Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-22345 | |
Entity Registrant Name | SHORE BANCSHARES INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-1974638 | |
Entity Address, Address Line One | 18 E. Dover Street | |
Entity Address, City or Town | Easton | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21601 | |
City Area Code | 410 | |
Local Phone Number | 763-7800 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SHBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,752,990 | |
Entity Central Index Key | 0001035092 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 18,275 | $ 16,666 |
Interest-bearing deposits with other banks | 218,913 | 170,251 |
Cash and cash equivalents | 237,188 | 186,917 |
Investment securities: | ||
Available-for-sale, at fair value | 113,957 | 139,568 |
Held to maturity, at amortized cost - fair value of $197,991 (2021) and $65,828 (2020) | 198,884 | 65,706 |
Equity securities, at fair value | 1,384 | 1,395 |
Restricted securities | 3,189 | 3,626 |
Loans | 1,472,429 | 1,454,256 |
Less: allowance for credit losses | (15,088) | (13,888) |
Loans, net | 1,457,341 | 1,440,368 |
Premises and equipment, net | 25,313 | 24,924 |
Goodwill | 17,518 | 17,518 |
Other intangible assets, net | 1,473 | 1,719 |
Other real estate owned, net | 203 | |
Right-of-use assets | 5,616 | 4,795 |
Other assets | 58,194 | 46,779 |
TOTAL ASSETS | 2,120,260 | 1,933,315 |
Deposits: | ||
Noninterest-bearing | 538,009 | 509,091 |
Interest-bearing | 1,342,573 | 1,191,614 |
Total deposits | 1,880,582 | 1,700,705 |
Securities sold under retail repurchase agreements | 2,907 | 1,050 |
Subordinated debt | 24,490 | 24,429 |
Total borrowings | 27,397 | 25,479 |
Lease liabilities | 5,757 | 4,874 |
Other liabilities | 7,842 | 7,238 |
TOTAL LIABILITIES | 1,921,578 | 1,738,296 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 11,751,859 (2021) and 11,783,380 (2020) | 118 | 118 |
Additional paid in capital | 51,544 | 52,167 |
Retained earnings | 146,414 | 141,205 |
Accumulated other comprehensive income | 606 | 1,529 |
TOTAL STOCKHOLDERS' EQUITY | 198,682 | 195,019 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,120,260 | $ 1,933,315 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Investment securities held to maturity | $ 197,991 | $ 65,828 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares, issued | 11,751,859 | 11,783,380 |
Common stock, shares outstanding | 11,751,859 | 11,783,380 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 14,381 | $ 13,945 | $ 28,747 | $ 27,740 |
Interest and dividends on investment securities: | ||||
Taxable | 1,095 | 638 | 2,025 | 1,357 |
Interest on deposits with other banks | 55 | 11 | 102 | 183 |
Total interest income | 15,531 | 14,594 | 30,874 | 29,280 |
INTEREST EXPENSE | ||||
Interest on deposits | 1,056 | 1,556 | 2,240 | 3,615 |
Interest on short-term borrowings | 2 | 1 | 3 | 3 |
Interest on long-term borrowings | 370 | 6 | 729 | 113 |
Total interest expense | 1,428 | 1,563 | 2,972 | 3,731 |
NET INTEREST INCOME | 14,103 | 13,031 | 27,902 | 25,549 |
Provision for credit losses | 650 | 1,000 | 1,075 | 1,350 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 13,453 | 12,031 | 26,827 | 24,199 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 683 | 544 | 1,357 | 1,410 |
Trust and investment fee income | 475 | 363 | 882 | 738 |
Gains on sales and calls of investment securities | 347 | 347 | ||
Other noninterest income | 1,745 | 1,515 | 3,221 | 2,626 |
Total noninterest income | 2,903 | 2,769 | 5,460 | 5,121 |
NONINTEREST EXPENSE | ||||
Salaries and wages | 4,262 | 2,130 | 8,404 | 6,426 |
Employee benefits | 1,493 | 1,535 | 3,337 | 3,257 |
Occupancy expense | 770 | 702 | 1,584 | 1,400 |
Furniture and equipment expense | 412 | 247 | 719 | 564 |
Data processing | 1,217 | 1,037 | 2,344 | 2,081 |
Directors' fees | 154 | 113 | 303 | 254 |
Amortization of other intangible assets | 120 | 138 | 246 | 282 |
FDIC insurance premium expense | 223 | 124 | 408 | 215 |
Other real estate owned expenses, net | 1 | 2 | 18 | |
Legal and professional fees | 648 | 553 | 1,164 | 1,187 |
Merger-related expenses | 377 | 377 | ||
Other noninterest expenses | 1,199 | 1,084 | 2,486 | 2,328 |
Total noninterest expense | 10,876 | 7,663 | 21,374 | 18,012 |
Income before income taxes | 5,480 | 7,137 | 10,913 | 11,308 |
Income tax expense | 1,449 | 1,802 | 2,884 | 2,855 |
NET INCOME | $ 4,031 | $ 5,335 | $ 8,029 | $ 8,453 |
Earnings per common share - Basic and diluted | ||||
Earnings per common share - Basic and diluted | $ 0.34 | $ 0.43 | $ 0.68 | $ 0.68 |
Dividends paid per common share | $ 0.12 | $ 0.12 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 4,031 | $ 5,335 | $ 8,029 | $ 8,453 |
Investment securities: | ||||
Unrealized holding (losses) gains on available-for-sale-securities | (194) | 1,093 | (1,269) | 2,807 |
Tax effect | 53 | (292) | 346 | (760) |
Reclassification of (gains) recognized in net income | (347) | (347) | ||
Tax effect | 88 | 88 | ||
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity | 4 | 12 | ||
Tax effect | (3) | |||
Total other comprehensive (loss) income | (141) | 546 | (923) | 1,797 |
Comprehensive income | $ 3,890 | $ 5,881 | $ 7,106 | $ 10,250 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balances at Dec. 31, 2019 | $ 125 | $ 61,045 | $ 131,425 | $ 207 | $ 192,802 |
Net income | 3,118 | 3,118 | |||
Other comprehensive income (loss) | 1,251 | 1,251 | |||
Stock-based compensation | 61 | 61 | |||
Vesting of restricted stock, net of shares surrendered | (39) | (39) | |||
Cash dividends declared | (1,499) | (1,499) | |||
Balances at Mar. 31, 2020 | 125 | 61,067 | 133,044 | 1,458 | 195,694 |
Balances at Dec. 31, 2019 | 125 | 61,045 | 131,425 | 207 | 192,802 |
Net income | 8,453 | ||||
Balances at Jun. 30, 2020 | 125 | 61,129 | 136,876 | 2,004 | 200,134 |
Balances at Mar. 31, 2020 | 125 | 61,067 | 133,044 | 1,458 | 195,694 |
Net income | 5,335 | 5,335 | |||
Other comprehensive income (loss) | 546 | 546 | |||
Stock-based compensation | 62 | 62 | |||
Cash dividends declared | (1,503) | (1,503) | |||
Balances at Jun. 30, 2020 | 125 | 61,129 | 136,876 | 2,004 | 200,134 |
Balances at Dec. 31, 2020 | 118 | 52,167 | 141,205 | 1,529 | 195,019 |
Net income | 3,998 | 3,998 | |||
Other comprehensive income (loss) | (782) | (782) | |||
Retirement of common stock | (819) | (819) | |||
Stock-based compensation | 97 | 97 | |||
Cash dividends declared | (1,409) | (1,409) | |||
Balances at Mar. 31, 2021 | 118 | 51,445 | 143,794 | 747 | 196,104 |
Balances at Dec. 31, 2020 | 118 | 52,167 | 141,205 | 1,529 | 195,019 |
Net income | 8,029 | ||||
Balances at Jun. 30, 2021 | 118 | 51,544 | 146,414 | 606 | 198,682 |
Balances at Mar. 31, 2021 | 118 | 51,445 | 143,794 | 747 | 196,104 |
Net income | 4,031 | 4,031 | |||
Other comprehensive income (loss) | (141) | (141) | |||
Stock-based compensation | 99 | 99 | |||
Cash dividends declared | (1,411) | (1,411) | |||
Balances at Jun. 30, 2021 | $ 118 | $ 51,544 | $ 146,414 | $ 606 | $ 198,682 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 8,029 | $ 8,453 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion of acquisition accounting estimates | (142) | (172) |
Provision for credit losses | 1,075 | 1,350 |
Depreciation and amortization | 1,277 | 1,225 |
Net amortization of securities | 687 | 203 |
Amortization of debt issuance costs | 61 | |
Stock-based compensation expense | 196 | 123 |
Deferred income tax (benefit) | (578) | (1,598) |
(Gains) on sales and calls of securities | (347) | |
Losses on sales and disposals of premises and equipment | 40 | |
Losses on sales and valuation adjustments on other real estate owned | 2 | 18 |
Fair value adjustment on equity securities | 20 | (32) |
Bank owned life insurance income | (545) | (647) |
Net changes in: | ||
Accrued interest receivable | 1,229 | (2,712) |
Other assets | (1,127) | (455) |
Accrued interest payable | (90) | (123) |
Other liabilities | 446 | 4,429 |
Net cash provided by operating activities | 10,540 | 9,755 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal payments of investment securities available for sale | 23,862 | 26,360 |
Proceeds from sales and calls of investment securities available for sale | 13,019 | |
Proceeds from maturities and principal payments of investment securities held to maturity | 3,037 | 105 |
Purchases of securities held to maturity | (136,422) | (3,021) |
Purchases of equity securities | (10) | (14) |
Net change in loans | (18,156) | (159,251) |
Purchases of premises and equipment | (1,048) | (1,476) |
Proceeds from sales of premises and equipment | 2 | |
Proceeds from sales of other real estate owned | 18 | |
Net redemption of restricted securities | 437 | 564 |
Purchases of bank owned life insurance | (10,109) | |
Net cash (used in) investing activities | (138,409) | (123,694) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Noninterest-bearing deposits | 28,918 | 86,378 |
Interest-bearing deposits | 151,004 | 77,077 |
Short-term borrowings | 1,857 | (162) |
Long-term borrowings | (15,000) | |
Common stock dividends paid | (2,820) | (3,002) |
Retirement of common stock | (819) | |
Repurchase of shares for tax withholding on exercised options and vested restricted stock | (39) | |
Net cash provided by financing activities | 178,140 | 145,252 |
Net increase in cash and cash equivalents | 50,271 | 31,313 |
Cash and cash equivalents at beginning of period | 186,917 | 94,971 |
Cash and cash equivalents at end of period | 237,188 | 126,284 |
Supplemental cash flows information: | ||
Interest paid | 3,046 | 3,914 |
Income taxes paid | 2,441 | 174 |
Lease liabilities arising from right-of-use assets | 1,132 | 419 |
Unrealized (loss) gain on securities available for sale | (1,269) | 2,460 |
Transfers from loans to other real estate owned | $ 205 | |
Amortization of unrealized loss on securities transferred from available for sale to held to maturity | $ 12 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiary with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at June 30, 2021, the consolidated results of income and comprehensive income for the three and six months ended June 30, 2021 and 2020, changes in stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and cash flows for the six months ended June 30, 2021 and 2020, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2020 were derived from the 2020 audited financial statements. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2020. For purposes of comparability, certain immaterial reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiary, Shore United Bank (the “Bank”). Risks and Uncertainties Since the novel coronavirus ("COVID-19") was declared a pandemic in March 2020, COVID-19 has significantly affected our communities, customers, and operations. COVID-19 continues to have a significant impact in 2021, however, the extent of its effects are dependent upon multiple factors, such as the extent of distribution and efficacy of vaccines, COVID-19 variants, pandemic-related restrictions, and government response, among others. As a result, the ultimate effects of COVID-19 over the longer term cannot be reasonably estimated at this time. Risks and uncertainties arising from the pandemic remain, primarily concerning the ability of customers to fulfill their financial obligations to the Company as well as potential operational disruptions and the ability of the Company to generate demand for its products and services. Accordingly, estimates used in the preparation of our financial statements may be subject to significant adjustments in future periods. Recent Accounting Standards and Other Authoritative Guidance ASU No. 2016-13 – In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, retained the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. ASU No. 2020-04 – In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. At present, the Bank has limited exposure to LIBOR based pricing. LIBOR based loans only comprise 26 loans or 7.6% of the loan portfolio. The Bank is confident it can successfully negotiate a migration to the Secured Overnight Financing Rate (“SOFR”) between now and the implementation date. The Bank will notify customers within 120 days prior to migration to SOFR. The Bank acknowledges the replacement rate will be more volatile based on different countries migrating to different indexes and limited liquidity to support the rate. The Bank further acknowledges the volatility will be greatly influenced by the support provided by the Federal Reserve. ASU No. 2021-04 - In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity – Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” The ASU addresses how an issuer should account for modifications or an exchange of freestanding written call options classified as equity that is not within the scope of another Topic. For both public and private companies, the ASU is effective for fiscal years beginning after December 15, 2021. Transition is prospective. Early adoption is permitted. The Company does not expect the adoption of ASU 2021-04 to have a material impact on its consolidated financial statements. Recent Accounting Developments In December 2020, the Consolidated Appropriations Act of 2021 (“CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. The Bank participated in the second round of PPP lending under the CAA, which resulted in 959 PPP loans for approximately $67.3 million. In addition, two hospitality loans remained in the COVID-19 relief program under the CARES Act. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – Earnings Per Share Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of potential common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share: For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except per share data) 2021 2020 2021 2020 Net Income $ 4,031 $ 5,335 $ 8,029 $ 8,453 Weighted average shares outstanding - Basic 11,752 12,524 11,749 12,519 Dilutive effect of common stock equivalents-options 2 1 1 2 Weighted average shares outstanding - Diluted 11,754 12,525 11,750 12,521 Earnings per common share - Basic and Diluted $ 0.34 $ 0.43 $ 0.68 $ 0.68 There were no weighted average common stock equivalents excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2021 and 2020. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3 – Investment Securities The following tables provide information on the amortized cost and estimated fair values of debt securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: June 30, 2021 U.S. Government agencies $ 18,574 $ 5 $ 592 $ 17,987 Mortgage-backed 94,549 1,908 487 95,970 Total $ 113,123 $ 1,913 $ 1,079 $ 113,957 December 31, 2020 U.S. Government agencies $ 23,600 $ 20 $ 83 $ 23,537 Mortgage-backed 113,865 2,234 68 116,031 Total $ 137,465 $ 2,254 $ 151 $ 139,568 No available for sale securities were sold during the three and six months ended June 30, 2021. During the three and six months ended June 30, 2020, the Company sold available for sale securities for proceeds of $13.0 million and recognized gross gains of $347 thousand. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Held-to-maturity securities: June 30, 2021 U.S. Government agencies $ 63,139 $ 41 $ 430 $ 62,750 Mortgage-backed 116,305 157 869 115,593 States and political subdivisions 400 1 — 401 Other debt securities 19,040 222 15 19,247 Total $ 198,884 $ 421 $ 1,314 $ 197,991 December 31, 2020 U.S. Government agencies $ 18,893 $ 38 $ 43 $ 18,888 Mortgage-backed 27,347 7 18 27,336 States and political subdivisions 400 1 — 401 Other debt securities 19,066 139 2 19,203 Total $ 65,706 $ 185 $ 63 $ 65,828 Equity securities with an aggregate fair value of $1.4 million at June 30, 2021 and December 31, 2020 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $(20) thousand for the six months ended June 30, 2021 and $32 thousand for the six months ended June 30, 2020, respectively. The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2021 and December 31, 2020. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2021 Available-for-sale securities: U.S. Government agencies $ 17,409 $ 591 $ 221 $ 1 $ 17,630 $ 592 Mortgage-backed 45,318 487 — — 45,318 487 Total $ 62,727 $ 1,078 $ 221 $ 1 $ 62,948 $ 1,079 Held-to-maturity securities: U.S. Government agencies $ 36,696 $ 430 $ — $ — $ 36,696 $ 430 Mortgage-backed 65,359 869 — — 65,359 869 Other debt securities 3,985 15 — — 3,985 15 Total $ 106,040 $ 1,314 $ — $ — $ 106,040 $ 1,314 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2020 Available-for-sale securities: U.S. Government agencies $ 14,919 $ 82 $ 236 $ 1 $ 15,155 $ 83 Mortgage-backed 11,869 68 — — 11,869 68 Total $ 26,788 $ 150 $ 236 $ 1 $ 27,024 $ 151 Held-to-maturity securities: U.S. Government agencies $ 6,646 $ 43 $ — $ — $ 6,646 $ 43 Mortgage-backed 5,093 18 — — 5,093 18 Other debt securities 498 2 — — 498 2 Total $ 12,237 $ 63 $ — $ — $ 12,237 $ 63 All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were eighteen available-for-sale securities and twenty-four held-to-maturity securities in an unrealized loss position at June 30, 2021. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2021. Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ — $ — $ 2,529 $ 2,574 Due after one year through five years 975 1,009 10,381 10,392 Due after five years through ten years 54,955 55,891 57,481 57,456 Due after ten years 57,193 57,057 128,493 127,569 Total $ 113,123 $ 113,957 $ 198,884 $ 197,991 The maturity dates for debt securities are determined using contractual maturity dates. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Allowance for Credit Losses [Abstract] | |
Loans and Allowance for Credit Losses | Note 4 – Loans and Allowance for Credit Losses The Company makes residential mortgage, commercial and consumer loans to customers primarily in Talbot County, Queen Anne’s County, Kent County, Caroline County, Dorchester County, Worcester County, Baltimore County and Howard County in Maryland, Kent County, Delaware and Accomack County, Virginia. The following table provides information about the principal classes of the loan portfolio at June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Construction $ 116,760 $ 106,760 Residential real estate 449,867 443,542 Commercial real estate 655,252 661,232 Commercial 186,162 211,256 Consumer 64,388 31,466 Total loans 1,472,429 1,454,256 Allowance for credit losses (15,088) (13,888) Total loans, net $ 1,457,341 $ 1,440,368 Loans are stated at their principal amount outstanding net of any purchase premiums/discounts, deferred fees and costs. Loans included deferred fees, net of costs, of $549 thousand and discounts on acquired loans of $625 thousand at June 30, 2021. Loans included deferred costs, net of deferred fees, of $622 thousand and discounts on acquired loans of $754 thousand at December 31, 2020. At June 30, 2021 and December 31, 2020, included in total loans were $42.5 million and $52.3 million in loans, respectively, acquired as part of the NWBI branch acquisition in 2017. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual (i.e., interest income is no longer accrued) when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms when due. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Once the amount of impairment has been determined, the uncollectible portion is charged off. Loan payments received on nonaccrual impaired loans are generally applied to the outstanding principal balance. In certain circumstances, income may be recognized on a cash basis. Generally, interest income is not recognized on impaired loans unless the likelihood of further loss is remote. The allowance for credit losses may include specific reserves related to impaired loans. Specific reserves remain until charge offs are made. Impaired loans do not include groups of smaller balance homogenous loans such as residential mortgage and consumer installment loans that are evaluated collectively for impairment. Reserves for probable credit losses related to these loans are based on historical loss ratios and are included in the formula portion of the allowance for credit losses. A loan is considered a TDR if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the Bank’s current underwriting guidelines the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. In April 2020, the Company began its participation in the Paycheck Protection Program (“PPP”). The PPP commenced subsequent to the passage of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in March 2020, and was later expanded by the Paycheck Protection Program and Health Care Enhancement Act of April 2020. The PPP was designed to provide U.S. small businesses with cash-flow assistance during the COVID-19 pandemic through loans that are fully guaranteed by the Small Business Administration (“SBA”) which may be forgiven upon satisfaction of certain criteria. In December 2020, the Consolidated Appropriations Act of 2021 (“CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. This extension of PPP lending expired on May 31, 2021. Under both the CARES and CAA, the Company funded 2,454 loans for a cumulative balance of $196.0 million. As of June 30, 2021, the Company held PPP loans with a total outstanding balance of $86.8 million, which is included in the commercial loan segment in the table above. The decrease is due to repayment and forgiveness received as of June 30, 2021. As compensation for originating the loans, the Company received lender processing fees from the SBA, which were deferred, along with the related loan origination costs. These net fees are being accreted to interest income over the remaining contractual lives of the loans. Upon forgiveness of a PPP loan and repayment by the SBA, which may be prior to the loan’s maturity, the remainder of any unrecognized net fees are recognized as interest income. In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans – Construction loans are offered primarily to builders and individuals to finance the construction of single-family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. The following tables include impairment information relating to loans and the allowance for credit losses as of June 30, 2021 and December 31, 2020. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total June 30, 2021 Loans individually evaluated for impairment $ 327 $ 4,898 $ 5,575 $ 237 $ — $ 11,037 Loans collectively evaluated for impairment 116,433 444,969 649,677 185,925 64,388 1,461,392 Total loans $ 116,760 $ 449,867 $ 655,252 $ 186,162 $ 64,388 $ 1,472,429 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 90 $ — $ — $ — $ 90 Loans collectively evaluated for impairment 2,574 3,722 5,600 1,879 1,223 14,998 Total allowance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2020 Loans individually evaluated for impairment $ 331 $ 5,722 $ 6,917 $ 258 $ 28 $ 13,256 Loans collectively evaluated for impairment 106,429 437,820 654,315 210,998 31,438 1,441,000 Total loans $ 106,760 $ 443,542 $ 661,232 $ 211,256 $ 31,466 $ 1,454,256 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 135 $ 78 $ — $ — $ 213 Loans collectively evaluated for impairment 2,022 3,564 5,348 2,089 652 13,675 Total allowance $ 2,022 $ 3,699 $ 5,426 $ 2,089 $ 652 $ 13,888 The following tables provide information on impaired loans and any related allowance by loan class as of June 30, 2021 and December 31, 2020. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal. Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment June 30, 2021 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 297 $ 297 $ — Residential real estate 1,318 1,239 — — 1,204 1,307 — Commercial real estate 2,562 2,174 — — 2,214 2,613 — Commercial 391 237 — — 241 246 — Consumer — — — — 9 19 — Total $ 4,568 $ 3,947 $ — $ — $ 3,965 $ 4,482 $ — Impaired accruing TDRs: Construction $ 30 $ 30 $ — $ — $ 31 $ 32 $ 1 Residential real estate 3,329 2,209 1,120 90 3,354 3,442 89 Commercial real estate 2,979 2,979 — — 3,005 3,035 46 Commercial — — — — — — — Consumer — — — — — — — Total $ 6,338 $ 5,218 $ 1,120 $ 90 $ 6,390 $ 6,509 $ 136 Other impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 330 330 — — 359 606 7 Commercial real estate 422 422 — — 479 495 2 Commercial — — — — — 25 — Consumer — — — — — — — Total $ 752 $ 752 $ — $ — $ 838 $ 1,126 $ 9 Total impaired loans: Construction $ 327 $ 327 $ — $ — $ 328 $ 329 $ 1 Residential real estate 4,977 3,778 1,120 90 4,917 5,355 96 Commercial real estate 5,963 5,575 — — 5,698 6,143 48 Commercial 391 237 — — 241 271 — Consumer — — — — 9 19 — Total $ 11,658 $ 9,917 $ 1,120 $ 90 $ 11,193 $ 12,117 $ 145 Recorded Recorded June 30, 2020 Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2020 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 297 $ 198 $ — Residential real estate 1,665 1,585 — — 3,555 3,213 — Commercial real estate 4,288 3,220 67 67 6,853 7,103 — Commercial 401 258 — — 551 466 — Consumer 28 28 — — — — — Total $ 6,679 $ 5,388 $ 67 $ 67 $ 11,256 $ 10,980 $ — Impaired accruing TDRs: Construction $ 34 $ 34 $ — $ — $ 38 $ 38 $ 1 Residential real estate 3,845 2,617 1,228 135 3,912 3,967 79 Commercial real estate 3,118 2,479 639 11 3,373 3,390 47 Commercial — — — — — — — Consumer — — — — — — — Total $ 6,997 $ 5,130 $ 1,867 $ 146 $ 7,323 $ 7,395 $ 127 Other impaired accruing loans: Construction $ — $ — $ — $ — $ — $ 49 $ — Residential real estate 292 292 — — 179 394 1 Commercial real estate 512 512 — — 1,053 867 3 Commercial — — — — 6 5 — Consumer — — — — 16 9 — Total $ 804 $ 804 $ — $ — $ 1,254 $ 1,324 $ 4 Total impaired loans: Construction $ 331 $ 331 $ — $ — $ 335 $ 285 $ 1 Residential real estate 5,802 4,494 1,228 135 7,646 7,574 80 Commercial real estate 7,918 6,211 706 78 11,279 11,360 50 Commercial 401 258 — — 557 471 — Consumer 28 28 — — 16 9 — Total $ 14,480 $ 11,322 $ 1,934 $ 213 $ 19,833 $ 19,699 $ 131 The following tables provide a roll-forward for TDRs as of June 30, 2021 and June 30, 2020. 1/1/2021 6/30/2021 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For six months ended June 30, 2021 Accruing TDRs Construction $ 34 $ — $ (4) $ — $ — $ — $ 30 $ — Residential real estate 3,845 — (57) — — (459) 3,329 90 Commercial real estate 3,118 — (139) — — — 2,979 — Commercial — — — — — — — — Consumer — — — — — — — — Total $ 6,997 $ — $ (200) $ — $ — $ (459) $ 6,338 $ 90 Nonaccrual TDRs Construction $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate — — — — — — — — Commercial real estate — — — — — — — — Commercial 258 — (21) — — — 237 — Consumer — — — — — — — — Total $ 258 $ — $ (21) $ — $ — $ — $ 237 $ — Total $ 7,255 $ — $ (221) $ — $ — $ (459) $ 6,575 $ 90 1/1/2020 6/30/2020 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For six months ended June 30, 2020 Accruing TDRs Construction $ 41 $ — $ (3) $ — $ — $ — $ 38 $ — Residential real estate 4,041 — (53) — — (83) 3,905 190 Commercial real estate 3,419 — (50) — — — 3,369 14 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 7,501 $ — $ (106) $ — $ — $ (83) $ 7,312 $ 204 Nonaccrual TDRs Construction $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate 1,393 — (51) — — — 1,342 75 Commercial real estate — 1,506 (373) — — — 1,133 — Commercial 299 — (19) — — — 280 — Consumer — — — — — — — — Total $ 1,692 $ 1,506 $ (443) $ — $ — $ — $ 2,755 $ 75 Total $ 9,193 $ 1,506 $ (549) $ — $ — $ (83) $ 10,067 $ 279 There were no loans modified and considered to be TDRs during the three months ended June 30, 2021 and June 30, 2020. The following tables provide information on loans that were modified and considered to be TDRs during the six months ended June 30, 2021 and June 30, 2020. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For six months ended June 30, 2021 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ — For six months ended June 30, 2020 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate 1 1,535 1,506 — Commercial — — — — Consumer — — — — Total 1 $ 1,535 $ 1,506 $ — Since the beginning of the pandemic and through June 30, 2021, the Company had executed principal and/or interest deferrals on outstanding loan balances of $221.1 million, of which only $9.5 million, or 0.65% of the total portfolio, remained on deferral as of June 30, 2021. These deferrals were not considered TDRs based on the relief provisions of the CARES Act and CAA or recent interagency regulatory guidance. There were no TDRs which subsequently defaulted within 12 months of modification for the three and six months ended June 30, 2021 and 2020. Generally, a loan is considered in default when principal or interest is past due 90 days or more, the loan is placed on nonaccrual, the loan is charged off, or there is a transfer to OREO or repossessed assets. Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard or doubtful are adversely rated. These loans and the pass/watch loans are assigned higher qualitative factors than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. At June 30, 2021, there were no nonaccrual loans classified as special mention or doubtful and $3.9 million of nonaccrual loans were classified as substandard. Similarly, at December 31, 2020, there were no nonaccrual loans classified as special mention or doubtful and $5.5 million of nonaccrual loans were classified as substandard. The following tables provide information on loan risk ratings as of June 30, 2021 and December 31, 2020. Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total June 30, 2021 Construction $ 87,587 $ 26,923 $ 1,953 $ 297 $ — $ 116,760 Residential real estate 411,746 34,370 2,221 1,530 — 449,867 Commercial real estate 495,840 149,825 2,925 6,662 — 655,252 Commercial 167,089 18,133 689 251 — 186,162 Consumer 64,220 166 — 2 — 64,388 Total $ 1,226,482 $ 229,417 $ 7,788 $ 8,742 $ — $ 1,472,429 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2020 Construction $ 81,926 $ 22,547 $ 1,990 $ 297 $ — $ 106,760 Residential real estate 401,494 36,759 2,946 2,343 — 443,542 Commercial real estate 514,524 133,892 3,504 9,312 — 661,232 Commercial 182,166 25,870 2,948 272 — 211,256 Consumer 31,221 215 — 30 — 31,466 Total $ 1,211,331 $ 219,283 $ 11,388 $ 12,254 $ — $ 1,454,256 The following tables provide information on the aging of the loan portfolio as of June 30, 2021 and December 31, 2020. Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total June 30, 2021 Construction $ 116,433 $ — $ 30 $ — $ 30 $ 297 $ 116,760 Residential real estate 447,705 593 — 330 923 1,239 449,867 Commercial real estate 652,484 172 — 422 594 2,174 655,252 Commercial 185,748 36 141 — 177 237 186,162 Consumer 64,262 126 — — 126 — 64,388 Total $ 1,466,632 $ 927 $ 171 $ 752 $ 1,850 $ 3,947 $ 1,472,429 Percent of total loans 99.5 % 0.1 % — % 0.1 % 0.2 % 0.3 % 100.0 % Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2020 Construction $ 106,463 $ — $ — $ — $ — $ 297 $ 106,760 Residential real estate 440,210 517 938 292 1,747 1,585 443,542 Commercial real estate 657,066 367 — 512 879 3,287 661,232 Commercial 210,704 226 68 — 294 258 211,256 Consumer 31,318 119 1 — 120 28 31,466 Total $ 1,445,761 $ 1,229 $ 1,007 $ 804 $ 3,040 $ 5,455 $ 1,454,256 Percent of total loans 99.3 % 0.1 % 0.1 % 0.1 % 0.3 % 0.4 % 100.0 % The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the three and six months ended June 30, 2021 and June 30, 2020. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2021 Allowance for credit losses: Beginning Balance $ 2,796 $ 3,699 $ 5,097 $ 2,000 $ 721 $ 14,313 Charge-offs — — — (46) — (46) Recoveries 5 57 64 44 1 171 Net (charge-offs) recoveries 5 57 64 (2) 1 125 Provision (227) 56 439 (119) 501 650 Ending Balance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2020 Allowance for credit losses: Beginning Balance $ 1,128 $ 2,482 $ 3,965 $ 2,263 $ 540 $ 10,378 Charge-offs — — (331) (37) — (368) Recoveries 5 4 — 61 10 80 Net (charge-offs) recoveries 5 4 (331) 24 10 (288) Provision 364 153 463 68 (48) 1,000 Ending Balance $ 1,497 $ 2,639 $ 4,097 $ 2,355 $ 502 $ 11,090 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For six months ended June 30, 2021 Allowance for credit losses: Beginning Balance $ 2,022 $ 3,699 $ 5,426 $ 2,089 $ 652 $ 13,888 Charge-offs — — — (107) (4) (111) Recoveries 10 63 64 96 3 236 Net (charge-offs) recoveries 10 63 64 (11) (1) 125 Provision 542 50 110 (199) 572 1,075 Ending Balance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For six months ended June 30, 2020 Allowance for credit losses: Beginning Balance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Charge-offs — (191) (601) (119) (7) (918) Recoveries 8 7 — 124 12 151 Net (charge-offs) recoveries 8 (184) (601) 5 5 (767) Provision (87) 322 666 421 28 1,350 Ending Balance $ 1,497 $ 2,639 $ 4,097 $ 2,355 $ 502 $ 11,090 Foreclosure Proceedings There were no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of June 30, 2021 and December 31, 2020, respectively. There was 1 residential real estate property included in the balance of other real estate owned totaling $203 thousand at June 30, 2021 and $0 at December 31, 2020. All accruing TDRs were in compliance with their modified terms. Both performing and non-performing TDRs had no further commitments associated with them as of June 30, 2021 and December 31, 2020. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 5 – Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain leases offer the option to extend During the second quarter of 2021, one of the Company’s long-term branch leases was reassessed by management and it was determined that it was not reasonably certain that the options to renew would be exercised after the initial lease term of 10 years. This resulted in a shorter lease term and a reduction of the lease liability and right-to-use assets as compared to the first quarter of 2021 when the lease was initially placed into service. The following tables present information about the Company’s leases: (Dollars in thousands) June 30, 2021 December 31, 2020 Lease liabilities $ 5,757 $ 4,874 Right-of-use assets $ 5,616 $ 4,795 Weighted average remaining lease term 10.08 years 10.49 years Weighted average discount rate 2.84 % 2.89 % For the Three Months Ended For the Six Months Ended Lease cost (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease cost $ 208 $ 177 $ 395 $ 358 Short-term lease cost — — — — Total lease cost $ 208 $ 177 $ 395 $ 358 Cash paid for amounts included in the measurement of lease liabilities $ 165 $ 167 $ 331 $ 330 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of Lease payments due (in thousands) June 30, 2021 Six months ending December 31, 2021 $ 366 Twelve months ending December 31, 2022 742 Twelve months ending December 31, 2023 753 Twelve months ending December 31, 2024 707 Twelve months ending December 31, 2025 620 Twelve months ending December 31, 2026 566 Thereafter 3,308 Total undiscounted cash flows $ 7,062 Discount 1,305 Lease liabilities $ 5,757 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Other Intangibles [Abstract] | |
Goodwill and Other Intangibles | Note 6 – Goodwill and Other Intangibles The Company concluded there was no impairment of goodwill during its annual fourth quarter assessment in 2020. Following the fourth quarter evaluation, management evaluated the events and circumstances that could indicate that goodwill may be impaired and concluded that an interim test was not necessary. The Company will continue to monitor the impact of COVID-19 on the Company as well as the financial markets in evaluating the necessity of interim testing during 2021. The following table provides information on the significant components of goodwill and other acquired intangible assets at June 30, 2021 and December 31, 2020. June 30, 2021 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (2,481) $ 1,473 3.8 Total other intangible assets $ 3,954 $ — $ (2,481) $ 1,473 December 31, 2020 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (2,235) $ 1,719 4.7 Total other intangible assets $ 3,954 $ — $ (2,235) $ 1,719 The aggregate amortization expense was $246 thousand for the six months ended June 30, 2021 and $282 thousand for the six months ended June 30, 2020. At June 30, 2021, estimated future remaining amortization for amortizing intangibles within the years ending December 31, is as follows: (Dollars in thousands) Amortization 2021 $ 216 2022 389 2023 317 2024 246 2025 174 2026 102 Thereafter 29 Total amortizing intangible assets $ 1,473 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets [Abstract] | |
Other Assets | Note 7 – Other Assets The Company had the following other assets at June 30, 2021 and December 31, 2020. June 30, December 31, (Dollars in thousands) 2021 2020 Accrued interest receivable $ 5,387 $ 6,616 Deferred income taxes 5,367 4,442 Prepaid expenses 1,535 1,472 Cash surrender value on life insurance 41,672 31,018 Income taxes receivable — 156 Other assets 4,233 3,075 Total $ 58,194 $ 46,779 The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of June 30, 2021 and December 31, 2020. June 30, December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for credit losses $ 4,040 $ 3,721 Write-downs of other real estate owned 12 12 Nonaccrual loan interest 297 367 Other 2,650 2,152 Total deferred tax assets 6,999 6,252 Less valuation allowance (271) (169) Deferred tax assets, net of valuation allowance 6,728 6,083 Deferred tax liabilities: Depreciation 166 177 Acquisition accounting adjustments 683 580 Deferred capital gain on branch sale 184 187 Unrealized gains on available-for-sale securities 220 567 Other 108 130 Total deferred tax liabilities 1,361 1,641 Net deferred tax assets $ 5,367 $ 4,442 |
Subordinated Debt
Subordinated Debt | 6 Months Ended |
Jun. 30, 2021 | |
Subordinated Debt [Abstract] | |
Subordinated Debt | Note 8 - Subordinated Debt On August 25, 2020, the Company entered into Subordinated Note Purchase Agreements with certain Purchasers pursuant to which the Company issued and sold $25.0 million in aggregate principal amount with an initial interest rate of 5.375% Fixed-to-Floating Rate Subordinated Notes due September 1, 2030. The Company has and continues to use the net proceeds of this offering for general corporate purposes, organic growth and to support the Bank’s regulatory capital ratios. The Notes were structured to qualify as Tier 2 capital for regulatory capital purposes and bear an initial interest rate of 5.375% until September 1, 2025, with interest during this period payable semi-annually in arrears. From and including September 1, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to three-month SOFR, plus 526.5 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company at its option, in whole or in part, on or after September 1, 2025. Initial debt issuance costs were $611 thousand. The debt balance of $24.5 million is presented net of unamortized issuance costs of $510 thousand at June 30, 2021. |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities [Abstract] | |
Other Liabilities | Note 9 – Other Liabilities The Company had the following other liabilities at June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Accrued interest payable $ 557 $ 647 Deferred compensation liability 3,669 2,905 Income taxes payable 1,007 — Other liabilities 2,609 3,686 Total $ 7,842 $ 7,238 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 10 - Stock-Based Compensation At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one The following tables provide information on stock-based compensation expense for the three and six months ended June 30, 2021 and 2020. For Three Months Ended For Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Stock-based compensation expense $ 99 $ 62 $ 196 $ 123 Excess tax benefits related to stock-based compensation 2 7 3 14 June 30, (Dollars in thousands) 2021 2020 Unrecognized stock-based compensation expense $ 230 $ 198 Weighted average period unrecognized expense is expected to be recognized 0.6 years 0.7 years The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the six months ended June 30, 2021. Six Months Ended June 30, 2021 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period 24,505 $ 13.78 Granted 24,583 13.34 Vested (16,999) 13.93 Forfeited — — Nonvested at end of period 32,089 $ 13.29 The fair value of restricted stock awards that vested during the first six months of 2021 and 2020 was $236 thousand and $254 thousand, respectively. The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the six months ended June 30, 2021. Six Months Ended June 30, 2021 Weighted Average Number of Grant Date Shares Exercise Price Outstanding at beginning of period 2,709 $ 6.64 Granted — — Exercised — — Expired/Cancelled — — Outstanding at end of period 2,709 $ 6.64 Exercisable at end of period 2,709 $ 6.64 There were no stock options granted during the three and six months ended June 30, 2021 and June 30, 2020. At the end of the second quarter of 2021, the aggregate intrinsic value of the options outstanding under the 2016 Equity Plan was $27 thousand based on the $16.75 market value per share of the Company’s common stock at June 30, 2021. Similarly, the aggregate intrinsic value of the options exercisable was $27 thousand at June 30, 2021. At June 30, 2021, the weighted average remaining contract life of options outstanding and exercisable was 9 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 11 – Accumulated Other Comprehensive Income The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2021 and 2020. Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2020 $ 1,529 $ — $ 1,529 Other comprehensive loss (923) — (923) Balance, June 30, 2021 $ 606 $ — $ 606 Balance, December 31, 2019 $ 218 $ (11) $ 207 Other comprehensive income 2,047 9 2,056 Reclassification of (gain) recognized (259) — (259) Balances, June 30, 2020 $ 2,006 $ (2) $ 2,004 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 12 – Fair Value Measurements Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, loans held for sale and other real estate owned (foreclosed assets). These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under fair value accounting guidance, assets and liabilities are grouped at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine their fair values. These hierarchy levels are: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Below is a discussion on the Company’s assets measured at fair value on a recurring basis. Investment Securities Available for Sale Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2. Equity Securities Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via on-line resources. Although these securities have readily available fair market values, the Company determined that they should be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market. The tables below present the recorded amount of assets measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020. No assets were transferred from one hierarchy level to another during the first six months of 2021 or 2020. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2021 Securities available for sale: U.S. Government agencies $ 17,987 $ — $ 17,987 $ — Mortgage-backed 95,970 — 95,970 — 113,957 — 113,957 — Equity 1,384 — 1,384 — Total $ 115,341 $ — $ 115,341 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020 Securities available for sale: U.S. Government agencies $ 23,537 $ — $ 23,537 $ — Mortgage-backed 116,031 — 116,031 — 139,568 — 139,568 — Equity 1,395 — 1,395 — Total $ 140,963 $ — $ 140,963 $ — Below is a discussion on the Company’s assets measured at fair value on a nonrecurring basis. Impaired Loans Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement when due. Loan impairment is measured using the present value of expected cash flows, the loan’s observable market price or the fair value of the collateral (less selling costs) if the loans are collateral dependent and these are considered Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable, discounted on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and the client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the factors identified above. Valuation techniques are consistent with those techniques applied in prior periods. Other Real Estate Owned (Foreclosed Assets) Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets establishing a new cost basis. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods. The following tables set forth the Company’s financial and nonfinancial assets subject to fair value adjustments (impairment) on a nonrecurring basis at June 30, 2021 and December 31, 2020, that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (3) June 30, 2021 Nonrecurring measurements: Impaired loans $ 617 Appraisal of collateral (1) Liquidation expense (2) 10% (10%) Impaired loans $ 413 Discounted cash flow analysis (1) Discount rate 4% - 7.25% (6%) Other real estate owned $ 203 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 19% (1%) Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (3) December 31, 2020 Nonrecurring measurements: Impaired loans $ 610 Appraisal of collateral (1) Liquidation expense (2) 10% (10%) Impaired loans $ 1,110 Discounted cash flow analysis (1) Discount rate 6% - 7.25% (6%) (1) (2) (3) The carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value on the Company’s Consolidated Balance Sheets are presented in the following table. Fair values for June 30, 2021 and December 31, 2020 were estimated using an exit price notion. June 30, 2021 December 31, 2020 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 237,188 $ 237,188 $ 186,917 $ 186,917 Level 2 inputs Investment securities held to maturity $ 198,884 $ 197,991 $ 65,706 $ 65,828 Restricted securities 3,189 3,189 3,626 3,626 Cash surrender value on life insurance 41,672 41,672 31,018 31,018 Level 3 inputs Loans, net $ 1,457,341 $ 1,458,057 $ 1,440,368 $ 1,436,292 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 538,009 $ 538,009 $ 509,091 $ 509,091 Checking plus interest 443,919 443,919 446,243 446,243 Money market 406,009 406,009 292,974 292,974 Savings 215,063 215,063 177,524 177,524 Club 1,138 1,138 392 392 Certificates of deposit, $100,000 or more 134,670 136,059 129,623 131,271 Other time 141,774 142,534 144,858 146,137 Securities sold under retail repurchase agreement 2,907 2,907 1,050 1,050 Subordinated debt 24,490 26,871 24,429 25,745 |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 13 – Financial Instruments with Off-Balance Sheet Risk In the normal course of business, to meet the financial needs of its customers, the Bank is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The following table provides information on commitments outstanding at June 30, 2021 and December 31, 2020. (Dollars in thousands) June 30, 2021 December 31, 2020 Commitments to extend credit $ 291,141 $ 248,607 Letters of credit 7,386 7,944 Total $ 298,527 $ 256,551 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 14 – Revenue Recognition Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Trust and Investment Fee Income Trust and investment fee income are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Other Noninterest Income Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that rentals and renewals of safe deposit boxes will be recognized on a monthly basis consistent with the duration of the performance obligation. The following presents noninterest income from continuing operations, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2021 and 2020. For Three Months Ended For Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 683 $ 544 $ 1,357 $ 1,410 Trust and investment fee income 475 363 882 738 Interchange income 1,036 708 1,906 1,361 Other noninterest income 456 407 760 686 Noninterest Income (in-scope of Topic 606) 2,650 2,022 4,905 4,195 Noninterest Income (out-of-scope of Topic 606) 253 747 555 926 Total Noninterest Income $ 2,903 $ 2,769 $ 5,460 $ 5,121 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2021, and December 31, 2020, the Company did not have any significant contract balances. |
Proposed Merger
Proposed Merger | 6 Months Ended |
Jun. 30, 2021 | |
Proposed Merger [Abstract] | |
Proposed Merger | Note 15 – Proposed Merger On March 3, 2021, the Company and Severn Bancorp, Inc. (“Severn”) entered into a definitive agreement for the Company to acquire the Maryland-based Severn. This transaction will create the third largest community bank headquartered in Maryland. One of the primary reasons for the proposed acquisition of Severn was the ability to access and deploy excess capital and deposits into a high growth market, while also enhancing scale to drive efficiency and profitability. Additionally, this transaction will create a competitive position in the Columbia/Baltimore/Towson MSA, while filling in our current market footprint. Under the terms of the agreement, Severn shareholders will receive 0.6207 shares of Shore common stock and $1.59 in cash for each share of Severn common stock. Upon closing, Shore shareholders will own approximately 59.6% of the combined Company and Severn shareholders will own approximately 40.4% of the combined Company. The transaction is still subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approval from Shore and Severn shareholders. The transaction is expected to close in the fourth quarter of 2021. As of June 30, 2021, Severn had more than $1.1 billion in assets and operated 7 full-service community banking offices throughout Anne Arundel County, Maryland. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiary with all significant intercompany transactions eliminated. The consolidated financial statements conform to accounting principles generally accepted in the United States of America (“GAAP”) and to prevailing practices within the banking industry. The accompanying interim financial statements are unaudited; however, in the opinion of management all adjustments necessary to present fairly the consolidated financial position at June 30, 2021, the consolidated results of income and comprehensive income for the three and six months ended June 30, 2021 and 2020, changes in stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and cash flows for the six months ended June 30, 2021 and 2020, have been included. All such adjustments are of a normal recurring nature. The amounts as of December 31, 2020 were derived from the 2020 audited financial statements. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for any other interim period or for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Annual Report of Shore Bancshares, Inc. on Form 10-K for the year ended December 31, 2020. For purposes of comparability, certain immaterial reclassifications have been made to amounts previously reported to conform with the current period presentation. When used in these notes, the term “the Company” refers to Shore Bancshares, Inc. and, unless the context requires otherwise, its consolidated subsidiary, Shore United Bank (the “Bank”). |
Risks and Uncertainties | Risks and Uncertainties Since the novel coronavirus ("COVID-19") was declared a pandemic in March 2020, COVID-19 has significantly affected our communities, customers, and operations. COVID-19 continues to have a significant impact in 2021, however, the extent of its effects are dependent upon multiple factors, such as the extent of distribution and efficacy of vaccines, COVID-19 variants, pandemic-related restrictions, and government response, among others. As a result, the ultimate effects of COVID-19 over the longer term cannot be reasonably estimated at this time. Risks and uncertainties arising from the pandemic remain, primarily concerning the ability of customers to fulfill their financial obligations to the Company as well as potential operational disruptions and the ability of the Company to generate demand for its products and services. Accordingly, estimates used in the preparation of our financial statements may be subject to significant adjustments in future periods. |
Recent Accounting Standards and Other Authoritative Guidance | Recent Accounting Standards and Other Authoritative Guidance ASU No. 2016-13 – In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, retained the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. ASU No. 2020-04 – In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. At present, the Bank has limited exposure to LIBOR based pricing. LIBOR based loans only comprise 26 loans or 7.6% of the loan portfolio. The Bank is confident it can successfully negotiate a migration to the Secured Overnight Financing Rate (“SOFR”) between now and the implementation date. The Bank will notify customers within 120 days prior to migration to SOFR. The Bank acknowledges the replacement rate will be more volatile based on different countries migrating to different indexes and limited liquidity to support the rate. The Bank further acknowledges the volatility will be greatly influenced by the support provided by the Federal Reserve. ASU No. 2021-04 - In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity – Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” The ASU addresses how an issuer should account for modifications or an exchange of freestanding written call options classified as equity that is not within the scope of another Topic. For both public and private companies, the ASU is effective for fiscal years beginning after December 15, 2021. Transition is prospective. Early adoption is permitted. The Company does not expect the adoption of ASU 2021-04 to have a material impact on its consolidated financial statements. Recent Accounting Developments In December 2020, the Consolidated Appropriations Act of 2021 (“CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. The Bank participated in the second round of PPP lending under the CAA, which resulted in 959 PPP loans for approximately $67.3 million. In addition, two hospitality loans remained in the COVID-19 relief program under the CARES Act. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | For the Three Months Ended For the Six Months Ended June 30, June 30, (In thousands, except per share data) 2021 2020 2021 2020 Net Income $ 4,031 $ 5,335 $ 8,029 $ 8,453 Weighted average shares outstanding - Basic 11,752 12,524 11,749 12,519 Dilutive effect of common stock equivalents-options 2 1 1 2 Weighted average shares outstanding - Diluted 11,754 12,525 11,750 12,521 Earnings per common share - Basic and Diluted $ 0.34 $ 0.43 $ 0.68 $ 0.68 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities [Abstract] | |
Schedule of Available-for-Sale Securities Reconciliation | Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: June 30, 2021 U.S. Government agencies $ 18,574 $ 5 $ 592 $ 17,987 Mortgage-backed 94,549 1,908 487 95,970 Total $ 113,123 $ 1,913 $ 1,079 $ 113,957 December 31, 2020 U.S. Government agencies $ 23,600 $ 20 $ 83 $ 23,537 Mortgage-backed 113,865 2,234 68 116,031 Total $ 137,465 $ 2,254 $ 151 $ 139,568 |
Schedule of Held-to-Maturity | Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Held-to-maturity securities: June 30, 2021 U.S. Government agencies $ 63,139 $ 41 $ 430 $ 62,750 Mortgage-backed 116,305 157 869 115,593 States and political subdivisions 400 1 — 401 Other debt securities 19,040 222 15 19,247 Total $ 198,884 $ 421 $ 1,314 $ 197,991 December 31, 2020 U.S. Government agencies $ 18,893 $ 38 $ 43 $ 18,888 Mortgage-backed 27,347 7 18 27,336 States and political subdivisions 400 1 — 401 Other debt securities 19,066 139 2 19,203 Total $ 65,706 $ 185 $ 63 $ 65,828 |
Available-For-Sale Securities and Held-to-Maturity, Continuous Unrealized Loss Position, Fair Value | Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses June 30, 2021 Available-for-sale securities: U.S. Government agencies $ 17,409 $ 591 $ 221 $ 1 $ 17,630 $ 592 Mortgage-backed 45,318 487 — — 45,318 487 Total $ 62,727 $ 1,078 $ 221 $ 1 $ 62,948 $ 1,079 Held-to-maturity securities: U.S. Government agencies $ 36,696 $ 430 $ — $ — $ 36,696 $ 430 Mortgage-backed 65,359 869 — — 65,359 869 Other debt securities 3,985 15 — — 3,985 15 Total $ 106,040 $ 1,314 $ — $ — $ 106,040 $ 1,314 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2020 Available-for-sale securities: U.S. Government agencies $ 14,919 $ 82 $ 236 $ 1 $ 15,155 $ 83 Mortgage-backed 11,869 68 — — 11,869 68 Total $ 26,788 $ 150 $ 236 $ 1 $ 27,024 $ 151 Held-to-maturity securities: U.S. Government agencies $ 6,646 $ 43 $ — $ — $ 6,646 $ 43 Mortgage-backed 5,093 18 — — 5,093 18 Other debt securities 498 2 — — 498 2 Total $ 12,237 $ 63 $ — $ — $ 12,237 $ 63 |
Schedule of Securities Debt Maturities | Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ — $ — $ 2,529 $ 2,574 Due after one year through five years 975 1,009 10,381 10,392 Due after five years through ten years 54,955 55,891 57,481 57,456 Due after ten years 57,193 57,057 128,493 127,569 Total $ 113,123 $ 113,957 $ 198,884 $ 197,991 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Financing Receivables | (Dollars in thousands) June 30, 2021 December 31, 2020 Construction $ 116,760 $ 106,760 Residential real estate 449,867 443,542 Commercial real estate 655,252 661,232 Commercial 186,162 211,256 Consumer 64,388 31,466 Total loans 1,472,429 1,454,256 Allowance for credit losses (15,088) (13,888) Total loans, net $ 1,457,341 $ 1,440,368 |
Allowance for Credit Losses on Financing Receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total June 30, 2021 Loans individually evaluated for impairment $ 327 $ 4,898 $ 5,575 $ 237 $ — $ 11,037 Loans collectively evaluated for impairment 116,433 444,969 649,677 185,925 64,388 1,461,392 Total loans $ 116,760 $ 449,867 $ 655,252 $ 186,162 $ 64,388 $ 1,472,429 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 90 $ — $ — $ — $ 90 Loans collectively evaluated for impairment 2,574 3,722 5,600 1,879 1,223 14,998 Total allowance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2020 Loans individually evaluated for impairment $ 331 $ 5,722 $ 6,917 $ 258 $ 28 $ 13,256 Loans collectively evaluated for impairment 106,429 437,820 654,315 210,998 31,438 1,441,000 Total loans $ 106,760 $ 443,542 $ 661,232 $ 211,256 $ 31,466 $ 1,454,256 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 135 $ 78 $ — $ — $ 213 Loans collectively evaluated for impairment 2,022 3,564 5,348 2,089 652 13,675 Total allowance $ 2,022 $ 3,699 $ 5,426 $ 2,089 $ 652 $ 13,888 |
Impaired Financing Receivables | Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment June 30, 2021 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 297 $ 297 $ — Residential real estate 1,318 1,239 — — 1,204 1,307 — Commercial real estate 2,562 2,174 — — 2,214 2,613 — Commercial 391 237 — — 241 246 — Consumer — — — — 9 19 — Total $ 4,568 $ 3,947 $ — $ — $ 3,965 $ 4,482 $ — Impaired accruing TDRs: Construction $ 30 $ 30 $ — $ — $ 31 $ 32 $ 1 Residential real estate 3,329 2,209 1,120 90 3,354 3,442 89 Commercial real estate 2,979 2,979 — — 3,005 3,035 46 Commercial — — — — — — — Consumer — — — — — — — Total $ 6,338 $ 5,218 $ 1,120 $ 90 $ 6,390 $ 6,509 $ 136 Other impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 330 330 — — 359 606 7 Commercial real estate 422 422 — — 479 495 2 Commercial — — — — — 25 — Consumer — — — — — — — Total $ 752 $ 752 $ — $ — $ 838 $ 1,126 $ 9 Total impaired loans: Construction $ 327 $ 327 $ — $ — $ 328 $ 329 $ 1 Residential real estate 4,977 3,778 1,120 90 4,917 5,355 96 Commercial real estate 5,963 5,575 — — 5,698 6,143 48 Commercial 391 237 — — 241 271 — Consumer — — — — 9 19 — Total $ 11,658 $ 9,917 $ 1,120 $ 90 $ 11,193 $ 12,117 $ 145 Recorded Recorded June 30, 2020 Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2020 Impaired nonaccrual loans: Construction $ 297 $ 297 $ — $ — $ 297 $ 198 $ — Residential real estate 1,665 1,585 — — 3,555 3,213 — Commercial real estate 4,288 3,220 67 67 6,853 7,103 — Commercial 401 258 — — 551 466 — Consumer 28 28 — — — — — Total $ 6,679 $ 5,388 $ 67 $ 67 $ 11,256 $ 10,980 $ — Impaired accruing TDRs: Construction $ 34 $ 34 $ — $ — $ 38 $ 38 $ 1 Residential real estate 3,845 2,617 1,228 135 3,912 3,967 79 Commercial real estate 3,118 2,479 639 11 3,373 3,390 47 Commercial — — — — — — — Consumer — — — — — — — Total $ 6,997 $ 5,130 $ 1,867 $ 146 $ 7,323 $ 7,395 $ 127 Other impaired accruing loans: Construction $ — $ — $ — $ — $ — $ 49 $ — Residential real estate 292 292 — — 179 394 1 Commercial real estate 512 512 — — 1,053 867 3 Commercial — — — — 6 5 — Consumer — — — — 16 9 — Total $ 804 $ 804 $ — $ — $ 1,254 $ 1,324 $ 4 Total impaired loans: Construction $ 331 $ 331 $ — $ — $ 335 $ 285 $ 1 Residential real estate 5,802 4,494 1,228 135 7,646 7,574 80 Commercial real estate 7,918 6,211 706 78 11,279 11,360 50 Commercial 401 258 — — 557 471 — Consumer 28 28 — — 16 9 — Total $ 14,480 $ 11,322 $ 1,934 $ 213 $ 19,833 $ 19,699 $ 131 |
