Peoples Bancorp of North Carolina (PEBK) 10-Q 6 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 31, 2019
Document And Entity Information
Entity Registrant Name	PEOPLES BANCORP OF NORTH CAROLINA INC
Entity Central Index Key	0001093672
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,912,300
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks, including reserve requirements of $12,254 at 09/30/19 and $8,918 at 12/31/18	$ 48,605	$ 40,553
Interest-bearing deposits	80,948	2,817
Cash and cash equivalents	129,553	43,370
Investment securities available for sale	186,263	194,578
Other investments	7,239	4,361
Total securities	193,502	198,939
Mortgage loans held for sale	4,263	680
Loans	845,599	804,023
Less allowance for loan losses	(6,578)	(6,445)
Net loans	839,021	797,578
Premises and equipment, net	18,730	18,450
Cash surrender value of life insurance	16,222	15,936
Other real estate	26	27
Right of use lease asset	3,816	0
Accrued interest receivable and other assets	18,066	18,271
Total assets	1,223,199	1,093,251
Deposits:
Noninterest-bearing demand	339,081	298,817
NOW, MMDA & savings	509,611	475,223
Time, $250,000 or more	33,082	16,239
Other time	79,794	86,934
Total deposits	961,568	877,213
Securities sold under agreements to repurchase	21,927	58,095
FHLB borrowings	70,000	0
Junior subordinated debentures	20,619	20,619
Lease liability	3,835	0
Accrued interest payable and other liabilities	12,567	13,707
Total liabilities	1,090,516	969,634
Commitments
Shareholders' equity:
Series A preferred stock, $1,000 stated value; authorized 5,000,000 shares; no shares issued and outstanding	0	0
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,933,140 shares at June 30, 2019 and 5,995,256 shares December 31, 2018	59,813	62,096
Retained earnings	68,528	60,535
Accumulated other comprehensive income	4,342	986
Total shareholders' equity	132,683	123,617
Total liabilities and shareholders' equity	$ 1,223,199	$ 1,093,251

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks, reserve requirements	$ 12,254	$ 8,918
Shareholders' equity:
Series A preferred stock, stated value (in dollars per share)	$ 1,000	$ 1,000
Series A preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Series A preferred stock, shares issued (in shares)	0	0
Series A preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	5,912,300	5,995,256
Common stock, shares outstanding (in shares)	5,912,300	5,995,256

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income:
Interest and fees on loans	$ 11,004	$ 9,907	$ 32,517	$ 28,362
Interest on due from banks	87	86	136	255
Interest on investment securities:
U.S. Government sponsored enterprises	628	591	1,942	1,721
State and political subdivisions	671	974	2,265	2,950
Other	40	50	128	138
Total interest income	12,430	11,608	36,988	33,426
Interest expense:
NOW, MMDA & savings deposits	455	189	1,057	551
Time deposits	259	127	581	342
FHLB borrowings	21	0	70	0
Junior subordinated debentures	210	209	656	578
Other	49	32	168	66
Total interest expense	994	557	2,532	1,537
Net interest income	11,436	11,051	34,456	31,889
Provision for loan losses	422	110	677	372
Net interest income after provision for loan losses	11,014	10,941	33,779	31,517
Non-interest income:
Service charges	1,178	1,083	3,409	3,163
Other service charges and fees	202	173	548	528
Gain (loss) on sale of investment securities	(5)	0	226	50
Mortgage banking income	376	216	834	672
Insurance and brokerage commissions	206	206	642	591
Appraisal management fee income	1,311	799	3,285	2,442
Gain/(loss) on sale and write-down of other real estate	(1)	14	(18)	17
Miscellaneous	1,441	1,424	4,287	4,204
Total non-interest income	4,708	3,915	13,213	11,667
Non-interest expense:
Salaries and employee benefits	5,695	5,519	17,060	15,866
Occupancy	1,861	1,761	5,409	5,367
Professional fees	237	314	955	1,067
Advertising	234	207	775	708
Debit card expense	201	282	667	774
FDIC insurance	(36)	81	116	248
Appraisal management fee expense	1,012	627	2,538	1,873
Other	2,063	1,911	5,907	5,401
Total non-interest expense	11,267	10,702	33,427	31,304
Earnings before income taxes	4,455	4,154	13,565	11,880
Income tax expense	834	687	2,464	1,934
Net earnings	$ 3,621	$ 3,467	$ 11,101	$ 9,946
Basic net earnings per share	$ 0.62	$ 0.58	$ 1.87	$ 1.66
Diluted net earnings per share	0.61	0.57	1.86	1.65
Cash dividends declared per share	$ 0.14	$ 0.13	$ 0.42	$ 0.39

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net earnings	$ 3,621	$ 3,467	$ 11,101	$ 9,946
Other comprehensive income:
Unrealized holding gains (losses) on securities available for sale	701	(1,469)	4,584	(4,951)
Reclassification adjustment for (gains) losses on securities available for sale included in net earnings	5	0	(226)	(50)
Total other comprehensive income (loss), before income taxes	706	(1,469)	4,358	(5,001)
Income tax benefit related to other comprehensive income:
Unrealized holding gains (losses) on securities available for sale	161	(338)	1,054	(1,138)
Reclassification adjustment for (gains) losses on securities available for sale included in net earnings	1	0	(52)	(11)
Total income tax benefit related to other comprehensive income (loss)	162	(338)	1,002	(1,149)
Total other comprehensive income (loss), net of tax	543	(1,131)	3,356	(3,852)
Total comprehensive income	$ 4,164	$ 2,336	$ 14,457	$ 6,094

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total
Beginning balance, shares at Dec. 31, 2017	5,995,256
Beginning balance, amount at Dec. 31, 2017	$ 62,096	$ 50,286	$ 3,593	$ 115,975
Cash dividends declared on common stock		(2,350)		(2,350)
Net earnings		9,946		9,946
Change in accumulated other comprehensive income, net of tax			(3,852)	(3,852)
Ending balance, shares at Sep. 30, 2018	5,995,256
Ending balance, amount at Sep. 30, 2018	$ 62,096	57,882	(259)	119,719
Beginning balance, shares at Jun. 30, 2018	5,995,256
Beginning balance, amount at Jun. 30, 2018	$ 62,096	55,198	872	118,166
Cash dividends declared on common stock		(783)		(783)
Net earnings		3,467		3,467
Change in accumulated other comprehensive income, net of tax			(1,131)	(1,131)
Ending balance, shares at Sep. 30, 2018	5,995,256
Ending balance, amount at Sep. 30, 2018	$ 62,096	57,882	(259)	119,719
Beginning balance, shares at Dec. 31, 2018	5,995,256
Beginning balance, amount at Dec. 31, 2018	$ 62,096	60,535	986	123,617
Common stock repurchase, shares	(90,354)
Common stock repurchase, amount	$ (2,490)			(2,490)
Cash dividends declared on common stock		(3,108)		(3,108)
Restricted stock units exercised, shares	7,398
Restricted stock units exercised, amount	$ 207			207
Net earnings		11,101		11,101
Change in accumulated other comprehensive income, net of tax			3,356	3,356
Ending balance, shares at Sep. 30, 2019	5,912,300
Ending balance, amount at Sep. 30, 2019	$ 59,813	68,528	4,342	132,683
Beginning balance, shares at Jun. 30, 2019	5,933,140
Beginning balance, amount at Jun. 30, 2019	$ 60,390	65,738	3,799	129,927
Common stock repurchase, shares	(20,840)
Common stock repurchase, amount	$ (577)			(577)
Cash dividends declared on common stock		(831)		(831)
Net earnings		3,621		3,621
Change in accumulated other comprehensive income, net of tax			543	543
Ending balance, shares at Sep. 30, 2019	5,912,300
Ending balance, amount at Sep. 30, 2019	$ 59,813	$ 68,528	$ 4,342	$ 132,683

