allowance recorded, Interest Income Recognized | 5 | 1 | |
Total, Average Recorded Investment | 1,351 | 1,734 | |
Total, Interest Income Recognized | 6 | 14 | |
Residential First Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 1,533 | 1,488 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 1,533 | 1,488 | |
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 2,402 | 1,914 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 2,404 | 1,914 | |
With an allowance recorded, Related Allowance | 498 | 367 | |
Total Impaired Loans, Recorded Investment | 3,935 | 3,402 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 3,937 | 3,402 | |
Total Impaired Loans, Related Allowance | 498 | 367 | |
With no related allowance, Average Recorded Investment | 1,510 | 2,108 | |
With no related allowance, Interest Income Recognized | 17 | 5 | |
With an allowance recorded, Average Recorded Investment | 2,159 | 1,946 | |
With an allowance recorded, Interest Income Recognized | 10 | 24 | |
Total, Average Recorded Investment | 3,669 | 4,054 | |
Total, Interest Income Recognized | 27 | 29 | |
Residential Revolving and Junior Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 414 | 414 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 414 | 414 | |
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 1,374 | 1,340 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 1,374 | 1,340 | |
With an allowance recorded, Related Allowance | 222 | 162 | |
Total Impaired Loans, Recorded Investment | 1,788 | 1,754 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 1,788 | 1,754 | |
Total Impaired Loans, Related Allowance | 222 | 162 | |
With no related allowance, Average Recorded Investment | 414 | 995 | |
With no related allowance, Interest Income Recognized | 1 | 10 | |
With an allowance recorded, Average Recorded Investment | 1,357 | 527 | |
With an allowance recorded, Interest Income Recognized | 3 | 5 | |
Total, Average Recorded Investment | 1,771 | 1,522 | |
Total, Interest Income Recognized | 4 | 15 | |
Commercial Mortgages (Non-Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Related Allowance | 0 | 0 | |
With no related allowance, Average Recorded Investment | 248 | ||
With no related allowance, Interest Income Recognized | 4 | ||
Total, Average Recorded Investment | 248 | ||
Total, Interest Income Recognized | 4 | ||
Commercial Mortgages (Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Recorded Investment | 1,778 | 1,721 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 2,028 | 1,971 | |
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 542 | 547 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 542 | 586 | |
With an allowance recorded, Related Allowance | 134 | 195 | |
Total Impaired Loans, Recorded Investment | 2,320 | 2,268 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 2,570 | 2,557 | |
Total Impaired Loans, Related Allowance | 134 | 195 | |
With no related allowance, Average Recorded Investment | 1,777 | 2,159 | |
With no related allowance, Interest Income Recognized | 7 | 5 | |
With an allowance recorded, Average Recorded Investment | 544 | 406 | |
With an allowance recorded, Interest Income Recognized | 6 | ||
Total, Average Recorded Investment | 2,321 | 2,565 | |
Total, Interest Income Recognized | 13 | 5 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 101 | 92 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 101 | 92 | |
With an allowance recorded, Related Allowance | 101 | 92 | |
Total Impaired Loans, Recorded Investment | 101 | 92 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 101 | 92 | |
Total Impaired Loans, Related Allowance | 101 | 92 | |
With an allowance recorded, Average Recorded Investment | 97 | 92 | |
Total, Average Recorded Investment | 97 | $ 92 | |
Total, Interest Income Recognized | 1 | ||
Consumer and Other Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
With no related allowance, Related Allowance | 0 | 0 | |
With an allowance recorded, Recorded Investment | 141 | 141 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 141 | 141 | |
With an allowance recorded, Related Allowance | 141 | 141 | |
Total Impaired Loans, Recorded Investment | 141 | 141 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 141 | 141 | |
Total Impaired Loans, Related Allowance | 141 | $ 141 | |
With no related allowance, Interest Income Recognized | $ 1 |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Reconciliation of Nonaccrual Loans to Impaired Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Nonaccrual loans | $ 6,892 | $ 6,496 |
Nonaccrual loans not individually evaluated for impairment | (1,673) | (854) |
Nonaccrual impaired loans | 5,219 | 5,642 |
TDRs on accrual | 2,955 | 2,214 |
Other impaired loans on accrual | 1,363 | 1,251 |
Total impaired loans | $ 9,537 | $ 9,107 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) - Residential First Mortgages $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Loan | [1] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | Loan | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 560 | |
