Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 13,199,934 | ||
Entity Public Float | $ 115,051,387 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Cash and due from banks | $ 7,685 | $ 9,396 | |
Interest-earning deposits | 18,981 | 41,971 | |
Certificates of deposit | 3,746 | 3,224 | |
Federal funds sold | 625 | 6,961 | |
Securities available-for-sale, at fair value | 82,232 | 77,153 | |
Restricted securities | 7,600 | 5,787 | |
Loans receivable, net of allowance for loan losses of $7,902 and $7,770, respectively | 894,191 | 758,726 | |
Loans held for sale | 368 | 1,651 | |
Premises and equipment, net | 18,169 | 17,463 | |
Accrued interest receivable | 3,172 | 3,194 | |
Other real estate owned, net | 3,597 | 4,284 | |
Bank owned life insurance | 19,270 | 18,773 | |
Goodwill | 10,374 | 10,374 | |
Mortgage servicing rights | 977 | 999 | |
Intangible | 3,170 | 3,990 | |
Deferred tax asset, net | 1,510 | 2,342 | |
Other assets | 5,927 | 5,267 | |
Total assets | 1,080,617 | 970,556 | |
LIABILITIES | |||
Noninterest-bearing deposits | 114,122 | 103,037 | |
Savings and interest-bearing demand deposits | 359,400 | 299,820 | |
Time deposits | 368,670 | 358,989 | |
Total deposits | 842,192 | 761,846 | |
Securities sold under repurchase agreements | 6,089 | 9,498 | |
Federal Home Loan Bank advances | 100,000 | 70,000 | |
Subordinated notes, net of unamortized issuance costs | 6,893 | 6,877 | |
Other liabilities | 7,967 | 7,781 | |
Total liabilities | 963,141 | 856,002 | |
SHAREHOLDERS’ EQUITY | |||
Common stock ($5 par value; authorized - 30,000,000 shares; outstanding - 13,201,682 and 13,203,605 shares, respectively) | [1] | 66,008 | 66,018 |
Additional paid-in capital | 36,972 | 37,142 | |
Unearned employee stock ownership plan shares | (1,734) | (1,129) | |
Retained earnings | 17,557 | 13,679 | |
Accumulated other comprehensive loss, net | (1,327) | (1,156) | |
Total shareholders’ equity | 117,476 | 114,554 | |
Total liabilities and shareholders’ equity | 1,080,617 | 970,556 | |
Core Deposits | |||
ASSETS | |||
Intangible | $ 2,193 | $ 2,991 | |
[1] | Preferred stock is authorized; however, none was outstanding as of December 31, 2018 and 2017. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 7,902 | $ 7,770 |
Common stock, par value | $ 5 | $ 5 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, outstanding shares | 13,201,682 | 13,203,605 |
Preferred stock, outstanding shares | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | ||
Loans, including fees | $ 40,752 | $ 31,330 |
Securities: | ||
Taxable | 1,961 | 1,399 |
Tax-exempt | 475 | 423 |
Federal funds sold | 234 | 164 |
Interest-bearing deposit accounts | 311 | 310 |
Certificates of deposit | 70 | 74 |
Total interest income | 43,803 | 33,700 |
INTEREST EXPENSE | ||
Deposits | 7,992 | 4,513 |
Federal funds purchased | 11 | |
Securities sold under repurchase agreements | 13 | 15 |
Subordinated notes | 513 | 482 |
Federal Home Loan Bank advances | 1,707 | 980 |
Total interest expense | 10,225 | 6,001 |
Net interest income | 33,578 | 27,699 |
Provision for loan losses | 1,351 | 4,934 |
Net interest income after provision for loan losses | 32,227 | 22,765 |
NONINTEREST INCOME | ||
Secondary market sales and servicing | 659 | 469 |
Increase in cash surrender value of bank owned life insurance | 497 | 473 |
Net gains on sale of available-for-sale securities | 2 | |
Net losses on disposition of other assets | (7) | (220) |
Gain on curtailment of post-retirement benefit plan | 352 | |
(Loss) gain on rabbi trust assets | (138) | 180 |
Other | 165 | 54 |
Total noninterest income | 4,303 | 3,507 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 16,233 | 13,403 |
Occupancy | 3,682 | 2,735 |
Data processing | 2,531 | 1,258 |
Bank franchise tax | 726 | 533 |
Telecommunications | 512 | 308 |
FDIC assessments | 719 | 580 |
Foreclosed property | 175 | 147 |
Consulting | 1,098 | 665 |
Advertising and marketing | 439 | 664 |
Directors’ fees | 561 | 444 |
Audit and accounting | 1,129 | 746 |
Legal | 500 | 128 |
Merger-related | 363 | 1,976 |
Core deposit intangible amortization | 798 | 679 |
Net other real estate owned (gains) losses | (107) | 221 |
Other | 2,760 | 2,260 |
Total noninterest expenses | 32,119 | 26,747 |
Income (loss) before income taxes | 4,411 | (475) |
Income tax expense | 533 | 797 |
Net income (loss) | $ 3,878 | $ (1,272) |
Basic and diluted earnings (loss) per share | $ 0.30 | $ (0.14) |
Income from Fiduciary Activities | ||
NONINTEREST INCOME | ||
Non-Interest Income | $ 710 | $ 904 |
Service Charges and Fees on Deposit Accounts | ||
NONINTEREST INCOME | ||
Non-Interest Income | 768 | 900 |
Wealth Management | ||
NONINTEREST INCOME | ||
Non-Interest Income | 842 | 370 |
Interchange Fees, Net | ||
NONINTEREST INCOME | ||
Non-Interest Income | 339 | 230 |
Other Service Charges and Fees | ||
NONINTEREST INCOME | ||
Non-Interest Income | $ 116 | $ 145 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net income (loss) | $ 3,878 | $ (1,272) |
Unrealized gain (loss) on available-for-sale securities: | ||
Net unrealized holding (loss) gain arising during the period | (966) | 144 |
Deferred tax benefit (expense) | 203 | (30) |
Reclassification of net available-for-sale securities gain in net income (loss) | (2) | |
Unrealized (loss) gain on available-for-sale securities, net of tax | (763) | 112 |
Defined benefit plan: | ||
Total other comprehensive (loss) income | (171) | 267 |
Comprehensive income (loss) | 3,707 | (1,005) |
Pension Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net pension/post retirement gain | 739 | 130 |
Deferred tax (expense) benefit | (155) | (45) |
Defined benefit pension plan/ post retirement plan adjustment, net of tax | 584 | 85 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined benefit plan: | ||
Net pension/post retirement gain | 10 | 109 |
Deferred tax (expense) benefit | (2) | (39) |
Defined benefit pension plan/ post retirement plan adjustment, net of tax | $ 8 | $ 70 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Unearned Employee Stock Ownership Plan Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss), net |
Balance at beginning of period at Dec. 31, 2016 | $ 41,705 | $ 23,874 | $ 2,872 | $ 16,194 | $ (1,235) | |
Balance at beginning of period, Shares at Dec. 31, 2016 | 4,774,856 | |||||
Net income (loss) | (1,272) | (1,272) | ||||
Other comprehensive income, net | 267 | 267 | ||||
Dividends paid | (1,431) | (1,431) | ||||
Issuance of common stock in connection with the Merger | 42,245 | $ 22,931 | 20,225 | $ (911) | ||
Issuance of common stock in connection with the Merger,shares | 4,586,221 | |||||
Shares issued via private placement, net of issuance costs | 32,805 | $ 18,919 | 13,886 | |||
Shares issued via private placement, net of issuance costs,shares | 3,783,784 | |||||
Tax Cuts and Jobs Act of 2017, reclassification of tax effect | 188 | (188) | ||||
Stock options exercised | $ 254 | $ 217 | 37 | |||
Stock options exercised, Shares | 43,244 | 43,244 | ||||
Restricted stock awards | $ 77 | (77) | ||||
Restricted stock awards,shares | 15,500 | |||||
ESOP loan collateral | $ (351) | (351) | ||||
ESOP collateral release | 133 | 133 | ||||
Share-based compensation expense | 199 | 199 | ||||
Balance at end of period at Dec. 31, 2017 | $ 114,554 | $ 66,018 | 37,142 | (1,129) | 13,679 | (1,156) |
Balance at end of period, Shares at Dec. 31, 2017 | 13,203,605 | 13,203,605 | ||||
Net income (loss) | $ 3,878 | 3,878 | ||||
Other comprehensive income, net | (171) | (171) | ||||
Stock options exercised | $ 149 | $ 127 | 22 | |||
Stock options exercised, Shares | 25,491 | 25,491 | ||||
Director stock grant | $ 125 | $ 63 | 62 | |||
Director stock grant, Shares | 12,620 | |||||
Restricted stock awards | $ 75 | (75) | ||||
Restricted stock awards,shares | 15,000 | |||||
Shares repurchased pursuant to ESOP | (556) | $ (275) | (281) | |||
Shares repurchased pursuant to ESOP,shares | (55,034) | |||||
ESOP loan collateral | (770) | (770) | ||||
ESOP collateral release | 165 | 165 | ||||
Share-based compensation expense | 102 | 102 | ||||
Balance at end of period at Dec. 31, 2018 | $ 117,476 | $ 66,008 | $ 36,972 | $ (1,734) | $ 17,557 | $ (1,327) |
Balance at end of period, Shares at Dec. 31, 2018 | 13,201,682 | 13,201,682 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ 3,878 | $ (1,272) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,644 | 1,435 |
Net premium amortization on available-for-sale securities | 240 | 411 |
Amortization of subordinated notes issuance costs | 16 | 17 |
Amortization of core deposit intangible | 798 | 679 |
Accretion of fair value adjustment on acquired time deposits | (186) | (307) |
Accretion of fair value adjustments (discounts) on acquired loans | (1,759) | (1,907) |
Provision for loan losses | 1,351 | 4,934 |
Share-based compensation expense | 102 | 199 |
Deferred income tax expense | 846 | 435 |
Gain on sale of securities available-for-sale | (2) | |
(Decrease) increase in other real estate owned valuation allowance | 21 | 245 |
(Gain) loss on sale of other real estate owned | (128) | (23) |
Loss on disposal of fixed assets | 7 | 220 |
Decrease (increase) in value of mortgage servicing rights | 22 | (4) |
Originations of loans held for sale (HFS) | (21,451) | (13,446) |
Proceeds from HFS loan sales | 23,111 | 12,545 |
Gain on HFS sold loans | (377) | (473) |
Increase in cash surrender value of bank owned life insurance | (497) | (473) |
Gain on curtailment of post-retirement benefit plan | (352) | |
Increase in accrued interest receivable and other assets | (616) | (2,077) |
Increase in other liabilities | 685 | 2,502 |
Net cash provided by operating activities | 7,355 | 3,638 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 4,365 | 3,911 |
Proceeds from sales and calls of available-for-sale securities | 17,937 | |
(Maturities) purchases of certificates of deposit | (522) | 992 |
Purchases of available-for-sale securities | (10,650) | (25,979) |
Purchases of restricted securities, net | (1,813) | (1,595) |
Decrease (increase) in federal funds sold | 6,336 | (4,611) |
Net increase in loans | (137,562) | (114,261) |
Cash acquired in the merger with Virginia BanCorp, Inc. | 14,698 | |
Proceeds from sale of other real estate owned | 3,299 | 1,193 |
Proceeds from sale of premises and equipment | 9 | |
Net purchases of premises and equipment | (2,350) | (2,237) |
Net cash used in investing activities | (138,897) | (109,943) |
Cash Flows From Financing Activities | ||
Increase in demand, savings, and other interest-bearing deposits | 70,665 | 3,430 |
Net increase in time deposits | 9,867 | 109,074 |
Stock options exercised | 149 | 254 |
Net decrease in securities sold under repurchase agreements | (3,409) | (8,812) |
Director stock grant | 125 | |
(Purchases) issuance of common stock, net | (556) | 32,805 |
Dividends paid | (1,431) | |
Increase in Federal Home Loan Bank advances | 30,000 | 10,000 |
Net cash provided by financing activities | 106,841 | 145,320 |
Net (decrease) increase in cash and cash equivalents (including interest-earning deposits | (24,701) | 39,015 |
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 | 26,666 | 51,367 |
Cash paid for: | ||
Interest | 10,060 | 6,003 |
Income taxes | 800 | 420 |
Non-cash investing and financing: | ||
Unrealized (loss) gain on available-for-sale securities | (966) | 142 |
Change in fair value of pension and post-retirement benefit plan obligation | 749 | 239 |
Loans transferred to other real estate owned | 2,505 | 294 |
Loans originated to facilitate sale of other real estate owned | 190 | |
Employee stock ownership plan transactions | $ 605 | $ 218 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Note 1. Organization 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 (the “Financial Group” or “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, the Financial Group, and Steptoes Holdings. Virginia Commonwealth Bank is a state-chartered bank, headquartered in Richmond, Virginia, and a member of the Federal Reserve System. It serves businesses, professionals, and consumers through 19 banking offices located in the Northern Neck and Middle Peninsula areas of Virginia, the greater Richmond area of central Virginia, and Suffolk and Virginia Beach in the Hampton Roads area of eastern Virginia. The Bank offers a wide range of deposit and loan products to its retail and commercial customers. A substantial amount of the Bank’s deposits are interest-bearing. The majority of the Bank’s loan portfolio is secured by real estate. The Financial Group provides management services for personal and corporate trusts, including estate planning, estate settlement, and trust administration, and investment and wealth management services from its Richmond and Kilmarnock, Virginia offices. Products and services include revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment planning, brokerage services, investment managed accounts, and managed, as well as self-directed, individual retirement accounts. On April 1, 2017, the Company completed its 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. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred income taxes, impairment testing of goodwill, projected pension and post-retirement benefit plan obligations, and fair value measurements. Cash and Cash Equivalents Cash and cash equivalents are carried at cost and mature within ninety days of the balance sheet date. For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks and interest-earning deposits, including deposits with the Federal Reserve Bank of Richmond. Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available for sale, or trading, based on management’s intent and ability. Currently, all of the Company’s investment securities are debt securities and are classified as available for sale. Securities available for sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). A gain or loss on sale is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. GAAP states the trade date is the date on which a purchase or sale of a security is to be recognized; however, the Company’s policy is to recognize the transaction upon the movement of cash (i.e., settlement date) and believes there is no material difference between the two methods. Purchase premiums and discounts are recognized in interest income, using the interest method over the terms of the respective securities. Impairment of an investment security occurs when the fair value of a security is less than its amortized cost as of the balance sheet date and the value of the security is not expected to be recovered. For debt securities, impairment is considered an other-than-temporary impairment (“OTTI”) and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security; or (iii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). The Company regularly reviews each investment security for OTTI based on criteria that include the extent to which cost exceeds fair value, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 22. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the value of the underlying cash. The Company pledges certain investment securities to satisfy its collateral requirements. Loans The Company offers mortgage loans on real estate, commercial and industrial loans, and consumer loans. A substantial portion of the Company’s loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s borrowers to honor their loan agreements is dependent upon their ability to generate sufficient cash flow (business or personal), the value of the underlying collateral (e.g., real estate), and/or the general economic conditions in the Company’s market areas. 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 discounts or premiums on acquired or purchased loans. Interest on loans is recognized into earnings over the contractual term of the loan and is calculated using the interest method on principal amounts outstanding. Loan 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 or principal curtailments, as applicable. The accounting for discounts and premiums on acquired or purchased loans differs if the loans were designated purchased-credit impaired or purchased performing as of the acquisition date, as described below. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if the credit is well secured and in process of collection. Consumer loans are typically charged off no later than when 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans, including impaired loans, with the exception of purchased-credit impaired (“PCI”) loans as discussed below. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off are reversed against interest income. Any subsequent interest received on these loans is recognized as interest income under the cash basis method of accounting until qualifying for return to accrual status. Generally, a loan is returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, or the loan becomes well-secured and in process of collection. Loans Acquired in a Business Combination The Company accounts for loans acquired in a business combination in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations Receivables-Nonrefundable Fees and Other Costs Loans and Debt Securities Acquired with Deteriorated Credit Quality PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. When determining estimated fair value at acquisition, PCI loans were aggregated into pools of loans based on common characteristics such as loan type, date of origination, and evidence of credit quality deterioration such as internal risk grades and past due and nonaccrual status. The Company must then estimate the amount and timing of expected cash flows for each loan pool, and the expected cash flows in excess of the estimated fair value is recorded as interest income over the remaining life of the loan pool as accretable yield. These estimates include certain prepayment assumptions based on the nature of each loan pool. The excess of the loan pools contractual principal and interest payments over expected future cash flows is not recorded (nonaccretable difference). Over the life of the loan pool, expected future cash flows continue to be estimated on a periodic basis. If the present value of expected future cash flows is less than the carrying amount, an impairment is recorded as a provision for loan losses. If the present value of expected future cash flows is greater than the carrying amount, the respective loan pool’s yield is adjusted and the additional income is recognized prospectively into earnings over the loan pool’s remaining life. Loans not designated as PCI loans as of the acquisition date were designated as PPL. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion or premium amortization based on the acquired loans’ contractual cash flows. Purchased performing loans were recorded at estimated fair value, including a credit-related discount and a discount or premium for differences in interest rates of the acquired loans compared to market rates for similar loans as of the acquisition date. The fair value discount or premium is accreted as an adjustment to yield over the remaining contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing or PCI loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to acquisition. Troubled Debt Restructurings (“TDR”) In some situations, for economic or legal reasons related to a borrower’s financial condition, the Company may grant a concession to a borrower that it would not otherwise consider. Concessions include new terms that provide for a reduction of the face amount or maturity amount of the debt as stated in the original agreement, a reduction (absolute or contingent) of the stated interest rate for the remaining original life of the loan, and/or an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. Concessions granted to a borrower experiencing financial difficulties results in a loan that is subsequently 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 to minimize the economic loss and to avoid foreclosure or repossession of underlying collateral, if any. Management assesses all TDRs for impairment as noted below for impaired loans. Loan Risk Ratings Loans in the Company’s loan portfolio are risk rated on a periodic basis by experienced credit personnel. For non-homogenous loans, management reviews these resulting grade assignments and makes adjustments to the final grade where appropriate based on an assessment of additional external information that may affect a particular loan. Risk rating categories are as follows: Pass – Borrower is strong or sound, and collateral securing the loan, if any, is adequate. Watch – Borrower exhibits some signs of financial stress but is generally believed to be a satisfactory customer, and collateral, if any, may be in excess of 90% of the loan balance. Special Mention – Adverse trends in the borrower’s financial position are evident and warrant management’s close attention. Any collateral may not be fully adequate to secure the loan balance. Substandard – A loan in this category has a well-defined weakness in the primary repayment source that jeopardizes the timely collection of the debt. There is a distinct possibility that a loss may result if the weakness is not corrected. Doubtful – Default has already occurred and it is likely that foreclosure or repossession procedures have begun or will begin in the near future. Weaknesses make collection or liquidation in full, based on currently existing information, highly questionable and improbable. Loss – Uncollectible and of such little value that continuance as an asset is not warranted. Allowance for Loan Losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the loan portfolio as of the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter-end. To determine the total ALL, the Company estimates the reserves needed for each homogenous type of the loan portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each type, 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 individually for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as TDRs. For the general component of the ALL, the Company collectively evaluates any loans not evaluated individually for a specific reserve, including impaired loans risk rated Substandard or worse with balances less than $400 thousand. All loans evaluated collectively are grouped into types, and historical loss experience is calculated and applied to each loan type and the resultant reserve is 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 types. An unallocated component is maintained, if needed, to cover uncertainties that could affect management’s estimate of probable losses. The specific component of the ALL includes the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Generally, impaired loans are placed on nonaccrual status if they meet the conditions as outlined above in the Loans The general component of the ALL calculation collectively evaluates groups of loans by types, as noted above. The types are: (1) mortgage loans on real estate; (2) commercial and industrial loans; and (3) consumer and other loans. The type for mortgage loans on real estate is disaggregated into the following types: (a) construction, land and land development; (b) farmland; (c) residential first mortgages; (d) residential revolving and junior mortgages; (e) commercial mortgages (non-owner-occupied); and (f) commercial mortgages (owner-occupied). Historical loss factors are calculated for the prior 20 quarters by loan type, and then applied to the current balances in each loan grouping. Finally, qualitative factors are applied to each type, as applicable. Construction and land development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor or developer may face financial pressure unrelated to the project. Loans secured by land, farmland, and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate, which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by unemployment, personal illness, bankruptcy, or divorce of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral values. Consumer loans include loans and debt consolidation loans purchased from third parties. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs to the ALL result from credit exposures deemed to be uncollectible. Loans are considered uncollectible when: (1) no regularly scheduled payment has been made within 120 days, and; (2) the loan is unsecured or; (3) the borrower files for bankruptcy protection and there is no other financial support or guarantee from an entity outside of the bankruptcy proceedings (e.g., guarantor). As soon as any loan becomes uncollectible, the Company’s charge-off policy is based on whether the loan is unsecured or secured. If the loan is unsecured, the loan is charged-off in full. If the loan is secured, the outstanding principal balance of the loan is charged down to the net realizable value of the underlying collateral if the loan is collateral dependent. If the loan is not collateral dependent, the charge-off is based on management’s calculation of the net present value of future cash flows. Recoveries of previously charged-off amounts are credited to the ALL. The summation of the specific, general, and unallocated components results in the ALL. The ALL is inherently subjective and actual losses could be greater or less than estimated. Further, changes in the ALL and the related provision expense can materially affect net income. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALL. Such agencies may require the Company to recognize additions or reductions to the allowance for loan losses based on their judgments of information available to them at the time of their examination. Mortgage Servicing Rights (“MSRs”) MSR assets represent a contractual agreement where the rights to service an existing mortgage are sold by the original lender to another party who specializes in the various functions of servicing mortgages. MSRs are included on the consolidated balance sheets and are recorded at fair value. Changes in the fair value of the MSRs are recorded in the consolidated statements of operations. Premises and Equipment, net Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10 to 40 years for buildings, and from 3 to 10 years for furniture, fixtures, and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. Other Real Estate Owned, net Other real estate owned (“OREO”), net of a valuation allowance, is reported on the consolidated balance sheets at the lower of cost or market. Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at fair value on the date of foreclosure less estimated selling costs. Upon acquisition (transfer), if the fair value of the property less estimated selling costs is less than the recorded investment of the loan, the difference is recorded as a charge-off to the ALL. Conversely, if upon transfer, the fair value of the property less estimated selling costs is in excess of the recorded investment of the loan, the difference is recorded as gain in noninterest expense on the consolidated statements of operations. Subsequent declines in the fair value of OREO below its initial cost basis are recorded as valuation allowance against OREO and to noninterest expense. Revenue and expenses related to the operation or maintenance of foreclosed properties are included in expenses from foreclosed property in noninterest expense on the consolidated statements of operations. Finally, any gain or loss resulting from the sale or disposition of OREO is included in the net other real estate owned (gains) loss line item in noninterest expenses on the consolidated statements of operations. Goodwill and Intangible Assets Goodwill is an indefinite life intangible asset that represents the excess of the consideration paid or purchase price for an acquired entity over the fair value of the identifiable net assets acquired. The Company’s goodwill resulted from the merger with Virginia BanCorp, Inc. on April 1, 2017 and from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested for potential impairment on an annual basis in accordance with ASC 350, Intangibles-Goodwill and Other Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s consolidated balance sheets. The core deposit intangible asset resulting from the merger with Virginia BanCorp, Inc. is the only intangible asset with a definite useful life and is being amortized over 92 months from the date of the merger on an accelerated basis using the sum of years’ digits method. Long-lived assets, including purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management concluded that no circumstances indicating an impairment of these assets existed as of December 31, 2018. Income Taxes Income taxes are accounted for using the balance sheet method in accordance with ASC 740, Accounting for Income Taxes When the Company’s federal tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The Company evaluates its net deferred tax asset on a quarterly basis to determine if it is more-likely-than-not those assets will be recovered and if a valuation allowance is needed. As of December 31, 2018, the Company determined no valuation allowance related to its net deferred tax asset was necessary, as the expectation is that the Company will generate sufficient taxable income in future years to absorb all of its deferred tax assets. Employee Benefit Plans The Company has a noncontributory cash balance benefit pension plan, which was frozen in 2012. The plan covers employees who had become vested in the plan as of the date it was frozen. The Company also sponsored a post-retirement benefit plan covering eligible retirees’ medical and life insurance benefits. This plan was also frozen to new employees as of March 1, 2018. The Company accounts for both its pension and post-retirement benefit plans in accordance with ASC 715, Compensation-Retirement Benefits. The Company also sponsors an Employee Stock Ownership Plan (“ESOP”) and a 401(k) retirement plan for the benefit of all eligible employees. Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards. Shares allocated to participants of the Company’s ESOP and unallocated shares, which collateralize ESOP borrowings but that are committed to be released are also included in basic and diluted average shares outstanding. However, shares held by the ESOP, which collateralize ESOP borrowings and that are not committed to be released, are excluded from both basic and diluted average shares outstanding. Off-balance-sheet Financial Instruments In the ordinary course of business, the Bank enters into off-balance-sheet financial agreements such as construction loan commitments, home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, working capital loan commitments, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are recognized. Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”), which is life insurance purchased by the Bank on a selected group of employees. The Bank is the owner and primary beneficiary of the policies. BOLI is recorded in the Company’s consolidated balance sheets at the cash surrender value of the underlying policies. Earnings from the increase in cash surrender value of the policies are included in noninterest income on the consolidated statements of operations. The Bank has rights under the insurance contracts to redeem them for cash surrender value at any time; however, a redemption not upon the occurrence of death is subject to taxation. Share-based Compensation Plans The Company accounts for its share-based compensation plan awards for employees and directors in accordance with ASC 718, Compensation-Stock Compensation. Recent Accounting In June 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-07, Compensation – Stock Compensation (ASC 718). Revenue from Contracts with Customers In March 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (ASC 718). In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (ASC 310-20), Premium Amortization on Purchased Callable Debt Securities. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (ASC 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 (ASC 350): Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (ASC 326), In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (ASC 825-10) In May 2014, the FASB issued ASC 2014-09, Revenue from Contracts with Customers (ASC 606). Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Note 3. Business Combinations 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 (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, 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 ASC 805, Business Combinations The following table details the total consideration paid by the Company in the Merger, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill. As Recorded by Virginia BanCorp Fair Value and Reclassification Adjustments 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 $ — $ 2,356 Interest-earning 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, net 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 Pro Forma Financial Information The table below illustrates the unaudited pro forma revenue and net income of the combined entities for the year ended December 31, 2017 had the Merger 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 $2.0 million were included in the Company’s actual consolidated statements of operations for the year ended December 31, 2017, but were excluded from the unaudited pro forma information below. Legacy Virginia BanCorp incurred $174 thousand of Merger-related expenses during the first three months of 2017, which was also excluded from the unaudited pro forma information below. Year Ended December 31, 2017 Net interest income $ 27,169 Net income 1,825 |