Troubled Debt Restructurings on Financing Receivables | The following tables provide a roll-forward for TDRs as of June 30, 2021 and June 30, 2020. 1/1/2021 6/30/2021 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For six months ended June 30, 2021 Accruing TDRs Construction $ 34 $ — $ (4) $ — $ — $ — $ 30 $ — Residential real estate 3,845 — (57) — — (459) 3,329 90 Commercial real estate 3,118 — (139) — — — 2,979 — Commercial — — — — — — — — Consumer — — — — — — — — Total $ 6,997 $ — $ (200) $ — $ — $ (459) $ 6,338 $ 90 Nonaccrual TDRs Construction $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate — — — — — — — — Commercial real estate — — — — — — — — Commercial 258 — (21) — — — 237 — Consumer — — — — — — — — Total $ 258 $ — $ (21) $ — $ — $ — $ 237 $ — Total $ 7,255 $ — $ (221) $ — $ — $ (459) $ 6,575 $ 90 1/1/2020 6/30/2020 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For six months ended June 30, 2020 Accruing TDRs Construction $ 41 $ — $ (3) $ — $ — $ — $ 38 $ — Residential real estate 4,041 — (53) — — (83) 3,905 190 Commercial real estate 3,419 — (50) — — — 3,369 14 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 7,501 $ — $ (106) $ — $ — $ (83) $ 7,312 $ 204 Nonaccrual TDRs Construction $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate 1,393 — (51) — — — 1,342 75 Commercial real estate — 1,506 (373) — — — 1,133 — Commercial 299 — (19) — — — 280 — Consumer — — — — — — — — Total $ 1,692 $ 1,506 $ (443) $ — $ — $ — $ 2,755 $ 75 Total $ 9,193 $ 1,506 $ (549) $ — $ — $ (83) $ 10,067 $ 279 There were no loans modified and considered to be TDRs during the three months ended June 30, 2021 and June 30, 2020. The following tables provide information on loans that were modified and considered to be TDRs during the six months ended June 30, 2021 and June 30, 2020. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For six months ended June 30, 2021 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ — For six months ended June 30, 2020 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate 1 1,535 1,506 — Commercial — — — — Consumer — — — — Total 1 $ 1,535 $ 1,506 $ — |
Financing Receivable Credit Quality Indicators | Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total June 30, 2021 Construction $ 87,587 $ 26,923 $ 1,953 $ 297 $ — $ 116,760 Residential real estate 411,746 34,370 2,221 1,530 — 449,867 Commercial real estate 495,840 149,825 2,925 6,662 — 655,252 Commercial 167,089 18,133 689 251 — 186,162 Consumer 64,220 166 — 2 — 64,388 Total $ 1,226,482 $ 229,417 $ 7,788 $ 8,742 $ — $ 1,472,429 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2020 Construction $ 81,926 $ 22,547 $ 1,990 $ 297 $ — $ 106,760 Residential real estate 401,494 36,759 2,946 2,343 — 443,542 Commercial real estate 514,524 133,892 3,504 9,312 — 661,232 Commercial 182,166 25,870 2,948 272 — 211,256 Consumer 31,221 215 — 30 — 31,466 Total $ 1,211,331 $ 219,283 $ 11,388 $ 12,254 $ — $ 1,454,256 |
Past Due Financing Receivables | Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total June 30, 2021 Construction $ 116,433 $ — $ 30 $ — $ 30 $ 297 $ 116,760 Residential real estate 447,705 593 — 330 923 1,239 449,867 Commercial real estate 652,484 172 — 422 594 2,174 655,252 Commercial 185,748 36 141 — 177 237 186,162 Consumer 64,262 126 — — 126 — 64,388 Total $ 1,466,632 $ 927 $ 171 $ 752 $ 1,850 $ 3,947 $ 1,472,429 Percent of total loans 99.5 % 0.1 % — % 0.1 % 0.2 % 0.3 % 100.0 % Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2020 Construction $ 106,463 $ — $ — $ — $ — $ 297 $ 106,760 Residential real estate 440,210 517 938 292 1,747 1,585 443,542 Commercial real estate 657,066 367 — 512 879 3,287 661,232 Commercial 210,704 226 68 — 294 258 211,256 Consumer 31,318 119 1 — 120 28 31,466 Total $ 1,445,761 $ 1,229 $ 1,007 $ 804 $ 3,040 $ 5,455 $ 1,454,256 Percent of total loans 99.3 % 0.1 % 0.1 % 0.1 % 0.3 % 0.4 % 100.0 % |
Consolidated Allowance for Credit Losses on Financing Receivables | Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2021 Allowance for credit losses: Beginning Balance $ 2,796 $ 3,699 $ 5,097 $ 2,000 $ 721 $ 14,313 Charge-offs — — — (46) — (46) Recoveries 5 57 64 44 1 171 Net (charge-offs) recoveries 5 57 64 (2) 1 125 Provision (227) 56 439 (119) 501 650 Ending Balance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For three months ended June 30, 2020 Allowance for credit losses: Beginning Balance $ 1,128 $ 2,482 $ 3,965 $ 2,263 $ 540 $ 10,378 Charge-offs — — (331) (37) — (368) Recoveries 5 4 — 61 10 80 Net (charge-offs) recoveries 5 4 (331) 24 10 (288) Provision 364 153 463 68 (48) 1,000 Ending Balance $ 1,497 $ 2,639 $ 4,097 $ 2,355 $ 502 $ 11,090 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For six months ended June 30, 2021 Allowance for credit losses: Beginning Balance $ 2,022 $ 3,699 $ 5,426 $ 2,089 $ 652 $ 13,888 Charge-offs — — — (107) (4) (111) Recoveries 10 63 64 96 3 236 Net (charge-offs) recoveries 10 63 64 (11) (1) 125 Provision 542 50 110 (199) 572 1,075 Ending Balance $ 2,574 $ 3,812 $ 5,600 $ 1,879 $ 1,223 $ 15,088 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total For six months ended June 30, 2020 Allowance for credit losses: Beginning Balance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Charge-offs — (191) (601) (119) (7) (918) Recoveries 8 7 — 124 12 151 Net (charge-offs) recoveries 8 (184) (601) 5 5 (767) Provision (87) 322 666 421 28 1,350 Ending Balance $ 1,497 $ 2,639 $ 4,097 $ 2,355 $ 502 $ 11,090 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Information about leases | (Dollars in thousands) June 30, 2021 December 31, 2020 Lease liabilities $ 5,757 $ 4,874 Right-of-use assets $ 5,616 $ 4,795 Weighted average remaining lease term 10.08 years 10.49 years Weighted average discount rate 2.84 % 2.89 % For the Three Months Ended For the Six Months Ended Lease cost (in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating lease cost $ 208 $ 177 $ 395 $ 358 Short-term lease cost — — — — Total lease cost $ 208 $ 177 $ 395 $ 358 Cash paid for amounts included in the measurement of lease liabilities $ 165 $ 167 $ 331 $ 330 |
Operating lease liabilities | As of Lease payments due (in thousands) June 30, 2021 Six months ending December 31, 2021 $ 366 Twelve months ending December 31, 2022 742 Twelve months ending December 31, 2023 753 Twelve months ending December 31, 2024 707 Twelve months ending December 31, 2025 620 Twelve months ending December 31, 2026 566 Thereafter 3,308 Total undiscounted cash flows $ 7,062 Discount 1,305 Lease liabilities $ 5,757 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of Components of Goodwill and Other Acquired Intangible Assets | June 30, 2021 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (2,481) $ 1,473 3.8 Total other intangible assets $ 3,954 $ — $ (2,481) $ 1,473 December 31, 2020 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (2,235) $ 1,719 4.7 Total other intangible assets $ 3,954 $ — $ (2,235) $ 1,719 |
Future Amortization Expense for Amortizable Other Intangible Assets | (Dollars in thousands) Amortization 2021 $ 216 2022 389 2023 317 2024 246 2025 174 2026 102 Thereafter 29 Total amortizing intangible assets $ 1,473 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets [Abstract] | |
Schedule of Other Assets | June 30, December 31, (Dollars in thousands) 2021 2020 Accrued interest receivable $ 5,387 $ 6,616 Deferred income taxes 5,367 4,442 Prepaid expenses 1,535 1,472 Cash surrender value on life insurance 41,672 31,018 Income taxes receivable — 156 Other assets 4,233 3,075 Total $ 58,194 $ 46,779 |
Schedule of Deferred Tax Assets and Liabilities | June 30, December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for credit losses $ 4,040 $ 3,721 Write-downs of other real estate owned 12 12 Nonaccrual loan interest 297 367 Other 2,650 2,152 Total deferred tax assets 6,999 6,252 Less valuation allowance (271) (169) Deferred tax assets, net of valuation allowance 6,728 6,083 Deferred tax liabilities: Depreciation 166 177 Acquisition accounting adjustments 683 580 Deferred capital gain on branch sale 184 187 Unrealized gains on available-for-sale securities 220 567 Other 108 130 Total deferred tax liabilities 1,361 1,641 Net deferred tax assets $ 5,367 $ 4,442 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | (Dollars in thousands) June 30, 2021 December 31, 2020 Accrued interest payable $ 557 $ 647 Deferred compensation liability 3,669 2,905 Income taxes payable 1,007 — Other liabilities 2,609 3,686 Total $ 7,842 $ 7,238 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Schedule of Stock-Based Compensation | For Three Months Ended For Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Stock-based compensation expense $ 99 $ 62 $ 196 $ 123 Excess tax benefits related to stock-based compensation 2 7 3 14 June 30, (Dollars in thousands) 2021 2020 Unrecognized stock-based compensation expense $ 230 $ 198 Weighted average period unrecognized expense is expected to be recognized 0.6 years 0.7 years |
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity | Six Months Ended June 30, 2021 Weighted Average Number of Grant Date Shares Fair Value Nonvested at beginning of period 24,505 $ 13.78 Granted 24,583 13.34 Vested (16,999) 13.93 Forfeited — — Nonvested at end of period 32,089 $ 13.29 |
Schedule of Share-based Compensation, Stock Options Activity | Six Months Ended June 30, 2021 Weighted Average Number of Grant Date Shares Exercise Price Outstanding at beginning of period 2,709 $ 6.64 Granted — — Exercised — — Expired/Cancelled — — Outstanding at end of period 2,709 $ 6.64 Exercisable at end of period 2,709 $ 6.64 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2020 $ 1,529 $ — $ 1,529 Other comprehensive loss (923) — (923) Balance, June 30, 2021 $ 606 $ — $ 606 Balance, December 31, 2019 $ 218 $ (11) $ 207 Other comprehensive income 2,047 9 2,056 Reclassification of (gain) recognized (259) — (259) Balances, June 30, 2020 $ 2,006 $ (2) $ 2,004 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis | Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2021 Securities available for sale: U.S. Government agencies $ 17,987 $ — $ 17,987 $ — Mortgage-backed 95,970 — 95,970 — 113,957 — 113,957 — Equity 1,384 — 1,384 — Total $ 115,341 $ — $ 115,341 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2020 Securities available for sale: U.S. Government agencies $ 23,537 $ — $ 23,537 $ — Mortgage-backed 116,031 — 116,031 — 139,568 — 139,568 — Equity 1,395 — 1,395 — Total $ 140,963 $ — $ 140,963 $ — |
Fair Value of Assets Measured on Nonrecurring Basis | Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (3) June 30, 2021 Nonrecurring measurements: Impaired loans $ 617 Appraisal of collateral (1) Liquidation expense (2) 10% (10%) Impaired loans $ 413 Discounted cash flow analysis (1) Discount rate 4% - 7.25% (6%) Other real estate owned $ 203 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 19% (1%) Quantitative Information about Level 3 Fair Value Measurements Weighted (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range Average (3) December 31, 2020 Nonrecurring measurements: Impaired loans $ 610 Appraisal of collateral (1) Liquidation expense (2) 10% (10%) Impaired loans $ 1,110 Discounted cash flow analysis (1) Discount rate 6% - 7.25% (6%) (1) (2) (3) |
Schedule of Estimated Fair Values of Financial Assets and Liabilities | June 30, 2021 December 31, 2020 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 237,188 $ 237,188 $ 186,917 $ 186,917 Level 2 inputs Investment securities held to maturity $ 198,884 $ 197,991 $ 65,706 $ 65,828 Restricted securities 3,189 3,189 3,626 3,626 Cash surrender value on life insurance 41,672 41,672 31,018 31,018 Level 3 inputs Loans, net $ 1,457,341 $ 1,458,057 $ 1,440,368 $ 1,436,292 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 538,009 $ 538,009 $ 509,091 $ 509,091 Checking plus interest 443,919 443,919 446,243 446,243 Money market 406,009 406,009 292,974 292,974 Savings 215,063 215,063 177,524 177,524 Club 1,138 1,138 392 392 Certificates of deposit, $100,000 or more 134,670 136,059 129,623 131,271 Other time 141,774 142,534 144,858 146,137 Securities sold under retail repurchase agreement 2,907 2,907 1,050 1,050 Subordinated debt 24,490 26,871 24,429 25,745 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments with Off-Balance Sheet Risk [Abstract] | |
Schedule of Commitments Outstanding | (Dollars in thousands) June 30, 2021 December 31, 2020 Commitments to extend credit $ 291,141 $ 248,607 Letters of credit 7,386 7,944 Total $ 298,527 $ 256,551 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606 | For Three Months Ended For Six Months Ended June 30, June 30, (Dollars in thousands) 2021 2020 2021 2020 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 683 $ 544 $ 1,357 $ 1,410 Trust and investment fee income 475 363 882 738 Interchange income 1,036 708 1,906 1,361 Other noninterest income 456 407 760 686 Noninterest Income (in-scope of Topic 606) 2,650 2,022 4,905 4,195 Noninterest Income (out-of-scope of Topic 606) 253 747 555 926 Total Noninterest Income $ 2,903 $ 2,769 $ 5,460 $ 5,121 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Millions | Jun. 30, 2021loan | Dec. 31, 2020USD ($)loan |
Significant Accounting Policies [Line Items] | ||
Number Of Libor Based Loans | 26 | |
Percentage Of Libor Based Loans | 7.60% | |
Small Business Administration (SBA), CARES Act, Paycheck Protection Program [Member] | ||
Significant Accounting Policies [Line Items] | ||
Number of loans funded | 959 | |
Amount of loans funded | $ | $ 67.3 | |
Number of hospitality loans | 2 |
Earnings Per Share (Calculation
Earnings Per Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net Income | $ 4,031 | $ 3,998 | $ 5,335 | $ 3,118 | $ 8,029 | $ 8,453 |
Weighted average shares outstanding - Basic (in shares) | 11,752 | 12,524 | 11,749 | 12,519 | ||
Dilutive effect of common stock equivalents-options | 2 | 1 | 1 | 2 | ||
Weighted average shares outstanding - Diluted (in shares) | 11,754 | 12,525 | 11,750 | 12,521 | ||