Post-Modification Outstanding Recorded Investment | $ 562 | |
[1] | Modifications were an extension of the loan terms. |
Allowance for Loan Losses - S53
Allowance for Loan Losses - Summary of Rollforward of Accruing and Nonaccruing TDRs (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Financing Receivable, Impaired [Line Items] | ||
Beginning Balance | $ 7,770 | [1] |
Ending Balance | 7,923 | |
Accruing | ||
Financing Receivable, Impaired [Line Items] | ||
Beginning Balance | 2,214 | |
Charge-offs | 0 | |
Payments and other adjustments | (15) | |
New TDR designation | 562 | |
Release TDR designation | 0 | |
Transfer | 0 | |
Ending Balance | 2,761 | |
Nonaccruing | ||
Financing Receivable, Impaired [Line Items] | ||
Beginning Balance | 1,850 | |
Charge-offs | 0 | |
Payments and other adjustments | 124 | |
Release TDR designation | 0 | |
Transfer | 0 | |
Ending Balance | 1,974 | |
Troubled Debt Restructuring | ||
Financing Receivable, Impaired [Line Items] | ||
Beginning Balance | 4,064 | |
Charge-offs | 0 | |
Payments and other adjustments | 109 | |
New TDR designation | 562 | |
Release TDR designation | 0 | |
Transfer | 0 | |
Ending Balance | $ 4,735 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Other Real Estate Owned, Net -
Other Real Estate Owned, Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) $ in Thousands | Mar. 31, 2018USD ($)Property | Dec. 31, 2017USD ($)Property | |
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 25 | 29 | |
Carrying Value | $ | $ 2,593 | $ 4,284 | [1] |
Residential | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 2 | 5 | |
Carrying Value | $ | $ 404 | $ 443 | |
Land lots | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 20 | 20 | |
Carrying Value | $ | $ 1,653 | $ 3,223 | |
Convenience Stores | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 1 | 1 | |
Carrying Value | $ | $ 55 | $ 55 | |
Restaurant | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 1 | ||
Carrying Value | $ | $ 36 | ||
Commercial properties | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 2 | 2 | |
Carrying Value | $ | $ 481 | $ 527 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Other Real Estate Owned, Net 55
Other Real Estate Owned, Net - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)Property | |
Consumer Land Loan | |
Other Real Estate [Line Items] | |
Land properties collateralized with loan | Property | 1 |
Mortgage loan amount | $ | $ 47 |
Residential | |
Other Real Estate [Line Items] | |
Land properties collateralized with loan | Property | 1 |
Mortgage loan amount | $ | $ 27 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Stock Ownership Plan (ESOP), Plan | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 161,369 | 0 |
Unearned Employee Stock Ownership Plan Shares | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 87,548 | 91,368 |
Restricted Shares | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 3,603 | 0 |
Earnings (Loss) Per Share - Wei
Earnings (Loss) Per Share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 1,124 | $ (177) |
Weighted average shares outstanding, basic | 13,038,593 | 4,776,800 |
Dilutive shares: | ||
Weighted average shares outstanding, dilutive | 13,106,214 | 4,776,800 |
Basic and diluted earnings (loss) per share | $ 0.09 | $ (0.04) |
Stock Option | ||
Dilutive shares: | ||
Effect of dilutive securities | 67,596 | |
Restricted Shares | ||
Dilutive shares: | ||
Effect of dilutive securities | 25 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |
Conditional age-1 for availing plan | 55 years |
Conditional age-2 for availing plan | 65 years |
Conditional years of service -1 for availing plan | 10 years |
Conditional years of service-2 for availing plan | 5 years |
Gain on curtailment of post-retirement benefit plan | $ 352,000 |
Pension Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | 0 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | 6,000 |
Employer contribution | 2,000 |
Gain on curtailment of post-retirement benefit plan | $ 352,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic (Benefit) Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Curtailment gain (at 3/1/2018) | $ (352) | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | 23 | $ 31 |
Expected return on plan assets | (38) | (45) |
Settlement loss | 46 | 13 |
Amortization of net gain | 13 | |
Recognized net actuarial loss | 19 | |
Net periodic cost (benefit) | 44 | 18 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 1 | 5 |
Interest cost | 1 | 5 |
Amortization of net gain | (7) | (2) |
Curtailment gain (at 3/1/2018) | (352) | |
Net periodic cost (benefit) | $ (357) | $ 8 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | May 28, 2015USD ($) | Mar. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Federal Home Loan Bank advances | $ 60,000,000 | $ 70,000,000 | [1] | ||
Number of FHLB debt advances | Loan | 2 | 2 | |||