Cash Reserves
Cash Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash Reserves | Note 4. Cash Reserves To comply with regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the Bank is required to maintain certain average cash reserve balances. The daily average cash reserve requirement based on the weeks closest to December 31, 2018 and December 31, 2017 was $11.2 million and $13.5 million, respectively. The Bank was in compliance with this requirement as of December 31, 2018 and December 31, 2017. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 5. Securities The following table presents the aggregate amortized cost and fair values of available-for-sale securities as of dates stated. Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 51,126 $ 35 $ (1,279 ) $ 49,882 State and municipal obligations 20,484 60 (327 ) 20,217 Corporate bonds 12,194 23 (84 ) 12,133 Total available-for-sale securities $ 83,804 $ 118 $ (1,690 ) $ 82,232 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 securities $ 77,773 $ 224 $ (844 ) $ 77,153 The cost of a security sold is based on amortized cost at the time of the sale. The following table presents the gross realized gains and gross realized losses, as well as proceeds from sales and calls of available-for-sale securities, for the periods presented. For the Year Ended December 31, 2018 2017 Gross realized gains $ — $ 7 Gross realized losses — (5 ) Net realized gains $ — $ 2 Aggregate proceeds $ — $ 17,937 Securities with fair values of $17.5 million and $19.4 million were pledged as collateral for securities sold under repurchase agreements as of December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, all the securities pledged for repurchase agreements were state and municipal debt obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $6.1 million and $9.5 million as of December 31, 2018 and 2017, respectively, and are reported as 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 as of December 31, 2018 and 2017 are shown in the tables below by period of the unrealized loss. The unrealized loss positions were related to interest rate movements and not the credit quality of the issuers. All U.S. Government agency securities and state 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 December 31, 2018 included 54 U.S. government agencies and mortgage backed securities, 39 state and municipal obligations, and 5 corporate bonds. Securities with unrealized loss positions at December 31, 2017 included 36 U.S. government agencies and mortgage backed securities, 34 state and municipal obligations, and one corporate bond. The following tables provide additional information on these securities as of the dates stated. Less than 12 months 12 months or more Total December 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies and mortgage backed securities $ 2,911 $ (22 ) $ 43,843 $ (1,257 ) $ 46,754 $ (1,279 ) State and municipal obligations 2,723 (27 ) 9,119 (300 ) 11,842 (327 ) Corporate bonds 5,742 (84 ) — — 5,742 (84 ) Total temporarily impaired securities $ 11,376 $ (133 ) $ 52,962 $ (1,557 ) $ 64,338 $ (1,690 ) Less than 12 months 12 months or more Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies and mortgage backed securities $ 25,053 $ (353 ) $ 16,184 $ (334 ) $ 41,237 $ (687 ) State 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 available-for-sale securities as of the dates stated. Expected maturities may differ from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 1,080 $ 1,079 $ 3,583 $ 3,514 Due after one year but less than five years 47,065 46,358 37,747 37,425 Due after five years but less than ten years 26,615 26,149 28,441 28,250 Due after ten years 9,044 8,646 8,002 7,964 Total available-for-sale securities $ 83,804 $ 82,232 $ 77,773 $ 77,153 Restricted Securities The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $5.1 million and $3.7 million at December 31, 2018 and 2017, respectively, and are included in restricted securities on the consolidated balance sheets. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $2.3 million and $1.9 million at December 31, 2018 and 2017, respectively, and a stock investment in the Bank’s primary correspondent bank totaling $220 thousand at December 31, 2018 and 2017. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with 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. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks and the length of time a decline has persisted, commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank, and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of FHLB and FRB stock as of December 31, 2018. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | Note 6. Loans The following table presents the Company’s composition of loans as of the dates stated. December 31, 2018 December 31, 2017 Mortgage loans on real estate: Construction, land and land development $ 108,767 $ 66,042 Farmland 708 923 Commercial mortgages (non-owner occupied) 180,074 146,757 Commercial mortgages (owner occupied) 87,241 80,052 Residential first mortgages 298,894 269,365 Residential revolving and junior mortgages 38,313 46,498 Commercial and industrial 164,608 114,093 Consumer 23,740 42,566 Total loans 902,345 766,296 Net unamortized deferred loan (fees) costs (252 ) 200 Allowance for loan losses (7,902 ) (7,770 ) Loans receivable, net $ 894,191 $ 758,726 The following tables present the recorded investment for past due and nonaccrual loans as of the dates stated. A loan past due 90 days or more is generally placed on nonaccrual unless it is both well-secured and in the process of collection. Loans presented below as 90 days or more past due and still accruing include PCI loans. 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage loans on real estate: Construction, land and land development $ 552 — $ 740 $ 1,292 $ 107,475 $ 108,767 Farmland — — — — 708 708 Commercial mortgages (non-owner occupied) 50 — 996 1,046 179,028 180,074 Commercial mortgages (owner occupied) — 56 1,064 1,120 86,121 87,241 Residential first mortgages 1,341 55 1,361 2,757 296,137 298,894 Residential revolving and junior mortgages 115 — 782 897 37,416 38,313 Commercial and industrial — — 48 48 164,560 164,608 Consumer 329 — 215 544 23,196 23,740 Total loans $ 2,387 $ 111 $ 5,206 $ 7,704 $ 894,641 $ 902,345 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 occupied) 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 288 4 135 427 42,139 42,566 Total loans $ 5,021 $ 213 $ 6,496 $ 11,730 $ 754,566 $ 766,296 The following tables present an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of the dates stated, which are included in the tables above. 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage loans on real estate: Construction, land and land development $ 23 $ — $ — $ 23 $ 1,355 $ 1,378 Commercial mortgages (non-owner occupied) — — — — 142 142 Commercial mortgages (owner occupied) — 56 — 56 237 293 Residential first mortgages 92 55 — 147 3,317 3,464 Residential revolving and junior Mortgages — — — — — — Commercial and industrial — — — — — — Consumer — — — — 46 46 Total purchased credit-impaired loans $ 115 $ 111 $ — $ 226 $ 5,097 $ 5,323 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 $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial mortgages (non-owner occupied) — — — — 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 Commercial and industrial — — — — — — Consumer — 4 — 4 65 69 Total purchased credit-impaired loans $ 510 $ 165 $ — $ 675 $ 5,150 $ 5,825 The following table presents the changes in the accretable yield for PCI loans for the period stated. For the Year Ended December 31, 2018 Balance as of December 31, 2017 $ 1,087 Accretion of acquisition accounting adjustment (358 ) Reclassifications from nonaccretable balance, net (46 ) Other changes, net 400 Balance as of December 31, 2018 $ 1,083 The following tables present the Company’s risk rating of loans by loan type as of the dates stated. December 31, 2018 Construction, Land and Land Development Farmland Commercial Mortgages (Non-Owner Occupied) Commercial Mortgages (Owner Occupied) Residential First Mortgages Residential Revolving and Junior Mortgages Commercial and Industrial Consumer Total Loans Grade: Pass $ 100,299 $ 708 $ 174,661 $ 79,375 $ 280,663 $ 35,900 $ 158,590 $ 8,144 $ 838,340 Watch 6,299 — 4,275 6,522 14,709 1,306 3,802 15,245 52,158 Special mention 68 — — 107 1,071 — 893 121 2,260 Substandard 2,101 — 1,138 1,237 2,451 1,107 1,323 230 9,587 Doubtful — — — — — — — — — Total loans $ 108,767 $ 708 $ 180,074 $ 87,241 $ 298,894 $ 38,313 $ 164,608 $ 23,740 $ 902,345 December 31, 2017 Construction, Land and Land Development Farmland Commercial Mortgages (Non-Owner Occupied) Commercial Mortgages (Owner Occupied) Residential First Mortgages Residential Revolving and Junior Mortgages Commercial and Industrial Consumer Total Loans Grade: Pass $ 55,949 $ 923 $ 140,625 $ 67,732 $ 256,614 $ 43,659 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 5,931 10,076 8,624 1,376 2,373 29,917 64,987 Special mention 172 — — — 205 — 1,347 — 1,724 Substandard 3,231 — 201 2,244 3,922 1,463 92 218 11,371 Doubtful — — — — — — — — — Total loans $ 66,042 $ 923 $ 146,757 $ 80,052 $ 269,365 $ 46,498 $ 114,093 $ 42,566 $ 766,296 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 7. Allowance for Loan Losses The following tables present the allowance for loan losses and the amount of loans evaluated for impairment, individually and collectively, by loan type as of the dates stated. December 31, 2018 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 1,036 $ — $ 121 $ 1,157 Loans collectively evaluated for impairment 3,931 1,374 1,440 6,745 Purchased credit-impaired loans — — — — Total allowance on loan losses $ 4,967 $ 1,374 $ 1,561 $ 7,902 Loan balances applicable to: Loans individually evaluated for impairment $ 7,485 $ — $ 121 $ 7,606 Loans collectively evaluated for impairment 701,235 164,608 23,573 889,416 Purchased credit-impaired loans 5,277 — 46 5,323 Total loans $ 713,997 $ 164,608 $ 23,740 $ 902,345 December 31, 2017 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total 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 present an analysis of the change in the ALL by loan type as of and for the periods stated. Mortgage Loans on Real Estate Commercial and Industrial Consumer Total For the Year Ended December 31, 2018 Beginning Balance $ 3,864 $ 878 $ 3,028 $ 7,770 Charge-offs (202 ) (116 ) (1,374 ) (1,692 ) Recoveries 110 1 362 473 Provision (recovery of) 1,195 611 (455 ) 1,351 Ending Balance $ 4,967 $ 1,374 $ 1,561 $ 7,902 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total For the Year Ended December 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 Charge-offs (577 ) (729 ) (171 ) (1,477 ) Recoveries 91 263 96 450 Provision 1,032 851 3,051 4,934 Ending Balance $ 3,864 $ 878 $ 3,028 $ 7,770 The recovery of loan losses for consumer loans of $455 thousand for the year ended December 31, 2018 included a benefit of $580 thousand to correct for an overstatement recorded in the Company’s allowance for loan losses for acquired loans as of December 31, 2017, as reported in the Company’s Form 10-Q for the second and third quarters of 2018. Impaired Loans The following table presents 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 dates stated. As of December 31, 2018 As of December 31, 2017 Recorded Investment Borrowers’ Unpaid Principal Balance Related Allowance Recorded Investment Borrowers’ Unpaid Principal Balance Related Allowance With no related allowance: Construction, land and land development $ 335 $ 406 $ — $ 900 $ 1,378 $ — Commercial mortgages (non-owner occupied) 386 386 — — — — Commercial mortgages (owner occupied) — — — 1,721 1,971 — Residential first mortgages — — — — 1,488 — Residential revolving and junior mortgages 1,028 1,028 — 1,488 414 — Commercial and industrial — — — 414 — — Consumer — — — — — — Total impaired loans with no related allowance 1,749 1,820 — 4,523 5,251 — With an allowance recorded: Construction, land and land development 275 275 132 550 621 137 Commercial mortgages (non-owner occupied) 443 443 18 — — 367 Commercial mortgages (owner occupied) 1,069 1,069 57 547 586 162 Residential first mortgages 3,447 3,447 565 1,914 1,914 — Residential revolving and junior mortgages 502 5,002 264 1,340 1,340 195 Commercial and industrial — — — 92 92 92 Consumer 121 121 121 141 141 141 Total impaired loans with allowance recorded 5,857 10,357 1,157 4,584 4,694 1,094 Total Impaired Loans: Construction, land and land development 610 681 132 1,450 1,999 137 Commercial mortgages (non-owner occupied) 443 443 18 — — 367 Commercial mortgages (owner occupied) 1,455 1,455 57 2,268 2,557 162 Residential first mortgages 4,475 4,475 565 3,402 3,402 — Residential revolving and junior mortgages 502 502 264 1,754 1,457 195 Commercial and industrial — — — 92 92 92 Consumer 121 121 121 141 141 141 Total impaired loans $ 7,606 $ 7,677 $ 1,157 $ 9,107 $ 9,648 $ 1,094 The following table presents the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, for the periods presented. For the Year Ended December 31, 2018 December 31, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance: Construction, land and land development $ 382 $ 13 $ 1,282 $ 66 Commercial mortgages (non-owner occupied) — — — — Commercial mortgages (owner occupied) 394 24 1,800 32 Residential first mortgages 760 — 1,449 21 Residential revolving and junior mortgages — 44 417 5 Commercial and industrial — — — — Consumer — — — — Total impaired loans with no allowance 1,536 81 4,948 124 With an allowance recorded: Construction, land and land development 267 18 572 4 Commercial mortgages (non-owner occupied) 267 12 — — Commercial mortgages (owner occupied) 1,061 47 572 12 Residential first mortgages 3,037 150 1,932 93 Residential revolving and junior mortgages 149 6 1,360 44 Commercial and industrial — — 92 — Consumer 133 11 28 6 Total impaired loans with allowance recorded 4,914 244 4,556 159 Total impaired loans: Construction, land and land development 649 31 1,854 70 Commercial mortgages (non-owner occupied) 267 12 — — Commercial mortgages (owner occupied) 1,455 71 2,372 44 Residential first mortgages 3,797 194 3,381 114 Residential revolving and junior mortgages 149 6 1,777 49 Commercial and industrial — — 92 — Consumer 133 11 28 6 Total impaired loans $ 6,450 $ 325 $ 9,504 $ 283 The following table presents a reconciliation of nonaccrual loans to impaired loans as of the dates stated. December 31, 2018 December 31, 2017 Nonaccrual loans $ 5,206 $ 6,496 Nonaccrual loans collectively evaluated for impairment (2,040 ) (854 ) Nonaccrual impaired loans 3,166 5,642 TDRs on accrual 4,115 1,452 Other impaired loans on accrual 325 2,013 Total impaired loans $ 7,606 $ 9,107 Troubled Debt Restructurings Loans modified as TDRs are considered impaired and are individually evaluated for impairment as part of the Company’s ALL process. The following table presents, by loan type, information related to loans modified as TDRs for the periods presented. For the Year Ended For the Year Ended December 31, 2018 December 31, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential first mortgages (1) 9 $ 1,315 $ 1,324 1 $ 820 $ 820 Commercial mortgages (owner occupied) (2) 1 644 672 - - - Consumer (2) - - - 1 147 147 (1) Modifications include extension of the loan terms, reduction of interest rates, and/or principal and interest forgiveness. (2) No loans designated as TDRs subsequently defaulted in the years ended December 31, 2018 or 2017. The following table presents a roll forward of accruing and nonaccrual TDRs for the year ended December 31, 2018. Accruing Nonaccrual Total Balance as of December 31, 2017 $ 1,452 $ 2,612 $ 4,064 Charge-offs — (92 ) (92 ) Payments and other adjustments (407 ) 60 (347 ) New TDR designation 1,235 732 1,967 Release TDR designation — — — Transfer 1,835 (1,835 ) — Balance as of December 31, 2018 $ 4,115 $ 1,477 $ 5,592 |
Premises and Equipment, net
Premises and Equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment, net | Note 8. Premises and Equipment, net Components of premises and equipment, net of accumulated depreciation, included in the consolidated balance sheets as of the dates stated were as follows. December 31, 2018 December 31, 2017 Land and improvements $ 4,639 $ 4,639 Buildings and improvements 20,261 19,257 Furniture and equipment 13,218 11,631 Total cost 38,118 35,527 Less accumulated depreciation (19,949 ) (18,064 ) Premises and equipment, net $ 18,169 $ 17,463 Depreciation and amortization expense for the years ended December 31, 2018 and 2017 totaled $1.6 million and $1.4 million, respectively, which is recorded in occupancy on the consolidated statement of operations. |
Other Real Estate Owned, net
Other Real Estate Owned, net | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Other Real Estate Owned, net | Note 9. Other Real Estate Owned, net Other real estate owned is presented net of a valuation allowance for changes in the fair market value of the underlying properties subsequent to transfer into OREO. The following table presents the carrying value of properties included in other real estate owned, net, as of the dates stated. December 31, 2018 December 31, 2017 Number of Carrying Number of Carrying Properties Value Properties Value Residential 6 $ 1,339 5 $ 443 Land 17 1,741 20 3,223 Commercial 3 517 4 618 Total 26 $ 3,597 29 $ 4,284 The following table presents the components of the OREO valuation allowance as of and for the periods stated. For the Year Ended December 31, 2018 2017 Balance, beginning of year $ 461 $ 473 Valuation adjustments 21 245 Charge-offs (67 ) (257 ) Balance, end of year $ 415 $ 461 The following table presents OREO-related activity reported in the consolidated statements of operations for the periods stated. For the Year Ended December 31, 2018 2017 Net (gain) loss on sale of other real estate owned $ (128 ) $ (24 ) Valuation adjustments 21 245 Foreclosed property expense, net of income 171 138 Total expenses $ 64 $ 359 There were three residential mortgage loans totaling $213 thousand in the process of foreclosure as of December 31, 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 10. Goodwill and Intangible Assets The Company tested goodwill for impairment as of September 30, 2018 and concluded as of its testing date no impairment existed, as the Company’s market capitalization exceeded its net book value (i.e., shareholders’ equity). As of December 31, 2018, the Company’s net book value exceeded the Company’s market capitalization resulting in a “triggering event” that may indicate that goodwill was impaired. As a result, management re-tested goodwill for potential impairment as of December 31, 2018 and concluded that the positive qualitative factors such as the Company’s strong liquidity, capital, asset quality ratios, and earnings trends, outweighed the decline in the Company’s market capitalization and that goodwill was not impaired. Other intangible assets include a core deposit intangible asset and mortgage servicing rights asset, both recorded as a result of the Merger. The core deposit intangible asset is being amortized over the period of the expected benefit, which is 92 months from the date of the Merger, using the sum-of-the-months digits method. The Company accounts for its mortgage servicing rights asset using the fair value measurement method per ASC 860-50, Transfers and Servicing, The following table presents information on the Company’s intangible assets, other than goodwill, as of the dates stated. Gross Carrying Accumulated Net Carrying December 31, 2018 Value Amortization Value Core deposit intangibles $ 3,670 $ 1,477 $ 2,193 Mortgage servicing rights 977 — 977 Total $ 4,647 $ 1,477 $ 3,170 Gross Carrying Accumulated Net Carrying December 31, 2017 Value Amortization Value Core deposit intangibles $ 3,670 $ 679 $ 2,991 Mortgage servicing rights 999 — 999 Total $ 4,669 $ 679 $ 3,990 Amortization expense of the core deposit intangible asset for the years ended December 31, 2018 and 2017, totaled $798 thousand and $679, respectively. As of December 31, 2018, the estimated remaining amortization expense of the core deposit intangible asset is presented in the following table for the periods presented. 2019 $ 674 2020 551 2021 427 2022 304 2023 180 Thereafter 57 Total estimated amortization expense $ 2,193 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The current portion of the provision for income taxes is based upon the results of operations, adjusted for the effect of certain tax-exempt income and nondeductible expenses and income and expenses realized in the current period for the tax purposes. Certain items of income and expense are reported in different periods for financial reporting and income tax return purposes resulting in temporary differences. The tax effects of these temporary differences are recognized currently in the deferred income tax provision or benefit. The following table presents current and deferred income tax expense (benefit) for the periods stated. Year Ended December 31, 2018 2017 Current (benefit) expense $ (313 ) $ 362 Deferred expense 846 435 Income tax expense $ 533 $ 797 The Company files a consolidated federal income tax return with the Internal Revenue Service. The Commonwealth of Virginia does not assess an income tax on regulated financial institutions; instead, the Company pays a bank franchise tax, based primarily on the Bank’s and Financial Group’s capital (i.e., shareholders’ equity), to the Commonwealth of Virginia and its municipalities, which is reported as noninterest expense in the consolidated statements of operations. Bank franchise tax expense was $726 thousand and $533 thousand for the years ended December 31, 2018 and 2017, respectively. The Tax Cuts and Jobs Act of 2017 (“TCJA”) enacted in December 2017 reduced the federal corporate statutory income tax rate from 35% to 21% effective January 1, 2018. As a result of the TCJA, the Company recognized a $1.3 million reduction in the value of its net deferred tax asset as of December 31, 2017 and a deferred tax expense of the same amount in the year ended 2017. The following table presents the federal statutory income tax rate reconciled to the Company’s effective tax rate for the periods stated. Year Ended December 31, 2018 2017 Federal statutory income tax rate 21.0 % 34.0 % Increase (decrease) resulting from: Net tax-exempt income (5.6 %) 85.0 % Merger-related expenses 0.0 % (15.0 %) Tax Cuts and Jobs Act of 2017 adjustment to deferred taxes 0.0 % (283.1 %) Income tax return to provision (2017) adjustment (3.9 %) 0.0 % Other, net 0.7 % 11.4 % Federal effective income tax rate 12.1 % (167.7 %) Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities. These differences will result in deductible or taxable amounts in a future year(s) when the reported amounts of assets or liabilities are settled. The following table presents the components of the net deferred tax asset as of the dates stated using a statutory income tax rate of 21%. The Company has concluded that it is more likely than not that its deferred tax assets will be utilized in future periods; therefore, no valuation allowance has been recorded against all or a portion of its deferred tax assets. December 31, 2018 December 31, 2017 Deferred tax assets Allowance for loan losses $ 1,629 $ 1,632 Other real estate owned 226 433 Pension and post-retirement benefit plans 127 266 Unrealized losses on available-for-sale securities 333 130 Deferred and share-based compensation plans 237 215 Alternative minimum tax credit — 134 Fair value adjustments on acquired loans and time deposits resulting from the Merger 969 1,665 Net deferred loan fees 53 65 Other 124 270 Total deferred tax assets 3,698 4,810 Deferred tax liabilities Depreciation of fixed assets (359 ) (69 ) Amortization of goodwill and core deposit intangible asset (1,050 ) (1,218 ) Premium on fixed assets acquired in the Merger (553 ) (561 ) Recapture of bad debts experience reserve (178 ) (229 ) Other (48 ) (391 ) Total deferred tax liabilities (2,188 ) (2,468 ) Deferred tax assets, net $ 1,510 $ 2,342 The Company had no unrecognized tax benefits recorded as of December 31, 2018 and 2017. Tax years 2015, 2016, and 2017 are still open for Internal Revenue Service audit. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Deposits | Note 12. Deposits The following table presents a summary of deposit accounts as of the dates stated. December 31, 2018 December 31, 2017 Noninterest-bearing demand deposits $ 114,122 $ 103,037 Interest-bearing: Savings deposits 57,472 62,896 Demand deposits 76,302 90,585 Money market deposits 225,626 146,339 Time deposits less than $250 306,720 299,825 Time deposits $250 or more 61,950 59,164 Total $ 842,192 $ 761,846 The following table presents the scheduled maturities of time deposits, as of December 31, 2018. 