Earnings per common share - Basic and diluted | $ 0.34 | $ 0.43 | $ 0.68 | $ 0.68 | ||
Weighted average common stock excluded from calculation of diluted EPS | 0 | 0 | 0 | 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | |
Proceeds from sale and maturity of marketable securities | $ | $ 0 | $ 13,000 | $ 0 | $ 13,000 |
Gain on sale of investments | $ | $ 347 | $ 347 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 18 | 18 | ||
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 24 | 24 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | $ 113,123 | $ 137,465 | |
Available-for-sale, Pledged available-for-sale securities, Estimated Fair Value | 3,189 | 3,626 | |
Available-for-sale securities, Gross Unrealized Gains | 1,913 | 2,254 | |
Available-for-sale securities, Gross Unrealized Losses | 1,079 | 151 | |
Available-for-sale, at fair value | 113,957 | 139,568 | |
Held-to-maturity Securities, Amortized Cost | 198,884 | 65,706 | |
Held-to-maturity securities, Gross Unrealized Gains | 421 | 185 | |
Held-to-maturity securities, Gross Unrealized Losses | 1,314 | 63 | |
Held-to-maturity securities, Estimated Fair Value | 197,991 | 65,828 | |
Equity securities, at fair value | 1,384 | 1,395 | |
Accounting Standards Update 2016-01 | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Equity securities, at fair value | 1,400 | 1,400 | |
Accounting Standards Update 2016-01 | Revision of Prior Period, Change in Accounting Principle, Adjustment [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value adjustment recorded through earnings | (20) | $ 32 | |
U.S. Government Agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 18,574 | 23,600 | |
Available-for-sale securities, Gross Unrealized Gains | 5 | 20 | |
Available-for-sale securities, Gross Unrealized Losses | 592 | 83 | |
Available-for-sale, at fair value | 17,987 | 23,537 | |
Held-to-maturity Securities, Amortized Cost | 63,139 | 18,893 | |
Held-to-maturity securities, Gross Unrealized Gains | 41 | 38 | |
Held-to-maturity securities, Gross Unrealized Losses | 430 | 43 | |
Held-to-maturity securities, Estimated Fair Value | 62,750 | 18,888 | |
States and Political Subdivisions [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Held-to-maturity Securities, Amortized Cost | 400 | 400 | |
Held-to-maturity securities, Gross Unrealized Gains | 1 | 1 | |
Held-to-maturity securities, Estimated Fair Value | 401 | 401 | |
Mortgage-backed [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, Amortized Cost | 94,549 | 113,865 | |
Available-for-sale securities, Gross Unrealized Gains | 1,908 | 2,234 | |
Available-for-sale securities, Gross Unrealized Losses | 487 | 68 | |
Available-for-sale, at fair value | 95,970 | 116,031 | |
Held-to-maturity Securities, Amortized Cost | 116,305 | 27,347 | |
Held-to-maturity securities, Gross Unrealized Gains | 157 | 7 | |
Held-to-maturity securities, Gross Unrealized Losses | 869 | 18 | |
Held-to-maturity securities, Estimated Fair Value | 115,593 | 27,336 | |
Other debt securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Held-to-maturity Securities, Amortized Cost | 19,040 | 19,066 | |
Held-to-maturity securities, Gross Unrealized Gains | 222 | 139 | |
Held-to-maturity securities, Gross Unrealized Losses | 15 | 2 | |
Held-to-maturity securities, Estimated Fair Value | $ 19,247 | $ 19,203 |
Investment Securities (Gross Un
Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 62,727 | $ 26,788 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 1,078 | 150 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 221 | 236 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 1 | 1 |
Available-for-sale securities, continuous unrealized loss position, fair value | 62,948 | 27,024 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 1,079 | 151 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 106,040 | 12,237 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 1,314 | 63 |
Held-to-maturity securities, continuous unrealized loss position, fair value | 106,040 | 12,237 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 1,314 | 63 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 45,318 | 11,869 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 487 | 68 |
Available-for-sale securities, continuous unrealized loss position, fair value | 45,318 | 11,869 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 487 | 68 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 65,359 | 5,093 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 869 | 18 |
Held-to-maturity securities, continuous unrealized loss position, fair value | 65,359 | 5,093 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 869 | 18 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 17,409 | 14,919 |
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 591 | 82 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value | 221 | 236 |
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses | 1 | 1 |
Available-for-sale securities, continuous unrealized loss position, fair value | 17,630 | 15,155 |
Available-for-sale securities, continuous unrealized loss position, unrealized losses | 592 | 83 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 36,696 | 6,646 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 430 | 43 |
Held-to-maturity securities, continuous unrealized loss position, fair value | 36,696 | 6,646 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | 430 | 43 |
Other debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value | 3,985 | 498 |
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses | 15 | 2 |
Held-to-maturity securities, continuous unrealized loss position, fair value | 3,985 | 498 |
Held-to-maturity securities, continuous unrealized loss position, unrealized losses | $ 15 | $ 2 |
Investment Securities (Amorti_2
Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investment Securities [Abstract] | ||
Available for sale, Amortized Cost, Due after one year through five years | $ 975 | |
Available for sale, Amortized Cost, Due after five years through ten years | 54,955 | |
Available for sale, Amortized Cost, Due after ten years | 57,193 | |
Available-for-sale securities, Amortized Cost | 113,123 | $ 137,465 |
Available for sale, Estimated Fair Value, Due after one year through five years | 1,009 | |
Available for sale, Estimated Fair Value, Due after five years through ten years | 55,891 | |
Available for sale, Estimated Fair Value, Due after ten years | 57,057 | |
Available-for-sale Securities, Debt Securities, Total | 113,957 | 139,568 |
Held to maturity securities, Amortized Cost, Due in one year or less | 2,529 | |
Held to maturity securities, Amortized Cost, Due after one year through five years | 10,381 | |
Held to maturity securities, Amortized Cost, Due after five years through ten years | 57,481 | |
Held to maturity securities, Amortized Cost, Due after ten years | 128,493 | |
Held-to-maturity Securities, Amortized Cost | 198,884 | 65,706 |
Held to maturity securities, Estimated Fair Value, Due in one year or less | 2,574 | |
Held to maturity securities, Estimated Fair Value, Due after one year through five years | 10,392 | |
Held to maturity securities, Estimated Fair Value, Due after five years through ten years | 57,456 | |
Held to maturity securities, Estimated Fair Value, Due after ten years | 127,569 | |
Held-to-maturity Securities, Fair Value, Total | $ 197,991 | $ 65,828 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)contract | Jun. 30, 2020contract | Jun. 30, 2021USD ($)itemcontract | Jun. 30, 2020USD ($)contract | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Deferred fees | $ 549 | $ 549 | $ 622 | ||
Discounts On Acquired Loans | $ 625 | $ 625 | 754 | ||
Financing receivable, modifications, post-modification recorded investment | $ 1,506 | ||||
Financing receivable, modifications, number of contracts | contract | 0 | 0 | 1 | ||
Financing receivable, modifications. subsequently defaulted within 12 months | contract | 0 | 0 | 0 | 0 | |
Financing receivable, recorded investment, doubtful | $ 0 | $ 0 | 0 | ||
Financing receivable, recorded investment, nonaccrual status | 3,947 | 3,947 | 5,455 | ||
Mortgage loans in process of foreclosure, amount | 203 | 203 | 0 | ||
Loans and leases receivable, net amount, total | 1,457,341 | 1,457,341 | 1,440,368 | ||
Loans | 1,472,429 | 1,472,429 | $ 1,454,256 | ||
Deferrals Of Principal And Or Interest On Outstanding Loan Balances | 221,100 | 221,100 | |||
Deferred Loan Balances | 9,500 | 9,500 | |||
Other real estate owned, net | $ 203 | $ 203 | |||
Allowance from loan losses, as a percentage of total loans | 0.65% | 0.65% | |||
Cares Act And Consolidated Appropriates Act Paycheck Protection Program [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Number of loans funded | loan | 2,454 | ||||
Amount of loans funded | $ 196,000 | ||||
Small Business Administration (SBA), CARES Act, Paycheck Protection Program [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Number of loans funded | loan | 959 | ||||
Amount of loans funded | $ 67,300 | ||||
Financing Receivable, Amount of Loans Authorized | $ 86,800 | $ 86,800 | |||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing receivable, recorded investment, nonaccrual status | 1,239 | 1,239 | 1,585 | ||
Mortgage loans in process of foreclosure, amount | 0 | $ 0 | 0 | ||
Number of residential real estate property | item | 1 | ||||
Loans | 449,867 | $ 449,867 | 443,542 | ||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing receivable, recorded investment, nonaccrual status | 28 | ||||
Loans | 64,388 | 64,388 | 31,466 | ||
Northwest Bank Branches [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable Net of Allowance | 42,500 | 42,500 | 52,300 | ||
Pass Performing [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 1,226,482 | 1,226,482 | 1,211,331 | ||
Pass Performing [Member] | Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 411,746 | 411,746 | 401,494 | ||
Pass Performing [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 64,220 | 64,220 | 31,221 | ||
Pass Watch [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 229,417 | 229,417 | 219,283 | ||
Pass Watch [Member] | Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 34,370 | 34,370 | 36,759 | ||
Pass Watch [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 166 | 166 | 215 | ||
Special Mention [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 7,788 | 7,788 | 11,388 | ||
Special Mention [Member] | Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 2,221 | 2,221 | 2,946 | ||
Substandard [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing receivable, recorded investment, nonaccrual status | 5,500 | ||||
Loans | 8,742 | 8,742 | 12,254 | ||
Substandard [Member] | Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 1,530 | 1,530 | 2,343 | ||
Substandard [Member] | Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans | 2 | 2 | $ 30 | ||
Doubtful [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing receivable, recorded investment, nonaccrual status | $ 3,900 | $ 3,900 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | $ 1,472,429 | $ 1,454,256 |
Allowance for credit losses | (15,088) | (13,888) |
Loans, net | 1,457,341 | 1,440,368 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 116,760 | 106,760 |
Allowance for credit losses | (2,574) | (2,022) |
Residential Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 449,867 | 443,542 |
Allowance for credit losses | (3,812) | (3,699) |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 655,252 | 661,232 |
Allowance for credit losses | (5,600) | (5,426) |
Commercial Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 186,162 | 211,256 |
Allowance for credit losses | (1,879) | (2,089) |
Consumer Portfolio Segment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans | 64,388 | 31,466 |
Allowance for credit losses | $ (1,223) | $ (652) |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 11,037 | $ 13,256 |
Loans collectively evaluated for impairment | 1,461,392 | 1,441,000 |
Total loans | 1,472,429 | 1,454,256 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 90 | 213 |
Loans collectively evaluated for impairment | 14,998 | 13,675 |
Loans and Leases Receivable, Allowance, Total | 15,088 | 13,888 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 327 | 331 |
Loans collectively evaluated for impairment | 116,433 | 106,429 |
Total loans | 116,760 | 106,760 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 2,574 | 2,022 |
Loans and Leases Receivable, Allowance, Total | 2,574 | 2,022 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 4,898 | 5,722 |
Loans collectively evaluated for impairment | 444,969 | 437,820 |
Total loans | 449,867 | 443,542 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 90 | 135 |
Loans collectively evaluated for impairment | 3,722 | 3,564 |
Loans and Leases Receivable, Allowance, Total | 3,812 | 3,699 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 5,575 | 6,917 |
Loans collectively evaluated for impairment | 649,677 | 654,315 |
Total loans | 655,252 | 661,232 |
Allowance for credit losses allocated to: | ||
Loans individually evaluated for impairment | 78 | |
Loans collectively evaluated for impairment | 5,600 | 5,348 |
Loans and Leases Receivable, Allowance, Total | 5,600 | 5,426 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 237 | 258 |
Loans collectively evaluated for impairment | 185,925 | 210,998 |
Total loans | 186,162 | 211,256 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 1,879 | 2,089 |
Loans and Leases Receivable, Allowance, Total | 1,879 | 2,089 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 28 | |
Loans collectively evaluated for impairment | 64,388 | 31,438 |
Total loans | 64,388 | 31,466 |
Allowance for credit losses allocated to: | ||
Loans collectively evaluated for impairment | 1,223 | 652 |
Loans and Leases Receivable, Allowance, Total | $ 1,223 | $ 652 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses (Effect on Loan Loss Provision as a Result of Changes in Methodology) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ 650 | $ 1,000 | $ 1,075 | $ 1,350 |
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 56 | 153 | 50 | 322 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 439 | 463 | 110 | 666 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | (119) | 68 | (199) | 421 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 501 | (48) | 572 | 28 |
Construction Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ 542 | $ (87) | ||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ (227) | $ 364 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | $ 11,658 | $ 11,658 | $ 14,480 | ||
Recorded investment with no allowance | 9,917 | 9,917 | 11,322 | ||
Recorded investment with an allowance | 1,120 | 1,120 | 1,934 | ||
Related allowance | 90 | 90 | 213 | ||
Quarter-to-date average recorded investment | 11,193 | $ 19,833 | |||