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net earnings	$ 11,101	$ 9,946
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, amortization and accretion	2,949	3,508
Right of use lease asset amortization	585	0
Provision for loan losses	677	372
Deferred income taxes	(7)	(1,159)
Gain on sale of investment securities	(226)	(50)
Loss (gain) on sale of other real estate	1	(17)
Write-down of other real estate	17	0
Loss on sale of premises and equipment	138	2
Restricted stock expense	201	131
Proceeds from sales of mortgage loans held for sale	34,002	27,209
Origination of mortgage loans held for sale	(37,585)	(28,092)
Change in:
Cash surrender value of life insurance	(286)	(287)
Other assets	(790)	754
Other liabilities	(1,700)	(265)
Net cash provided by operating activities	9,077	12,052
Cash flows from investing activities:
Purchases of investment securities available for sale	(36,515)	(20,218)
Proceeds from sales, calls and maturities of investment securities available for sale	36,700	24,203
Proceeds from paydowns of investment securities available for sale	11,416	12,651
Purchases of other investments	0	(2,611)
Proceeds from paydowns on other investments	132	73
Purchases of FHLB stock	(2,976)	(4)
Net change in loans	(42,146)	(27,500)
Purchases of premises and equipment	(2,800)	(1,307)
Proceeds from sale of premises and equipment	697	0
Proceeds from sale of other real estate and repossessions	9	232
Net cash used by investing activities	(35,483)	(14,481)
Cash flows from financing activities:
Net change in deposits	84,355	(13,493)
Net change in securities sold under agreement to repurchase	(36,168)	18,009
Proceeds from FHLB borrowings	184,500	0
Repayments of FHLB borrowings	(114,500)	0
Proceeds from Fed Funds Purchased	100,075	850
Repayments of Fed Funds Purchased	(100,075)	(850)
Common stock repurchased	(2,490)	0
Cash dividends paid on common stock	(3,108)	(2,350)
Net cash provided by financing activities	112,589	2,166
Net change in cash and cash equivalents	86,183	(263)
Cash and cash equivalents at beginning of period	43,370	57,304
Cash and cash equivalents at end of period	129,553	57,041
Cash paid during the period for:
Interest	2,510	1,531
Income taxes	2,463	905
Noncash investing and financing activities:
Change in unrealized gain on investment securities available for sale, net	3,356	(3,852)
Issuance of accrued restricted stock units	207	0
Transfers of loans to other real estate and repossessions	26	97
Initial recognition of lease right-of-use asset and lease liability	$ 4,401	$ 0