2019 $ 167,564 2020 68,342 2021 53,538 2022 11,186 2023 67,930 Thereafter 110 $ 368,670 As of December 31, 2018 and 2017, overdraft demand deposits reclassified to loans totaled $110 thousand and $80 thousand, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 13. Borrowings FHLB Advances As of December 31, 2018 and 2017, the Company had $100.0 million and $70.0 million of outstanding FHLB advances, respectively, consisting of four and two advances, respectively. FHLB advances are secured by a blanket lien of $299.1 million on qualified one-to-four family real estate, commercial real estate, and multi-family residential loans. Immediate available credit, as of December 31, 2018, was $138.1 million against a total line of credit of $256.1 million. As of December 31, 2018, the Bank had $18.0 million of letters of credit issued by FHLB for the benefit of the Virginia Department of the Treasury as collateral for public deposits held by the Bank to comply with the Security for Public Deposits Act. The $18.0 million is not an outstanding borrowing, as of December 31, 2018, but does reduce the available credit under FHLB credit line. The following table presents information regarding the FHLB advances outstanding as of December 31, 2018. Maturity Balance Originated Interest Rate Date Adjustable rate hybrid $ 10,000 4/12/2013 4.82 % 4/13/2020 Fixed rate credit 75,000 12/4/2018 2.42 % 1/4/2019 Fixed rate credit 5,000 12/18/2018 2.49 % 1/4/2019 Fixed rate credit 10,000 12/19/2018 2.51 % 1/4/2019 Total FHLB advances $ 100,000 2.67 % Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements were $6.1 million and $9.5 million as of December 31, 2018 and 2017, respectively. Securities sold under agreements to repurchase are secured transactions with customers, generally mature the day following the day sold and can be changed at the option of the Company with minimal risk of loss due to fair value. During 2018 and 2017, the average rates of the repurchase agreements were 0.22% and 0.17%, respectively. 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, 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, unamortized debt issuance costs, was $6.9 million at both December 31, 2018 and 2017. For the year ended December 31, 2018 and 2017, the effective interest rate on the notes was 6.85% and 6.86%, respectively. ESOP Debt The aggregate carrying value of debt secured by shares of Company stock, issued and outstanding, in the Company’s Employee Stock Ownership Plan (“ESOP”) was $1.7 million and $1.1 million at December 31, 2018 and 2017, respectively, and was reported 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 that carries an interest rate of 4.50% with maturity dates ranging from March 1, 2019 to December 31, 2027, and one variable rate amortizing note with a maturity date of June 14, 2024. Shares that collateralize these loans are not allocated to ESOP participants’ accounts. Federal Funds Lines Unused lines of credit with nonaffiliated banks, excluding FHLB, totaled $21.0 million and $24.5 million at December 31, 2018 and 2017, respectively. Draws upon these lines have time limits varying from two to four consecutive weeks. The banks providing these lines can change the interest rates on these lines daily. The lines renew annually and can be cancelled at any time. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 14. Employee Benefit Plans Pension Plan The Company has a non-contributory, cash balance defined benefit pension plan (the “Pension Plan”) for employees who were vested in the plan as of December 31, 2012, the date the plan was frozen (i.e., curtailed). Each participant’s account balance grows based on monthly interest credits. The Pension Plan is partially funded by assets invested for the benefit of the plan participants. The Pension Plan assets are held by a third-party qualified trust and are not included in the Company’s consolidated balance sheets. The Company made no contributions to the Pension Plan for the 2018 plan year. The accumulated benefit obligation for the Pension Plan was $1.6 million and $3.3 million as of December 31, 2018 and 2017, respectively. The unfunded liability for the Pension Plan, included in other liabilities in the Company’s consolidated balance sheets, was $483 thousand and $808 thousand as of December 31, 2018 and 2017, respectively. The Pension Plan sponsor selects the assumption for the expected long-term rate of return on assets held by the qualified trust in consultation with its investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (i.e., net of inflation), for the major asset classes held or anticipated to be held by the qualified trust and for the qualified trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the Pension Plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the qualified trust, and expenses (both investment and non-investment) typically paid from the Pension Plan’s assets (to the extent such expenses are not explicitly estimated within periodic cost). The qualified trust assets are sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return. The investment manager of the qualified trust selects investment fund managers with demonstrated experience and expertise and funds with demonstrated historical performance for the implementation of the plan’s investment strategy. The qualified trust assets are not included in the Company’s consolidated balance sheets as of December 31, 2018 and 2017 and are considered Level 1 from a fair value hierarchy perspective. Post-retirement Benefit Plan The Company also sponsored a post-retirement benefit plan (the “PRB 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 curtailed. The Company recognized a gain on the curtailment of the post-retirement benefit plan of $352 thousand on March 1, 2018, which is included in the Company’s consolidated statements of operations for the year ended December 31, 2018. The PRB Plan provides coverage toward a retiree’s eligible medical and life insurance benefits. The PRB Plan is unfunded and benefits are expensed as incurred. The Company expects to make no contributions to the PRB Plan in future periods. The accumulated (unfunded) benefit obligation for the PRB Plan was $71 thousand and $457 thousand as of December 31, 2018 and 2017, respectively. The following table provides a reconciliation of changes in the accumulated benefit obligations and fair value of qualified trust assets (Pension Plan only) and a statement of funded (unfunded) status for the Pension Plan and the PRB Plan as of and for the periods stated. Pension Plan PRB Plan 2018 2017 2018 2017 Change in benefit obligation Benefit obligation, beginning of year $ 3,273 $ 3,398 $ 457 $ 540 Service cost — — 3 22 Interest cost 94 121 5 21 Actuarial (gain) loss (694 ) 323 (36 ) (120 ) Benefit payments (1,295 ) (581 ) (6 ) (6 ) Curtailment/termination (gain) — — (352 ) — Settlement loss 221 12 — — Benefit obligation, end of year 1,599 3,273 71 457 Change in plan assets Fair value of plan assets, beginning of year 2,465 2,690 — — Actual (loss) return on plan assets (54 ) 356 — — Employer contributions — — 6 6 Benefits payments (1,295 ) (581 ) (6 ) (6 ) Fair value of plan assets, end of year 1,116 2,465 — — (Unfunded) funded status, end of year $ (483 ) $ (808 ) $ (71 ) $ (457 ) The following table provides details regarding amounts included in the consolidated financial statements for the years ended December 31, 2018 and 2017 pertaining to the Pension Plan and the PRB Plan. Pension Plan PRB Plan Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Amounts recognized in accumulated other comprehensive loss (income) Net loss (gain) $ 447 $ 1,187 $ (354 ) $ (344 ) Prior service cost — — — — Net obligation at transition — — — — Amount recognized $ 447 $ 1,187 $ (354 ) $ (344 ) Components of net periodic benefit cost (gain) Service cost $ — $ — $ 3 $ 22 Interest cost 94 121 5 21 Expected return on plan assets (153 ) (167 ) — — Amortization of prior service cost — — — — Amortization of net obligation at transition — — (26 ) (11 ) Curtailment/termination gain — — (352 ) — Recognized net loss due to settlement 422 195 — — Recognized net actuarial loss 51 81 — — Net periodic benefit cost (gain) 414 230 (370 ) 32 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss Net gain (739 ) (130 ) (10 ) (109 ) Amortization of prior service cost — — — — Amortization of net obligation at transition — — — — Total recognized in other comprehensive loss (income) (739 ) (130 ) (10 ) (109 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ (325 ) $ 100 $ (380 ) $ (77 ) The following table provides the actuarial assumptions used to derive the information reported in the consolidated financial statements as of and for the years ended December 31, 2018 and 2017. Pension Plan PRB Plan As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 Discount rate used for net periodic pension cost 3.50 % 4.00 % 4.25 % 4.00 % Discount rate used for disclosure 4.25 % 3.50 % 4.25 % 3.50 % Expected return on plan assets 7.25 % 7.25 % N/A N/A Rate of compensation increase N/A N/A N/A N/A Rate of compensation increase for net periodic pension cost N/A N/A N/A N/A Expected future interest crediting rate 3.00 % 3.00 % N/A N/A The following table provides estimated future benefit payments (cash) for the Pension Plan and PRB Plan for the periods presented. Pension Plan PRB Plan 2019 $ 298 $ 7 2020 139 7 2021 103 7 2022 107 7 2023 365 6 2024 - 2028 854 27 Deferred Compensation Plan The Company sponsors a nonqualified deferred compensation plan for certain eligible executive officers and directors, which allows executive officers to defer up to 100% of their base salary and/or bonus on an annual basis and allows directors to defer all or a portion of their board fees and/or annual cash retainer payments. Amounts deferred pursuant to the plan can be invested in various mutual funds, with the portfolio composition up to the discretion of the respective executive officer or director. The assets in the plan, which are held in a nonqualified deferred compensation rabbi trust and the associated deferred compensation liability are included in other assets and other liabilities, respectively, in the Company’s consolidated balance sheets and total $972 thousand and $901 thousand as of December 31, 2018 and 2017, respectively. Amounts under the plan will be paid following a distributable event. A distributable event includes termination of service as an executive officer or director on a specific date without regard to continued service as an executive officer or director. Distributions can be received either as a lump-sum payment or in substantially equal payments over a period of not more than 20 years. A total of $179 thousand and $107 thousand of deferred compensation payments were made by the Company for executive officers and $61 thousand and $53 thousand of directors fees were deferred, during the years ended December 31, 2018 and 2017, respectively. 401(k) Retirement Plan The Company sponsors a 401(k) defined contribution retirement plan (“401(k) Plan”) for the benefit of all eligible employees of the Company, including its subsidiaries. Employees are eligible to participate on the first of the month following an employee’s hire date. There is no age requirement. Participants can elect to defer between 1% and 15% of their base compensation, which will be contributed to the 401(k) Plan, providing the amount deferred does not exceed the federal dollar maximum election deferral for each year. The Company’s subsidiaries match 100% up to a 3% deferral, then 50% of the next 3% of deferrals. Employees become 100% vested in the subsidiary’s match after two years of service. For the years ended December 31, 2018 and 2017, the Company made matching contributions to the 401(k) Plan of $401 thousand and $491 thousand, respectively. Employee Stock Ownership Plan Prior to January 1, 2018, the Company had two ESOPs, one for legacy Bank of Lancaster and one for legacy Virginia Commonwealth Bank. As of January 1, 2018, the two plans were combined into one plan, the Bay Banks of Virginia, Inc. Employee Stock Ownership Plan. Employees of the Company, including its subsidiaries, who have completed twelve months of service and who have attained the age of 21 years are eligible to participate in the ESOP. Contributions to the plan are at the discretion of the Company’s board of directors. Contributions are allocated proportionately based on the covered compensation of each participant compared to the aggregate covered compensation of all participants for the plan year. Allocations are limited to 25% of eligible participant compensation. Participant accounts are 30% vested after two years, 40% vested after three years with vesting increasing 20% each year thereafter, until 100% vested. The ESOP had 532,240 shares allocated to participant accounts as of December 31, 2018. The Company recorded ESOP contribution expense of $0 and $223 thousand in 2018 and 2017, respectively. Shares allocated to participants of the Company’s ESOP and unallocated shares, which collateralize ESOP borrowings but that are committed to be released are also included in basic and diluted average shares outstanding. However, shares held by the ESOP, which collateralize ESOP borrowings and that are not committed to be released, are excluded from both basic and diluted average shares outstanding. To assist with providing liquidity to the ESOP when participants retire and elect to receive cash distributions in lieu of shares, the Company, as the sponsor of the ESOP, or the ESOP may take out a loan with a third-party financial institution and use the unallocated shares as collateral. As of December 31, 2018, the ESOP had six outstanding loans totaling $1.8 million, with 225,930 unallocated shares pledged as collateral for these loans. The ESOP loans are included in other liabilities on the Company’s consolidated balance sheets. |
Off-Balance Sheet Commitments a
Off-Balance Sheet Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Off-Balance Sheet Commitments and Contingencies | Note 15. Off-Balance Sheet Commitments and Contingencies In the ordinary course of operations, the Company is party to legal proceedings. Based upon information currently available, the Company’s management believes that such legal proceedings, in the aggregate, will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Also in the ordinary course of operations, the Company offers various financial products to its customers to meet their credit and liquidity needs. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and stand-by letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional commitments as it does for on-balance sheet commitments. Subject to its normal credit standards and risk monitoring procedures, the Company makes contractual commitments to extend credit. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. As of December 31, 2018 and 2017, the Company had outstanding loan commitments of $160.5 million and $144.2 million, respectively. The Company estimates the credit loss exposure for all off-balance sheet credit commitments that are not unconditionally cancellable by the Company using a process consistent with that used in developing the allowance for loan losses for on-balance sheet portfolio loans. The Company estimates future fundings, which may be less than the total unfunded commitment amounts, based on historical funding experience and management’s judgment. Allowance for loan loss factors, which are based on loan type, are applied to these funding estimates to arrive at the reserve balance. Changes in a reserve for unfunded commitments are recognized in other noninterest expense in the consolidated statements of operations and the reserve for unfunded commitments is reported in other liabilities in the consolidated balance sheets. As of and for the year ended December 31, 2018 and 2017, the Company recorded $97 thousand and $0 of reserves for unfunded commitments, respectively. Conditional commitments are issued by the Company in the form of performance stand-by letters of credit, which guarantee the performance of a customer to a third party. As of December 31, 2018 and 2017, commitments under outstanding performance stand-by letters of credit totaled $2.8 million and $447 thousand, respectively. Additionally, but to a much lesser extent, the Company issues financial stand-by letters of credit, which guarantee payment to the underlying beneficiary (i.e., third party) if the customer fails to meet its designated financial obligation. As of December 31, 2018 and 2017, commitments under outstanding financial stand-by letters of credit totaled $40 thousand and $0, respectively. The credit risk of issuing stand-by letters of credit is essentially the same as that involved in extending loans to customers. The Company has investments in three separate low-income housing equity funds as of December 31, 2018 and 2017. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver federal low-income housing tax credits to investors, allocate tax losses and other possible tax benefits to investors, and to preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were $1.3 million and $1.4 million as of December 31, 2018 and 2017, respectively. These investments and related tax benefits have expected terms through 2030. Additional capital calls expected for the funds totaled $944 thousand at December 31, 2018 and are included in other liabilities on the consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | Note 16. Leases Prior to 2018, the Company was party to four long-term leases for retail branches and a lease for its headquarters office. In 2018, the Company entered into six additional long-term real estate leases as follows: (1) two additional office suites at the Company’s headquarters in Richmond, Virginia; (2) an office for the Company’s information technology department also in Richmond; (3) a retail branch location in Virginia Beach, Virginia; (4) a loan production office in Virginia Beach, Virginia; and (5) office space for the Financial Group in Richmond, Virginia. In February 2019, the Company entered into a new lease for an existing retail branch in Richmond, Virginia. The following table presents future minimum lease payments required under the long-term non-cancelable lease agreements for the periods stated. All leases, with the exception of the new lease for the Financial Group and the retail branch in Richmond, were accounted for as operating leases under ASC 840, Leases . 2019 $ 748 2020 696 2021 751 2022 590 2023 351 Thereafter 2,053 Total future minimum lease payments $ 5,189 Lease expense for the years ended December 31, 2018 and 2017 was $577 thousand and $377 thousand, respectively. |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | Note 17. Share-based Compensation The Company has an equity-based incentive plan, the Bay Banks of Virginia, Inc. 2013 Stock Incentive Plan (the “2013 Plan”), which provides for the grant of up to 385,000 shares of the Company’s common stock as awards to employees and members of the board of directors of the Company and its subsidiaries. Prior to shareholder approval of the 2013 Plan, the Company issued equity awards from several other shareholder-approved plans. As of December 31, 2018, there were 145,854 shares available for grant under the 2013 Plan. Share-based compensation expense related to stock options and restricted stock granted under the 2013 Plan for the years ended December 31, 2018 and 2017 was $102 thousand and $199 thousand, respectively. During 2018 there were five stock option grants with a total of 17,500 options issued, of which one immediately vested, one vests over one year, two vest over three years, and one was forfeited, compared to 86,790 options granted and fully-vested during 2017. Compensation expense for stock options is based on the estimated fair value of options granted using the Black-Scholes Model, amortized on a straight-line basis over the vesting period of the award. The expected volatility used in the Black-Scholes Model calculations is based on the historical volatility of the Company’s common stock price. The risk-free interest rates for the periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience, and the dividend yield assumption is based on the Company’s history and expectation of dividend payouts. The fair value of options granted during 2018 ranged from $1.73 to $2.09 per option share. The fair value of options granted during 2017 ranged from $1.50 to $1.93 per option share. The following table presents the variables used in the Black-Scholes Model calculations of the fair value of the stock options for the periods presented. For the Year Ended December 31, 2018 2017 Risk free interest rate (5 year U.S. Treasury) 2.73% 2.10% Expected dividend yield 0% 1% Expected term (years) 5 5 Expected volatility 12.5%-15.7% 16.1%-21.7% The following table presents stock option activity for the periods presented. Weighted Average Weighted Average Remaining Aggregate Shares Exercise Price Contractual Life (in years) Intrinsic Value (1) Options outstanding and exercisable, January 1, 2017 218,300 $ 6.35 6.00 $ 378,288 Granted 86,790 10.08 Forfeited (1,195 ) 8.43 Exercised (43,244 ) 5.85 Expired (9,625 ) 13.76 Options outstanding and exercisable, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 Granted 17,500 9.97 Forfeited (6,805 ) 10.37 Exercised (25,491 ) 5.84 Expired (9,459 ) 11.20 Options outstanding, December 31, 2018 226,771 $ 7.56 6.43 $ 223,478 Options exercisable, December 31, 2018 214,271 $ 7.42 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options as of the respective years ended. This amount changes based on changes in the market value of the Company’s common stock. During 2018 and 2017, the Company awarded 54,796 shares and 15,500 shares of restricted stock, respectively, for a total award value of $534 thousand and $131 thousand, respectively. As of December 31, 2018, 54,796 shares remain unvested and $392 thousand of compensation expense remains unrecognized. Of the 54,796 shares of restricted stock awarded in 2018, 15,000 shares were issued and outstanding as of December 31, 2018, while all of the 15,500 shares of restricted stock awarded in 2017 were issued and outstanding as of December 31, 2018 and 2017. The remaining 39,796 shares of restricted stock in 2018 were awarded pursuant to the Company’s long-term incentive plan (“LTIP”), which covers certain officers of the Company. One half of the LTIP restricted shares granted vest on a straight-line basis over a three-year period (“LTIP Time-based Shares”), while the other half vests at the end of a three-year period contingent on the Company’s achievement of financial goals (“LTIP Performance-based Shares”). The LTIP Time-based Shares are being expensed on a straight-line basis over the three-year vesting period, while the LTIP Performance-based Shares are being expensed on a straight-line basis over a three-year period and expense will be adjusted periodically based on projected achievement of the performance target. The value of the restricted stock awards was calculated by multiplying the fair market value of the Company’s common stock on the grant date by the number of shares awarded. Restricted stock carries voting and dividend rights, if any. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 18. Earnings per Share The following table shows the calculation of basic and diluted earnings (loss) per share and the weighted average number of shares outstanding used in computing earnings per share and the effect on the weighted average number of shares outstanding of dilutive potential common stock. Basic earnings per share amounts are computed by dividing net income (loss) (the numerator) by the weighted average number of common shares outstanding (the denominator). Diluted earnings 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 earnings per common share. Potential dilutive common stock instruments include exercisable stock options and restricted shares. For the year ended December 31, 2018, 86,284 options were not included in computed diluted earnings per share because their effects would have been anti-dilutive. For the year ended December 31, 2017, 251,026 options and 10,500 restricted shares were not included in computing diluted earnings per share because their effects would have been anti-dilutive. For both computations, the weighted average number of ESOP shares not committed to be released to participant accounts in the ESOP are not assumed to be outstanding. The weighted average ESOP shares excluded from the computation were 154,410 and 117,248 for the years ended December 31, 2018 and 2017, respectively. For the Year Ended December 31, 2018 2017 Net income (loss) $ 3,878 $ (1,272 ) Weighted average shares outstanding, basic 13,057,537 9,399,223 Dilutive shares: Stock options 57,044 — Restricted shares 7,555 — Weighted average shares outstanding, dilutive 13,122,136 9,399,223 Basic and diluted earnings (loss) per share $ 0.30 $ (0.14 ) |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Regulatory Requirements | Note 19. Regulatory Requirements The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the state and federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Pursuant to the Federal Reserve’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement, qualifying bank holding companies with total consolidated assets of less than $3 billion, such as the Company, are not subject to consolidated regulatory capital requirements. Quantitative measures established by regulation to ensure capital adequacy requires the Bank to maintain minimum amounts and ratios as set forth in the table below of total common equity Tier 1 and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2018 and 2017, the Bank met all capital adequacy requirements to which they were subject. As of December 31, 2018, the most recent notification from the Federal Reserve categorized the Bank as well capitalized under the framework for prompt corrective action. To be categorized as well capitalized on such date, an institution must maintain minimum total risk-based, common equity Tier 1capital, Tier 1 capital, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier 1 to risk-weighted assets above the minimum but below the conservation buffer will be subject to constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. As of December 31, 2018 and 2017, ratios of the Bank were in excess of the fully phased-in requirements. The following tables present the Company’s and the Bank’s actual capital amounts and ratios, and the minimum capital requirement amounts and ratios per the regulatory capital framework, as of the dates stated. Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Total Risk Based Capital Consolidated $ 122,177 13.41 % $ 72,895 9.875 % N/A N/A Virginia Commonwealth Bank 106,077 11.68 % 72,661 9.875 % $ 90,826 10.00 % Tier 1 Capital Consolidated 107,286 11.77 % 54,671 7.875 % N/A N/A Virginia Commonwealth Bank 98,078 10.80 % 54,496 7.875 % 72,661 8.00 % Common Equity Tier 1 Capital Consolidated 107,286 11.77 % 41,003 6.375 % N/A N/A Virginia Commonwealth Bank 98,078 10.80 % 40,872 6.375 % 59,037 6.50 % Tier 1 Capital Consolidated 107,286 10.28 % 41,748 5.875 % N/A N/A Virginia Commonwealth Bank 98,078 9.42 % 41,631 5.875 % 52,039 5.00 % Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Total Risk Based Capital Consolidated $ 120,091 16.24 % $ 59,150 8.125 % N/A N/A Virginia Commonwealth Bank 93,540 12.70 % 58,914 8.125 % $ 73,642 10.00 % Tier 1 Capital Consolidated 105,444 14.26 % 44,363 7.250 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 44,185 7.250 % 58,914 8.00 % Common Equity Tier 1 Capital Consolidated 105,444 14.26 % 33,272 5.750 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 33,139 5.750 % 47,868 6.50 % Tier 1 Capital Consolidated 105,444 10.99 % 38,382 5.250 % N/A N/A Virginia Commonwealth Bank 85,770 8.97 % 38,259 5.250 % 47,824 5.00 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, net | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss, net | Note 20. Accumulated Other Comprehensive Loss, net The components of accumulated other comprehensive income (loss) are shown in the following table. Net Unrealized Gains (Losses) on Available-for-sale Securities Pension and Post-retirement Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (520 ) $ (715 ) $ (1,235 ) Change in net unrealized holding losses on available-for-sale securities, before reclassification, net of tax benefit of $30 114 — 114 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Net gain on pension and post-retirement benefit plans, net of tax expense of $41 — 155 155 Net current period other comprehensive gain (loss) 112 155 267 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings (81 ) (107 ) (188 ) Balance December 31, 2017 (489 ) (667 ) (1,156 ) Change in net unrealized holding loss on available-for-sale securities, net of tax benefit of $203 (763 ) — (763 ) Net gain on pension and post-retirement benefit plans, net of tax expense of $157 — 592 592 Balance December 31, 2018 $ (1,252 ) $ (75 ) $ (1,327 ) There was no reclassification for previously unrealized gains or losses on available-for-sale securities or pension and post-retirement benefit plan-related costs during 2018. The following table presents the reclassification for previously unrealized gains or losses on available-for-sale securities and pension and post-retirement benefit plan-related costs reported in the consolidated statements of comprehensive income (loss) during the period stated. Accumulated Other Comprehensive Income (Loss) Reclassification for the Year Ended December 31, 2017 Holding gains (losses) on Available-for-sale Securities Pension and Post-retirement benefit plan costs Net gains on sale of available-for-sale securities $ 2 $ — Salaries and employee benefits — (81 ) Tax benefit — 28 Impact on net income $ 2 $ (53 ) |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 21. Related Parties The Company has entered into transactions with certain directors and principal officers of the Company, their immediate families, and/or affiliated companies in which they are the principal stockholders (related parties). The aggregate amount of loans to such related parties was $8.9 million and $7.4 million at December 31, 2018 and 2017, respectively. In the opinion of management, such loans, with the exception of residential mortgages extended to any employee that receives a nominal reduction to the interest rate, were made in the normal course of business on the same terms as those prevailing at the time for comparable transactions. The following table presents the amount of loans to and repayments on loans to related parties. Balance, January 1, 2018 $ 7,354 New loans and extensions to existing loans 2,852 Repayments and other reductions (1,317 ) Balance, December 31, 2018 $ 8,889 Unfunded commitments to extend credit to related parties were $1.7 million and $3.7 million at December 31, 2018 and 2017, respectively. The aggregate amount of deposit accounts of related parties at December 31, 2018 and 2017 amounted to $14.0 million and $10.4 million, respectively. Related parties hold in the aggregate principal amount of $285 thousand of the Company’s subordinated notes, as of December 31, 2018, and at that date, the Company owed these related parties $291.1 thousand in principal and accrued interest with regard to the notes. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 22. Fair Value The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance (ASC 820, Fair Value Measurements ASC 820 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 securities Rabbi Trust: Mortgage Servicing Rights: A third-party 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 12 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 both December 31, 2018 and 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 133% and 150% as of December 31, 2018 and 2017, respectively. A discount rate of 12.5% and 13.0% was then applied to each pool as of December 31, 2018 and 2017, respectively. The discount rate is intended to represent the estimated market yield for the highest quality grade of comparable servicing. MSRs are 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 Fair Value Measurements as of December 31, 2018 Using Balance as of December 31, 2018 Level 1 Level 2 Level 3 Available-for-sale securities: U. S. Government agencies and mortgage backed securities $ 49,882 $ — $ 49,882 $ — State and municipal obligations 20,217 — 20,217 — Corporate bonds 12,133 — 8,462 3,671 Total available-for-sale securities: $ 82,232 $ — $ 78,561 $ 3,671 Mortgage servicing rights $ 977 $ — $ — $ 977 Rabbi trust assets $ 972 $ 972 $ — $ — Fair Value Measurements as of December 31, 2017 Using Balance as of December 31, 2017 Level 1 Level 2 Level 3 Available-for-sale securities: U. S. Government agencies and mortgage backed securities $ 49,283 $ — $ 49,283 $ — State and municipal obligations 21,153 — 21,153 — Corporate bonds 6,717 — 5,217 1,500 Total available-for-sale securities: $ 77,153 $ — $ 75,653 $ 1,500 Mortgage servicing rights $ 999 $ — $ — $ 999 Rabbi trust assets $ 926 $ 926 $ — $ — The following table presents the change in financial assets valued using level 3 inputs for the periods stated. MSRs Corporate Bonds Balance, January 1, 2018 $ 999 $ 1,500 Purchases — 1,421 Impairments — — Fair value adjustments (22 ) 750 Sales — — Balance, December 31, 2018 $ 977 $ 3,671 MSRs Corporate Bonds Balance, January 1, 2017 $ 671 $ — Purchases — — Acquired in Merger 324 1,500 Impairments — — Fair value adjustments 4 — Sales — — Balance, December 31, 2017 $ 999 $ 1,500 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 accounting or write-downs of individual assets. 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, net: The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis as of the dates stated. Fair Value Measurements as of December 31, 2018 Using Balance as of December 31, 2018 Level 1 Level 2 Level 3 Impaired loans, net $ 4,700 $ — $ — $ 4,700 Other real estate owned, net 3,597 — — 3,597 Fair Value Measurements as of December 31, 2017 Using Balance as of December 31, 2017 Level 1 Level 2 Level 3 Impaired loans, net $ 3,491 $ — $ — $ 3,491 Other real estate owned, net 4,284 — — 4,284 The following tables present quantitative information about Level 3 Fair Value Measurements as of the dates stated. Balance as of December 31, 2018 Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans, net $ 4,700 Discounted appraised value Selling Cost 15% - 20% (16%) Lack of Marketability 100% (100%) Discounted cash flows Discount Rate 5%-7% (6%) Other real estate owned, net 3,597 Discounted appraised value Selling Cost 5% - 19% (8%) Lack of Marketability 9% - 100% (28%) Balance as of December 31, 2017 Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans, net $ 3,491 Discounted appraised value Selling Cost 6% - 20% (16%) Lack of Marketability 50% - 90% (65%) Discounted cash flows Discount Rate 5%-6% (6%) Other real estate owned, net 4,284 Discounted appraised value Selling Cost 3% - 13% (8%) Lack of Marketability 10% - 100% (16%) In the first quarter of 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall The carrying values of cash and due from banks, interest-earning deposits, federal funds sold or purchased, noninterest-bearing deposits, interest-bearing deposits, and securities sold under repurchase agreements are payable on demand, or are of such short duration, that carrying value approximates market value (Level 1). The carrying values of certificates of deposit, loans held for sale, and accrued interest receivable are payable on demand, or are of such short duration, that carrying value approximates market value (Level 2). 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 were 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 selective consumer loan portfolio, historical delinquency data were 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. Commitments to extend and standby letters of credit are generally not sold or traded. The estimated fair values of off-balance sheet credit commitments, including standby letters of credit and guarantees written, are not readily available due to the lack of cost-effective and reliable measurement methods for these instruments. 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. The following tables summarize the Company’s financial assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of the dates stated. Carrying Value as of Fair Value as of Fair Value Measurements as of December 31, 2018 Using December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,685 $ 7,685 $ 7,685 $ — $ — Interest-earning deposits 18,981 18,981 18,981 — — Certificates of deposit 3,746 3,746 — 3,746 — Federal funds sold 625 625 625 — — Restricted securities 7,600 7,600 — — 7,600 Loans receivable, net 894,191 877,114 — — 877,114 Loans held for sale 368 368 — 368 — Accrued interest receivable 3,172 3,172 — 3,172 — Financial Liabilities: Noninterest-bearing liabilities $ 114,122 $ 114,122 $ 114,122 $ — $ — Savings and other interest-bearing deposits 359,400 359,400 359,400 — — Time deposits 368,670 369,347 — — 369,347 Securities sold under repurchase agreements 6,089 6,089 6,089 — — FHLB advances 100,000 99,727 — 99,727 — Subordinated notes, net 6,893 7,046 — — 7,046 Carrying Value as of Fair Value as of Fair Value Measurements as of December 31, 2017 Using 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-earning 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 758,726 774,009 — — 774,009 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 other interest-bearing 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, net 6,877 7,000 — — 7,000 |
Parent Financial Statements
Parent Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Financial Statements | Note 23. Parent Financial Statements The following tables present condensed financial statements of Bay Banks of Virginia, Inc. for the periods stated. CONDENSED BALANCE SHEETS December 31, 2018 December 31, 2017 ASSETS Cash and due from non-affiliated banks $ 15,631 $ 24,475 Interest-earning deposits 155 609 Certificates of deposit 770 — Investments in subsidiaries 109,747 96,539 Other assets 2,225 2,002 Total assets $ 128,528 $ 123,625 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated notes, net of unamortized issuance costs $ 6,893 $ 6,877 Deferred compensation plan 972 901 Other borrowings 1,734 1,129 Other liabilities 1,453 164 Total liabilities 11,052 9,071 Total shareholders’ equity 117,476 114,554 Total liabilities and shareholders’ equity $ 128,528 $ 123,625 Year ended December 31, CONDENSED STATEMENTS OF OPERATIONS 2018 2017 Interest income $ — $ 2 Interest expense 512 481 Net interest expense (512 ) (479 ) Net losses on disposition of other assets (73 ) — Other income 529 857 Noninterest income 456 857 Noninterest expense 1,659 1,752 Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries (1,715 ) (1,374 ) Income tax benefit (212 ) (340 ) Loss before equity in undistributed earnings of subsidiaries (1,503 ) (1,034 ) Equity in undistributed earnings (losses) of subsidiaries 5,381 (238 ) Net income (loss) $ 3,878 $ (1,272 ) Year ended December 31, CONDENSED STATEMENTS OF CASH FLOWS 2018 2017 Cash Flows from Operating Activities: Net income (loss) $ 3,878 $ (1,272 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of debt issuance costs 16 17 Share-based compensation expense 102 199 Equity in undistributed (earnings) losses of subsidiaries (5,381 ) 238 Increase in other assets (223 ) (324 ) Net change in deferred compensation plan 71 340 Increase (decrease) in other liabilities 1,291 (299 ) Net cash used in operating activities (246 ) (1,101 ) Cash Flows from Investing Activities: (Purchases) maturities of certificates of deposit (770 ) 1,240 Investment in subsidiaries (8,000 ) (8,750 ) Net cash used in investing activities (8,770 ) (7,510 ) Cash Flows from Financing Activities: Dividends paid — (1,431 ) Stock options exercised 149 254 Director stock grant 125 — (Purchase) issuance of stock, net (556 ) 32,803 ESOP loans acquired from VBC — 911 Net cash (used in) provided by financing activities (282 ) 32,537 Net (decrease) increase in cash and due from banks (including interest-earning deposits) (9,298 ) 23,926 Cash and cash equivalents (including interest-earning deposits) at beginning of period 25,084 1,158 Cash and cash equivalents (including interest-earning deposits) at end of period $ 15,786 $ 25,084 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. 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. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. The amounts recorded in the consolidated financial statements may be affected by those estimates and assumptions. Actual results may vary from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the measurement of fair value of foreclosed real estate, deferred income taxes, impairment testing of goodwill, projected pension and post-retirement benefit plan obligations, and fair value measurements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are carried at cost and mature within ninety days of the balance sheet date. For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks and interest-earning deposits, including deposits with the Federal Reserve Bank of Richmond. |
Securities | Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available for sale, or trading, based on management’s intent and ability. Currently, all of the Company’s investment securities are debt securities and are classified as available for sale. Securities available for sale are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). A gain or loss on sale is recognized in earnings on the settlement date based on the amortized cost of the specific security sold. GAAP states the trade date is the date on which a purchase or sale of a security is to be recognized; however, the Company’s policy is to recognize the transaction upon the movement of cash (i.e., settlement date) and believes there is no material difference between the two methods. Purchase premiums and discounts are recognized in interest income, using the interest method over the terms of the respective securities. Impairment of an investment security occurs when the fair value of a security is less than its amortized cost as of the balance sheet date and the value of the security is not expected to be recovered. For debt securities, impairment is considered an other-than-temporary impairment (“OTTI”) and recognized in its entirety in net income if (i) there is evidence of credit related impairment; (ii) the Company intends to sell the security; or (iii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more likely than not that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is a credit loss, the loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). The Company regularly reviews each investment security for OTTI based on criteria that include the extent to which cost exceeds fair value, the duration of that market decline, the financial health of and specific prospects for the issuer, the Company’s best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that it would be required to sell the security before recovery. Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 22. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Securities Sold Under Repurchase Agreements | Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements, which are classified as secured borrowings, generally mature within one year from the transaction date. Securities sold under repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company is required to provide collateral based on the value of the underlying cash. The Company pledges certain investment securities to satisfy its collateral requirements. |
Loans | Loans The Company offers mortgage loans on real estate, commercial and industrial loans, and consumer loans. A substantial portion of the Company’s loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s borrowers to honor their loan agreements is dependent upon their ability to generate sufficient cash flow (business or personal), the value of the underlying collateral (e.g., real estate), and/or the general economic conditions in the Company’s market areas. 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 discounts or premiums on acquired or purchased loans. Interest on loans is recognized into earnings over the contractual term of the loan and is calculated using the interest method on principal amounts outstanding. Loan 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 or principal curtailments, as applicable. The accounting for discounts and premiums on acquired or purchased loans differs if the loans were designated purchased-credit impaired or purchased performing as of the acquisition date, as described below. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if the credit is well secured and in process of collection. Consumer loans are typically charged off no later than when 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans, including impaired loans, with the exception of purchased-credit impaired (“PCI”) loans as discussed below. All interest accrued but not collected for loans that are placed on nonaccrual or charged-off are reversed against interest income. Any subsequent interest received on these loans is recognized as interest income under the cash basis method of accounting until qualifying for return to accrual status. Generally, a loan is returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, or the loan becomes well-secured and in process of collection. |
Loans Acquired in a Business Combination | Loans Acquired in a Business Combination The Company accounts for loans acquired in a business combination in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations Receivables-Nonrefundable Fees and Other Costs Loans and Debt Securities Acquired with Deteriorated Credit Quality PCI loans are those for which there is evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. When determining estimated fair value at acquisition, PCI loans were aggregated into pools of loans based on common characteristics such as loan type, date of origination, and evidence of credit quality deterioration such as internal risk grades and past due and nonaccrual status. The Company must then estimate the amount and timing of expected cash flows for each loan pool, and the expected cash flows in excess of the estimated fair value is recorded as interest income over the remaining life of the loan pool as accretable yield. These estimates include certain prepayment assumptions based on the nature of each loan pool. The excess of the loan pools contractual principal and interest payments over expected future cash flows is not recorded (nonaccretable difference). Over the life of the loan pool, expected future cash flows continue to be estimated on a periodic basis. If the present value of expected future cash flows is less than the carrying amount, an impairment is recorded as a provision for loan losses. If the present value of expected future cash flows is greater than the carrying amount, the respective loan pool’s yield is adjusted and the additional income is recognized prospectively into earnings over the loan pool’s remaining life. Loans not designated as PCI loans as of the acquisition date were designated as PPL. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion or premium amortization based on the acquired loans’ contractual cash flows. Purchased performing loans were recorded at estimated fair value, including a credit-related discount and a discount or premium for differences in interest rates of the acquired loans compared to market rates for similar loans as of the acquisition date. The fair value discount or premium is accreted as an adjustment to yield over the remaining contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing or PCI loans. A provision for loan losses is recorded for any deterioration in these loans subsequent to acquisition. |
Troubled Debt Restructurings (“TDR”) | Troubled Debt Restructurings (“TDR”) In some situations, for economic or legal reasons related to a borrower’s financial condition, the Company may grant a concession to a borrower that it would not otherwise consider. Concessions include new terms that provide for a reduction of the face amount or maturity amount of the debt as stated in the original agreement, a reduction (absolute or contingent) of the stated interest rate for the remaining original life of the loan, and/or an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. Concessions granted to a borrower experiencing financial difficulties results in a loan that is subsequently 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 to minimize the economic loss and to avoid foreclosure or repossession of underlying collateral, if any. Management assesses all TDRs for impairment as noted below for impaired loans. |
Loan Risk Ratings | Loan Risk Ratings Loans in the Company’s loan portfolio are risk rated on a periodic basis by experienced credit personnel. For non-homogenous loans, management reviews these resulting grade assignments and makes adjustments to the final grade where appropriate based on an assessment of additional external information that may affect a particular loan. Risk rating categories are as follows: Pass – Borrower is strong or sound, and collateral securing the loan, if any, is adequate. Watch – Borrower exhibits some signs of financial stress but is generally believed to be a satisfactory customer, and collateral, if any, may be in excess of 90% of the loan balance. Special Mention – Adverse trends in the borrower’s financial position are evident and warrant management’s close attention. Any collateral may not be fully adequate to secure the loan balance. Substandard – A loan in this category has a well-defined weakness in the primary repayment source that jeopardizes the timely collection of the debt. There is a distinct possibility that a loss may result if the weakness is not corrected. Doubtful – Default has already occurred and it is likely that foreclosure or repossession procedures have begun or will begin in the near future. Weaknesses make collection or liquidation in full, based on currently existing information, highly questionable and improbable. Loss – Uncollectible and of such little value that continuance as an asset is not warranted. |
Allowance for Loan Losses (“ALL”) | Allowance for Loan Losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the loan portfolio as of the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter-end. To determine the total ALL, the Company estimates the reserves needed for each homogenous type of the loan portfolio, plus any loans analyzed individually for impairment. Depending on the nature of each type, 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 individually for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as TDRs. For the general component of the ALL, the Company collectively evaluates any loans not evaluated individually for a specific reserve, including impaired loans risk rated Substandard or worse with balances less than $400 thousand. All loans evaluated collectively are grouped into types, and historical loss experience is calculated and applied to each loan type and the resultant reserve is 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 types. An unallocated component is maintained, if needed, to cover uncertainties that could affect management’s estimate of probable losses. The specific component of the ALL includes the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Generally, impaired loans are placed on nonaccrual status if they meet the conditions as outlined above in the Loans The general component of the ALL calculation collectively evaluates groups of loans by types, as noted above. The types are: (1) mortgage loans on real estate; (2) commercial and industrial loans; and (3) consumer and other loans. The type for mortgage loans on real estate is disaggregated into the following types: (a) construction, land and land development; (b) farmland; (c) residential first mortgages; (d) residential revolving and junior mortgages; (e) commercial mortgages (non-owner-occupied); and (f) commercial mortgages (owner-occupied). Historical loss factors are calculated for the prior 20 quarters by loan type, and then applied to the current balances in each loan grouping. Finally, qualitative factors are applied to each type, as applicable. Construction and land development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor or developer may face financial pressure unrelated to the project. Loans secured by land, farmland, and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate, which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by unemployment, personal illness, bankruptcy, or divorce of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral values. Consumer loans include loans and debt consolidation loans purchased from third parties. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs to the ALL result from credit exposures deemed to be uncollectible. Loans are considered uncollectible when: (1) no regularly scheduled payment has been made within 120 days, and; (2) the loan is unsecured or; (3) the borrower files for bankruptcy protection and there is no other financial support or guarantee from an entity outside of the bankruptcy proceedings (e.g., guarantor). As soon as any loan becomes uncollectible, the Company’s charge-off policy is based on whether the loan is unsecured or secured. If the loan is unsecured, the loan is charged-off in full. If the loan is secured, the outstanding principal balance of the loan is charged down to the net realizable value of the underlying collateral if the loan is collateral dependent. If the loan is not collateral dependent, the charge-off is based on management’s calculation of the net present value of future cash flows. Recoveries of previously charged-off amounts are credited to the ALL. The summation of the specific, general, and unallocated components results in the ALL. The ALL is inherently subjective and actual losses could be greater or less than estimated. Further, changes in the ALL and the related provision expense can materially affect net income. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALL. Such agencies may require the Company to recognize additions or reductions to the allowance for loan losses based on their judgments of information available to them at the time of their examination. |
Mortgage Servicing Rights (“MSRs”) | Mortgage Servicing Rights (“MSRs”) MSR assets represent a contractual agreement where the rights to service an existing mortgage are sold by the original lender to another party who specializes in the various functions of servicing mortgages. MSRs are included on the consolidated balance sheets and are recorded at fair value. Changes in the fair value of the MSRs are recorded in the consolidated statements of operations. |
Premises and Equipment, net | Premises and Equipment, net Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the premises and equipment. Estimated useful lives range from 10 to 40 years for buildings, and from 3 to 10 years for furniture, fixtures, and equipment. Maintenance and repairs are charged to expense as incurred, and major improvements are capitalized. |
Other Real Estate Owned, net | Other Real Estate Owned, net Other real estate owned (“OREO”), net of a valuation allowance, is reported on the consolidated balance sheets at the lower of cost or market. Real estate properties acquired through, or in lieu of, loan foreclosure are marketed for sale and are initially recorded at fair value on the date of foreclosure less estimated selling costs. Upon acquisition (transfer), if the fair value of the property less estimated selling costs is less than the recorded investment of the loan, the difference is recorded as a charge-off to the ALL. Conversely, if upon transfer, the fair value of the property less estimated selling costs is in excess of the recorded investment of the loan, the difference is recorded as gain in noninterest expense on the consolidated statements of operations. Subsequent declines in the fair value of OREO below its initial cost basis are recorded as valuation allowance against OREO and to noninterest expense. Revenue and expenses related to the operation or maintenance of foreclosed properties are included in expenses from foreclosed property in noninterest expense on the consolidated statements of operations. Finally, any gain or loss resulting from the sale or disposition of OREO is included in the net other real estate owned (gains) loss line item in noninterest expenses on the consolidated statements of operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is an indefinite life intangible asset that represents the excess of the consideration paid or purchase price for an acquired entity over the fair value of the identifiable net assets acquired. The Company’s goodwill resulted from the merger with Virginia BanCorp, Inc. on April 1, 2017 and from the acquisition of five branches during the years 1994 through 2000. Goodwill is tested for potential impairment on an annual basis in accordance with ASC 350, Intangibles-Goodwill and Other Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s consolidated balance sheets. The core deposit intangible asset resulting from the merger with Virginia BanCorp, Inc. is the only intangible asset with a definite useful life and is being amortized over 92 months from the date of the merger on an accelerated basis using the sum of years’ digits method. Long-lived assets, including purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management concluded that no circumstances indicating an impairment of these assets existed as of December 31, 2018. |
Income Taxes | Income Taxes Income taxes are accounted for using the balance sheet method in accordance with ASC 740, Accounting for Income Taxes When the Company’s federal tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties, if any, associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. The Company evaluates its net deferred tax asset on a quarterly basis to determine if it is more-likely-than-not those assets will be recovered and if a valuation allowance is needed. As of December 31, 2018, the Company determined no valuation allowance related to its net deferred tax asset was necessary, as the expectation is that the Company will generate sufficient taxable income in future years to absorb all of its deferred tax assets. |