Year-to-date average recorded investment | 12,117 | $ 19,699 | |||
Interest income recognized | 145 | 131 | |||
Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,568 | 4,568 | 6,679 | ||
Recorded investment with no allowance | 3,947 | 3,947 | 5,388 | ||
Recorded investment with an allowance | 67 | ||||
Related allowance | 67 | ||||
Quarter-to-date average recorded investment | 3,965 | 11,256 | |||
Year-to-date average recorded investment | 4,482 | 10,980 | |||
Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 6,338 | 6,338 | 6,997 | ||
Recorded investment with no allowance | 5,218 | 5,218 | 5,130 | ||
Recorded investment with an allowance | 1,120 | 1,120 | 1,867 | ||
Related allowance | 90 | 90 | 146 | ||
Quarter-to-date average recorded investment | 6,390 | 7,323 | |||
Year-to-date average recorded investment | 6,509 | 7,395 | |||
Interest income recognized | 136 | 127 | |||
Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 752 | 752 | 804 | ||
Recorded investment with no allowance | 752 | 752 | 804 | ||
Quarter-to-date average recorded investment | 838 | 1,254 | |||
Year-to-date average recorded investment | 1,126 | 1,324 | |||
Interest income recognized | 9 | 4 | |||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 4,977 | 4,977 | 5,802 | ||
Recorded investment with no allowance | 3,778 | 3,778 | 4,494 | ||
Recorded investment with an allowance | 1,120 | 1,120 | 1,228 | ||
Related allowance | 90 | 90 | 135 | ||
Quarter-to-date average recorded investment | 4,917 | 7,646 | |||
Year-to-date average recorded investment | 5,355 | 7,574 | |||
Interest income recognized | 96 | 80 | |||
Residential Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 1,318 | 1,318 | 1,665 | ||
Recorded investment with no allowance | 1,239 | 1,239 | 1,585 | ||
Quarter-to-date average recorded investment | 1,204 | 3,555 | |||
Year-to-date average recorded investment | 1,307 | 3,213 | |||
Residential Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 3,329 | 3,329 | 3,845 | ||
Recorded investment with no allowance | 2,209 | 2,209 | 2,617 | ||
Recorded investment with an allowance | 1,120 | 1,120 | 1,228 | ||
Related allowance | 90 | 90 | 135 | ||
Quarter-to-date average recorded investment | 3,354 | 3,912 | |||
Year-to-date average recorded investment | 3,442 | 3,967 | |||
Interest income recognized | 89 | 79 | |||
Residential Portfolio Segment [Member] | Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 330 | 330 | 292 | ||
Recorded investment with no allowance | 330 | 330 | 292 | ||
Quarter-to-date average recorded investment | 359 | 179 | |||
Year-to-date average recorded investment | 606 | 394 | |||
Interest income recognized | 7 | 1 | |||
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 5,963 | 5,963 | 7,918 | ||
Recorded investment with no allowance | 5,575 | 5,575 | 6,211 | ||
Recorded investment with an allowance | 706 | ||||
Related allowance | 78 | ||||
Quarter-to-date average recorded investment | 5,698 | 11,279 | |||
Year-to-date average recorded investment | 6,143 | 11,360 | |||
Interest income recognized | 48 | 50 | |||
Commercial Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 2,562 | 2,562 | 4,288 | ||
Recorded investment with no allowance | 2,174 | 2,174 | 3,220 | ||
Recorded investment with an allowance | 67 | ||||
Related allowance | 67 | ||||
Quarter-to-date average recorded investment | 2,214 | 6,853 | |||
Year-to-date average recorded investment | 2,613 | 7,103 | |||
Commercial Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 2,979 | 2,979 | 3,118 | ||
Recorded investment with no allowance | 2,979 | 2,979 | 2,479 | ||
Recorded investment with an allowance | 639 | ||||
Related allowance | 11 | ||||
Quarter-to-date average recorded investment | 3,005 | 3,373 | |||
Year-to-date average recorded investment | 3,035 | 3,390 | |||
Interest income recognized | 46 | 47 | |||
Commercial Real Estate Portfolio Segment [Member] | Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 422 | 422 | 512 | ||
Recorded investment with no allowance | 422 | 422 | 512 | ||
Quarter-to-date average recorded investment | 479 | 1,053 | |||
Year-to-date average recorded investment | 495 | 867 | |||
Interest income recognized | 2 | 3 | |||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 391 | 391 | 401 | ||
Recorded investment with no allowance | 237 | 237 | 258 | ||
Quarter-to-date average recorded investment | 241 | 557 | |||
Year-to-date average recorded investment | 271 | 471 | |||
Commercial Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 391 | 391 | 401 | ||
Recorded investment with no allowance | 237 | 237 | 258 | ||
Quarter-to-date average recorded investment | 241 | 551 | |||
Year-to-date average recorded investment | 246 | 466 | |||
Commercial Portfolio Segment [Member] | Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Quarter-to-date average recorded investment | 6 | ||||
Year-to-date average recorded investment | 25 | 5 | |||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 28 | ||||
Recorded investment with no allowance | 28 | ||||
Quarter-to-date average recorded investment | 9 | 16 | |||
Year-to-date average recorded investment | 19 | 9 | |||
Consumer Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 28 | ||||
Recorded investment with no allowance | 28 | ||||
Quarter-to-date average recorded investment | 9 | ||||
Year-to-date average recorded investment | 19 | ||||
Consumer Portfolio Segment [Member] | Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Quarter-to-date average recorded investment | 16 | ||||
Year-to-date average recorded investment | 9 | ||||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 327 | 327 | 331 | ||
Recorded investment with no allowance | 327 | 327 | 331 | ||
Quarter-to-date average recorded investment | 328 | 335 | |||
Year-to-date average recorded investment | 329 | 285 | |||
Interest income recognized | 1 | 1 | |||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 297 | 297 | 297 | ||
Recorded investment with no allowance | 297 | 297 | 297 | ||
Quarter-to-date average recorded investment | 297 | 297 | |||
Year-to-date average recorded investment | 297 | 198 | |||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid principal balance | 30 | 30 | 34 | ||
Recorded investment with no allowance | 30 | 30 | $ 34 | ||
Quarter-to-date average recorded investment | $ 31 | $ 38 | |||
Year-to-date average recorded investment | 32 | 38 | |||
Interest income recognized | $ 1 | 1 | |||
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Other Impaired Accruing Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Year-to-date average recorded investment | $ 49 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses (Rollforward of TDRs) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | $ 7,255 | $ 9,193 |
New TDRs | 1,506 | |
Disbursements (Payments) | (221) | (549) |
Payoffs | (459) | (83) |
TDR ending balance | 6,575 | 10,067 |
TDR, Related Allowance | 90 | 279 |
Impaired Nonaccrual Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 258 | 1,692 |
New TDRs | 1,506 | |
Disbursements (Payments) | (21) | (443) |
TDR ending balance | 237 | 2,755 |
TDR, Related Allowance | 75 | |
Impaired Nonaccrual Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 1,393 | |
Disbursements (Payments) | (51) | |
TDR ending balance | 1,342 | |
TDR, Related Allowance | 75 | |
Impaired Nonaccrual Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
New TDRs | 1,506 | |
Disbursements (Payments) | (373) | |
TDR ending balance | 1,133 | |
Impaired Nonaccrual Loans [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 258 | 299 |
Disbursements (Payments) | (21) | (19) |
TDR ending balance | 237 | 280 |
Impaired Accruing Restructured Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 6,997 | 7,501 |
Disbursements (Payments) | (200) | (106) |
Payoffs | (459) | (83) |
TDR ending balance | 6,338 | 7,312 |
TDR, Related Allowance | 90 | 204 |
Impaired Accruing Restructured Loans [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 3,845 | 4,041 |
Disbursements (Payments) | (57) | (53) |
Payoffs | (459) | (83) |
TDR ending balance | 3,329 | 3,905 |
TDR, Related Allowance | 90 | 190 |
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 3,118 | 3,419 |
Disbursements (Payments) | (139) | (50) |
TDR ending balance | 2,979 | 3,369 |
TDR, Related Allowance | 14 | |
Impaired Accruing Restructured Loans [Member] | Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
TDR beginning balance | 34 | 41 |
Disbursements (Payments) | (4) | (3) |
TDR ending balance | $ 30 | $ 38 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021contract | Jun. 30, 2020contract | Jun. 30, 2020USD ($)contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | contract | 0 | 0 | 1 |
Premodification outstanding recorded investment | $ 1,535 | ||
Post modification outstanding recorded investment | $ 1,506 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of contracts | contract | 1 | ||
Premodification outstanding recorded investment | $ 1,535 | ||
Post modification outstanding recorded investment | $ 1,506 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 1,472,429 | $ 1,454,256 |
Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 1,226,482 | 1,211,331 |
Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 229,417 | 219,283 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 7,788 | 11,388 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 8,742 | 12,254 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 116,760 | 106,760 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 87,587 | 81,926 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 26,923 | 22,547 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 1,953 | 1,990 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 297 | 297 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 449,867 | 443,542 |
Residential Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 411,746 | 401,494 |
Residential Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 34,370 | 36,759 |
Residential Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 2,221 | 2,946 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 1,530 | 2,343 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 655,252 | 661,232 |
Commercial Real Estate Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 495,840 | 514,524 |
Commercial Real Estate Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 149,825 | 133,892 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 2,925 | 3,504 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 6,662 | 9,312 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 186,162 | 211,256 |
Commercial Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 167,089 | 182,166 |
Commercial Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 18,133 | 25,870 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 689 | 2,948 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 251 | 272 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 64,388 | 31,466 |
Consumer Portfolio Segment [Member] | Pass Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 64,220 | 31,221 |
Consumer Portfolio Segment [Member] | Pass Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | 166 | 215 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan Risk Rating | $ 2 | $ 30 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,850 | $ 3,040 |
Nonaccrual | 3,947 | 5,455 |
Total loans | $ 1,472,429 | $ 1,454,256 |
Percent of total loans, Total past due | 0.20% | 0.30% |
Percent of total loans, Nonaccrual | 0.30% | 0.40% |
Percent of total loans, Total loans | 100.00% | 100.00% |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 1,466,632 | $ 1,445,761 |
Percent of total loans, Current | 99.50% | 99.30% |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 927 | $ 1,229 |
Percent of total loans, Total past due | 0.10% | 0.10% |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 171 | $ 1,007 |
Percent of total loans, Total past due | 0.10% | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 752 | $ 804 |
Percent of total loans, Total past due | 0.10% | 0.10% |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 923 | $ 1,747 |
Nonaccrual | 1,239 | 1,585 |
Total loans | 449,867 | 443,542 |
Residential Portfolio Segment [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 447,705 | 440,210 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 593 | 517 |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 938 | |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 330 | 292 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 594 | 879 |
Nonaccrual | 2,174 | 3,287 |
Total loans | 655,252 | 661,232 |
Commercial Real Estate Portfolio Segment [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 652,484 | 657,066 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 172 | 367 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 422 | 512 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 177 | 294 |
Nonaccrual | 237 | 258 |
Total loans | 186,162 | 211,256 |
Commercial Portfolio Segment [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 185,748 | 210,704 |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 36 | 226 |
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 141 | 68 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 126 | 120 |
Nonaccrual | 28 | |
Total loans | 64,388 | 31,466 |
Consumer Portfolio Segment [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 64,262 | 31,318 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 126 | 119 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 1 | |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 30 | |
Nonaccrual | 297 | 297 |
Total loans | 116,760 | 106,760 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | 116,433 | $ 106,463 |
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due | $ 30 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for credit losses allocated to: | ||||
Beginning balance | $ 14,313 | $ 10,378 | $ 13,888 | $ 10,507 |
Charge-offs | (46) | (368) | (111) | (918) |
Recoveries | 171 | 80 | 236 | 151 |
Net (charge-offs) recoveries | 125 | (288) | 125 | (767) |
Provision | 650 | 1,000 | 1,075 | 1,350 |
Ending balance | 15,088 | 11,090 | 15,088 | 11,090 |
Construction Loans [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,022 | 1,576 | ||
Recoveries | 10 | 8 | ||
Net (charge-offs) recoveries | 10 | 8 | ||
Provision | 542 | (87) | ||
Ending balance | 2,574 | 1,497 | 2,574 | 1,497 |
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,796 | 1,128 | ||
Recoveries | 5 | 5 | ||
Net (charge-offs) recoveries | 5 | 5 | ||
Provision | (227) | 364 | ||
Ending balance | 2,574 | 1,497 | 2,574 | 1,497 |
Residential Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 3,699 | 2,482 | 3,699 | 2,501 |
Charge-offs | (191) | |||
Recoveries | 57 | 4 | 63 | 7 |
Net (charge-offs) recoveries | 57 | 4 | 63 | (184) |
Provision | 56 | 153 | 50 | 322 |
Ending balance | 3,812 | 2,639 | 3,812 | 2,639 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 5,097 | 3,965 | 5,426 | 4,032 |