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
1. Summary of Significant Accounting Policies	The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly owned subsidiary, Peoples Bank (the “Bank”), along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. (“PIS”), Real Estate Advisory Services, Inc. (“REAS”), Community Bank Real Estate Solutions, LLC (“CBRES”) and PB Real Estate Holdings, LLC (collectively called the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The Bank operates three banking offices focused on the Latino population that were formerly operated as a division of the Bank under the name Banco de la Gente (“Banco”). These offices are now branded as Bank branches and considered a separate market territory of the Bank as they offer normal and customary banking services as are offered in the Bank’s other branches such as the taking of deposits and the making of loans. The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2018) are unaudited. In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates. The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2018 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 2, 2019 Annual Meeting of Shareholders. Recent Accounting Pronouncements The following tables provide a summary of Accounting Standards Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”) that the Company has recently adopted. Recently Adopted Accounting Guidance ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2014-09: Revenue from Contracts with Customers Provides guidance on the recognition of revenue from contracts with customers. The core principle of this guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. January 1, 2018 See section titled "ASU 2014-09" below for a description of the effect on the Company’s results of operations, financial position and disclosures. ASU 2016-01: Recognition and Measurement of Financial Assets and Financial Liabilities Addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. January 1, 2018 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2017-07: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs Amended the requirements related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. January 1, 2018 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2017-09: Scope of Modification Accounting Amended the requirements related to changes to the terms or conditions of a share-based payment award. January 1, 2018 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2017-14: Income Statement—Reporting Comprehensive, Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) Incorporates into the ASC recent SEC guidance related to revenue recognition. Effective upon issuance The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-03: Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities Clarifies certain aspects of the guidance issued in ASU 2016-01. January 1, 2018 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-04: Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) Incorporates recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulation. Effective upon issuance The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-06: Codification Improvements to Topic 942: Financial Services—Depository and Lending Eliminates a reference to the Office of the Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges, from the ASC. The Office of the Comptroller of the Currency published the guidance in 1985 but has since rescinded it. Effective upon issuance The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2016-02: Leases Increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. January 1, 2019 See section titled "ASU 2016-02" below for a description of the effect on the Company’s results of operations, financial position and disclosures. ASU 2017-08: Premium Amortization on Purchased Callable Debt Securities Amended the requirements related to the amortization period for certain purchased callable debt securities held at a premium. January 1, 2019 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-11: Leases (Topic 842): Targeted Improvements Intended to reduce costs and ease implementation of ASU 2016-02. January 1, 2019 The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-20: Narrow- Scope Improvements for Lessors Provides narrow-scope improvements for lessors, that provide relief in the accounting for sales, use and similar taxes, the accounting for other costs paid by a lessee that may benefit a lessor, and variable payments when contracts have lease and non-lease components. January 1, 2019 See comments for ASU 2016-02 below. ASU 2019-07: Codification Updates to SEC Sections Guidance updated for various Topics of the Accounting Standards Codification to align the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. Effective upon issuance The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2014-09 The Company has applied ASU 2014-09 using a modified retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of ASU 2014-09 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of the Company’s revenues are not affected. Appraisal management fee income and expense from the Bank’s subsidiary, CBRES, was reported as a net amount prior to March 31, 2018, which was included in miscellaneous non-interest income. This income and expense is now reported on separate line items under non-interest income and non-interest expense. See below for additional information related to revenue generated from contracts with customers. Revenue and Method of Adoption The majority of the Company’s revenue is derived primarily from interest income from receivables (loans) and securities. Other revenues are derived from fees received in connection with deposit accounts, investment advisory, and appraisal services. On January 1, 2018, the Company adopted the requirements of ASU 2014-09. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU 2014-09 using the modified retrospective transition approach which does not require restatement of prior periods. The method was selected as there were no material changes in the timing of revenue recognition resulting in no comparability issues with prior periods. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of, and reason for, the change, which is solely a result of the adoption of the required standard. When applying the modified retrospective approach under ASU 2014-09, the Company has elected, as a practical expedient, to apply this approach only to contracts that were not completed as of January 1, 2018. A completed contract is considered to be a contract for which all (or substantially all) of the revenue was recognized in accordance with revenue guidance that was in effect before January 1, 2018. There were no uncompleted contracts as of January 1, 2018 for which application of the new standard required an adjustment to retained earnings. The following disclosures involve the Company’s material income streams derived from contracts with customers which are within the scope of ASU 2014-09. Through the Company’s wholly-owned subsidiary, PIS, the Company contracts with a registered investment advisor to perform investment advisory services on behalf of the Company’s customers. The Company receives commissions from this third party investment advisor based on the volume of business that the Company’s customers do with such investment advisor. Total revenue recognized from these contracts was $641,000 and $590,000 for the nine months ended September 30, 2019 and 2018, respectively. The Company utilizes third parties to contract with the Company’s customers to perform debit and credit card clearing services. These third parties pay the Company commissions based on the volume of transactions that they process on behalf of the Company’s customers. Total revenue recognized from these contracts with these third parties was $3.1 million and $2.9 million for the nine months ended September 30, 2019 and 2018, respectively. Through the Company’s wholly-owned subsidiary, REAS, the Company provides property appraisal services for negotiated fee amounts on a per appraisal basis. Total revenue recognized from these contracts with customers was $500,000 and $422,000 for the nine months ended September 30, 2019 and 2018, respectively. Through the Company’s wholly-owned subsidiary, CBRES, the Company provides appraisal management services. Total revenue recognized from these contracts with customers was $3.3 million and $2.4 million for the nine months ended September 30, 2019 and 2018, respectively. Due to the nature of the Company’s relationship with the customers that the Company provides services, the Company does not incur costs to obtain contracts and there are no material incremental costs to fulfill these contracts that should be capitalized. Disaggregation of Revenue Contract Balances Performance Obligations Significant Judgements ASU 2016-02 ASU 2016-02 On January 1, 2019, the Company adopted the requirements of ASU 2016-02, Leases (Topic 842). Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, Codification Improvements to Topic 842, Leases; and ASU 2018-11, Targeted Improvements. The purpose of Topic 842 is to increase transparency and comparability between organizations that enter into lease agreements. The key difference of Topic 842 from the previous guidance (Topic 840) is the recognition of a right-of-use (“ROU”) asset and lease liability on the statement of financial position for those leases previously classified as operating leases under the previous guidance. Topic 842 states that a contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company reviewed its material non-real estate contracts to determine if they included a lease and did not note any that would need to be considered under Topic 842. The Company’s lease agreements in which Topic 842 has been applied are primarily for retail branch real estate properties. These real estate leases have lease terms from less than 12 months to leases with options up to 15 years, and payment terms vary with some being fixed payments or based on a fixed annual increase while others are variable and the annual increases are based on market rates or other indexes. Initially transition from Topic 840 to Topic 842 required a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11, which, among other things, provided an additional transition method that would allow entities to not apply the initial guidance of ASU 2016-02 to the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company chose the transition method of adoption provided by ASU 2018-11, therefore, the Company will apply this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability and a cumulative-effect adjustment to the opening balance of retained earnings (if applicable) in the period of adoption. With this transition method, comparative prior period disclosures will be under the previous accounting guidance for leases (Topic 840). This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. Topic 842 provides a package of practical expedients in applying the lease standard to be chosen at the date of adoption. The Company has chosen to elect the package of practical expedients provided under ASU 2016-02 whereby it will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The Company has also chosen not to apply the recognition requirements of ASU 2016-02 to any short-term leases (as defined by related accounting guidance). The Company will account for lease and non-lease components separately because such amounts are readily determinable under its lease contracts. Additionally, the Company has chosen to elect the use of hindsight, when applicable, in determining the lease term, in assessing the likelihood that a lessee purchase option will be exercised; and in assessing the impairment of ROU assets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company determined that all of its leases are classified as operating leases under Topic 842. For operating and finance leases, lease liabilities are initially measured at commencement date based on the present value of lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement date over the lease term. For operating and finance leases, ROU assets are measured at the commencement date as the amount of the initial liability, adjusted for lease payments made to the lessor at or before commencement date, minus incentives; and for any initial direct costs incurred by the lessee. Based on the transition method that the Company has chosen to follow, the initial application date of the lease term for all existing leases is January 1, 2019. For operating leases, after lease commencement, the lease liability is recorded at the present value of the unpaid lease payments discounted at the discount rate for the lease established at the commencement date. Lease expense is determined by the sum of the lease payments to be recognized on a straight-line basis over the lease term. The ROU asset is subsequently amortized as the difference between the straight line lease cost for the period and the periodic accretion of the lease liability. The lease term used for the calculation of the initial operating ROU asset and lease liability will include the initial lease term in addition to one renewal option the Company thinks it is reasonably certain to exercise or incur. Regarding the discount rate, Topic 842 requires that the implicit rate within the lease agreement be used if available. If not available, the Company should use its incremental borrowing rate in effect at the time of the lease commencement date. The Company utilized Federal Home Loan Bank (“FHLB”) Atlanta’s Fixed Rate Credit rates for terms consistent with the Company’s lease terms. The Company recorded operating ROU assets and operating lease liabilities of $4.4 million and $4.4 million, respectively at the commencement date of January 1, 2019. The Company did not have a cumulative-effect adjustment to the opening balance of retained earnings. The adoption of ASU 2016-02 did not have a material impact on the Company’s results of operations, financial position or disclosures. A director of the Company has a membership interest in a company that leases two branch facilities to the Bank. The Bank’s lease payments for these facilities totaled $173,000 for the nine months ended September 30, 2019 and 2018. The following tables provide a summary of ASU’s issued by the FASB that the Company has not adopted as of September 30, 2019, which may impact the Company’s financial statements. Recently Adopted Accounting Guidance ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2016-13: Measurement of Credit Losses on Financial Instruments Provides guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. January 1, 2020 Early adoption permitted on October 16, 2019 the FASB voted to approve a delay in implementation for smaller reporting companies. Under the delay, the standard would be effective for the Company January 1, 2023. The delay is pending issuance of a final ASU. The Company will apply this guidance through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company is still evaluating the impact of this guidance on its consolidated financial statements. The Company has formed a Current Expected Credit Losses (“CECL”) committee and implemented a model from a third-party vendor for running CECL calculations. The Company is currently developing CECL model assumptions and comparing results to current allowance for loan loss calculations. The Company plans to run parallel calculations leading up to the effective date of this guidance to ensure it is prepared for implementation by the effective date. In addition to the Company’s allowance for loan losses, it will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. ASU 2018-13: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) Updates the disclosure requirements on fair value measurements in ASC 820, Fair Value Measurement. January 1, 2020 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-14: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (Subtopic 715-20) Updates disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. January 1, 2021 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2018-18: Clarifying the Interaction between Topic 808 and Topic 606 Clarifies the interaction between the guidance for certain collaborative arrangements and the new revenue recognition financial accounting and reporting standard. January 1, 2020 Early adoption permitted The Company does not intend to adopt this guidance early. The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-19: Codification Improvements to Topic 326, Financial Instruments—Credit Losses Aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. See ASU 2016-13 above The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2018-19: Leases (Topic 842): Codification Improvements Provides guidance to address concerns companies had raised about an accounting exception they would lose when assessing the fair value of underlying assets under the leases standard and clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. January 1, 2020 The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. . ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Addresses unintended issues accountants flagged when implementing ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, ASU 2016-13, Measurement of Credit Losses on Financial Instruments, and ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. See ASU 2016-13 above The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2019-05: Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief Guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13, Measurement of Credit Losses on Financial Instruments. See ASU 2016-13 above The adoption of this guidance is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

2. Investment Securities

2. Investment Securities	9 Months Ended
	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
2. Investment Securities	Investment securities available for sale at September 30, 2019 and December 31, 2018 are as follows: (Dollars in thousands) September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 69,330 1,534 164 70,700 U.S. Government sponsored enterprises 28,800 620 302 29,118 State and political subdivisions 82,243 3,952 - 86,195 Trust preferred securities 250 - - 250 Total $ 180,623 6,106 466 186,263 (Dollars in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 52,145 516 558 52,103 U.S. Government sponsored enterprises 35,356 71 793 34,634 State and political subdivisions 105,545 2,089 43 107,591 Trust preferred securities 250 - - 250 Total $ 193,296 2,676 1,394 194,578 The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2019 and December 31, 2018 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. (Dollars in thousands) September 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 12,273 77 7,689 87 19,962 164 U.S. Government sponsored enterprises - - 6,482 302 6,482 302 Total $ 12,273 77 14,171 389 26,444 466 (Dollars in thousands) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 6,932 56 17,670 502 24,602 558 U.S. Government sponsored enterprises 1,784 69 25,172 724 26,956 793 State and political subdivisions 4,815 26 1,578 17 6,393 43 Total $ 13,531 151 44,420 1,243 57,951 1,394 At September 30, 2019, unrealized losses in the investment securities portfolio relating to debt securities totaled $466,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2019 tables above, 17 out of 43 securities issued by U.S. Government sponsored enterprises contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. The amortized cost and estimated fair value of investment securities available for sale at September 30, 2019, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2019 (Dollars in thousands) Amortized Cost Estimated Fair Value Due within one year $ 8,551 8,506 Due from one to five years 57,481 59,511 Due from five to ten years 39,650 41,658 Due after ten years 5,361 5,638 Mortgage-backed securities 69,330 70,700 Trust preferred securities 250 250 Total $ 180,623 186,263 Proceeds from sales of securities available for sale during the three months ended September 30, 2019 were $8.4 million and resulted in net losses of $5,000. Proceeds from sales of securities available for sale during the nine months ended September 30, 2019 were $20.7 million and resulted in net gains of $226,000. No securities available for sale were sold during the three months ended September 30, 2018. Proceeds from sales of securities available for sale during the nine months ended September 30, 2018 were $14.0 million and resulted in net gains of $50,000. Securities with a fair value of approximately $64.3 million and $93.0 million at September 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and for other purposes as required by law.