Employee Benefit Plans | Employee Benefit Plans The Company has a noncontributory cash balance benefit pension plan, which was frozen in 2012. The plan covers employees who had become vested in the plan as of the date it was frozen. The Company also sponsored a post-retirement benefit plan covering eligible retirees’ medical and life insurance benefits. This plan was also frozen to new employees as of March 1, 2018. The Company accounts for both its pension and post-retirement benefit plans in accordance with ASC 715, Compensation-Retirement Benefits. The Company also sponsors an Employee Stock Ownership Plan (“ESOP”) and a 401(k) retirement plan for the benefit of all eligible employees. |
Earnings Per Share | Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards. Shares allocated to participants of the Company’s ESOP and unallocated shares, which collateralize ESOP borrowings but that are committed to be released are also included in basic and diluted average shares outstanding. However, shares held by the ESOP, which collateralize ESOP borrowings and that are not committed to be released, are excluded from both basic and diluted average shares outstanding. |
Off-balance-sheet Financial Instruments | Off-balance-sheet Financial Instruments In the ordinary course of business, the Bank enters into off-balance-sheet financial agreements such as construction loan commitments, home equity lines of credit, overdraft protection lines of credit, unsecured lines of credit, working capital loan commitments, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are recognized. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”), which is life insurance purchased by the Bank on a selected group of employees. The Bank is the owner and primary beneficiary of the policies. BOLI is recorded in the Company’s consolidated balance sheets at the cash surrender value of the underlying policies. Earnings from the increase in cash surrender value of the policies are included in noninterest income on the consolidated statements of operations. The Bank has rights under the insurance contracts to redeem them for cash surrender value at any time; however, a redemption not upon the occurrence of death is subject to taxation. |
Share-based Compensation Plans | Share-based Compensation Plans The Company accounts for its share-based compensation plan awards for employees and directors in accordance with ASC 718, Compensation-Stock Compensation. |
Recent Accounting Pronouncements | Recent Accounting In June 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-07, Compensation – Stock Compensation (ASC 718). Revenue from Contracts with Customers In March 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (ASC 718). In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (ASC 310-20), Premium Amortization on Purchased Callable Debt Securities. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (ASC 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 (ASC 350): Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (ASC 326), In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (ASC 825-10) In May 2014, the FASB issued ASC 2014-09, Revenue from Contracts with Customers (ASC 606). Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table details the total consideration paid by the Company in the Merger, the fair value of the assets acquired and liabilities assumed, and the resulting goodwill. As Recorded by Virginia BanCorp Fair Value and Reclassification Adjustments 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 $ — $ 2,356 Interest-earning 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, net 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 Unaudited Pro Forma Financial Information | The table below illustrates the unaudited pro forma revenue and net income of the combined entities for the year ended December 31, 2017 had the Merger taken place on January 1, 2017. Year Ended December 31, 2017 Net interest income $ 27,169 Net income 1,825 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities | The following table presents the aggregate amortized cost and fair values of available-for-sale securities as of dates stated. Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value U.S. Government agencies and mortgage backed securities $ 51,126 $ 35 $ (1,279 ) $ 49,882 State and municipal obligations 20,484 60 (327 ) 20,217 Corporate bonds 12,194 23 (84 ) 12,133 Total available-for-sale securities $ 83,804 $ 118 $ (1,690 ) $ 82,232 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 securities $ 77,773 $ 224 $ (844 ) $ 77,153 |
Gross Realized Gains and Gross Realized Losses of Available-For-Sale Securities | The following table presents the gross realized gains and gross realized losses, as well as proceeds from sales and calls of available-for-sale securities, for the periods presented. For the Year Ended December 31, 2018 2017 Gross realized gains $ — $ 7 Gross realized losses — (5 ) Net realized gains $ — $ 2 Aggregate proceeds $ — $ 17,937 |
Unrealized Loss Positions | The following tables provide additional information on these securities as of the dates stated. Less than 12 months 12 months or more Total December 31, 2018 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies and mortgage backed securities $ 2,911 $ (22 ) $ 43,843 $ (1,257 ) $ 46,754 $ (1,279 ) State and municipal obligations 2,723 (27 ) 9,119 (300 ) 11,842 (327 ) Corporate bonds 5,742 (84 ) — — 5,742 (84 ) Total temporarily impaired securities $ 11,376 $ (133 ) $ 52,962 $ (1,557 ) $ 64,338 $ (1,690 ) Less than 12 months 12 months or more Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agencies and mortgage backed securities $ 25,053 $ (353 ) $ 16,184 $ (334 ) $ 41,237 $ (687 ) State 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 Available for Sale Securities | The following table presents the amortized cost and fair value by contractual maturity of available-for-sale securities as of the dates stated. Expected maturities may differ from contractual maturities, as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 1,080 $ 1,079 $ 3,583 $ 3,514 Due after one year but less than five years 47,065 46,358 37,747 37,425 Due after five years but less than ten years 26,615 26,149 28,441 28,250 Due after ten years 9,044 8,646 8,002 7,964 Total available-for-sale securities $ 83,804 $ 82,232 $ 77,773 $ 77,153 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Company’s composition of Loans | The following table presents the Company’s composition of loans as of the dates stated. December 31, 2018 December 31, 2017 Mortgage loans on real estate: Construction, land and land development $ 108,767 $ 66,042 Farmland 708 923 Commercial mortgages (non-owner occupied) 180,074 146,757 Commercial mortgages (owner occupied) 87,241 80,052 Residential first mortgages 298,894 269,365 Residential revolving and junior mortgages 38,313 46,498 Commercial and industrial 164,608 114,093 Consumer 23,740 42,566 Total loans 902,345 766,296 Net unamortized deferred loan (fees) costs (252 ) 200 Allowance for loan losses (7,902 ) (7,770 ) Loans receivable, net $ 894,191 $ 758,726 |
Recorded Investment for Past Due and Non-accruing Loans | The following tables present the recorded investment for past due and nonaccrual loans as of the dates stated. A loan past due 90 days or more is generally placed on nonaccrual unless it is both well-secured and in the process of collection. Loans presented below as 90 days or more past due and still accruing include PCI loans. 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage loans on real estate: Construction, land and land development $ 552 — $ 740 $ 1,292 $ 107,475 $ 108,767 Farmland — — — — 708 708 Commercial mortgages (non-owner occupied) 50 — 996 1,046 179,028 180,074 Commercial mortgages (owner occupied) — 56 1,064 1,120 86,121 87,241 Residential first mortgages 1,341 55 1,361 2,757 296,137 298,894 Residential revolving and junior mortgages 115 — 782 897 37,416 38,313 Commercial and industrial — — 48 48 164,560 164,608 Consumer 329 — 215 544 23,196 23,740 Total loans $ 2,387 $ 111 $ 5,206 $ 7,704 $ 894,641 $ 902,345 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 occupied) 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 288 4 135 427 42,139 42,566 Total loans $ 5,021 $ 213 $ 6,496 $ 11,730 $ 754,566 $ 766,296 |
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 stated. For the Year Ended December 31, 2018 Balance as of December 31, 2017 $ 1,087 Accretion of acquisition accounting adjustment (358 ) Reclassifications from nonaccretable balance, net (46 ) Other changes, net 400 Balance as of December 31, 2018 $ 1,083 |
Internal Risk Rating Grades | The following tables present the Company’s risk rating of loans by loan type as of the dates stated. December 31, 2018 Construction, Land and Land Development Farmland Commercial Mortgages (Non-Owner Occupied) Commercial Mortgages (Owner Occupied) Residential First Mortgages Residential Revolving and Junior Mortgages Commercial and Industrial Consumer Total Loans Grade: Pass $ 100,299 $ 708 $ 174,661 $ 79,375 $ 280,663 $ 35,900 $ 158,590 $ 8,144 $ 838,340 Watch 6,299 — 4,275 6,522 14,709 1,306 3,802 15,245 52,158 Special mention 68 — — 107 1,071 — 893 121 2,260 Substandard 2,101 — 1,138 1,237 2,451 1,107 1,323 230 9,587 Doubtful — — — — — — — — — Total loans $ 108,767 $ 708 $ 180,074 $ 87,241 $ 298,894 $ 38,313 $ 164,608 $ 23,740 $ 902,345 December 31, 2017 Construction, Land and Land Development Farmland Commercial Mortgages (Non-Owner Occupied) Commercial Mortgages (Owner Occupied) Residential First Mortgages Residential Revolving and Junior Mortgages Commercial and Industrial Consumer Total Loans Grade: Pass $ 55,949 $ 923 $ 140,625 $ 67,732 $ 256,614 $ 43,659 $ 110,281 $ 12,431 $ 688,214 Watch 6,690 — 5,931 10,076 8,624 1,376 2,373 29,917 64,987 Special mention 172 — — — 205 — 1,347 — 1,724 Substandard 3,231 — 201 2,244 3,922 1,463 92 218 11,371 Doubtful — — — — — — — — — Total loans $ 66,042 $ 923 $ 146,757 $ 80,052 $ 269,365 $ 46,498 $ 114,093 $ 42,566 $ 766,296 |
PCI Loans | |
Recorded Investment for Past Due and Non-accruing Loans | The following tables present an aging analysis, based upon contractual terms, of the recorded investment of PCI loans as of the dates stated, which are included in the tables above. 90 Days or 30-89 More Past Total Past Days Due and Due and Total December 31, 2018 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Mortgage loans on real estate: Construction, land and land development $ 23 $ — $ — $ 23 $ 1,355 $ 1,378 Commercial mortgages (non-owner occupied) — — — — 142 142 Commercial mortgages (owner occupied) — 56 — 56 237 293 Residential first mortgages 92 55 — 147 3,317 3,464 Residential revolving and junior Mortgages — — — — — — Commercial and industrial — — — — — — Consumer — — — — 46 46 Total purchased credit-impaired loans $ 115 $ 111 $ — $ 226 $ 5,097 $ 5,323 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 $ — $ — $ — $ — $ 1,405 $ 1,405 Commercial mortgages (non-owner occupied) — — — — 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 Commercial and industrial — — — — — — Consumer — 4 — 4 65 69 Total purchased credit-impaired loans $ 510 $ 165 $ — $ 675 $ 5,150 $ 5,825 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans Evaluated for Impairment Individually and Collectively by Type | The following tables present the allowance for loan losses and the amount of loans evaluated for impairment, individually and collectively, by loan type as of the dates stated. December 31, 2018 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total Allowance for loan losses applicable to: Loans individually evaluated for impairment $ 1,036 $ — $ 121 $ 1,157 Loans collectively evaluated for impairment 3,931 1,374 1,440 6,745 Purchased credit-impaired loans — — — — Total allowance on loan losses $ 4,967 $ 1,374 $ 1,561 $ 7,902 Loan balances applicable to: Loans individually evaluated for impairment $ 7,485 $ — $ 121 $ 7,606 Loans collectively evaluated for impairment 701,235 164,608 23,573 889,416 Purchased credit-impaired loans 5,277 — 46 5,323 Total loans $ 713,997 $ 164,608 $ 23,740 $ 902,345 December 31, 2017 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total 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 Loan Type | The following tables present an analysis of the change in the ALL by loan type as of and for the periods stated. Mortgage Loans on Real Estate Commercial and Industrial Consumer Total For the Year Ended December 31, 2018 Beginning Balance $ 3,864 $ 878 $ 3,028 $ 7,770 Charge-offs (202 ) (116 ) (1,374 ) (1,692 ) Recoveries 110 1 362 473 Provision (recovery of) 1,195 611 (455 ) 1,351 Ending Balance $ 4,967 $ 1,374 $ 1,561 $ 7,902 Mortgage Loans on Real Estate Commercial and Industrial Consumer Total For the Year Ended December 31, 2017 Beginning Balance $ 3,318 $ 493 $ 52 $ 3,863 Charge-offs (577 ) (729 ) (171 ) (1,477 ) Recoveries 91 263 96 450 Provision 1,032 851 3,051 4,934 Ending Balance $ 3,864 $ 878 $ 3,028 $ 7,770 |
Company's Recorded Investment and Borrowers' Unpaid Principal Balances for Impaired Loans, Excluding PCI Loans, with Associated ALL Amount | The following table presents 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 dates stated. As of December 31, 2018 As of December 31, 2017 Recorded Investment Borrowers’ Unpaid Principal Balance Related Allowance Recorded Investment Borrowers’ Unpaid Principal Balance Related Allowance With no related allowance: Construction, land and land development $ 335 $ 406 $ — $ 900 $ 1,378 $ — Commercial mortgages (non-owner occupied) 386 386 — — — — Commercial mortgages (owner occupied) — — — 1,721 1,971 — Residential first mortgages — — — — 1,488 — Residential revolving and junior mortgages 1,028 1,028 — 1,488 414 — Commercial and industrial — — — 414 — — Consumer — — — — — — Total impaired loans with no related allowance 1,749 1,820 — 4,523 5,251 — With an allowance recorded: Construction, land and land development 275 275 132 550 621 137 Commercial mortgages (non-owner occupied) 443 443 18 — — 367 Commercial mortgages (owner occupied) 1,069 1,069 57 547 586 162 Residential first mortgages 3,447 3,447 565 1,914 1,914 — Residential revolving and junior mortgages 502 5,002 264 1,340 1,340 195 Commercial and industrial — — — 92 92 92 Consumer 121 121 121 141 141 141 Total impaired loans with allowance recorded 5,857 10,357 1,157 4,584 4,694 1,094 Total Impaired Loans: Construction, land and land development 610 681 132 1,450 1,999 137 Commercial mortgages (non-owner occupied) 443 443 18 — — 367 Commercial mortgages (owner occupied) 1,455 1,455 57 2,268 2,557 162 Residential first mortgages 4,475 4,475 565 3,402 3,402 — Residential revolving and junior mortgages 502 502 264 1,754 1,457 195 Commercial and industrial — — — 92 92 92 Consumer 121 121 121 141 141 141 Total impaired loans $ 7,606 $ 7,677 $ 1,157 $ 9,107 $ 9,648 $ 1,094 The following table presents the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, for the periods presented. For the Year Ended December 31, 2018 December 31, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance: Construction, land and land development $ 382 $ 13 $ 1,282 $ 66 Commercial mortgages (non-owner occupied) — — — — Commercial mortgages (owner occupied) 394 24 1,800 32 Residential first mortgages 760 — 1,449 21 Residential revolving and junior mortgages — 44 417 5 Commercial and industrial — — — — Consumer — — — — Total impaired loans with no allowance 1,536 81 4,948 124 With an allowance recorded: Construction, land and land development 267 18 572 4 Commercial mortgages (non-owner occupied) 267 12 — — Commercial mortgages (owner occupied) 1,061 47 572 12 Residential first mortgages 3,037 150 1,932 93 Residential revolving and junior mortgages 149 6 1,360 44 Commercial and industrial — — 92 — Consumer 133 11 28 6 Total impaired loans with allowance recorded 4,914 244 4,556 159 Total impaired loans: Construction, land and land development 649 31 1,854 70 Commercial mortgages (non-owner occupied) 267 12 — — Commercial mortgages (owner occupied) 1,455 71 2,372 44 Residential first mortgages 3,797 194 3,381 114 Residential revolving and junior mortgages 149 6 1,777 49 Commercial and industrial — — 92 — Consumer 133 11 28 6 Total impaired loans $ 6,450 $ 325 $ 9,504 $ 283 |
Reconciliation of Nonaccrual Loans to Impaired Loans | The following table presents a reconciliation of nonaccrual loans to impaired loans as of the dates stated. December 31, 2018 December 31, 2017 Nonaccrual loans $ 5,206 $ 6,496 Nonaccrual loans collectively evaluated for impairment (2,040 ) (854 ) Nonaccrual impaired loans 3,166 5,642 TDRs on accrual 4,115 1,452 Other impaired loans on accrual 325 2,013 Total impaired loans $ 7,606 $ 9,107 |
Summary of Troubled Debt Restructurings | Loans modified as TDRs are considered impaired and are individually evaluated for impairment as part of the Company’s ALL process. The following table presents, by loan type, information related to loans modified as TDRs for the periods presented. For the Year Ended For the Year Ended December 31, 2018 December 31, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Residential first mortgages (1) 9 $ 1,315 $ 1,324 1 $ 820 $ 820 Commercial mortgages (owner occupied) (2) 1 644 672 - - - Consumer (2) - - - 1 147 147 (1) Modifications include extension of the loan terms, reduction of interest rates, and/or principal and interest forgiveness. (2) |
Summary of Roll Forward of Accruing and Nonaccrual TDRs | The following table presents a roll forward of accruing and nonaccrual TDRs for the year ended December 31, 2018. Accruing Nonaccrual Total Balance as of December 31, 2017 $ 1,452 $ 2,612 $ 4,064 Charge-offs — (92 ) (92 ) Payments and other adjustments (407 ) 60 (347 ) New TDR designation 1,235 732 1,967 Release TDR designation — — — Transfer 1,835 (1,835 ) — Balance as of December 31, 2018 $ 4,115 $ 1,477 $ 5,592 |
Premises and Equipment, net (Ta
Premises and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Components of Premises and Equipment, Net of Accumulated Depreciation, Included in Consolidated Balance Sheets | Components of premises and equipment, net of accumulated depreciation, included in the consolidated balance sheets as of the dates stated were as follows. December 31, 2018 December 31, 2017 Land and improvements $ 4,639 $ 4,639 Buildings and improvements 20,261 19,257 Furniture and equipment 13,218 11,631 Total cost 38,118 35,527 Less accumulated depreciation (19,949 ) (18,064 ) Premises and equipment, net $ 18,169 $ 17,463 |
Other Real Estate Owned, net (T
Other Real Estate Owned, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Carrying Value of Properties Included in Other Real Estate Owned, Net | The following table presents the carrying value of properties included in other real estate owned, net, as of the dates stated. December 31, 2018 December 31, 2017 Number of Carrying Number of Carrying Properties Value Properties Value Residential 6 $ 1,339 5 $ 443 Land 17 1,741 20 3,223 Commercial 3 517 4 618 Total 26 $ 3,597 29 $ 4,284 |
Components of Other Real Estate Owned (OREO) Valuation Allowance | The following table presents the components of the OREO valuation allowance as of and for the periods stated. For the Year Ended December 31, 2018 2017 Balance, beginning of year $ 461 $ 473 Valuation adjustments 21 245 Charge-offs (67 ) (257 ) Balance, end of year $ 415 $ 461 |
Other Real Estate Owned (OREO) Related Activity Reported in Consolidated Statements of Operations | The following table presents OREO-related activity reported in the consolidated statements of operations for the periods stated. For the Year Ended December 31, 2018 2017 Net (gain) loss on sale of other real estate owned $ (128 ) $ (24 ) Valuation adjustments 21 245 Foreclosed property expense, net of income 171 138 Total expenses $ 64 $ 359 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information on Intangible Assets, Other than Goodwill | The following table presents information on the Company’s intangible assets, other than goodwill, as of the dates stated. Gross Carrying Accumulated Net Carrying December 31, 2018 Value Amortization Value Core deposit intangibles $ 3,670 $ 1,477 $ 2,193 Mortgage servicing rights 977 — 977 Total $ 4,647 $ 1,477 $ 3,170 Gross Carrying Accumulated Net Carrying December 31, 2017 Value Amortization Value Core deposit intangibles $ 3,670 $ 679 $ 2,991 Mortgage servicing rights 999 — 999 Total $ 4,669 $ 679 $ 3,990 |
Estimated Remaining Amortization Expense | As of December 31, 2018, the estimated remaining amortization expense of the core deposit intangible asset is presented in the following table for the periods presented. 2019 $ 674 2020 551 2021 427 2022 304 2023 180 Thereafter 57 Total estimated amortization expense $ 2,193 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Expense (Benefit) for Income Taxes | The following table presents current and deferred income tax expense (benefit) for the periods stated. Year Ended December 31, 2018 2017 Current (benefit) expense $ (313 ) $ 362 Deferred expense 846 435 Income tax expense $ 533 $ 797 |
Summary of Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate | The following table presents the federal statutory income tax rate reconciled to the Company’s effective tax rate for the periods stated. Year Ended December 31, 2018 2017 Federal statutory income tax rate 21.0 % 34.0 % Increase (decrease) resulting from: Net tax-exempt income (5.6 %) 85.0 % Merger-related expenses 0.0 % (15.0 %) Tax Cuts and Jobs Act of 2017 adjustment to deferred taxes 0.0 % (283.1 %) Income tax return to provision (2017) adjustment (3.9 %) 0.0 % Other, net 0.7 % 11.4 % Federal effective income tax rate 12.1 % (167.7 %) |
Components of Net Deferred Tax Assets | The following table presents the components of the net deferred tax asset as of the dates stated using a statutory income tax rate of 21%. The Company has concluded that it is more likely than not that its deferred tax assets will be utilized in future periods; therefore, no valuation allowance has been recorded against all or a portion of its deferred tax assets. December 31, 2018 December 31, 2017 Deferred tax assets Allowance for loan losses $ 1,629 $ 1,632 Other real estate owned 226 433 Pension and post-retirement benefit plans 127 266 Unrealized losses on available-for-sale securities 333 130 Deferred and share-based compensation plans 237 215 Alternative minimum tax credit — 134 Fair value adjustments on acquired loans and time deposits resulting from the Merger 969 1,665 Net deferred loan fees 53 65 Other 124 270 Total deferred tax assets 3,698 4,810 Deferred tax liabilities Depreciation of fixed assets (359 ) (69 ) Amortization of goodwill and core deposit intangible asset (1,050 ) (1,218 ) Premium on fixed assets acquired in the Merger (553 ) (561 ) Recapture of bad debts experience reserve (178 ) (229 ) Other (48 ) (391 ) Total deferred tax liabilities (2,188 ) (2,468 ) Deferred tax assets, net $ 1,510 $ 2,342 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Summary of Deposit Accounts | The following table presents a summary of deposit accounts as of the dates stated. December 31, 2018 December 31, 2017 Noninterest-bearing demand deposits $ 114,122 $ 103,037 Interest-bearing: Savings deposits 57,472 62,896 Demand deposits 76,302 90,585 Money market deposits 225,626 146,339 Time deposits less than $250 306,720 299,825 Time deposits $250 or more 61,950 59,164 Total $ 842,192 $ 761,846 |
Schedule of Time Deposits Maturities | The following table presents the scheduled maturities of time deposits, as of December 31, 2018. 2019 $ 167,564 2020 68,342 2021 53,538 2022 11,186 2023 67,930 Thereafter 110 $ 368,670 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Advances of Borrowings | The following table presents information regarding the FHLB advances outstanding as of December 31, 2018. Maturity Balance Originated Interest Rate Date Adjustable rate hybrid $ 10,000 4/12/2013 4.82 % 4/13/2020 Fixed rate credit 75,000 12/4/2018 2.42 % 1/4/2019 Fixed rate credit 5,000 12/18/2018 2.49 % 1/4/2019 Fixed rate credit 10,000 12/19/2018 2.51 % 1/4/2019 Total FHLB advances $ 100,000 2.67 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Accumulated Benefit Obligation and Fair Value of Qualified Trust Assets (Pension Plan only) and Statement of Funded (Unfunded) Status for Pension Plan and PRB Plan | The following table provides a reconciliation of changes in the accumulated benefit obligations and fair value of qualified trust assets (Pension Plan only) and a statement of funded (unfunded) status for the Pension Plan and the PRB Plan as of and for the periods stated. Pension Plan PRB Plan 2018 2017 2018 2017 Change in benefit obligation Benefit obligation, beginning of year $ 3,273 $ 3,398 $ 457 $ 540 Service cost — — 3 22 Interest cost 94 121 5 21 Actuarial (gain) loss (694 ) 323 (36 ) (120 ) Benefit payments (1,295 ) (581 ) (6 ) (6 ) Curtailment/termination (gain) — — (352 ) — Settlement loss 221 12 — — Benefit obligation, end of year 1,599 3,273 71 457 Change in plan assets Fair value of plan assets, beginning of year 2,465 2,690 — — Actual (loss) return on plan assets (54 ) 356 — — Employer contributions — — 6 6 Benefits payments (1,295 ) (581 ) (6 ) (6 ) Fair value of plan assets, end of year 1,116 2,465 — — (Unfunded) funded status, end of year $ (483 ) $ (808 ) $ (71 ) $ (457 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss (Income) | Pension Plan PRB Plan Year Ended December 31, Year Ended December 31, 2018 2017 2018 2017 Amounts recognized in accumulated other comprehensive loss (income) Net loss (gain) $ 447 $ 1,187 $ (354 ) $ (344 ) Prior service cost — — — — Net obligation at transition — — — — Amount recognized $ 447 $ 1,187 $ (354 ) $ (344 ) |
Components of Net Periodic Benefit Cost (Gain) | Components of net periodic benefit cost (gain) Service cost $ — $ — $ 3 $ 22 Interest cost 94 121 5 21 Expected return on plan assets (153 ) (167 ) — — Amortization of prior service cost — — — — Amortization of net obligation at transition — — (26 ) (11 ) Curtailment/termination gain — — (352 ) — Recognized net loss due to settlement 422 195 — — Recognized net actuarial loss 51 81 — — Net periodic benefit cost (gain) 414 230 (370 ) 32 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss Net gain (739 ) (130 ) (10 ) (109 ) Amortization of prior service cost — — — — Amortization of net obligation at transition — — — — Total recognized in other comprehensive loss (income) (739 ) (130 ) (10 ) (109 ) Total recognized in net periodic benefit cost and other comprehensive loss (income) $ (325 ) $ 100 $ (380 ) $ (77 ) |
Schedule of Actuarial Assumptions | The following table provides the actuarial assumptions used to derive the information reported in the consolidated financial statements as of and for the years ended December 31, 2018 and 2017. Pension Plan PRB Plan As of and for the year ended December 31, As of and for the year ended December 31, 2018 2017 2018 2017 Discount rate used for net periodic pension cost 3.50 % 4.00 % 4.25 % 4.00 % Discount rate used for disclosure 4.25 % 3.50 % 4.25 % 3.50 % Expected return on plan assets 7.25 % 7.25 % N/A N/A Rate of compensation increase N/A N/A N/A N/A Rate of compensation increase for net periodic pension cost N/A N/A N/A N/A Expected future interest crediting rate 3.00 % 3.00 % N/A N/A |
Estimated Future Benefit Payments for Pension Plan and PRB Plan | The following table provides estimated future benefit payments (cash) for the Pension Plan and PRB Plan for the periods presented. Pension Plan PRB Plan 2019 $ 298 $ 7 2020 139 7 2021 103 7 2022 107 7 2023 365 6 2024 - 2028 854 27 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Lease payments for Long-term Non-cancelable Lease agreements | The following table presents future minimum lease payments required under the long-term non-cancelable lease agreements for the periods stated. All leases, with the exception of the new lease for the Financial Group and the retail branch in Richmond, were accounted for as operating leases under ASC 840, Leases . 2019 $ 748 2020 696 2021 751 2022 590 2023 351 Thereafter 2,053 Total future minimum lease payments $ 5,189 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value of Stock Options | The following table presents the variables used in the Black-Scholes Model calculations of the fair value of the stock options for the periods presented. For the Year Ended December 31, 2018 2017 Risk free interest rate (5 year U.S. Treasury) 2.73% 2.10% Expected dividend yield 0% 1% Expected term (years) 5 5 Expected volatility 12.5%-15.7% 16.1%-21.7% |