Charge-offs | (331) | (601) | ||
Recoveries | 64 | 64 | ||
Net (charge-offs) recoveries | 64 | (331) | 64 | (601) |
Provision | 439 | 463 | 110 | 666 |
Ending balance | 5,600 | 4,097 | 5,600 | 4,097 |
Commercial Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 2,000 | 2,263 | 2,089 | 1,929 |
Charge-offs | (46) | (37) | (107) | (119) |
Recoveries | 44 | 61 | 96 | 124 |
Net (charge-offs) recoveries | (2) | 24 | (11) | 5 |
Provision | (119) | 68 | (199) | 421 |
Ending balance | 1,879 | 2,355 | 1,879 | 2,355 |
Consumer Portfolio Segment [Member] | ||||
Allowance for credit losses allocated to: | ||||
Beginning balance | 721 | 540 | 652 | 469 |
Charge-offs | (4) | (7) | ||
Recoveries | 1 | 10 | 3 | 12 |
Net (charge-offs) recoveries | 1 | 10 | (1) | 5 |
Provision | 501 | (48) | 572 | 28 |
Ending balance | $ 1,223 | $ 502 | $ 1,223 | $ 502 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Option to extend lease term | true |
Initial lease term (in years) | 10 years |
Leases (Lease Information) (Det
Leases (Lease Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Lease liabilities | $ 5,757 | $ 4,874 |
Right-of-use assets | $ 5,616 | $ 4,795 |
Weighted average remaining lease term | 10 years 29 days | 10 years 5 months 26 days |
Weighted average discount rate | 2.84% | 2.89% |
Leases (Lease cost) (Details)
Leases (Lease cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 208 | $ 177 | $ 395 | $ 358 |
Total lease cost | 208 | 177 | 395 | 358 |
Cash paid for amounts included in the measurement of lease liabilities | $ 165 | $ 167 | $ 331 | $ 330 |
Leases (Lease Payments Due) (De
Leases (Lease Payments Due) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Six months ending December 31, 2021 | $ 366 | |
Twelve months ending December 31, 2022 | 742 | |
Twelve months ending December 31, 2023 | 753 | |
Twelve months ending December 31, 2024 | 707 | |
Twelve months ending December 31, 2025 | 620 | |
Twelve months ending December 31, 2026 | 566 | |
Thereafter | 3,308 | |
Total undiscounted cash flows | 7,062 | |
Discount | 1,305 | |
Lease liabilities | $ 5,757 | $ 4,874 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Other Intangibles [Abstract] | ||||
Amortization of other intangible assets | $ 120 | $ 138 | $ 246 | $ 282 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Schedule of Components of Goodwill and Other Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 19,728 | $ 19,728 |
Accumulated Impairment Charges | (1,543) | (1,543) |
Accumulated Amortization | (667) | (667) |
Goodwill, Total | 17,518 | 17,518 |
Other intangible assets, Amortizable, Gross Carrying Amount | 3,954 | 3,954 |
Other intangible assets, Amortizable, Accumulated Amortization | (2,481) | (2,235) |
Total amortizing intangible assets | 1,473 | 1,719 |
Core Deposits Intangible [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Other intangible assets, Amortizable, Gross Carrying Amount | 3,954 | 3,954 |
Other intangible assets, Amortizable, Accumulated Amortization | (2,481) | (2,235) |
Total amortizing intangible assets | $ 1,473 | $ 1,719 |
Weighted Average Remaining Life (in years) | 3 years 9 months 18 days | 4 years 8 months 12 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Future Amortization Expense for Amortizable Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Other Intangibles [Abstract] | ||
2021 | $ 216 | |
2022 | 389 | |
2023 | 317 | |
2024 | 246 | |
2025 | 174 | |
2026 | 102 | |
Thereafter | 29 | |
Total amortizing intangible assets | $ 1,473 | $ 1,719 |
Other Assets (Schedule of Other
Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other Assets [Abstract] | ||
Accrued interest receivable | $ 5,387 | $ 6,616 |
Deferred income taxes | 5,367 | 4,442 |
Prepaid expenses | 1,535 | 1,472 |
Cash surrender value on life insurance | 41,672 | 31,018 |
Income taxes receivable | 156 | |
Other assets | 4,233 | 3,075 |
Total | $ 58,194 | $ 46,779 |
Other Assets (Schedule of Defer
Other Assets (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 4,040 | $ 3,721 |
Write-downs of other real estate owned | 12 | 12 |
Nonaccrual loan interest | 297 | 367 |
Other | 2,650 | 2,152 |
Total deferred tax assets | 6,999 | 6,252 |
Less valuation allowance | (271) | (169) |
Deferred tax assets net of valuation allowance | 6,728 | 6,083 |
Deferred tax liabilities: | ||
Depreciation | 166 | 177 |
Acquisition accounting adjustments | 683 | 580 |
Deferred capital gain on branch sale | 184 | 187 |
Unrealized gains on available-for-sale securities | 220 | 567 |
Other | 108 | 130 |
Total deferred tax liabilities | 1,361 | 1,641 |
Net deferred tax assets | $ 5,367 | $ 4,442 |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) $ in Thousands | Aug. 25, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Subordinated Debt | $ 24,490 | $ 24,429 | |
Unamortized issuance costs | $ 510 | ||
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 25,000 | ||
Interest Rate | 5.375% | ||
Payments of Debt Issuance Costs | $ 611 | ||
Subordinated Debt [Member] | SOFR | |||
Debt Instrument [Line Items] | |||
Basis Spread on Variable Rate | 526.50% |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other Liabilities [Abstract] | ||
Accrued interest payable | $ 557 | $ 647 |
Deferred compensation liability | 3,669 | 2,905 |
Income taxes payable | 1,007 | |
Other liabilities | 2,609 | 3,686 |
Total | $ 7,842 | $ 7,238 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - Equity Plan 2016 [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award description | The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to five-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration | 10 years | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share price | $ 16.75 | $ 16.75 | ||
Options, Weighted average remaining contractual term | 9 months | |||
Options, granted, weighted average fair value | $ 0 | $ 0 | $ 0 | $ 0 |
Options, outstanding intrinsic value | $ 27 | $ 27 | ||
Options, exercisable, intrinsic value | $ 27 | 27 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Other than options, vested, fair value | $ 236 | $ 254 | ||
Time Based Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for granting | 750,000 | 750,000 | ||
Shares available to be granted | 583,831 | 583,831 | ||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Maximum | Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 5 years | |||
Minimum | Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 99 | $ 62 | $ 196 | $ 123 |
Excess tax benefits related to stock-based compensation | 2 | 7 | 3 | 14 |
Unrecognized stock-based compensation expense | $ 230 | $ 198 | $ 230 | $ 198 |
Weighted average period unrecognized expense is expected to be recognized | 7 months 6 days | 8 months 12 days |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Stock-Based Compensation, RS and RSU Award Activity) (Details) - Equity Plan 2016 [Member] - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Nonvested at beginning of period (in shares) | shares | 24,505 |
Number of Shares, Granted (in shares) | shares | 24,583 |
Number of Shares, Vested (in shares) | shares | (16,999) |
Number of Shares, Nonvested at end of period (in shares) | shares | 32,089 |
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share) | $ / shares | $ 13.78 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 13.34 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares | 13.93 |
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share) | $ / shares | $ 13.29 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Stock Options Activity) (Details) - Employee Stock Option [Member] | Jun. 30, 2021$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Outstanding at beginning of period (in shares) | shares | 2,709 |
Number of shares, Outstanding at end of period (in shares) | shares | 2,709 |
Number of shares, Exercisable at end of period (in shares) | shares | 2,709 |
Weighted Average Grant Date Exercise Price, Outstanding at beginning of period | $ / shares | $ 6.64 |
Weighted Average Grant Date Exercise Price, Outstanding at end of period | $ / shares | 6.64 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 6.64 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | $ 196,104 | $ 195,694 | $ 195,019 | $ 192,802 |
Other comprehensive income (loss) | (141) | 546 | (923) | 1,797 |
Balances | 198,682 | 200,134 | 198,682 | 200,134 |
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | 747 | 1,458 | 1,529 | 207 |
Other comprehensive income (loss) | (923) | 2,056 | ||
Reclassification of (gains) recognized | (259) | |||
Balances | 606 | 2,004 | 606 | 2,004 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | 1,529 | 218 | ||
Other comprehensive income (loss) | (923) | 2,047 | ||
Reclassification of (gains) recognized | (259) | |||
Balances | $ 606 | 2,006 | $ 606 | 2,006 |
Unrealized Gains Losses On Securities Transferred From Available For Sale To Held To Maturity [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (11) | |||
Other comprehensive income (loss) | 9 | |||
Balances | $ (2) | $ (2) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value assets transferred from , Level 1 to level 2 | $ 0 | $ 0 | |
Fair value assets transferred from , Level 2 to level 1 | 0 | 0 | |
Fair value assets transferred in | 0 | 0 | |
Fair value assets transferred out | 0 | $ 0 | |
Investment securities: | |||
Investment securities available for sale, at fair value | 113,957 | $ 139,568 | |
Equity securities, at fair value | 1,384 | 1,395 | |
Total | 115,341 | 140,963 | |
Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 113,957 | 139,568 | |
Equity securities, at fair value | 1,384 | 1,395 | |
Total | 115,341 | 140,963 | |
U.S. Government Agencies [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 17,987 | 23,537 | |
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 17,987 | 23,537 | |
Mortgage-backed [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | 95,970 | 116,031 | |
Mortgage-backed [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Investment securities available for sale, at fair value | $ 95,970 | $ 116,031 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Appraisal of Collateral [Member] | Weighted Average [Member] | ||
Impaired loans: | ||
Impaired loans, Liquidation expense, Range | 10.00% | 10.00% |
Other real estate owned, Appraisal adjustment, Range | 1.00% | |
Discounted Cash Flow Analysis [Member] | Weighted Average [Member] | ||
Impaired loans: | ||
Impaired loans, Discount rate, Range | 6.00% | 6.00% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Appraisal of Collateral [Member] | ||
Impaired loans: | ||
Impaired loans | $ 617 | $ 610 |
Other real estate owned | $ 203 | |
Impaired loans, Liquidation expense, Range | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Appraisal of Collateral [Member] | Maximum | ||
Impaired loans: | ||
Other real estate owned, Appraisal adjustment, Range | 19.00% | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Appraisal of Collateral [Member] | Minimum | ||
Impaired loans: | ||
Other real estate owned, Appraisal adjustment, Range | 0.00% | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Discounted Cash Flow Analysis [Member] | ||
Impaired loans: | ||
Impaired loans | $ 413 | $ 1,110 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Discounted Cash Flow Analysis [Member] | Maximum | ||
Impaired loans: | ||
Impaired loans, Discount rate, Range | 7.25% | 7.25% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Discounted Cash Flow Analysis [Member] | Minimum | ||
Impaired loans: | ||
Impaired loans, Discount rate, Range | 4.00% | 6.00% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | $ 197,991 | $ 65,828 |
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 237,188 | 186,917 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Cash and cash equivalents | 237,188 | 186,917 |
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 198,884 | 65,706 |
Restricted securities | 3,189 | 3,626 |
Cash surrender value on life insurance | 41,672 | 31,018 |
Financial liabilities, Estimated Fair Value | ||
Noninterest-bearing demand | 538,009 | 509,091 |
Checking plus interest | 443,919 | 446,243 |
Money market | 406,009 | 292,974 |
Savings | 215,063 | 177,524 |
Club | 1,138 | 392 |
Certificates of deposit, $100,000 or more | 134,670 | 129,623 |
Other time | 141,774 | 144,858 |
Securities sold under retail repurchase agreement | 2,907 | 1,050 |
Subordinated debt | 24,490 | 24,429 |
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Investment securities held to maturity | 197,991 | 65,828 |
Restricted securities | 3,189 | 3,626 |
Cash surrender value on life insurance | 41,672 | 31,018 |
Financial liabilities, Estimated Fair Value | ||
Noninterest-bearing demand | 538,009 | 509,091 |
Checking plus interest | 443,919 | 446,243 |
Money market | 406,009 | 292,974 |
Savings | 215,063 | 177,524 |
Club | 1,138 | 392 |
Certificates of deposit, $100,000 or more | 136,059 | 131,271 |
Other time | 142,534 | 146,137 |
Securities sold under retail repurchase agreement | 2,907 | 1,050 |
Subordinated debt | 26,871 | 25,745 |
Fair Value, Inputs, Level 3 [Member] | Carrying Amount [Member] | ||
Financial assets, Estimated Fair Value | ||
Loans, net | 1,457,341 | 1,440,368 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial assets, Estimated Fair Value | ||
Loans, net | $ 1,458,057 | $ 1,436,292 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 298,527 | $ 256,551 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | 291,141 | 248,607 |
Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments outstanding | $ 7,386 | $ 7,944 |
Revenue Recognition (Noninteres
Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Recognition [Abstract] | ||||
Service charges on deposit accounts | $ 683 | $ 544 | $ 1,357 | $ 1,410 |
Trust and investment fee income | 475 | 363 | 882 | 738 |
Interchange income | 1,036 | 708 | 1,906 | 1,361 |
Other noninterest income | 456 | 407 | 760 | 686 |
Noninterest Income (in-scope of Topic 606) | 2,650 | 2,022 | 4,905 | 4,195 |
Noninterest Income (out-of-scope of Topic 606) | 253 | 747 | 555 | 926 |
Total noninterest income | $ 2,903 | $ 2,769 | $ 5,460 | $ 5,121 |
Proposed Merger (Details)
Proposed Merger (Details) $ / shares in Units, $ in Thousands | Mar. 03, 2021$ / sharesshares | Jun. 30, 2021USD ($)Office | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||
Percentage of ownership Interests | 59.60% | ||
Assets | $ 2,120,260 | $ 1,933,315 | |
Severn Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Percentage of ownership Interests | 40.40% | ||
Severn Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Number of Shares to be Issued for each share | shares | 0.6207 | ||
Cash Payment for Each Share | $ / shares | $ 1.59 | ||
Number of Community Banking Offices | Office | 7 | ||
Severn Bancorp, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Assets | $ 1,100,000 |