3. Loans

3. Loans	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
3. Loans	Major classifications of loans at September 30, 2019 and December 31, 2018 are summarized as follows: (Dollars in thousands) September 30, 2019 December 31, 2018 Real estate loans: Construction and land development $ 95,622 94,178 Single-family residential 269,304 252,983 Single-family residential - Banco de la Gente non-traditional 31,673 34,261 Commercial 281,607 270,055 Multifamily and farmland 47,266 33,163 Total real estate loans 725,472 684,640 Loans not secured by real estate: Commercial loans 99,382 97,465 Farm loans 1,101 926 Consumer loans 8,473 9,165 All other loans 11,171 11,827 Total loans 845,599 804,023 Less allowance for loan losses 6,578 6,445 Total net loans $ 839,021 797,578 The Bank grants loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties, and also in Mecklenburg, Wake and Durham counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below: ● Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. As of September 30, 2019, construction and land development loans comprised approximately 11% of the Bank’s total loan portfolio. ● Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. As of September 30, 2019, single-family residential loans comprised approximately 36% of the Bank’s total loan portfolio, and include Banco’s non-traditional single-family residential loans, which were approximately 4% of the Bank’s total loan portfolio. ● Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. As of September 30, 2019, commercial real estate loans comprised approximately 33% of the Bank’s total loan portfolio. ● Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid or fluctuate in value based on the success of the business. As of September 30, 2019, commercial loans comprised approximately 12% of the Bank’s total loan portfolio. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following tables present an age analysis of past due loans, by loan type, as of September 30, 2019 and December 31, 2018: September 30, 2019 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 123 - 123 95,499 95,622 - Single-family residential 1,854 189 2,043 267,261 269,304 - Single-family residential - Banco de la Gente non-traditional 1,568 50 1,618 30,055 31,673 - Commercial 98 178 276 281,331 281,607 - Multifamily and farmland - - - 47,266 47,266 - Total real estate loans 3,643 417 4,060 721,412 725,472 - Loans not secured by real estate: Commercial loans 412 - 412 98,970 99,382 - Farm loans - - - 1,101 1,101 - Consumer loans 115 4 119 8,354 8,473 - All other loans - - - 11,171 11,171 - Total loans $ 4,170 421 4,591 841,008 845,599 - December 31, 2018 (Dollars in thousands) Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 3 - 3 94,175 94,178 - Single-family residential 4,162 570 4,732 248,251 252,983 - Single-family residential - Banco de la Gente non-traditional 4,627 580 5,207 29,054 34,261 - Commercial 228 - 228 269,827 270,055 - Multifamily and farmland - - - 33,163 33,163 - Total real estate loans 9,020 1,150 10,170 674,470 684,640 - Loans not secured by real estate: Commercial loans 445 90 535 96,930 97,465 - Farm loans - - - 926 926 - Consumer loans 99 4 103 9,062 9,165 - All other loans - - - 11,827 11,827 - Total loans $ 9,564 1,244 10,808 793,215 804,023 - The following table presents non-accrual loans as of September 30, 2019 and December 31, 2018: (Dollars in thousands) September 30, 2019 December 31, 2018 Real estate loans: Construction and land development $ - 1 Single-family residential 1,293 1,530 Single-family residential - Banco de la Gente non-traditional 1,559 1,440 Commercial 260 244 Multifamily and farmland - - Total real estate loans 3,112 3,215 Loans not secured by real estate: Commercial loans 131 89 Consumer loans 15 10 Total $ 3,258 3,314 At each reporting period, the Bank determines which loans are impaired. Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis. An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral. The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank. REAS is staffed by certified appraisers that also perform appraisals for other companies. Factors, including the assumptions and techniques utilized by the appraiser, are considered by management. If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses. An allowance for each impaired loan that is not collateral dependent is calculated based on the present value of projected cash flows. If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses. Impaired loans under $250,000 are not individually evaluated for impairment with the exception of the Bank’s troubled debt restructured (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment. Accruing impaired loans were $21.4 million, $22.8 million and $23.6 million at September 30, 2019, December 31, 2018 and September 30, 2018, respectively. Interest income recognized on accruing impaired loans was $1.0 million, $1.3 million, and $1.0 million for the nine months ended September 30, 2019, the year ended December 31, 2018 and the nine months ended September 30, 2018, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. The following table presents impaired loans as of September 30, 2019: September 30, 2019 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 187 - 187 187 5 Single-family residential 4,900 409 4,010 4,419 31 Single-family residential - Banco de la Gente stated income 15,392 - 14,634 14,634 966 Commercial 1,896 - 1,888 1,888 12 Multifamily and farmland - - - - - Total impaired real estate loans 22,375 409 20,719 21,128 1,014 Loans not secured by real estate: Commercial loans 578 100 88 188 1 Consumer loans 92 - 88 88 1 Total impaired loans $ 23,045 509 20,895 21,404 1,016 The following table presents the average impaired loan balance and the interest income recognized by loan class for the three and nine months ended September 30, 2019 and 2018. (Dollars in thousands) Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 188 3 320 2 232 9 326 14 Single-family residential 4,360 70 6,441 73 4,724 188 6,350 207 Single-family residential - Banco de la Gente stated income 14,805 241 14,602 236 14,916 732 14,851 703 Commercial 1,808 26 2,320 17 1,823 71 2,307 144 Multifamily and farmland - - - - - - 3 - Total impaired real estate loans 21,161 340 23,683 328 21,695 1,000 23,837 1,021 Loans not secured by real estate: Commercial loans 153 16 96 - 127 20 99 - Farm loans (non RE) - - - - - - - - Consumer loans 94 1 144 3 102 5 147 7 Total impaired loans $ 21,408 357 23,923 331 21,924 1,025 24,803 1,028 The following table presents impaired loans as of and for the year ended December 31, 2018: December 31, 2018 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 281 - 279 279 5 327 19 Single-family residential 5,059 422 4,188 4,610 32 6,271 261 Single-family residential - Banco de la Gente non-traditional 16,424 - 15,776 15,776 1,042 14,619 944 Commercial 1,995 - 1,925 1,925 17 2,171 111 Total impaired real estate loans 23,759 422 22,168 22,590 1,096 23,388 1,335 Loans not secured by real estate: Commercial loans 251 89 1 90 - 96 - Consumer loans 116 - 113 113 2 137 7 Total impaired loans $ 24,126 511 22,282 22,793 1,098 23,621 1,342 Changes in the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 were as follows: (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2019: Allowance for loan losses: Beginning balance $ 813 1,325 1,177 1,278 83 626 - 161 982 6,445 Charge-offs (21 ) (42 ) - - - (389 ) - (459 ) - (911 ) Recoveries 44 59 - 27 - 80 - 157 - 367 Provision (141 ) 22 (87 ) (26 ) 35 333 - 303 238 677 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Three months ended September 30, 2019: Allowance for loan losses: Beginning balance $ 763 1,312 1,116 1,334 110 548 - 161 1,197 6,541 Charge-offs - (19 ) - - - (388 ) - (144 ) - (551 ) Recoveries 41 6 - 4 - 66 - 49 - 166 Provision (109 ) 65 (26 ) (59 ) 8 424 - 96 23 422 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Allowance for loan losses at September 30, 2019: Ending balance: individually evaluated for impairment $ - 2 948 10 - - - - - 960 Ending balance: collectively evaluated for impairment 695 1,362 142 1,269 118 650 - 162 1,220 5,618 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Loans at September 30, 2019: Ending balance $ 95,622 269,304 31,673 281,607 47,266 99,382 1,101 19,644 - 845,599 Ending balance: individually evaluated for impairment $ 11 1,719 13,196 1,628 - 100 - - - 16,654 Ending balance: collectively evaluated for impairment $ 95,611 267,585 18,477 279,979 47,266 99,282 1,101 19,644 - 828,945 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2018: Allowance for loan losses: Beginning balance $ 804 1,812 1,280 1,193 72 574 - 155 476 6,366 Charge-offs (53 ) (115 ) - (271 ) (5 ) (4 ) - (318 ) - (766 ) Recoveries 4 55 - 101 1 23 - 139 - 323 Provision (63 ) (293 ) (75 ) 438 10 12 - 182 161 372 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Three months ended September 30, 2018: Allowance for loan losses: Beginning balance $ 668 1,638 1,233 1,420 72 587 - 150 509 6,277 Charge-offs (53 ) (73 ) - - - (1 ) - (132 ) - (259 ) Recoveries 1 28 - 94 - 7 - 37 - 167 Provision 76 (134 ) (28 ) (53 ) 6 12 - 103 128 110 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Allowance for loan losses at September 30, 2018: Ending balance: individually evaluated for impairment $ 5 2 1,036 12 - - - - - 1,055 Ending balance: collectively evaluated for impairment 687 1,457 169 1,449 78 605 - 158 637 5,240 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Loans at September 30, 2018: Ending balance $ 76,987 249,812 34,742 275,629 31,102 97,085 994 20,373 - 786,724 Ending balance: individually evaluated for impairment $ 98 2,171 14,557 1,879 - 94 - - - 18,799 Ending balance: collectively evaluated for impairment $ 76,889 247,641 20,185 273,750 31,102 96,991 994 20,373 - 767,925 The provision for loan losses for the three months ended September 30, 2019 was $422,000, compared to $110,000 for the three months ended September 30, 2018. The increase in the provision for loan losses is primarily attributable to a $58.9 million increase in loans from September 30, 2018 to September 30, 2019 and a $293,000 increase in net charge-offs during the third quarter of 2019 compared to the same period one year ago. The provision for loan losses for the nine months ended September 30, 2019 was $677,000, compared to $372,000 for the nine months ended September 30, 2018. The increase in the provision for loan losses is primarily attributable to a $58.9 million increase in loans from September 30, 2018 to September 30, 2019 and a $101,000 increase in net charge-offs during the nine months ended September 30, 2019 compared to the same period one year ago. The Company utilizes an internal risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. These risk grades are evaluated on an ongoing basis. A description of the general characteristics of the eight risk grades is as follows: ● Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists. Certificates of deposit or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade. ● Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Company’s range of acceptability. The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes. ● Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Company’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change). ● Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed. These are not problem credits presently, but may be in the future if the borrower is unable to change its present course. ● Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Company’s position at some future date. ● Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. ● Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. ● Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future. Loss is a temporary grade until the appropriate authority is obtained to charge the loan off. The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of September 30, 2019 and December 31, 2018: September 30, 2019 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 9,078 - - - 632 - 700 - 10,410 2- High Quality 29,679 132,304 - 22,363 291 22,014 - 2,756 1,999 211,406 3- Good Quality 57,270 103,843 12,494 219,509 41,730 69,335 980 4,534 8,441 518,136 4- Management Attention 5,582 17,828 14,213 36,583 4,694 7,033 121 450 731 87,235 5- Watch 3,025 3,261 2,147 2,892 551 231 - 8 - 12,115 6- Substandard 66 2,990 2,819 260 - 137 - 25 - 6,297 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,622 269,304 31,673 281,607 47,266 99,382 1,101 8,473 11,171 845,599 December 31, 2018 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 504 5,795 - - - 605 - 673 - 7,577 2- High Quality 24,594 128,588 - 25,321 395 20,520 - 3,229 2,145 204,792 3- Good Quality 59,549 92,435 13,776 211,541 27,774 69,651 785 4,699 8,932 489,142 4- Management Attention 5,707 19,200 15,012 30,333 3,906 6,325 141 529 750 81,903 5- Watch 3,669 3,761 2,408 2,616 1,088 264 - 18 - 13,824 6- Substandard 155 3,204 3,065 244 - 100 - 17 - 6,785 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 94,178 252,983 34,261 270,055 33,163 97,465 926 9,165 11,827 804,023 Current year TDR modifications, past due TDR loans and non-accrual TDR loans totaled $2.2 million and $4.7 million at September 30, 2019 and December 31, 2018, respectively. The terms of these loans have been renegotiated to provide a concession to original terms, including a reduction in principal or interest as a result of the deteriorating financial position of the borrower. There was zero and $92,000 in performing loans classified as TDR loans at September 30, 2019 and December 31, 2018, respectively. There were no new TDR modifications during the three and nine months ended September 30, 2019. The following table presents an analysis of TDR loan modifications during the three months ended September 30, 2018. Three months ended September 30, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 1 $ 61 61 Total real estate TDR loans 1 61 61 Total TDR loans 1 $ 61 61 During the three months ended September 30, 2018, one loan was modified that was considered to be a new TDR loan. The interest rate was modified on this TDR loan. The following table presents an analysis of TDR loan modifications during the nine months ended September 30, 2018. Nine months ended September 30, 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 2 $ 94 94 Total real estate TDR loans 2 94 94 Total TDR loans 2 $ 94 94 During the nine months ended September 30, 2018, two loans were modified that were considered to be new TDR loans. The interest rates were modified on these TDR loans. There were no loans modified as TDR that defaulted during the three and nine months ended September 30, 2019 and 2018, which were within 12 months of their modification date. Generally, a TDR loan is considered to be in default once it becomes 90 days or more past due following a modification.