Summary of Stock Option Activity | The following table presents stock option activity for the periods presented. Weighted Average Weighted Average Remaining Aggregate Shares Exercise Price Contractual Life (in years) Intrinsic Value (1) Options outstanding and exercisable, January 1, 2017 218,300 $ 6.35 6.00 $ 378,288 Granted 86,790 10.08 Forfeited (1,195 ) 8.43 Exercised (43,244 ) 5.85 Expired (9,625 ) 13.76 Options outstanding and exercisable, December 31, 2017 251,026 $ 7.43 6.73 $ 753,229 Granted 17,500 9.97 Forfeited (6,805 ) 10.37 Exercised (25,491 ) 5.84 Expired (9,459 ) 11.20 Options outstanding, December 31, 2018 226,771 $ 7.56 6.43 $ 223,478 Options exercisable, December 31, 2018 214,271 $ 7.42 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options as of the respective years ended. This amount changes based on changes in the market value of the Company’s common stock. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Weighted Average Number of Shares Outstanding Used in Computing Earnings per Share | The following table shows the calculation of basic and diluted earnings (loss) per share and the weighted average number of shares outstanding used in computing earnings per share and the effect on the weighted average number of shares outstanding of dilutive potential common stock. For the Year Ended December 31, 2018 2017 Net income (loss) $ 3,878 $ (1,272 ) Weighted average shares outstanding, basic 13,057,537 9,399,223 Dilutive shares: Stock options 57,044 — Restricted shares 7,555 — Weighted average shares outstanding, dilutive 13,122,136 9,399,223 Basic and diluted earnings (loss) per share $ 0.30 $ (0.14 ) |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Schedule of Bank's Actual Capital Amounts and Ratios, and Minimum Capital Requirement Amounts and Ratios Per Regulatory Capital Framework | The following tables present the Company’s and the Bank’s actual capital amounts and ratios, and the minimum capital requirement amounts and ratios per the regulatory capital framework, as of the dates stated. Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018: Total Risk Based Capital Consolidated $ 122,177 13.41 % $ 72,895 9.875 % N/A N/A Virginia Commonwealth Bank 106,077 11.68 % 72,661 9.875 % $ 90,826 10.00 % Tier 1 Capital Consolidated 107,286 11.77 % 54,671 7.875 % N/A N/A Virginia Commonwealth Bank 98,078 10.80 % 54,496 7.875 % 72,661 8.00 % Common Equity Tier 1 Capital Consolidated 107,286 11.77 % 41,003 6.375 % N/A N/A Virginia Commonwealth Bank 98,078 10.80 % 40,872 6.375 % 59,037 6.50 % Tier 1 Capital Consolidated 107,286 10.28 % 41,748 5.875 % N/A N/A Virginia Commonwealth Bank 98,078 9.42 % 41,631 5.875 % 52,039 5.00 % Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017: Total Risk Based Capital Consolidated $ 120,091 16.24 % $ 59,150 8.125 % N/A N/A Virginia Commonwealth Bank 93,540 12.70 % 58,914 8.125 % $ 73,642 10.00 % Tier 1 Capital Consolidated 105,444 14.26 % 44,363 7.250 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 44,185 7.250 % 58,914 8.00 % Common Equity Tier 1 Capital Consolidated 105,444 14.26 % 33,272 5.750 % N/A N/A Virginia Commonwealth Bank 85,770 11.65 % 33,139 5.750 % 47,868 6.50 % Tier 1 Capital Consolidated 105,444 10.99 % 38,382 5.250 % N/A N/A Virginia Commonwealth Bank 85,770 8.97 % 38,259 5.250 % 47,824 5.00 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown in the following table. Net Unrealized Gains (Losses) on Available-for-sale Securities Pension and Post-retirement Benefit Plans Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (520 ) $ (715 ) $ (1,235 ) Change in net unrealized holding losses on available-for-sale securities, before reclassification, net of tax benefit of $30 114 — 114 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $0 (2 ) — (2 ) Net gain on pension and post-retirement benefit plans, net of tax expense of $41 — 155 155 Net current period other comprehensive gain (loss) 112 155 267 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings (81 ) (107 ) (188 ) Balance December 31, 2017 (489 ) (667 ) (1,156 ) Change in net unrealized holding loss on available-for-sale securities, net of tax benefit of $203 (763 ) — (763 ) Net gain on pension and post-retirement benefit plans, net of tax expense of $157 — 592 592 Balance December 31, 2018 $ (1,252 ) $ (75 ) $ (1,327 ) |
Reclassification for Previously Unrealized Gains or Losses on Available-for-sale Securities and Pension and Post-retirement Benefit Plan-related Costs | The following table presents the reclassification for previously unrealized gains or losses on available-for-sale securities and pension and post-retirement benefit plan-related costs reported in the consolidated statements of comprehensive income (loss) during the period stated. Accumulated Other Comprehensive Income (Loss) Reclassification for the Year Ended December 31, 2017 Holding gains (losses) on Available-for-sale Securities Pension and Post-retirement benefit plan costs Net gains on sale of available-for-sale securities $ 2 $ — Salaries and employee benefits — (81 ) Tax benefit — 28 Impact on net income $ 2 $ (53 ) |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Amount of Loans to and Repayments on Loans to Related Parties | The following table presents the amount of loans to and repayments on loans to related parties. Balance, January 1, 2018 $ 7,354 New loans and extensions to existing loans 2,852 Repayments and other reductions (1,317 ) Balance, December 31, 2018 $ 8,889 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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 Fair Value Measurements as of December 31, 2018 Using Balance as of December 31, 2018 Level 1 Level 2 Level 3 Available-for-sale securities: U. S. Government agencies and mortgage backed securities $ 49,882 $ — $ 49,882 $ — State and municipal obligations 20,217 — 20,217 — Corporate bonds 12,133 — 8,462 3,671 Total available-for-sale securities: $ 82,232 $ — $ 78,561 $ 3,671 Mortgage servicing rights $ 977 $ — $ — $ 977 Rabbi trust assets $ 972 $ 972 $ — $ — Fair Value Measurements as of December 31, 2017 Using Balance as of December 31, 2017 Level 1 Level 2 Level 3 Available-for-sale securities: U. S. Government agencies and mortgage backed securities $ 49,283 $ — $ 49,283 $ — State and municipal obligations 21,153 — 21,153 — Corporate bonds 6,717 — 5,217 1,500 Total available-for-sale securities: $ 77,153 $ — $ 75,653 $ 1,500 Mortgage servicing rights $ 999 $ — $ — $ 999 Rabbi trust assets $ 926 $ 926 $ — $ — |
Schedule of Change in Financial Assets Valued Using Level Three Inputs | The following table presents the change in financial assets valued using level 3 inputs for the periods stated. MSRs Corporate Bonds Balance, January 1, 2018 $ 999 $ 1,500 Purchases — 1,421 Impairments — — Fair value adjustments (22 ) 750 Sales — — Balance, December 31, 2018 $ 977 $ 3,671 MSRs Corporate Bonds Balance, January 1, 2017 $ 671 $ — Purchases — — Acquired in Merger 324 1,500 Impairments — — Fair value adjustments 4 — Sales — — Balance, December 31, 2017 $ 999 $ 1,500 |
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 nonrecurring basis as of the dates stated. Fair Value Measurements as of December 31, 2018 Using Balance as of December 31, 2018 Level 1 Level 2 Level 3 Impaired loans, net $ 4,700 $ — $ — $ 4,700 Other real estate owned, net 3,597 — — 3,597 Fair Value Measurements as of December 31, 2017 Using Balance as of December 31, 2017 Level 1 Level 2 Level 3 Impaired loans, net $ 3,491 $ — $ — $ 3,491 Other real estate owned, net 4,284 — — 4,284 |
Summary of Quantitative Fair Value Measurements for Level 3 | The following tables present quantitative information about Level 3 Fair Value Measurements as of the dates stated. Balance as of December 31, 2018 Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans, net $ 4,700 Discounted appraised value Selling Cost 15% - 20% (16%) Lack of Marketability 100% (100%) Discounted cash flows Discount Rate 5%-7% (6%) Other real estate owned, net 3,597 Discounted appraised value Selling Cost 5% - 19% (8%) Lack of Marketability 9% - 100% (28%) Balance as of December 31, 2017 Valuation Technique Unobservable Input Range (Weighted Average) Impaired loans, net $ 3,491 Discounted appraised value Selling Cost 6% - 20% (16%) Lack of Marketability 50% - 90% (65%) Discounted cash flows Discount Rate 5%-6% (6%) Other real estate owned, net 4,284 Discounted appraised value Selling Cost 3% - 13% (8%) Lack of Marketability 10% - 100% (16%) |
Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis | The following tables summarize the Company’s financial assets and liabilities at carrying values and estimated fair values on a nonrecurring basis as of the dates stated. Carrying Value as of Fair Value as of Fair Value Measurements as of December 31, 2018 Using December 31, 2018 December 31, 2018 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 7,685 $ 7,685 $ 7,685 $ — $ — Interest-earning deposits 18,981 18,981 18,981 — — Certificates of deposit 3,746 3,746 — 3,746 — Federal funds sold 625 625 625 — — Restricted securities 7,600 7,600 — — 7,600 Loans receivable, net 894,191 877,114 — — 877,114 Loans held for sale 368 368 — 368 — Accrued interest receivable 3,172 3,172 — 3,172 — Financial Liabilities: Noninterest-bearing liabilities $ 114,122 $ 114,122 $ 114,122 $ — $ — Savings and other interest-bearing deposits 359,400 359,400 359,400 — — Time deposits 368,670 369,347 — — 369,347 Securities sold under repurchase agreements 6,089 6,089 6,089 — — FHLB advances 100,000 99,727 — 99,727 — Subordinated notes, net 6,893 7,046 — — 7,046 Carrying Value as of Fair Value as of Fair Value Measurements as of December 31, 2017 Using 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-earning 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 758,726 774,009 — — 774,009 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 other interest-bearing 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, net 6,877 7,000 — — 7,000 |
Parent Financial Statements (Ta
Parent Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | The following tables present condensed financial statements of Bay Banks of Virginia, Inc. for the periods stated. CONDENSED BALANCE SHEETS December 31, 2018 December 31, 2017 ASSETS Cash and due from non-affiliated banks $ 15,631 $ 24,475 Interest-earning deposits 155 609 Certificates of deposit 770 — Investments in subsidiaries 109,747 96,539 Other assets 2,225 2,002 Total assets $ 128,528 $ 123,625 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated notes, net of unamortized issuance costs $ 6,893 $ 6,877 Deferred compensation plan 972 901 Other borrowings 1,734 1,129 Other liabilities 1,453 164 Total liabilities 11,052 9,071 Total shareholders’ equity 117,476 114,554 Total liabilities and shareholders’ equity $ 128,528 $ 123,625 |
Condensed Statements of Operations | Year ended December 31, CONDENSED STATEMENTS OF OPERATIONS 2018 2017 Interest income $ — $ 2 Interest expense 512 481 Net interest expense (512 ) (479 ) Net losses on disposition of other assets (73 ) — Other income 529 857 Noninterest income 456 857 Noninterest expense 1,659 1,752 Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries (1,715 ) (1,374 ) Income tax benefit (212 ) (340 ) Loss before equity in undistributed earnings of subsidiaries (1,503 ) (1,034 ) Equity in undistributed earnings (losses) of subsidiaries 5,381 (238 ) Net income (loss) $ 3,878 $ (1,272 ) |
Condensed Statements of Cash Flows | Year ended December 31, CONDENSED STATEMENTS OF CASH FLOWS 2018 2017 Cash Flows from Operating Activities: Net income (loss) $ 3,878 $ (1,272 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of debt issuance costs 16 17 Share-based compensation expense 102 199 Equity in undistributed (earnings) losses of subsidiaries (5,381 ) 238 Increase in other assets (223 ) (324 ) Net change in deferred compensation plan 71 340 Increase (decrease) in other liabilities 1,291 (299 ) Net cash used in operating activities (246 ) (1,101 ) Cash Flows from Investing Activities: (Purchases) maturities of certificates of deposit (770 ) 1,240 Investment in subsidiaries (8,000 ) (8,750 ) Net cash used in investing activities (8,770 ) (7,510 ) Cash Flows from Financing Activities: Dividends paid — (1,431 ) Stock options exercised 149 254 Director stock grant 125 — (Purchase) issuance of stock, net (556 ) 32,803 ESOP loans acquired from VBC — 911 Net cash (used in) provided by financing activities (282 ) 32,537 Net (decrease) increase in cash and due from banks (including interest-earning deposits) (9,298 ) 23,926 Cash and cash equivalents (including interest-earning deposits) at beginning of period 25,084 1,158 Cash and cash equivalents (including interest-earning deposits) at end of period $ 15,786 $ 25,084 |
Organization - Additional Infor
Organization - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2018Branch | Dec. 31, 2000Branch | |
Organization And Basis Of Presentation [Line Items] | ||||
Number of Branches | Branch | 19 | 5 | ||
Common stock offering price | $ / shares | $ 9.25 | |||
Proceeds from net of offering expenses | $ | $ 32.9 | |||
Common Stock | ||||
Organization And Basis Of Presentation [Line Items] | ||||
Stock issued during period, new issue through private placement | shares | 3,783,784 | 3,783,784 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2018USD ($)Branch | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2000Branch | |
Significant Accounting Policies [Line Items] | ||||
Secured borrowings maturity period under repurchase agreements | 1 year | |||
Personal loans charged off period no later than period | 180 days | |||
Percentage of excess loan balance for watch category | 90.00% | |||
Impaired loans measurement | Impaired loans measured individually for impairment generally include (1) any loan risk rated Special Mention or worse where the borrower has filed for bankruptcy; (2) all loans risk rated Substandard or worse with balances of $400 thousand or more; and (3) all loans classified as TDRs. | |||
Loan Receivables | $ 902,345,000 | $ 766,296,000 | ||
Number of branches purchased during the years 1994 through 2000 | Branch | 19 | 5 | ||
Deferred tax assets valuation allowance | $ 0 | |||
ASU 2016-02 | Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Operating lease right of use asset | $ 3,500,000 | |||
Operating lease liability | $ 3,900,000 | |||
Core Deposits | ||||
Significant Accounting Policies [Line Items] | ||||
Amortization of intangible assets, estimated useful life | 92 months | |||
Substandard | ||||
Significant Accounting Policies [Line Items] | ||||
Loan Receivables | $ 9,587,000 | $ 11,371,000 | ||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Number of days past due for a loan to remain on accrual status | 90 days | |||
Minimum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Minimum | Furniture and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Minimum | Substandard | ||||
Significant Accounting Policies [Line Items] | ||||
Loan Receivables | $ 400,000 | |||
Maximum | Building | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Maximum | Furniture and Equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Maximum | Substandard | ||||
Significant Accounting Policies [Line Items] | ||||
Loan Receivables | $ 400,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | Apr. 01, 2017USD ($)shares | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill during acquisition | $ 10,374 | $ 10,374 | ||
Acquisition related expenses | $ 363 | 1,976 | ||
Virginia BanCorp | ||||
Business Acquisition [Line Items] | ||||
Common stock exchange ratio | 1.178 | |||
Business combination, number of shares exchanged | shares | 4,586,221 | |||
Business combination, value of shares exchanged | $ 42,200 | |||
Ownership percentage by shareholders of acquiring entity | 51.00% | |||
Ownership percentage by shareholders of acquired entity | 49.00% | |||
Goodwill during acquisition | $ 7,600 | |||
Acquisition related expenses | $ 174 | $ 2,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Identifiable liabilities assumed: | |||
Goodwill resulting from acquisition | $ 10,374 | $ 10,374 | |
Virginia BanCorp | |||
Identifiable assets acquired: | |||
Cash and due from banks | $ 2,356 | ||
Interest-earning 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, net | 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 | ||
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-earning 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, net | 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 and Reclassification Adjustments | |||
Identifiable assets acquired: | |||
Loans receivable | (62,068) | ||
Loans held for sale | 55,648 | ||
Deferred income taxes | 255 | ||
Premises and equipment, net | 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) |
Business Combinations - Sched_2
Business Combinations - Schedule of Unaudited Pro Forma Financial Information (Detail) - Virginia Commonwealth Bank $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Net interest income | $ 27,169 |
Net income | $ 1,825 |
Cash Reserves - Additional Info
Cash Reserves - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Federal Reserve | $ 11.2 | $ 13.5 |
Securities - Aggregate Amortize
Securities - Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 83,804 | $ 77,773 |
Gross Unrealized Gains | 118 | 224 |
Gross Unrealized (Losses) | (1,690) | (844) |
Securities available-for-sale, at fair value | 82,232 | 77,153 |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 51,126 | 49,964 |
Gross Unrealized Gains | 35 | 6 |
Gross Unrealized (Losses) | (1,279) | (687) |
Securities available-for-sale, at fair value | 49,882 | 49,283 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,484 | 21,113 |
Gross Unrealized Gains | 60 | 195 |
Gross Unrealized (Losses) | (327) | (155) |
Securities available-for-sale, at fair value | 20,217 | 21,153 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,194 | 6,696 |
Gross Unrealized Gains | 23 | 23 |
Gross Unrealized (Losses) | (84) | (2) |
Securities available-for-sale, at fair value | $ 12,133 | $ 6,717 |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Gross Realized Losses of Available-For-Sale Securities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Gross realized gains | $ 7 |
Gross realized losses | (5) |
Net realized gains | 2 |
Aggregate proceeds | $ 17,937 |
Securities - Additional Informa
Securities - Additional Information (Detail) $ in Thousands | Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of securities | $ 17,500 | $ 19,400 |
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember |
Securities sold under repurchase agreements | $ 6,089 | $ 9,498 |
Company's investment in Federal Home Loan Bank stock | 5,100 | 3,700 |
Company's investment in Federal Reserve Bank stock | 2,300 | 1,900 |
Investment in primary correspondent bank stock | $ 220 | $ 220 |
US Government Agencies and Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with unrealized loss positions | Security | 54 | 36 |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with unrealized loss positions | Security | 39 | 34 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities with unrealized loss positions | Security | 5 | 1 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 11,376 | $ 28,304 |
Less than 12 months, Unrealized Loss | (133) | (370) |
12 months or more, Fair Value | 52,962 | 21,971 |
12 months or more, Unrealized Loss | (1,557) | (474) |
Fair Value, Total | 64,338 | 50,275 |
Total Unrealized Loss | (1,690) | (844) |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2,911 | 25,053 |
Less than 12 months, Unrealized Loss | (22) | (353) |
12 months or more, Fair Value | 43,843 | 16,184 |
12 months or more, Unrealized Loss | (1,257) | (334) |
Fair Value, Total | 46,754 | 41,237 |
Total Unrealized Loss | (1,279) | (687) |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2,723 | 2,753 |
Less than 12 months, Unrealized Loss | (27) | (15) |
12 months or more, Fair Value | 9,119 | 5,787 |
12 months or more, Unrealized Loss | (300) | (140) |
Fair Value, Total | 11,842 | 8,540 |
Total Unrealized Loss | (327) | (155) |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 5,742 | 498 |
Less than 12 months, Unrealized Loss | (84) | (2) |
Fair Value, Total | 5,742 | 498 |
Total Unrealized Loss | $ (84) | $ (2) |
Securities - Summary of amortiz
Securities - Summary of amortized cost and fair value by contractual maturity of available for sale securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 1,080 | $ 3,583 |
Due after one year but less than five years, Amortized Cost | 47,065 | 37,747 |
Due after five years but less than ten years, Amortized Cost | 26,615 | 28,441 |
Due after ten years, Amortized Cost | 9,044 | 8,002 |
Amortized Cost | 83,804 | 77,773 |
Due in one year or less, Fair Value | 1,079 | 3,514 |
Due after one year but less than five years, Fair Value | 46,358 | 37,425 |
Due after five years but less than ten years, Fair Value | 26,149 | 28,250 |
Due after ten years, Fair Value | 8,646 | 7,964 |
Total available-for-sale securities, Fair Value | $ 82,232 | $ 77,153 |
Loans - Summary of Composition
Loans - Summary of Composition of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of balances of loans | ||
Total loans | $ 902,345 | $ 766,296 |
Net unamortized deferred loan (fees) costs | (252) | 200 |
Allowance for loan losses | (7,902) | (7,770) |
Loans receivable, net | 894,191 | 758,726 |
Construction, land and land development | ||
Summary of balances of loans | ||
Total loans | 108,767 | 66,042 |
Farmland | ||
Summary of balances of loans | ||
Total loans | 708 | 923 |
Commercial mortgages (non-owner occupied) | ||
Summary of balances of loans | ||
Total loans | 180,074 | 146,757 |
Commercial mortgages (owner occupied) | ||
Summary of balances of loans | ||
Total loans | 87,241 | 80,052 |
Residential first mortgages | ||
Summary of balances of loans | ||
Total loans | 298,894 | 269,365 |
Residential revolving and junior mortgages | ||
Summary of balances of loans | ||
Total loans | 38,313 | 46,498 |
Commercial and industrial | ||
Summary of balances of loans | ||
Total loans | 164,608 | 114,093 |
Consumer | ||
Summary of balances of loans | ||
Total loans | $ 23,740 | $ 42,566 |
Loans - Additional Information
Loans - Additional Information (Detail) - Minimum | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of days past due for a loan to remain on accrual status | 90 days |
Number of days loans past due still accruing include purchased credit-impaired loans | 90 days |
Loans - Recorded Investment for
Loans - Recorded Investment for Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $ 2,387 | $ 5,021 |
90 Days or More Past Due and Still Accruing | 111 | 213 |
Nonaccruals | 5,206 | 6,496 |
Total Past Due and Nonaccruals | 7,704 | 11,730 |
Current | 894,641 | 754,566 |
Total Loans | 902,345 | 766,296 |
Construction, land and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 552 | 261 |
Nonaccruals | 740 | 1,237 |
Total Past Due and Nonaccruals | 1,292 | 1,498 |
Current | 107,475 | 64,544 |
Total Loans | 108,767 | 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 | 708 | 875 |
Total Loans | 708 | 923 |
Commercial mortgages (non-owner occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 50 | 449 |
Nonaccruals | 996 | |
Total Past Due and Nonaccruals | 1,046 | 449 |
Current | 179,028 | 146,308 |
Total Loans | 180,074 | 146,757 |
Commercial mortgages (owner occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 573 | |
90 Days or More Past Due and Still Accruing | 56 | |
Nonaccruals | 1,064 | 1,752 |
Total Past Due and Nonaccruals | 1,120 | 2,325 |
Current | 86,121 | 77,727 |
Total Loans | 87,241 | 80,052 |
Residential first mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 1,341 | 2,670 |
90 Days or More Past Due and Still Accruing | 55 | 141 |
Nonaccruals | 1,361 | 1,942 |
Total Past Due and Nonaccruals | 2,757 | 4,753 |
Current | 296,137 | 264,612 |
Total Loans | 298,894 | 269,365 |
Residential revolving and junior mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 115 | 449 |
90 Days or More Past Due and Still Accruing | 20 | |
Nonaccruals | 782 | 1,338 |
Total Past Due and Nonaccruals | 897 | 1,807 |
Current | 37,416 | 44,691 |
Total Loans | 38,313 | 46,498 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 331 | |
Nonaccruals | 48 | 92 |
Total Past Due and Nonaccruals | 48 | 423 |
Current | 164,560 | 113,670 |
Total Loans | 164,608 | 114,093 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 329 | 288 |
90 Days or More Past Due and Still Accruing | 4 | |
Nonaccruals | 215 | 135 |
Total Past Due and Nonaccruals | 544 | 427 |
Current | 23,196 | 42,139 |
Total Loans | $ 23,740 | $ 42,566 |
Loans - Summary of Recorded Inv
Loans - Summary of Recorded Investment of Purchased Impaired Loans (Detail) - PCI Loans - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | $ 115 | $ 510 |
90 Days or More Past Due and Still Accruing | 111 | 165 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 226 | 675 |
Current | 5,097 | 5,150 |
Total PCI Loans | 5,323 | 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 | 1,355 | 1,405 |
Total PCI Loans | 1,378 | 1,405 |
Commercial mortgages (non-owner occupied) | ||
Financing Receivable, Impaired [Line Items] | ||
Nonaccruals | 0 | 0 |
Current | 142 | 171 |
Total PCI Loans | 142 | 171 |
Commercial mortgages (owner occupied) | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 161 | |
90 Days or More Past Due and Still Accruing | 56 | |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 56 | 161 |
Current | 237 | 160 |
Total PCI Loans | 293 | 321 |
Residential first mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 92 | 349 |
90 Days or More Past Due and Still Accruing | 55 | 141 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 147 | 490 |
Current | 3,317 | 3,320 |
Total PCI Loans | 3,464 | 3,810 |
Residential revolving and junior mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
90 Days or More Past Due and Still Accruing | 20 | |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 20 | |
Current | 29 | |
Total PCI Loans | 49 | |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
30-89 Days Past Due | 0 | 0 |
90 Days or More Past Due and Still Accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Total Past Due and Nonaccruals | 0 | 0 |
Current | 0 | 0 |
Total PCI Loans | 0 | 0 |
Consumer | ||
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 | 46 | 65 |
Total PCI Loans | $ 46 | $ 69 |
Loans - Summary of Changes in A
Loans - Summary of Changes in Accretable Yield for PCI Loans (Detail) - PCI Loans $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Balance Beginning | $ 1,087 |
Accretion of acquisition accounting adjustment | (358) |
Reclassifications from nonaccretable balance, net | (46) |
Other changes, net | 400 |
Balance Ending | $ 1,083 |
Loans - Internal Risk Rating Gr
Loans - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 902,345 | $ 766,296 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 838,340 | 688,214 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 52,158 | 64,987 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,260 | 1,724 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 9,587 | 11,371 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 108,767 | 66,042 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 100,299 | 55,949 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 6,299 | 6,690 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 68 | 172 |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,101 | 3,231 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 708 | 923 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 708 | 923 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 180,074 | 146,757 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 174,661 | 140,625 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 4,275 | 5,931 |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,138 | 201 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 87,241 | 80,052 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 79,375 | 67,732 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 6,522 | 10,076 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 107 | |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,237 | 2,244 |
Residential First Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 298,894 | 269,365 |
Residential First Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 280,663 | 256,614 |
Residential First Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 14,709 | 8,624 |
Residential First Mortgages | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,071 | 205 |
Residential First Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,451 | 3,922 |
Residential Revolving and Junior Mortgages | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 38,313 | 46,498 |
Residential Revolving and Junior Mortgages | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 35,900 | 43,659 |
Residential Revolving and Junior Mortgages | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,306 | 1,376 |
Residential Revolving and Junior Mortgages | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,107 | 1,463 |
Commercial and Industrial | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 164,608 | 114,093 |
Commercial and Industrial | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 158,590 | 110,281 |
Commercial and Industrial | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 3,802 | 2,373 |
Commercial and Industrial | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 893 | 1,347 |
Commercial and Industrial | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,323 | 92 |
Consumer | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 23,740 | 42,566 |
Consumer | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 8,144 | 12,431 |
Consumer | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 15,245 | 29,917 |
Consumer | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 121 | |
Consumer | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 230 | $ 218 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans Evaluated for Impairment Individually and Collectively by Loan Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | $ 1,157 | $ 1,094 | |
Loans collectively evaluated for impairment | 6,745 | 6,676 | |