Immediate available credit | $ 175,600,000 | ||||
Total line of credit | $ 241,600,000 | ||||
Current Interest Rate | 2.04% | ||||
Virginia BanCorp | |||||
Debt Instrument [Line Items] | |||||
Debt acquired in merger | $ 1,100,000 | $ 1,100,000 | |||
Debt instrument, maturity date range, start | Mar. 1, 2019 | ||||
Debt instrument, maturity date range, end | Dec. 31, 2027 | ||||
Four ESOP Notes | Virginia BanCorp | |||||
Debt Instrument [Line Items] | |||||
Current Interest Rate | 3.25% | ||||
One ESOP Notes | Virginia BanCorp | |||||
Debt Instrument [Line Items] | |||||
Current Interest Rate | 4.50% | ||||
Subordinated Debt Due May 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 7,000,000 | ||||
Current Interest Rate | 6.50% | ||||
Debt instrument, maturity date | May 28, 2025 | ||||
Debt instrument, frequency of payment | First of March and September of each year, commencing September 1, 2015 | ||||
Debt instrument integral multiple principal amount | $ 1,000 | ||||
Debt instrument redemption period start date | May 28, 2020 | ||||
Aggregate carrying value of notes, including capitalized debt issuance cost | $ 6,900,000 | $ 6,900,000 | |||
Effective interest rate | 6.86% | 6.82% | |||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Borrowings - Advances of Debt (
Borrowings - Advances of Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | [1] | |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 60,000 | $ 70,000 | |
Current Interest Rate | 2.04% | ||
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances, Non current | $ 10,000 | ||
Originated | Apr. 12, 2013 | ||
Current Interest Rate | 4.10% | ||
Maturity Date | Apr. 13, 2020 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Two | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances, Current | $ 50,000 | ||
Originated | Mar. 5, 2018 | ||
Current Interest Rate | 1.63% | ||
Maturity Date | Apr. 2, 2018 | ||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Mortgage Servicing Rights | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018Loan$ / Loan | Dec. 31, 2017$ / Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of portfolio | 2 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | Loan | 14 | |
Service costs assumed, per loan | $ / Loan | 6.50 | 6.50 |
Average PSA assumed rate | 131.00% | 150.00% |
Discount rate | 13.00% | 13.00% |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 100% PSA | First Month | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 0.00% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 100% PSA | Between First Month and Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate increase, each month | 0.20% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 100% PSA | Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 100% PSA | Thereafter | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Available-for-sale securities: | |||
Available-for-sale securities | $ 75,434 | $ 77,153 | [1] |
Mortgage servicing rights | 930 | 999 | [1] |
US Government Agencies Agencies and Mortgage Backed Securities | |||
Available-for-sale securities: | |||
Available-for-sale securities | 47,622 | 49,283 | |
State and Municipal Obligations | |||
Available-for-sale securities: | |||
Available-for-sale securities | 20,697 | 21,153 | |
Corporate Bonds | |||
Available-for-sale securities: | |||
Available-for-sale securities | 7,115 | 6,717 | |
Fair Value, Inputs, Level 2 | |||
Available-for-sale securities: | |||
Available-for-sale securities | 68,319 | 70,436 | |
Fair Value, Inputs, Level 2 | US Government Agencies Agencies and Mortgage Backed Securities | |||
Available-for-sale securities: | |||
Available-for-sale securities | 47,622 | 49,283 | |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | |||
Available-for-sale securities: | |||
Available-for-sale securities | 20,697 | 21,153 | |
Fair Value, Inputs, Level 3 | |||
Available-for-sale securities: | |||
Available-for-sale securities | 7,115 | 6,717 | |
Mortgage servicing rights | 930 | 999 | |
Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Available-for-sale securities: | |||
Available-for-sale securities | $ 7,115 | $ 6,717 | |
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Mortgage Servicing Rights | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 999 |
Fair value adjustments | (69) |
Sales | 0 |
Ending balance | 930 |
Corporate Bonds | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 6,717 |
Purchases | 400 |
Fair value adjustments | (2) |
Sales | 0 |
Ending balance | $ 7,115 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 3,803 | $ 3,491 |
Other real estate owned | 2,593 | 4,284 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,803 | 3,491 |
Other real estate owned | $ 2,593 | $ 4,284 |
Fair Value Measurements - Sum66
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | $ 3,803 | $ 3,491 |
Other real estate owned | $ 2,593 | $ 4,284 |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Discount rate | 5.00% | |