4. Net Earnings Per Share

4. Net Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
4. Net Earnings Per Share	Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per share. The average market price during the year is used to compute equivalent shares. The reconciliation of the amounts used in the computation of both “basic earnings per share” and “diluted earnings per share” for the three and nine months ended September 30, 2019 and 2018 is as follows: For the three months ended September 30, 2019 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,621 5,919,322 $ 0.62 Effect of dilutive securities: Restricted stock units - 25,883 Diluted earnings per share $ 3,621 5,945,205 $ 0.61 For the nine months ended September 30, 2019 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 11,101 5,951,840 $ 1.87 Effect of dilutive securities: Restricted stock units - 24,908 Diluted earnings per share $ 11,101 5,976,748 $ 1.86 For the three months ended September 30, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,467 5,995,256 $ 0.58 Effect of dilutive securities: Restricted stock units - 21,445 Diluted earnings per share $ 3,467 6,016,701 $ 0.57 For the nine months ended September 30, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 9,946 5,995,256 $ 1.66 Effect of dilutive securities: Restricted stock units - 19,137 Diluted earnings per share $ 9,946 6,014,393 $ 1.65

5. Stock-Based Compensation

5. Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
5. Stock-Based Compensation	The Company has an Omnibus Stock Ownership and Long Term Incentive Plan that was approved by shareholders on May 7, 2009 (the “Plan”) whereby certain stock-based rights, such as stock options, restricted stock, restricted stock units, performance units, stock appreciation rights or book value shares, may be granted to eligible directors and employees. No shares were available for issuance under the Plan at September 30, 2019 as all stock-based rights under the Plan must have been granted or awarded by May 7, 2019 (i.e., ten years from the Plan effective date). The Company granted 32,465 restricted stock units under the Plan at a grant date fair value of $7.18 per share during the first quarter of 2012, of which 5,891 restricted stock units were forfeited by the executive officers of the Company as required by the agreement with the U.S. Department of the Treasury in conjunction with the Company’s participation in the Capital Purchase Program under the Troubled Asset Relief Program. In July 2012, the Company granted 5,891 restricted stock units at a grant date fair value of $7.50 per share. The Company granted 29,475 restricted stock units under the Plan at a grant date fair value of $10.82 per share during the second quarter of 2013. The Company granted 23,162 restricted stock units under the Plan at a grant date fair value of $14.27 per share during the first quarter of 2014. The Company granted 16,583 restricted stock units under the Plan at a grant date fair value of $16.34 per share during the first quarter of 2015. The Company granted 5,544 restricted stock units under the Plan at a grant date fair value of $16.91 per share during the first quarter of 2016. The Company granted 4,114 restricted stock units under the Plan at a grant date fair value of $25.00 per share during the first quarter of 2017. The Company granted 3,725 restricted stock units under the Plan at a grant date fair value of $31.43 per share during the first quarter of 2018. The Company granted 5,290 restricted stock units under the Plan at a grant date fair value of $28.43 per share during the first quarter of 2019. The number of restricted stock units granted and grant date fair values have been restated to reflect the 10% stock dividend that was paid in the fourth quarter of 2017. The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (five years from the grant date for the 2012 grants, four years from the grant date for the 2013, 2015, 2016, 2017, 2018 and 2019 grants and three years from the grant date for the 2014 grants). The amount of expense recorded each period reflects the changes in the Company’s stock price during such period. As of September 30, 2019, the total unrecognized compensation expense related to the restricted stock unit grants under the Plan was $249,000. The Company recognized compensation expense for restricted stock unit awards granted under the Plan of $201,000 and $131,000 for the nine months ended September 30, 2019 and 2018, respectively.

6. Fair Value

6. Fair Value	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
6. Fair Value	The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination or issuance. The methods of determining the fair value of assets and liabilities presented in this note are consistent with methodologies disclosed in Note 15 of the Company’s 2018 Form 10-K, except for the valuation of loans which was impacted by the adoption of ASU No. 2016-01. The Company groups assets and liabilities 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 fair value. These levels are: ● Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. ● Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. ● Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Cash and Cash Equivalents For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value. Cash and cash equivalents are reported in the Level 1 fair value category. Investment Securities Available for Sale Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available. If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category. Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category. Other Investments For other investments, the carrying value is a reasonable estimate of fair value. Other investments are reported in the Level 3 fair value category. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at the lower of aggregate cost or market value. The cost of mortgage loans held for sale approximates the market value. Mortgage loans held for sale are reported in the Level 3 fair value category. Loans In accordance with ASU No. 2016-01, the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments. Cash Surrender Value of Life Insurance For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. Cash surrender value of life insurance is reported in the Level 2 fair value category. Other Real Estate The fair value of other real estate is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Other real estate is reported in the Level 3 fair value category. Deposits The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Deposits are reported in the Level 3 fair value category. Securities Sold Under Agreements to Repurchase For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value. Securities sold under agreements to repurchase are reported in the Level 2 fair value category. FHLB Borrowings The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 3 fair value category. Junior Subordinated Debentures Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value. Junior subordinated debentures are reported in the Level 2 fair value category. Commitments to Extend Credit and Standby Letters of Credit Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of September 30, 2019 and December 31, 2018. (Dollars in thousands) September 30, 2019 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 70,700 - 70,700 - U.S. Government sponsored enterprises $ 29,118 - 29,118 - State and political subdivisions $ 86,195 - 86,195 - Trust preferred securities $ 250 - - 250 (Dollars in thousands) December 31, 2018 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 52,103 - 52,103 - U.S. Government sponsored enterprises $ 34,634 - 34,634 - State and political subdivisions $ 107,591 - 107,591 - Trust preferred securities $ 250 - - 250 The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the nine months ended September 30, 2019. (Dollars in thousands) Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 250 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - Transfers in and/or (out) of Level 3 - Balance, end of period $ 250 Change in unrealized gain/(loss) for assets still held in Level 3 $ - The fair value measurements for mortgage loans held for sale, impaired loans and other real estate on a non-recurring basis at September 30, 2019 and December 31, 2018 are presented below. The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of, and judgment about, current market conditions, specific issues relating to the collateral and other matters. As a result, all fair value measurements for impaired loans and other real estate are considered Level 3. (Dollars in thousands) Fair Value Measurements September 30, 2019 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 4,263 - - 4,263 Impaired loans $ 20,388 - - 20,388 Other real estate $ 26 - - 26 (Dollars in thousands) Fair Value Measurements December 31, 2018 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 680 - - 680 Impaired loans $ 21,695 - - 21,695 Other real estate $ 27 - - 27 (Dollars in thousands) Fair Value September 30, 2019 Fair Value December 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 4,263 680 Rate lock commitment N/A N/A Impaired loans $ 20,388 21,695 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% Other real estate $ 26 27 Appraised value Discounts to reflect current market conditions and estimated costs to sell 0 - 25% The carrying amount and estimated fair value of financial instruments at September 30, 2019 and December 31, 2018 are as follows: (Dollars in thousands) Fair Value Measurements at September 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 129,553 129,553 - - 129,553 Investment securities available for sale $ 186,263 - 186,013 250 186,263 Other investments $ 7,239 - - 7,239 7,239 Mortgage loans held for sale $ 4,263 - - 4,263 4,263 Loans, net $ 839,021 - - 816,260 816,260 Cash surrender value of life insurance $ 16,222 - 16,222 - 16,222 Liabilities: Deposits $ 961,568 - - 949,309 949,309 Securities sold under agreements to repurchase $ 21,927 - 21,927 - 21,927 FHLB borrowings $ 70,000 - - 70,555 70,555 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 (Dollars in thousands) Fair Value Measurements at December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 43,370 43,370 - - 43,370 Investment securities available for sale $ 194,578 - 194,328 250 194,578 Other investments $ 4,361 - - 4,361 4,361 Mortgage loans held for sale $ 680 - - 680 680 Loans, net $ 797,578 - - 748,917 748,917 Cash surrender value of life insurance $ 15,936 - 15,936 - 15,936 Liabilities: Deposits $ 877,213 - - 857,999 857,999 Securities sold under agreements to repurchase $ 58,095 - 58,095 - 58,095 Junior subordinated debentures $ 20,619 - 20,619 - 20,619

7. Leases

7. Leases	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
7. Leases	As of September 30, 2019 the Company had operating ROU assets of $3.8 million and operating lease liabilities of $3.8 million. The Company maintains operating leases on land and buildings for some of the Bank’s branch facilities and loan production offices. Most leases include one option to renew, with renewal terms extending up to 15 years. The exercise of renewal options is based on the judgment of management as to whether or not the renewal option is reasonably certain to be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option is not exercised. As allowed by the standard, leases with a term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. The following table presents lease cost and other lease information as of September 30, 2019. (Dollars in thousands) September 30, 2019 Operating lease cost $ 3,816 Other information: Cash paid for amounts included in the measurement of lease liabilities 650 Operating cash flows from operating leases - Right-of-use assets obtained in exchange for new finance operating liabilities 9 Weighted-average remaining lease term - operating leases 4 Weighted-average discount rate - operating leases 2.88% The following table presents lease maturities as of September 30, 2019. (Dollars in thousands) Maturity Analysis of Operating Lease Liabilities: September 30, 2019 2020 $ 841 2021 803 2022 569 2023 424 2024 346 Thereafter 1,369 Total $ 4,352 Less: Imputed Interest (517 ) Operating Lease Liability $ 3,835

8. Subsequent Events

8. Subsequent Events	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
8. Subsequent Events	The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued. Management has concluded that there were no material subsequent events other than the event noted below. On October 17, 2019, the Board of Directors of the Company approved a $5 million redemption of the Company's outstanding trust preferred securities in December 2019. Notification of this redemption was sent to the Trustee on October 31, 2019. Security holders will be notified at least 30 days prior to the redemption date.