Purchased credit-impaired loans | 0 | 0 | |
Total allowance on loan losses | 7,902 | 7,770 | $ 3,863 |
Loans individually evaluated for impairment | 7,606 | 9,107 | |
Loans collectively evaluated for impairment | 889,416 | 751,364 | |
Purchased credit-impaired loans | 5,323 | 5,825 | |
Total Loans | 902,345 | 766,296 | |
Mortgage Loans on Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 1,036 | 861 | |
Loans collectively evaluated for impairment | 3,931 | 3,003 | |
Purchased credit-impaired loans | 0 | 0 | |
Total allowance on loan losses | 4,967 | 3,864 | 3,318 |
Loans individually evaluated for impairment | 7,485 | 8,874 | |
Loans collectively evaluated for impairment | 701,235 | 595,007 | |
Purchased credit-impaired loans | 5,277 | 5,756 | |
Total Loans | 713,997 | 609,637 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 92 | ||
Loans collectively evaluated for impairment | 1,374 | 786 | |
Purchased credit-impaired loans | 0 | 0 | |
Total allowance on loan losses | 1,374 | 878 | 493 |
Loans individually evaluated for impairment | 92 | ||
Loans collectively evaluated for impairment | 164,608 | 114,001 | |
Total Loans | 164,608 | 114,093 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 121 | 141 | |
Loans collectively evaluated for impairment | 1,440 | 2,887 | |
Purchased credit-impaired loans | 0 | 0 | |
Total allowance on loan losses | 1,561 | 3,028 | $ 52 |
Loans individually evaluated for impairment | 121 | 141 | |
Loans collectively evaluated for impairment | 23,573 | 42,356 | |
Purchased credit-impaired loans | 46 | 69 | |
Total Loans | $ 23,740 | $ 42,566 |
Allowance for Loan Losses - ALL
Allowance for Loan Losses - ALL by Loan Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 7,770 | $ 3,863 |
Charge-offs | (1,692) | (1,477) |
Recoveries | 473 | 450 |
Provision (recovery of) | 1,351 | 4,934 |
Ending Balance | 7,902 | 7,770 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 3,864 | 3,318 |
Charge-offs | (202) | (577) |
Recoveries | 110 | 91 |
Provision (recovery of) | 1,195 | 1,032 |
Ending Balance | 4,967 | 3,864 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 878 | 493 |
Charge-offs | (116) | (729) |
Recoveries | 1 | 263 |
Provision (recovery of) | 611 | 851 |
Ending Balance | 1,374 | 878 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 3,028 | 52 |
Charge-offs | (1,374) | (171) |
Recoveries | 362 | 96 |
Provision (recovery of) | (455) | 3,051 |
Ending Balance | $ 1,561 | $ 3,028 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recovery of loan losses | $ (1,351,000) | $ (4,934,000) |
Loans modified as TDRs | 0 | 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recovery of loan losses | $ 455,000 | |
Overstated | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for loan losses for acquired loans | $ 580,000 |
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | $ 1,749 | $ 4,523 |
With no related allowance, Borrowers' Unpaid Principal Balance | 1,820 | 5,251 |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 5,857 | 4,584 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 10,357 | 4,694 |
With an allowance recorded, Related Allowance | 1,157 | 1,094 |
Total Impaired Loans, Recorded Investment | 7,606 | 9,107 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 7,677 | 9,648 |
With no related allowance, Average Recorded Investment | 1,536 | 4,948 |
With no related allowance, Interest Income Recognized | 81 | 124 |
With an allowance recorded, Average Recorded Investment | 4,914 | 4,556 |
With an allowance recorded, Interest Income Recognized | 244 | 159 |
Total, Average Recorded Investment | 6,450 | 9,504 |
Total, Interest Income Recognized | 325 | 283 |
Construction, land and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | 335 | 900 |
With no related allowance, Borrowers' Unpaid Principal Balance | 406 | 1,378 |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 275 | 550 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 275 | 621 |
With an allowance recorded, Related Allowance | 132 | 137 |
Total Impaired Loans, Recorded Investment | 610 | 1,450 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 681 | 1,999 |
With no related allowance, Average Recorded Investment | 382 | 1,282 |
With no related allowance, Interest Income Recognized | 13 | 66 |
With an allowance recorded, Average Recorded Investment | 267 | 572 |
With an allowance recorded, Interest Income Recognized | 18 | 4 |
Total, Average Recorded Investment | 649 | 1,854 |
Total, Interest Income Recognized | 31 | 70 |
Residential first mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Borrowers' Unpaid Principal Balance | 1,488 | |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 3,447 | 1,914 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 3,447 | 1,914 |
With an allowance recorded, Related Allowance | 565 | |
Total Impaired Loans, Recorded Investment | 4,475 | 3,402 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 4,475 | 3,402 |
With no related allowance, Average Recorded Investment | 760 | 1,449 |
With no related allowance, Interest Income Recognized | 21 | |
With an allowance recorded, Average Recorded Investment | 3,037 | 1,932 |
With an allowance recorded, Interest Income Recognized | 150 | 93 |
Total, Average Recorded Investment | 3,797 | 3,381 |
Total, Interest Income Recognized | 194 | 114 |
Residential revolving and junior mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | 1,028 | 1,488 |
With no related allowance, Borrowers' Unpaid Principal Balance | 1,028 | 414 |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 502 | 1,340 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 5,002 | 1,340 |
With an allowance recorded, Related Allowance | 264 | 195 |
Total Impaired Loans, Recorded Investment | 502 | 1,754 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 502 | 1,457 |
With no related allowance, Average Recorded Investment | 417 | |
With no related allowance, Interest Income Recognized | 44 | 5 |
With an allowance recorded, Average Recorded Investment | 149 | 1,360 |
With an allowance recorded, Interest Income Recognized | 6 | 44 |
Total, Average Recorded Investment | 149 | 1,777 |
Total, Interest Income Recognized | 6 | 49 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | 386 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 386 | |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 443 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 443 | |
With an allowance recorded, Related Allowance | 18 | 367 |
Total Impaired Loans, Recorded Investment | 443 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 443 | |
With an allowance recorded, Average Recorded Investment | 267 | |
With an allowance recorded, Interest Income Recognized | 12 | |
Total, Average Recorded Investment | 267 | |
Total, Interest Income Recognized | 12 | |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | 1,721 | |
With no related allowance, Borrowers' Unpaid Principal Balance | 1,971 | |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 1,069 | 547 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 1,069 | 586 |
With an allowance recorded, Related Allowance | 57 | 162 |
Total Impaired Loans, Recorded Investment | 1,455 | 2,268 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 1,455 | 2,557 |
With no related allowance, Average Recorded Investment | 394 | 1,800 |
With no related allowance, Interest Income Recognized | 24 | 32 |
With an allowance recorded, Average Recorded Investment | 1,061 | 572 |
With an allowance recorded, Interest Income Recognized | 47 | 12 |
Total, Average Recorded Investment | 1,455 | 2,372 |
Total, Interest Income Recognized | 71 | 44 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Recorded Investment | 414 | |
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 92 | |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 92 | |
With an allowance recorded, Related Allowance | 92 | |
Total Impaired Loans, Recorded Investment | 92 | |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 92 | |
With an allowance recorded, Average Recorded Investment | 92 | |
Total, Average Recorded Investment | 92 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
With no related allowance, Related Allowance | 0 | 0 |
With an allowance recorded, Recorded Investment | 121 | 141 |
With an allowance recorded, Borrowers' Unpaid Principal Balance | 121 | 141 |
With an allowance recorded, Related Allowance | 121 | 141 |
Total Impaired Loans, Recorded Investment | 121 | 141 |
Total Impaired Loans, Borrowers' Unpaid Principal Balance | 121 | 141 |
With an allowance recorded, Average Recorded Investment | 133 | 28 |
With an allowance recorded, Interest Income Recognized | 11 | 6 |
Total, Average Recorded Investment | 133 | 28 |
Total, Interest Income Recognized | $ 11 | $ 6 |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Reconciliation of Nonaccrual Loans to Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Nonaccrual loans | $ 5,206 | $ 6,496 |
Nonaccrual loans collectively evaluated for impairment | (2,040) | (854) |
Nonaccrual impaired loans | 3,166 | 5,642 |
TDRs on accrual | 4,115 | 1,452 |
Other impaired loans on accrual | 325 | 2,013 |
Total impaired loans | $ 7,606 | $ 9,107 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | ||
Residential First Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | Loan | [1] | 9 | 1 |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1,315 | $ 820 |
Post-Modification Outstanding Recorded Investment | [1] | $ 1,324 | $ 820 |
Commercial Mortgages (Owner Occupied) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | Loan | [2] | 1 | |
Pre-Modification Outstanding Recorded Investment | [2] | $ 644 | |
Post-Modification Outstanding Recorded Investment | [2] | $ 672 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | Loan | [2] | 1 | |
Pre-Modification Outstanding Recorded Investment | [2] | $ 147 | |
Post-Modification Outstanding Recorded Investment | [2] | $ 147 | |
[1] | Modifications include extension of the loan terms, reduction of interest rates, and/or principal and interest forgiveness. | ||
[2] | Modifications were an extension of the loan terms |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Summary of Roll Forward of Accruing and Nonaccrual TDRs (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Beginning Balance | $ 7,770 |
Ending Balance | 7,902 |
Accruing | |
Financing Receivable, Impaired [Line Items] | |
Beginning Balance | 1,452 |
Charge-offs | 0 |
Payments and other adjustments | (407) |
New TDR designation | 1,235 |
Release TDR designation | 0 |
Transfer | 1,835 |
Ending Balance | 4,115 |
Nonaccrual | |
Financing Receivable, Impaired [Line Items] | |
Beginning Balance | 2,612 |
Charge-offs | (92) |
Payments and other adjustments | 60 |
New TDR designation | 732 |
Release TDR designation | 0 |
Transfer | (1,835) |
Ending Balance | 1,477 |
Troubled Debt Restructuring | |
Financing Receivable, Impaired [Line Items] | |
Beginning Balance | 4,064 |
Charge-offs | (92) |
Payments and other adjustments | (347) |
New TDR designation | 1,967 |
Release TDR designation | 0 |
Transfer | 0 |
Ending Balance | $ 5,592 |
Premises and Equipment, Net - C
Premises and Equipment, Net - Components of Premises and Equipment, Net of Accumulated Depreciation, Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 38,118 | $ 35,527 |
Less accumulated depreciation | (19,949) | (18,064) |
Premises and equipment, net | 18,169 | 17,463 |
Land and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 4,639 | 4,639 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 20,261 | 19,257 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 13,218 | $ 11,631 |
Premises and Equipment, Net - A
Premises and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 1,644 | $ 1,435 |
Other Real Estate Owned, net -
Other Real Estate Owned, net - Carrying Value of Properties Included in Other Real Estate Owned, Net (Detail) $ in Thousands | Dec. 31, 2018USD ($)Property | Dec. 31, 2017USD ($)Property |
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 26 | 29 |
Carrying Value | $ | $ 3,597 | $ 4,284 |
Residential | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 6 | 5 |
Carrying Value | $ | $ 1,339 | $ 443 |
Land | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 17 | 20 |
Carrying Value | $ | $ 1,741 | $ 3,223 |
Commercial | ||
Real Estate Properties [Line Items] | ||
No. of Properties | Property | 3 | 4 |
Carrying Value | $ | $ 517 | $ 618 |
Other Real Estate Owned, net _2
Other Real Estate Owned, net - Components of Other Real Estate Owned (OREO) Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Owned And Other Repossessed Assets [Line Items] | ||
Valuation adjustments | $ (21) | $ (245) |
Valuation Allowance, Other Real Estate Owned | ||
Real Estate Owned And Other Repossessed Assets [Line Items] | ||
Balance, beginning of year | 461 | 473 |
Valuation adjustments | 21 | 245 |
Charge-offs | (67) | (257) |
Balance, end of year | $ 415 | $ 461 |
Other Real Estate Owned, net _3
Other Real Estate Owned, net - Other Real Estate Owned (OREO) Related Activity Reported in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Properties Base Purchase Price [Abstract] | ||
Net (gain) loss on sale of other real estate owned | $ (128) | $ (24) |
Valuation adjustments | 21 | 245 |
Foreclosed property expense, net of income | 171 | 138 |
Total expenses | $ 64 | $ 359 |
Other Real Estate Owned, net _4
Other Real Estate Owned, net - Additional Information (Detail) - Residential $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)Property | |
Other Real Estate [Line Items] | |
Residential properties collateralized with loan | Property | 3 |
Mortgage loans in process of foreclosure | $ | $ 213 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | |||
Impairment of goodwill | $ 0 | ||
Mortgage Servicing Rights | |||
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 22 | ||
Core Deposits | |||
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | |||
Core deposit intangibles, estimated useful life | 92 months | ||
Amortization expense | $ 798 | $ 679 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Information on Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 4,647 | $ 4,669 |
Accumulated Amortization | 1,477 | 679 |
Net Carrying Value | 3,170 | 3,990 |
Mortgage Servicing Rights | ||
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | ||
Net Carrying Value | 977 | 999 |
Core Deposits | ||
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,670 | 3,670 |
Accumulated Amortization | 1,477 | 679 |
Net Carrying Value | $ 2,193 | $ 2,991 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Remaining Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | ||
Net Carrying Value | $ 3,170 | $ 3,990 |
Core Deposits | ||
Schedule Of Goodwill And Purchased Intangible Assets [Line Items] | ||
2,019 | 674 | |
2,020 | 551 | |
2,021 | 427 | |
2,022 | 304 | |
2,023 | 180 | |
Thereafter | 57 | |
Net Carrying Value | $ 2,193 | $ 2,991 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Current (benefit) expense | $ (313) | $ 362 |
Deferred expense | 846 | 435 |
Income tax expense | $ 533 | $ 797 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | ||
Bank Franchise Tax Expense | $ 726,000 | $ 533,000 |
Statutory rate | 21.00% | 34.00% |
Deferred tax assets | $ 1,300,000 | |
Deferred tax assets valuation allowance | $ 0 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Tax years | 2015 2016 2017 | |
Maximum | ||
Income Tax Disclosure [Line Items] | ||
Statutory rate | 35.00% |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal Statutory Income Tax Rate Reconciled to Effective Tax Rate (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory rate | 21.00% | 34.00% |
Increase (decrease) resulting from: | ||
Net tax-exempt income | (5.60%) | 85.00% |
Merger-related expenses | 0.00% | (15.00%) |
Tax Cuts and Jobs Act of 2017 adjustment to deferred taxes | 0.00% | (283.10%) |
Income tax return to provision (2017) adjustment | (3.90%) | 0.00% |
Other, net | 0.70% | 11.40% |
Federal effective income tax rate | 12.10% | (167.70%) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,629 | $ 1,632 |
Other real estate owned | 226 | 433 |
Pension and post-retirement benefit plans | 127 | 266 |
Unrealized losses on available-for-sale securities | 333 | 130 |
Deferred and share-based compensation plans | 237 | 215 |
Alternative minimum tax credit | 134 | |
Fair value adjustments on acquired loans and time deposits resulting from the Merger | 969 | 1,665 |
Net deferred loan fees | 53 | 65 |
Other | 124 | 270 |
Total deferred tax assets | 3,698 | 4,810 |
Deferred tax liabilities | ||
Depreciation of fixed assets | (359) | (69) |
Amortization of goodwill and core deposit intangible asset | (1,050) | (1,218) |
Premium on fixed assets acquired in the Merger | (553) | (561) |
Recapture of bad debts experience reserve | (178) | (229) |
Other | (48) | (391) |
Total deferred tax liabilities | (2,188) | (2,468) |
Deferred tax assets, net | $ 1,510 | $ 2,342 |
Deposits - Summary of Deposit A
Deposits - Summary of Deposit Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
Noninterest-bearing demand deposits | $ 114,122 | $ 103,037 |
Interest-bearing: | ||
Savings deposits | 57,472 | 62,896 |
Demand deposits | 76,302 | 90,585 |
Money market deposits | 225,626 | 146,339 |
Time deposits less than $250 | 306,720 | 299,825 |
Time deposits $250 or more | 61,950 | 59,164 |
Total deposits | $ 842,192 | $ 761,846 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposits Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
2,019 | $ 167,564 | |
2,020 | 68,342 | |
2,021 | 53,538 | |
2,022 | 11,186 | |
2,023 | 67,930 | |
Thereafter | 110 | |
Time deposits | $ 368,670 | $ 358,989 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments Schedule [Abstract] | ||
Overdraft demand deposits reclassified to loans | $ 110 | $ 80 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | May 28, 2015USD ($) | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 100,000,000 | $ 70,000,000 | |
Number of FHLB debt advances | Loan | 4 | 2 | |
Federal home loan bank advances secured | $ 299,100,000 | ||
Immediate available credit | 138,100,000 | ||
Total line of credit | 256,100,000 | ||
Letters of credit issued | 18,000,000 | ||
Remaining available borrowings under FHLB credit line | 18,000,000 | ||
Securities sold under repurchase agreements | $ 6,089,000 | $ 9,498,000 | |
Securities sold under agreements to repurchase, average rates | 0.22% | 0.17% | |
Interest Rate | 2.67% | ||
Unused lines of Credit | |||
Debt Instrument [Line Items] | |||
Unused lines of credit | $ 21,000,000 | $ 24,500,000 | |
Virginia BanCorp | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jun. 14, 2024 | ||
Debt acquired in merger | $ 1,700,000 | 1,100,000 | |
Debt instrument, maturity date range, start | Mar. 1, 2019 | ||
Debt instrument, maturity date range, end | Dec. 31, 2027 | ||
Virginia BanCorp | Four ESOP Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.25% | ||
Virginia BanCorp | One ESOP Notes | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.50% | ||
Subordinated Debt Due May 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7,000,000 | ||
Interest Rate | 6.50% | ||
Debt instrument, maturity date | May 28, 2025 | ||
Debt instrument, frequency of payment | First of March and September of each year | ||
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 | 6.85% | 6.86% |
Borrowings - Advances of Debt (
Borrowings - Advances of Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total FHLB advances | $ 100,000 | $ 70,000 |
Interest Rate | 2.67% | |
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 | |
Interest Rate | 4.82% | |
Maturity Date | Apr. 13, 2020 | |
Fixed Rate Credit | Federal Home Loan Bank Advances Two | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances, Current | $ 75,000 | |
Originated | Dec. 4, 2018 | |
Interest Rate | 2.42% | |
Maturity Date | Jan. 4, 2019 | |
Fixed Rate Credit | Federal Home Loan Bank Advances Three | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances, Current | $ 5,000 | |
Originated | Dec. 18, 2018 | |
Interest Rate | 2.49% | |
Maturity Date | Jan. 4, 2019 | |
Fixed Rate Credit | Federal Home Loan Bank Advances Four | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank advances, Current | $ 10,000 | |
Originated | Dec. 19, 2018 | |
Interest Rate | 2.51% | |
Maturity Date | Jan. 4, 2019 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | Jan. 01, 2018 | Dec. 31, 2018USD ($)LoanAgeshares | Dec. 31, 2017USD ($) |
Defined Contribution Plan Disclosure [Line Items] | |||
Gain on curtailment of post-retirement benefit plan | $ 352,000 | ||
Deferred compensation liability | $ 972,000 | $ 901,000 | |
Number of employee stock ownership plans | 1 | 2 | |
Noncontributory employee stock ownership plan, service period eligibility | 12 months | ||
Noncontributory employee stock ownership plan, age eligibility | Age | 21 | ||
Allocations, as a percentage of eligible participant compensation | 25.00% | ||
Participant accounts vested after two years | 30.00% | ||
Participant accounts vested after three years | 40.00% | ||
Participant accounts vested each year, from fourth year till 100% vested | 20.00% | ||
Participant accounts, total vested | 100.00% | ||
Allocated shares | shares | 532,240 | ||
Contribution expense | $ 0 | $ 223,000 | |
Number of outstanding loans | Loan | 6 | ||
ESOP loan | $ 1,800,000 | ||
Unallocated shares to employee | shares | 225,930 | ||
401 (k) Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employees vested percentage in subsidiary’s match after two years of service | 100.00% | ||
Matching contributions amount to defined contribution plan | $ 401,000 | 491,000 | |
401 (k) Retirement Plan, First 3% of Deferral | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 100.00% | ||
Percentage of employee's contributions | 3.00% | ||
401 (k) Retirement Plan, Next 3% of Deferral | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution to defined contribution plan | 50.00% | ||
Percentage of employee's contributions | 3.00% | ||
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Deferred compensation plan, distribution period | 20 years | ||
Maximum | 401 (k) Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, contributions per employee percent | 15.00% | ||
Minimum | 401 (k) Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, contributions per employee percent | 1.00% | ||
Executive Officer | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Deferred compensation payments | $ 179,000 | 107,000 | |
Director | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Deferred compensation payments | $ 61,000 | 53,000 | |
Nonqualified Plan | Executive Officer | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of nonqualified deferred compensation plan deferred | 100.00% | ||
Pension Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 1,600,000 | 3,300,000 | |
Unfunded liability | 483,000 | 808,000 | |
Employer contributions | 0 | ||
PRB Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Unfunded liability | 71,000 | 457,000 | |
Employer contributions | $ 6,000 | 6,000 | |
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 | ||
Expected employer contribution | 0 | ||
PRB Plan | Unfunded | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 71,000 | $ 457,000 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Accumulated Benefit Obligation and Fair Value of Qualified Trust Assets (Pension Plan only) and Statement of Funded (Unfunded) Status for Pension Plan and PRB Plan (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Change in benefit obligation | ||
Benefit obligation, beginning of year | $ 3,273,000 | $ 3,398,000 |
Interest cost | 94,000 | 121,000 |
Actuarial (gain) loss | (694,000) | 323,000 |
Benefit payments | (1,295,000) | (581,000) |
Settlement loss | 221,000 | 12,000 |
Benefit obligation, end of year | 1,599,000 | 3,273,000 |
Change in plan assets | ||
Fair value of plan assets, beginning of year | 2,465,000 | 2,690,000 |
Actual (loss) return on plan assets | (54,000) | 356,000 |
Employer contributions | 0 | |
Benefits payments | (1,295,000) | (581,000) |
Fair value of plan assets, end of year | 1,116,000 | 2,465,000 |
(Unfunded) funded status, end of year | (483,000) | (808,000) |
PRB Plan | ||
Change in benefit obligation | ||
Benefit obligation, beginning of year | 457,000 | 540,000 |
Service cost | 3,000 | 22,000 |
Interest cost | 5,000 | 21,000 |
Actuarial (gain) loss | (36,000) | (120,000) |
Benefit payments | (6,000) | (6,000) |
Curtailment/termination (gain) | (352,000) | |
Benefit obligation, end of year | 71,000 | 457,000 |
Change in plan assets | ||
Employer contributions | 6,000 | 6,000 |
Benefits payments | (6,000) | (6,000) |
(Unfunded) funded status, end of year | $ (71,000) | $ (457,000) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Income) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net loss (gain) | $ 447 | $ 1,187 |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | 447 | 1,187 |
PRB Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net loss (gain) | (354) | (344) |
Prior service cost | 0 | 0 |
Net obligation at transition | 0 | 0 |
Amount recognized | $ (354) | $ (344) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Curtailment/termination gain | $ (352) | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Interest cost | 94 | $ 121 |
Expected return on plan assets | (153) | (167) |
Recognized net loss due to settlement | 422 | 195 |
Recognized net actuarial loss | 51 | 81 |
Net periodic benefit cost (gain) | 414 | 230 |
PRB Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Service cost | 3 | 22 |
Interest cost | 5 | 21 |
Amortization of net obligation at transition | (26) | (11) |
Curtailment/termination gain | (352) | |
Net periodic benefit cost (gain) | $ (370) | $ 32 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net gain | $ (739) | $ (130) |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | 0 | 0 |
Total recognized in other comprehensive loss (income) | (739) | (130) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | (325) | 100 |
PRB Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Net gain | (10) | (109) |
Amortization of prior service cost | 0 | 0 |
Amortization of net obligation at transition | 0 | 0 |
Total recognized in other comprehensive loss (income) | (10) | (109) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ (380) | $ (77) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Actuarial Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate used for net periodic pension cost | 3.50% | 4.00% |
Discount rate used for disclosure | 4.25% | 3.50% |
Expected return on plan assets | 7.25% | 7.25% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Expected future interest crediting rate | 3.00% | 3.00% |
PRB Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Discount rate used for net periodic pension cost | 4.25% | 4.00% |
Discount rate used for disclosure | 4.25% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% |
Rate of compensation increase for net periodic pension cost | 0.00% | 0.00% |
Expected future interest crediting rate | 0.00% | 0.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments for Pension Plan and PRB Plan (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2,019 | $ 298 |
2,020 | 139 |
2,021 | 103 |
2,022 | 107 |
2,023 | 365 |
2024 - 2028 | 854 |
PRB Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |
2,019 | 7 |
2,020 | 7 |
2,021 | 7 |
2,022 | 7 |
2,023 | 6 |
2024 - 2028 | $ 27 |
Off-Balance Sheet Commitments_2
Off-Balance Sheet Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserves for unfunded commitments | $ 97 | $ 0 |
Number of equity investments in housing funds | 3 | 3 |
Other assets | $ 5,927 | $ 5,267 |
investments and related tax benefits expected year | 2,030 | |
Additional capital calls expected for investment funded | $ 944 | |
Investment | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other assets | 1,300 | 1,400 |
Loan Purchase Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | 160,500 | 144,200 |
Unused lines of Credit | Performance Stand-by Letter of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | 2,800 | 447 |
Unused lines of Credit | Financial Stand-by Letter of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Outstanding loan commitment under financial instrument off balance sheet risk | $ 40 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)RealEstateOffice | Dec. 31, 2017USD ($)Branch | |
Operating Leased Assets [Line Items] | ||
Number of retail branches | Branch | 4 | |
Number of additional long-term real estate leases | RealEstate | 6 | |
Lease expense | $ | $ 577 | $ 377 |
Virginia [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of additional office suites | Office | 2 |
Leases - Future Minimum Lease p
Leases - Future Minimum Lease payments for Long-term Non-cancelable Lease agreements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 748 |
2,020 | 696 |
2,021 | 751 |
2,022 | 590 |
2,023 | 351 |
Thereafter | 2,053 |
Total future minimum lease payments | $ 5,189 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Grant$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Number of grants issued | Grant | 5 | |
Stock-based compensation expense | $ | $ 102 | $ 199 |
Options granted | 17,500 | 86,790 |
Options vested | 17,500 | 86,790 |
Number of forfeited options | Grant | 1 | |