Minimum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Discount rate | 5.00% | |
Unobservable Input, Selling Cost | 10.00% | 6.00% |
Unobservable Input, Lack of Marketability | 50.00% | 50.00% |
Minimum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 3.00% | 3.00% |
Unobservable Input, Lack of Marketability | 10.00% | 10.00% |
Maximum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Discount rate | 6.00% | |
Unobservable Input, Selling Cost | 20.00% | 20.00% |
Unobservable Input, Lack of Marketability | 100.00% | 90.00% |
Maximum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 13.00% | 13.00% |
Unobservable Input, Lack of Marketability | 100.00% | 100.00% |
Weighted Average | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Discount rate | 6.00% | |
Unobservable Input, Selling Cost | 15.00% | 16.00% |
Unobservable Input, Lack of Marketability | 68.00% | 65.00% |
Weighted Average | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 6.00% | 8.00% |
Unobservable Input, Lack of Marketability | 15.00% | 16.00% |
Fair Value Measurements - Sum67
Fair Value Measurements - Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Financial Assets: | |||
Cash and due from banks | $ 7,774 | $ 9,396 | [1] |
Interest-bearing deposits | 52,564 | 41,971 | [1] |
Certificates of deposit | 3,224 | 3,224 | [1] |
Federal funds sold | 3,358 | 6,961 | [1] |
Restricted securities | 5,510 | 5,787 | [1] |
Loans receivable, net | 782,965 | 758,726 | [1] |
Loans held for sale | 414 | 1,651 | [1] |
Accrued interest receivable | 2,844 | 3,194 | [1] |
Financial Liabilities: | |||
Noninterest-bearing liabilities | 124,572 | 103,037 | [1] |
Savings and interest-bearing demand deposits | 299,216 | 299,820 | [1] |
Time deposits | 373,163 | 358,989 | [1] |
Securities sold under repurchase agreements | 6,551 | 9,498 | [1] |
FHLB advances | 60,000 | 70,000 | [1] |
Subordinated notes | 6,881 | 6,877 | [1] |
Financial Assets: | |||
Cash and due from banks | 7,774 | 9,396 | |
Interest-bearing deposits | 52,564 | 41,971 | |
Certificates of deposit | 3,224 | 3,224 | |
Federal funds sold | 3,358 | 6,961 | |
Restricted securities | 5,510 | 5,787 | |
Loans receivable, net | 770,564 | 774,099 | |
Loans held for sale | 414 | 1,651 | |
Accrued interest receivable | 2,844 | 3,194 | |
Financial Liabilities: | |||
Noninterest-bearing liabilities | 124,572 | 103,037 | |
Savings and interest-bearing demand deposits | 299,216 | 299,820 | |
Time deposits | 373,809 | 356,450 | |
Securities sold under repurchase agreements | 6,551 | 9,498 | |
FHLB advances | 60,422 | 70,486 | |
Subordinated notes | 7,055 | 7,000 | |
Fair Value, Inputs, Level 1 | |||
Financial Assets: | |||
Cash and due from banks | 7,774 | 9,396 | |
Interest-bearing deposits | 52,564 | 41,971 | |
Federal funds sold | 3,358 | 6,961 | |
Financial Liabilities: | |||
Noninterest-bearing liabilities | 124,572 | 103,037 | |
Fair Value, Inputs, Level 2 | |||
Financial Assets: | |||
Certificates of deposit | 3,224 | 3,224 | |
Restricted securities | 5,510 | 5,787 | |
Loans held for sale | 414 | 1,651 | |
Financial Liabilities: | |||
Savings and interest-bearing demand deposits | 299,216 | 299,820 | |
Time deposits | 373,809 | ||
Securities sold under repurchase agreements | 6,551 | 9,498 | |
FHLB advances | 60,422 | 70,486 | |
Subordinated notes | 7,055 | ||
Fair Value, Inputs, Level 3 | |||
Financial Assets: | |||
Loans receivable, net | 770,564 | 774,099 | |
Accrued interest receivable | $ 2,844 | 3,194 | |
Financial Liabilities: | |||
Time deposits | 356,450 | ||
Subordinated notes | $ 7,000 | ||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Changes in Accumulated Other 68
Changes in Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) Net of Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | [1] | $ 114,554 | |
Change in net unrealized holding loss on available for sale securities | (944) | $ 30 | |
Balance at end of period | 114,919 | ||
Net Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (489) | ||
Change in net unrealized holding loss on available for sale securities | (944) | ||
Balance at end of period | (1,433) | ||
Pension and Post-retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (667) | ||
Balance at end of period | (667) | ||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (1,156) | ||
Change in net unrealized holding loss on available for sale securities | (944) | ||
Balance at end of period | $ (2,100) | ||
[1] | Derived from the audited December 31, 2017 Consolidated Financial Statements. |
Changes in Accumulated Other 69
Changes in Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) Net of Taxes (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Change in net unrealized holding loss on available for sale securities, tax benefit | $ (248) | $ 13 |
Net Unrealized Gains (Losses) on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Change in net unrealized holding loss on available for sale securities, tax benefit | $ (248) |