2. Investment Securities (Table

2. Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Investment securities available for sale	September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 69,330 1,534 164 70,700 U.S. Government sponsored enterprises 28,800 620 302 29,118 State and political subdivisions 82,243 3,952 - 86,195 Trust preferred securities 250 - - 250 Total $ 180,623 6,106 466 186,263 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 52,145 516 558 52,103 U.S. Government sponsored enterprises 35,356 71 793 34,634 State and political subdivisions 105,545 2,089 43 107,591 Trust preferred securities 250 - - 250 Total $ 193,296 2,676 1,394 194,578
Current fair value and associated unrealized losses on investments in securities with unrealized losses	September 30, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 12,273 77 7,689 87 19,962 164 U.S. Government sponsored enterprises - - 6,482 302 6,482 302 Total $ 12,273 77 14,171 389 26,444 466 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 6,932 56 17,670 502 24,602 558 U.S. Government sponsored enterprises 1,784 69 25,172 724 26,956 793 State and political subdivisions 4,815 26 1,578 17 6,393 43 Total $ 13,531 151 44,420 1,243 57,951 1,394
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity	Amortized Cost Estimated Fair Value Due within one year $ 8,551 8,506 Due from one to five years 57,481 59,511 Due from five to ten years 39,650 41,658 Due after ten years 5,361 5,638 Mortgage-backed securities 69,330 70,700 Trust preferred securities 250 250 Total $ 180,623 186,263

3. Loans (Tables)

3. Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Receivables [Abstract]
Major classifications of loans	September 30, 2019 December 31, 2018 Real estate loans: Construction and land development $ 95,622 94,178 Single-family residential 269,304 252,983 Single-family residential - Banco de la Gente non-traditional 31,673 34,261 Commercial 281,607 270,055 Multifamily and farmland 47,266 33,163 Total real estate loans 725,472 684,640 Loans not secured by real estate: Commercial loans 99,382 97,465 Farm loans 1,101 926 Consumer loans 8,473 9,165 All other loans 11,171 11,827 Total loans 845,599 804,023 Less allowance for loan losses 6,578 6,445 Total net loans $ 839,021 797,578
Age analysis of past due loans, by loan type	September 30, 2019 Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 123 - 123 95,499 95,622 - Single-family residential 1,854 189 2,043 267,261 269,304 - Single-family residential - Banco de la Gente non-traditional 1,568 50 1,618 30,055 31,673 - Commercial 98 178 276 281,331 281,607 - Multifamily and farmland - - - 47,266 47,266 - Total real estate loans 3,643 417 4,060 721,412 725,472 - Loans not secured by real estate: Commercial loans 412 - 412 98,970 99,382 - Farm loans - - - 1,101 1,101 - Consumer loans 115 4 119 8,354 8,473 - All other loans - - - 11,171 11,171 - Total loans $ 4,170 421 4,591 841,008 845,599 - December 31, 2018 Loans 30-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 3 - 3 94,175 94,178 - Single-family residential 4,162 570 4,732 248,251 252,983 - Single-family residential - Banco de la Gente non-traditional 4,627 580 5,207 29,054 34,261 - Commercial 228 - 228 269,827 270,055 - Multifamily and farmland - - - 33,163 33,163 - Total real estate loans 9,020 1,150 10,170 674,470 684,640 - Loans not secured by real estate: Commercial loans 445 90 535 96,930 97,465 - Farm loans - - - 926 926 - Consumer loans 99 4 103 9,062 9,165 - All other loans - - - 11,827 11,827 - Total loans $ 9,564 1,244 10,808 793,215 804,023 -
Non-accrual loans	September 30, 2019 December 31, 2018 Real estate loans: Construction and land development $ - 1 Single-family residential 1,293 1,530 Single-family residential - Banco de la Gente non-traditional 1,559 1,440 Commercial 260 244 Multifamily and farmland - - Total real estate loans 3,112 3,215 Loans not secured by real estate: Commercial loans 131 89 Consumer loans 15 10 Total $ 3,258 3,314
Impaired loans	September 30, 2019 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Real estate loans: Construction and land development $ 187 - 187 187 5 Single-family residential 4,900 409 4,010 4,419 31 Single-family residential - Banco de la Gente stated income 15,392 - 14,634 14,634 966 Commercial 1,896 - 1,888 1,888 12 Multifamily and farmland - - - - - Total impaired real estate loans 22,375 409 20,719 21,128 1,014 Loans not secured by real estate: Commercial loans 578 100 88 188 1 Consumer loans 92 - 88 88 1 Total impaired loans $ 23,045 509 20,895 21,404 1,016 Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Average Balance Interest Income Recognized Real estate loans: Construction and land development $ 188 3 320 2 232 9 326 14 Single-family residential 4,360 70 6,441 73 4,724 188 6,350 207 Single-family residential - Banco de la Gente Non-traditional 14,805 241 14,602 236 14,916 732 14,851 703 Commercial 1,808 26 2,320 17 1,823 71 2,307 97 Multifamily and farmland - - - - - - 3 - Total impaired real estate loans 21,161 340 23,683 328 21,695 1,000 23,837 1,021 Loans not secured by real estate: Commercial loans 153 16 96 - 127 20 99 - Farm loans (non RE) - - - - - - - - Consumer loans 94 1 144 3 102 5 147 7 Total impaired loans $ 21,408 357 23,923 331 21,924 1,025 24,083 1,028 December 31, 2018 Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 281 - 279 279 5 327 19 Single-family residential 5,059 422 4,188 4,610 32 6,271 261 Single-family residential - Banco de la Gente non-traditional 16,424 - 15,776 15,776 1,042 14,619 944 Commercial 1,995 - 1,925 1,925 17 2,171 111 Total impaired real estate loans 23,759 422 22,168 22,590 1,096 23,388 1,335 Loans not secured by real estate: Commercial loans 251 89 1 90 - 96 - Consumer loans 116 - 113 113 2 137 7 Total impaired loans $ 24,126 511 22,282 22,793 1,098 23,621 1,342
Changes in the allowance for loan losses	Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2019: Allowance for loan losses: Beginning balance $ 813 1,325 1,177 1,278 83 626 - 161 982 6,445 Charge-offs (21 ) (42 ) - - - (389 ) - (459 ) - (911 ) Recoveries 44 59 - 27 - 80 - 157 - 367 Provision (141 ) 22 (87 ) (26 ) 35 333 - 303 238 677 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Three months ended September 30, 2019: Allowance for loan losses: Beginning balance $ 763 1,312 1,116 1,334 110 548 - 161 1,197 6,541 Charge-offs - (19 ) - - - (388 ) - (144 ) - (551 ) Recoveries 41 6 - 4 - 66 - 49 - 166 Provision (109 ) 65 (26 ) (59 ) 8 424 - 96 23 422 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Allowance for loan losses at September 30, 2019: Ending balance: individually evaluated for impairment $ - 2 948 10 - - - - - 960 Ending balance: collectively evaluated for impairment 695 1,362 142 1,269 118 650 - 162 1,220 5,618 Ending balance $ 695 1,364 1,090 1,279 118 650 - 162 1,220 6,578 Loans at September 30, 2019: Ending balance $ 95,622 269,304 31,673 281,607 47,266 99,382 1,101 19,644 - 845,599 Ending balance: individually evaluated for impairment $ 11 1,719 13,196 1,628 - 100 - - - 16,654 Ending balance: collectively evaluated for impairment $ 95,611 267,585 18,477 279,979 47,266 99,282 1,101 19,644 - 828,945 Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente Non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Nine months ended September 30, 2018: Allowance for loan losses: Beginning balance $ 804 1,812 1,280 1,193 72 574 - 155 476 6,366 Charge-offs (53 ) (115 ) - (271 ) (5 ) (4 ) - (318 ) - (766 ) Recoveries 4 55 - 101 1 23 - 139 - 323 Provision (63 ) (293 ) (75 ) 438 10 12 - 182 161 372 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Three months ended September 30, 2018: Allowance for loan losses: Beginning balance $ 668 1,638 1,233 1,420 72 587 - 150 509 6,277 Charge-offs (53 ) (73 ) - - - (1 ) - (132 ) - (259 ) Recoveries 1 28 - 94 - 7 - 37 - 167 Provision 76 (134 ) (28 ) (53 ) 6 12 - 103 128 110 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Allowance for loan losses at September 30, 2018: Ending balance: individually evaluated for impairment $ 5 2 1,036 12 - - - - - 1,055 Ending balance: collectively evaluated for impairment 687 1,457 169 1,449 78 605 - 158 637 5,240 Ending balance $ 692 1,459 1,205 1,461 78 605 - 158 637 6,295 Loans at September 30, 2018: Ending balance $ 76,987 249,812 34,742 275,629 31,102 97,085 994 20,373 - 786,724 Ending balance: individually evaluated for impairment $ 98 2,171 14,557 1,879 - 94 - - - 18,799 Ending balance: collectively evaluated for impairment $ 76,889 247,641 20,185 273,750 31,102 96,991 994 20,373 - 767,925
Credit risk profile of each loan type based on internally assigned risk grade	Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ - 9,078 - - - 632 - 700 - 10,410 2- High Quality 29,679 132,304 - 22,363 291 22,014 - 2,756 1,999 211,406 3- Good Quality 57,270 103,843 12,494 219,509 41,730 69,335 980 4,534 8,441 518,136 4- Management Attention 5,582 17,828 14,213 36,583 4,694 7,033 121 450 731 87,235 5- Watch 3,025 3,261 2,147 2,892 551 231 - 8 - 12,115 6- Substandard 66 2,990 2,819 260 - 137 - 25 - 6,297 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 95,622 269,304 31,673 281,607 47,266 99,382 1,101 8,473 11,171 845,599 December 31, 2018 Real Estate Loans Construction and Land Development Single-Family Residential Single-Family Residential - Banco de la Gente non-traditional Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 504 5,795 - - - 605 - 673 - 7,577 2- High Quality 24,594 128,588 - 25,321 395 20,520 - 3,229 2,145 204,792 3- Good Quality 59,549 92,435 13,776 211,541 27,774 69,651 785 4,699 8,932 489,142 4- Management Attention 5,707 19,200 15,012 30,333 3,906 6,325 141 529 750 81,903 5- Watch 3,669 3,761 2,408 2,616 1,088 264 - 18 - 13,824 6- Substandard 155 3,204 3,065 244 - 100 - 17 - 6,785 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 94,178 252,983 34,261 270,055 33,163 97,465 926 9,165 11,827 804,023
TDR modifications analysis	Three months ended September 30, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 1 $ 61 61 Total real estate TDR loans 1 61 61 Total TDR loans 1 $ 61 61 Nine months ended September 30, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Real estate loans Single-family residential 2 $ 94 94 Total real estate TDR loans 2 94 94 Total TDR loans 2 $ 94 94