Share based compensation, restricted stock granted, value | $ | $ 125 | |
Vested Over One Year | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Stock vesting period | 1 year | |
Number of options vested | Grant | 1 | |
Vested Over Three Year | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Stock vesting period | 3 years | |
Number of options vested | Grant | 2 | |
Grant One | Minimum | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Fair value of options granted during the period, per option share | $ / shares | $ 1.73 | $ 1.50 |
Grant Two | Maximum | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Fair value of options granted during the period, per option share | $ / shares | $ 2.09 | $ 1.93 |
Restricted Stock | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Share based compensation, restricted stock granted | 54,796 | 15,500 |
Share based compensation, restricted stock granted, value | $ | $ 534 | $ 131 |
Share based compensation, unvested stock granted | 54,796 | |
Unrecognized stock based compensation expense | $ | $ 392 | |
Restricted Stock Grant One | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Share based compensation, restricted stock issued | 15,000 | |
Share based compensation, restricted stock outstanding | 15,000 | |
Restricted Stock Grant Two | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Share based compensation, restricted stock issued | 15,500 | 15,500 |
Share based compensation, restricted stock outstanding | 15,500 | 15,500 |
2013 Plan | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Number of shares authorized for grant | 385,000 | |
Shares available for grant | 145,854 | |
Stock-based compensation expense | $ | $ 102 | $ 199 |
LTIP | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Share based compensation, unvested stock granted | 39,796 | |
Share based compensation, description | Of the 54,796 shares of restricted stock awarded in 2018, 15,000 shares were issued and outstanding as of December 31, 2018, while all of the 15,500 shares of restricted stock awarded in 2017 were issued and outstanding as of December 31, 2018 and 2017. The remaining 39,796 shares of restricted stock in 2018 were awarded pursuant to the Company’s long-term incentive plan (“LTIP”), which covers certain officers of the Company. One half of the LTIP restricted shares granted vest on a straight-line basis over a three-year period (“LTIP Time-based Shares”), while the other half vests at the end of a three-year period contingent on the Company’s achievement of financial goals (“LTIP Performance-based Shares”). | |
LTIP | Performance-based Shares | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Stock vesting period | 3 years | |
LTIP | Time-based Shares | ||
Share Based Compensation Arrangement by Share Based Payment Award [Line Items] | ||
Stock vesting period | 3 years |
Share-based Compensation - Fair
Share-based Compensation - Fair Value of Stock Options (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk free interest rate (5 year U.S. Treasury) | 2.73% | 2.10% |
Expected dividend yield | 0.00% | 1.00% |
Expected term (years) | 5 years | 5 years |
Expected volatility minimum | 12.50% | 16.10% |
Expected volatility maximum | 15.70% | 21.70% |
Share-based Compensation - Fa_2
Share-based Compensation - Fair Value of Stock Options (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock price volatility, risk free interest period | 5 years | 5 years |
Share-based Compensation - Summ
Share-based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Options outstanding, beginning | 251,026 | 218,300 | ||
Options exercisable, beginning | 251,026 | 218,300 | ||
Granted, shares | 17,500 | 86,790 | ||
Forfeited, shares | (6,805) | (1,195) | ||
Exercised, shares | (25,491) | (43,244) | ||
Expired, shares | (9,459) | (9,625) | ||
Options outstanding, ending | 226,771 | 251,026 | 218,300 | |
Options exercisable, ending | 214,271 | 251,026 | 218,300 | |
Options outstanding, ending, Weighted Average Exercise Price | $ 7.43 | $ 6.35 | ||
Options exercisable, ending, Weighted Average Exercise Price | 7.43 | 6.35 | ||
Granted, Weighted Average Exercise Price | 9.97 | 10.08 | ||
Forfeited, Weighted Average Exercise Price | 10.37 | 8.43 | ||
Exercised, Weighted Average Exercise Price | 5.84 | 5.85 | ||
Expired, Weighted Average Exercise Price | 11.20 | 13.76 | ||
Options outstanding, ending, Weighted Average Exercise Price | 7.56 | 7.43 | $ 6.35 | |
Options exercisable, ending, Weighted Average Exercise Price | $ 7.42 | $ 7.43 | $ 6.35 | |
Options outstanding, ending, Weighted Average Remaining Contractual Life | 6 years 5 months 4 days | 6 years 8 months 23 days | 6 years | |
Options exercisable, ending, Weighted Average Remaining Contractual Life | 6 years 5 months 4 days | 6 years 8 months 23 days | 6 years | |
Options outstanding, ending, Aggregate Intrinsic Value | [1] | $ 223,478 | $ 753,229 | $ 378,288 |
Options exercisable, ending, Aggregate Intrinsic Value | [1] | $ 753,229 | $ 378,288 | |
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options as of the respective years ended. This amount changes based on changes in the market value of the Company’s common stock. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Options | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 86,284 | 251,026 |
Restricted Stock | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 10,500 | |
ESOP | ||
Computation Of Earnings Per Share Line Items | ||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 154,410 | 117,248 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Number of Shares Outstanding Used in Computing Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 3,878 | $ (1,272) |
Weighted average shares outstanding, basic | 13,057,537 | 9,399,223 |
Dilutive shares: | ||
Weighted average shares outstanding, dilutive | 13,122,136 | 9,399,223 |
Basic and diluted earnings (loss) per share | $ 0.30 | $ (0.14) |
Stock Option | ||
Dilutive shares: | ||
Effect of dilutive securities | 57,044 | |
Restricted Shares | ||
Dilutive shares: | ||
Effect of dilutive securities | 7,555 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Detail) - USD ($) $ in Billions | Jan. 01, 2019 | Jan. 01, 2016 | Jan. 01, 2015 | Dec. 31, 2018 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 6.00% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.00% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
Initial Capital Requirement Phase-In Period | 4 years | |||
New Capital Conservation Buffer Requirement (to Risk Weighted Assets), Ratio | 0.625% | |||
Subsequent Event | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 8.50% | |||
Total Risk Based Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 10.50% | |||
Leverage Ratio (Total Assets), Minimum Capital Requirement Ratio | 4.00% | |||
New Capital Conservation Buffer Requirement (to Risk Weighted Assets), Ratio | 2.50% | |||
Common Stock | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 4.50% | |||
Common Stock | Subsequent Event | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 Capital (to Risk Weighted Assets), Minimum Capital Requirement Ratio | 7.00% | |||
Maximum | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Consolidated assets threshold limit not to consolidated regulatory capital requirements | $ 3 |
Regulatory Requirements - Sched
Regulatory Requirements - Schedule of Bank's Actual Capital Amounts and Ratios, and Minimum Capital Requirement Amounts and Ratios Per Regulatory Capital Framework (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total Risk Based Capital, Minimum Capital Requirement Ratio | 8.00% | ||
Tier 1 Capital, Minimum Capital Requirement Ratio | 6.00% | ||
Tier 1 Capital, Minimum Capital Requirement Ratio | 4.00% | ||
Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier 1 Capital, Minimum Capital Requirement Ratio | 4.50% | ||
Consolidated Entities | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total Risk Based Capital, Actual Amount | $ 122,177 | $ 120,091 | |
Total Risk Based Capital, Actual Ratio | 13.41% | 16.24% | |
Total Risk Based Capital, Minimum Capital Requirement Amount | $ 72,895 | $ 59,150 | |
Total Risk Based Capital, Minimum Capital Requirement Ratio | 9.875% | 8.125% | |
Tier 1 Capital, Actual Amount | $ 107,286 | $ 105,444 | |
Tier 1 Capital, Actual Ratio | 11.77% | 14.26% | |
Tier 1 Capital, Minimum Capital Requirement Amount | $ 54,671 | $ 44,363 | |
Tier 1 Capital, Minimum Capital Requirement Ratio | 7.875% | 7.25% | |
Tier 1 Capital, Actual Amount | $ 107,286 | $ 105,444 | |
Tier 1 Capital, Actual Ratio | 10.28% | 10.99% | |
Tier 1 Capital, Minimum Capital Requirement Amount | $ 41,748 | $ 38,382 | |
Tier 1 Capital, Minimum Capital Requirement Ratio | 5.875% | 5.25% | |
Consolidated Entities | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total Risk Based Capital, Actual Amount | $ 107,286 | $ 105,444 | |
Total Risk Based Capital, Actual Ratio | 11.77% | 14.26% | |
Total Risk Based Capital, Minimum Capital Requirement Amount | $ 41,003 | $ 33,272 | |
Total Risk Based Capital, Minimum Capital Requirement Ratio | 6.375% | 5.75% | |
Virginia Commonwealth Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total Risk Based Capital, Actual Amount | $ 106,077 | $ 93,540 | |
Total Risk Based Capital, Actual Ratio | 11.68% | 12.70% | |
Total Risk Based Capital, Minimum Capital Requirement Amount | $ 72,661 | $ 58,914 | |
Total Risk Based Capital, Minimum Capital Requirement Ratio | 9.875% | 8.125% | |
Total Risk Based Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 90,826 | $ 73,642 | |
Total Risk Based Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | |
Tier 1 Capital, Actual Amount | $ 98,078 | $ 85,770 | |
Tier 1 Capital, Actual Ratio | 10.80% | 11.65% | |
Tier 1 Capital, Minimum Capital Requirement Amount | $ 54,496 | $ 44,185 | |
Tier 1 Capital, Minimum Capital Requirement Ratio | 7.875% | 7.25% | |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 72,661 | $ 58,914 | |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | |
Tier 1 Capital, Actual Amount | $ 98,078 | $ 85,770 | |
Tier 1 Capital, Actual Ratio | 9.42% | 8.97% | |
Tier 1 Capital, Minimum Capital Requirement Amount | $ 41,631 | $ 38,259 | |
Tier 1 Capital, Minimum Capital Requirement Ratio | 5.875% | 5.25% | |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 52,039 | $ 47,824 | |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | |
Virginia Commonwealth Bank | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total Risk Based Capital, Actual Amount | $ 98,078 | $ 85,770 | |
Total Risk Based Capital, Actual Ratio | 10.80% | 11.65% | |
Total Risk Based Capital, Minimum Capital Requirement Amount | $ 40,872 | $ 33,139 | |
Total Risk Based Capital, Minimum Capital Requirement Ratio | 6.375% | 5.75% | |
Total Risk Based Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 59,037 | $ 47,868 | |
Total Risk Based Capital, Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, net - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 114,554,000 | $ 41,705,000 |
Balance at end of period | 117,476,000 | 114,554,000 |
Net Unrealized Gains (Losses) on Available-for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (489,000) | (520,000) |
Change in net unrealized holding losses on available-for-sale securities, before reclassification, net of tax benefit | (763,000) | 114,000 |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | 0 | (2,000) |
Net current period other comprehensive gain (loss) | 112,000 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | (81,000) | |
Balance at end of period | (1,252,000) | (489,000) |
Pension and Post-retirement Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (667,000) | (715,000) |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | 0 | |
Net gain on pension and post-retirement benefit plans, net of tax expense | 592,000 | 155,000 |
Net current period other comprehensive gain (loss) | 155,000 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | (107,000) | |
Balance at end of period | (75,000) | (667,000) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (1,156,000) | (1,235,000) |
Change in net unrealized holding losses on available-for-sale securities, before reclassification, net of tax benefit | (763,000) | 114,000 |
Reclassification for previously unrealized net gains recognized in income, net of tax expense | (2,000) | |
Net gain on pension and post-retirement benefit plans, net of tax expense | 592,000 | 155,000 |
Net current period other comprehensive gain (loss) | 267,000 | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | (188,000) | |
Balance at end of period | $ (1,327,000) | $ (1,156,000) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss, net - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Unrealized Gains (Losses) on Available-for-sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Change in net unrealized holding gains on securities, before reclassification, tax benefit | $ 203 | $ 30 |
Reclassification for previously unrealized net gains recognized in income, tax expense | 0 | |
Pension and Post-retirement Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net gain pension and postretirement plans, tax expense | $ 157 | $ 41 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss, net - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Unrealized Gains (Losses) on Available-for-sale Securities | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification for previously unrealized gains or losses | $ 0 | $ 2,000 |
Pension and Post-retirement Benefit Plans | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification for previously unrealized gains or losses | $ 0 |
Accumulated Other Comprehensi_6
Accumulated Other Comprehensive Loss, net - Reclassification for Previously Unrealized Gains or Losses on Available-for-sale Securities and Pension and Post-retirement Benefit Plan-related Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | $ (16,233) | $ (13,403) |
Tax benefit | $ (533) | (797) |
Holding Gains (Losses) on Available-for-sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net gains on sale of available-for-sale securities | 2 | |
Impact on net income | 2 | |
Pension and Post-retirement Benefit Plan Costs | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Salaries and employee benefits | (81) | |
Tax benefit | 28 | |
Impact on net income | $ (53) |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Unfunded commitments to extend credit and related interest | $ 1,700,000 | $ 3,700,000 |
Aggregate amount of deposit accounts of related parties | 14,000,000 | 10,400,000 |
Amount owed to related parties | 291,100 | |
Key Employees | ||
Related Party Transaction [Line Items] | ||
Loans and leases receivable, related parties | 8,889,000 | $ 7,354,000 |
Related Parties | ||
Related Party Transaction [Line Items] | ||
Debt instrument, face amount | $ 285,000 |
Related Parties - Summary of Am
Related Parties - Summary of Amount of Loans to and Repayments on Loans to Related Parties (Detail) - Key Employees $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |
Balance, January 1, 2018 | $ 7,354 |
New loans and extensions to existing loans | 2,852 |
Repayments and other reductions | (1,317) |
Balance, December 31, 2018 | $ 8,889 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018Loan$ / Loan | Dec. 31, 2017$ / Loan | |
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 | 12 | |
Service costs assumed, per loan | $ / Loan | 6.50 | 6.50 |
Average PSA assumed rate | 133.00% | 150.00% |
Fair Value, Measurements, Recurring | 100% PSA | Fair Value, Inputs, Level 3 | 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 | Prepayment Rate | 100% PSA | Fair Value, Inputs, Level 3 | First Month | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 0 | |
Fair Value, Measurements, Recurring | Prepayment Rate | 100% PSA | Fair Value, Inputs, Level 3 | Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6 | |
Fair Value, Measurements, Recurring | Prepayment Rate | 100% PSA | Fair Value, Inputs, Level 3 | Thereafter | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6 | |
Fair Value, Measurements, Recurring | Discount Rate | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 12.5 | 13 |
Mortgage Servicing Rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of loan portfolio | 2 |
Fair Value - Schedule of Balanc
Fair Value - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities: | ||
Available-for-sale securities | $ 82,232 | $ 77,153 |
Mortgage servicing rights | 977 | 999 |
Corporate Bonds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 12,133 | 6,717 |
US Government Agencies Agencies and Mortgage Backed Securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 49,882 | 49,283 |
State and Municipal Obligations | ||
Available-for-sale securities: | ||
Available-for-sale securities | 20,217 | 21,153 |
Fair Value, Measurements, Recurring | ||
Available-for-sale securities: | ||
Available-for-sale securities | 82,232 | 77,153 |
Mortgage servicing rights | 977 | 999 |
Rabbi trust assets | 972 | 926 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Available-for-sale securities: | ||
Rabbi trust assets | 972 | 926 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Available-for-sale securities: | ||
Available-for-sale securities | 78,561 | 75,653 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Available-for-sale securities: | ||
Available-for-sale securities | 3,671 | 1,500 |
Mortgage servicing rights | 977 | 999 |
Fair Value, Measurements, Recurring | Corporate Bonds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 12,133 | 6,717 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Available-for-sale securities: | ||
Available-for-sale securities | 8,462 | 5,217 |
Fair Value, Measurements, Recurring | Corporate Bonds | Fair Value, Inputs, Level 3 | ||
Available-for-sale securities: | ||
Available-for-sale securities | 3,671 | 1,500 |
Fair Value, Measurements, Recurring | US Government Agencies Agencies and Mortgage Backed Securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 49,882 | 49,283 |
Fair Value, Measurements, Recurring | US Government Agencies Agencies and Mortgage Backed Securities | Fair Value, Inputs, Level 2 | ||
Available-for-sale securities: | ||
Available-for-sale securities | 49,882 | 49,283 |
Fair Value, Measurements, Recurring | State and Municipal Obligations | ||
Available-for-sale securities: | ||
Available-for-sale securities | 20,217 | 21,153 |
Fair Value, Measurements, Recurring | State and Municipal Obligations | Fair Value, Inputs, Level 2 | ||
Available-for-sale securities: | ||
Available-for-sale securities | $ 20,217 | $ 21,153 |
Fair Value - Schedule of Change
Fair Value - Schedule of Change in Financial Assets Valued Using Level Three Inputs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1, 2018 | $ 999 | $ 671 |
Acquired in Merger | 324 | |
Impairments | 0 | 0 |
Fair value adjustments | (22) | 4 |
Balance, December 31, 2018 | 977 | 999 |
Corporate Bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1, 2018 | 1,500 | |
Purchases | 1,421 | |
Acquired in Merger | 1,500 | |
Impairments | 0 | 0 |
Fair value adjustments | 750 | |
Balance, December 31, 2018 | $ 3,671 | $ 1,500 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 4,700 | $ 3,491 |
Other real estate owned, net | 3,597 | 4,284 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 4,700 | 3,491 |
Other real estate owned, net | 3,597 | 4,284 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 4,700 | 3,491 |
Other real estate owned, net | $ 3,597 | $ 4,284 |
Fair Value - Summary of Quantit
Fair Value - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - Fair Value, Inputs, Level 3 $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Impaired loans, net | $ 4,700 | $ 3,491 |
Other real estate owned, net | $ 3,597 | $ 4,284 |
Impaired Loans | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 100 | |
Minimum | Impaired Loans | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 15 | 6 |
Minimum | Impaired Loans | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 50 | |
Minimum | Impaired Loans | Discounted Cash Flows | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 5 | 5 |
Minimum | Other Real Estate Owned | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 5 | 3 |
Minimum | Other Real Estate Owned | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 9 | 10 |
Maximum | Impaired Loans | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 20 | 20 |
Maximum | Impaired Loans | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 90 | |
Maximum | Impaired Loans | Discounted Cash Flows | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 7 | 6 |
Maximum | Other Real Estate Owned | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 19 | 13 |
Maximum | Other Real Estate Owned | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 100 | 100 |
Weighted Average | Impaired Loans | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 16 | 16 |
Weighted Average | Impaired Loans | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 100 | 65 |
Weighted Average | Impaired Loans | Discounted Cash Flows | Discount Rate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Impaired loans | 6 | 6 |
Weighted Average | Other Real Estate Owned | Discounted Appraised Value | Selling Cost | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 8 | 8 |
Weighted Average | Other Real Estate Owned | Discounted Appraised Value | Lack of Marketability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Unobservable Input, Other real estate owned | 28 | 16 |
Fair Value - Summary of Asset_2
Fair Value - Summary of Assets and Liabilities at Carrying Value and Estimated Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Cash and due from banks | $ 7,685 | $ 9,396 |
Certificates of deposit | 3,746 | 3,224 |
Federal funds sold | 625 | 6,961 |
Restricted securities | 7,600 | 5,787 |
Loans receivable, net | 894,191 | 758,726 |
Loans held for sale | 368 | 1,651 |
Accrued interest receivable | 3,172 | 3,194 |
Financial Liabilities: | ||
Noninterest-bearing liabilities | 114,122 | 103,037 |
Savings and other interest-bearing deposits | 359,400 | 299,820 |
Time deposits | 368,670 | 358,989 |
Securities sold under repurchase agreements | 6,089 | 9,498 |
FHLB advances | 100,000 | 70,000 |
Subordinated notes, net | 6,893 | 6,877 |
Fair Value, Inputs, Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 7,685 | 9,396 |
Interest-earning deposits | 18,981 | 41,971 |
Federal funds sold | 625 | 6,961 |
Financial Liabilities: | ||
Noninterest-bearing liabilities | 114,122 | 103,037 |
Savings and other interest-bearing deposits | 359,400 | 299,820 |
Securities sold under repurchase agreements | 6,089 | 9,498 |
Fair Value, Inputs, Level 2 | ||
Financial Assets: | ||
Certificates of deposit | 3,746 | 3,224 |
Restricted securities | 5,787 | |
Loans held for sale | 368 | 1,651 |
Accrued interest receivable | 3,172 | 3,194 |
Financial Liabilities: | ||
FHLB advances | 99,727 | 70,486 |
Fair Value, Inputs, Level 3 | ||
Financial Assets: | ||
Restricted securities | 7,600 | |
Loans receivable, net | 877,114 | 774,009 |
Financial Liabilities: | ||
Time deposits | 369,347 | 356,450 |
Subordinated notes, net | 7,046 | 7,000 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 7,685 | 9,396 |
Interest-earning deposits | 18,981 | 41,971 |
Certificates of deposit | 3,746 | 3,224 |
Federal funds sold | 625 | 6,961 |
Restricted securities | 7,600 | 5,787 |
Loans receivable, net | 894,191 | 758,726 |
Loans held for sale | 368 | 1,651 |
Accrued interest receivable | 3,172 | 3,194 |
Financial Liabilities: | ||
Noninterest-bearing liabilities | 114,122 | 103,037 |
Savings and other interest-bearing deposits | 359,400 | 299,820 |
Time deposits | 368,670 | 358,989 |
Securities sold under repurchase agreements | 6,089 | 9,498 |
FHLB advances | 100,000 | 70,000 |
Subordinated notes, net | 6,893 | 6,877 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 7,685 | 9,396 |
Interest-earning deposits | 18,981 | 41,971 |
Certificates of deposit | 3,746 | 3,224 |
Federal funds sold | 625 | 6,961 |
Restricted securities | 7,600 | 5,787 |
Loans receivable, net | 877,114 | 774,009 |
Loans held for sale | 368 | 1,651 |
Accrued interest receivable | 3,172 | 3,194 |
Financial Liabilities: | ||
Noninterest-bearing liabilities | 114,122 | 103,037 |
Savings and other interest-bearing deposits | 359,400 | 299,820 |
Time deposits | 369,347 | 356,450 |
Securities sold under repurchase agreements | 6,089 | 9,498 |
FHLB advances | 99,727 | 70,486 |
Subordinated notes, net | $ 7,046 | $ 7,000 |
Parent Financial Statements - C
Parent Financial Statements - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||
Cash and due from non-affiliated banks | $ 7,685 | $ 9,396 | |
Certificates of deposit | 3,746 | 3,224 | |
Other assets | 5,927 | 5,267 | |
Total assets | 1,080,617 | 970,556 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Subordinated notes, net of unamortized issuance costs | 6,893 | 6,877 | |
Deferred compensation plan | 972 | 901 | |
Other liabilities | 7,967 | 7,781 | |
Total liabilities | 963,141 | 856,002 | |
Total shareholders’ equity | 117,476 | 114,554 | $ 41,705 |
Total liabilities and shareholders’ equity | 1,080,617 | 970,556 | |
Parent Company | |||
ASSETS | |||
Cash and due from non-affiliated banks | 15,631 | 24,475 | |
Interest-earning deposits | 155 | 609 | |
Certificates of deposit | 770 | ||
Investments in subsidiaries | 109,747 | 96,539 | |
Other assets | 2,225 | 2,002 | |
Total assets | 128,528 | 123,625 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Subordinated notes, net of unamortized issuance costs | 6,893 | 6,877 | |
Deferred compensation plan | 972 | 901 | |
Other borrowings | 1,734 | 1,129 | |
Other liabilities | 1,453 | 164 | |
Total liabilities | 11,052 | 9,071 | |
Total shareholders’ equity | 117,476 | 114,554 | |
Total liabilities and shareholders’ equity | $ 128,528 | $ 123,625 |
Parent Financial Statements -_2
Parent Financial Statements - Condensed Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements Captions [Line Items] | ||
Interest income | $ 43,803 | $ 33,700 |
Interest expense | 10,225 | 6,001 |
Net interest income | 33,578 | 27,699 |
Net losses on disposition of other assets | (7) | (220) |
Other income | 165 | 54 |
Total noninterest income | 4,303 | 3,507 |
Noninterest expense | 32,119 | 26,747 |
Income tax benefit | 533 | 797 |
Net income (loss) | 3,878 | (1,272) |
Parent Company | ||
Condensed Financial Statements Captions [Line Items] | ||
Interest income | 2 | |
Interest expense | 512 | 481 |
Net interest income | (512) | (479) |
Net losses on disposition of other assets | (73) | |
Other income | 529 | 857 |
Total noninterest income | 456 | 857 |
Noninterest expense | 1,659 | 1,752 |
Loss before income taxes and equity in undistributed earnings (losses) of subsidiaries | (1,715) | (1,374) |
Income tax benefit | (212) | (340) |
Loss before equity in undistributed earnings of subsidiaries | (1,503) | (1,034) |
Equity in undistributed earnings (losses) of subsidiaries | 5,381 | (238) |
Net income (loss) | $ 3,878 | $ (1,272) |
Parent Financial Statements -_3
Parent Financial Statements - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 3,878 | $ (1,272) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 16 | 17 |
Share-based compensation expense | 102 | 199 |
Increase (decrease) in other liabilities | 685 | 2,502 |
Net cash provided by operating activities | 7,355 | 3,638 |
Cash Flows from Investing Activities: | ||
(Purchases) maturities of certificates of deposit | (522) | 992 |
Net cash used in investing activities | (138,897) | (109,943) |
Cash Flows from Financing Activities: | ||
Dividends paid | (1,431) | |
Stock options exercised | 149 | 254 |
Director stock grant | 125 | |
(Purchase) issuance of stock, net | (556) | 32,805 |
Net cash provided by financing activities | 106,841 | 145,320 |
Net (decrease) increase in cash and cash equivalents (including interest-earning deposits | (24,701) | 39,015 |
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 | 26,666 | 51,367 |
Parent Company | ||
Cash Flows from Operating Activities: | ||
Net income (loss) | 3,878 | (1,272) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 16 | 17 |
Share-based compensation expense | 102 | 199 |
Equity in undistributed (earnings) losses of subsidiaries | (5,381) | 238 |
Increase in other assets | (223) | (324) |
Net change in deferred compensation plan | 71 | 340 |
Increase (decrease) in other liabilities | 1,291 | (299) |
Net cash provided by operating activities | (246) | (1,101) |
Cash Flows from Investing Activities: | ||
(Purchases) maturities of certificates of deposit | (770) | 1,240 |
Investment in subsidiaries | (8,000) | (8,750) |
Net cash used in investing activities | (8,770) | (7,510) |
Cash Flows from Financing Activities: | ||
Dividends paid | (1,431) | |
Stock options exercised | 149 | 254 |
Director stock grant | 125 | |
(Purchase) issuance of stock, net | (556) | 32,803 |
ESOP loans acquired from VBC | 911 | |
Net cash provided by financing activities | (282) | 32,537 |
Net (decrease) increase in cash and cash equivalents (including interest-earning deposits | (9,298) | 23,926 |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 25,084 | 1,158 |
Cash and cash equivalents (including interest-earning deposits) at end of period | $ 15,786 | $ 25,084 |