4. Net Earnings Per Share (Tabl

4. Net Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share	For the three months ended September 30, 2019 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,621 5,919,322 $ 0.62 Effect of dilutive securities: Restricted stock units - 25,883 Diluted earnings per share $ 3,621 5,945,205 $ 0.61 For the nine months ended September 30, 2019 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 11,101 5,951,840 $ 1.87 Effect of dilutive securities: Restricted stock units - 24,908 Diluted earnings per share $ 11,101 5,976,748 $ 1.86 For the three months ended September 30, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,467 5,995,256 $ 0.58 Effect of dilutive securities: Restricted stock units - 21,445 Diluted earnings per share $ 3,467 6,016,701 $ 0.57 For the nine months ended September 30, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 9,946 5,995,256 $ 1.66 Effect of dilutive securities: Restricted stock units - 19,137 Diluted earnings per share $ 9,946 6,014,393 $ 1.65

6. Fair Value (Tables)

6. Fair Value (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Available for sale securities measured at fair value on a recurring basis	September 30, 2019 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 70,700 - 70,700 - U.S. Government sponsored enterprises $ 29,118 - 29,118 - State and political subdivisions $ 86,195 - 86,195 - Trust preferred securities $ 250 - - 250 (Dollars in thousands) December 31, 2018 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 52,103 - 52,103 - U.S. Government sponsored enterprises $ 34,634 - 34,634 - State and political subdivisions $ 107,591 - 107,591 - Trust preferred securities $ 250 - - 250
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs	Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 250 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - Transfers in and/or (out) of Level 3 - Balance, end of period $ 250 Change in unrealized gain/(loss) for assets still held in Level 3 $ -
Fair value measurements for mortgage loans held for sale, impaired loans and other real estate on a non-recurring basis	Fair Value Measurements September 30, 2019 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 4,263 - - 4,263 Impaired loans $ 20,388 - - 20,388 Other real estate $ 26 - - 26 Fair Value Measurements December 31, 2018 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 680 - - 680 Impaired loans $ 21,695 - - 21,695 Other real estate $ 27 - - 27 Fair Value September 30, 2019 Fair Value December 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 4,263 680 Rate lock commitment N/A N/A Impaired loans $ 20,388 21,695 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% Other real estate $ 26 27 Appraised value Discounts to reflect current market conditions and estimated costs to sell 0 - 25%
Carrying amount and estimated fair value of the Company's financial instruments	Fair Value Measurements at September 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 129,553 129,553 - - 129,553 Investment securities available for sale $ 186,263 - 186,013 250 186,263 Other investments $ 7,239 - - 7,239 7,239 Mortgage loans held for sale $ 4,263 - - 4,263 4,263 Loans, net $ 839,021 - - 816,260 816,260 Cash surrender value of life insurance $ 16,222 - 16,222 - 16,222 Liabilities: Deposits $ 961,568 - - 949,309 949,309 Securities sold under agreements to repurchase $ 21,927 - 21,927 - 21,927 FHLB borrowings $ 70,000 - - 70,555 70,555 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 Fair Value Measurements at December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 43,370 43,370 - - 43,370 Investment securities available for sale $ 194,578 - 194,328 250 194,578 Other investments $ 4,361 - - 4,361 4,361 Mortgage loans held for sale $ 680 - - 680 680 Loans, net $ 797,578 - - 748,917 748,917 Cash surrender value of life insurance $ 15,936 - 15,936 - 15,936 Liabilities: Deposits $ 877,213 - - 857,999 857,999 Securities sold under agreements to repurchase $ 58,095 - 58,095 - 58,095 Junior subordinated debentures $ 20,619 - 20,619 - 20,619

7. Leases (Tables)

7. Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Lease expense	September 30, 2019 Operating lease cost $ 3,816 Other information: Cash paid for amounts included in the measurement of lease liabilities 650 Operating cash flows from operating leases - Right-of-use assets obtained in exchange for new finance operating liabilities 9 Weighted-average remaining lease term - operating leases 4 Weighted-average discount rate - operating leases 2.88%
Maturity analysis of operating lease liabilities	Maturity Analysis of Operating Lease Liabilities: September 30, 2019 2020 $ 841 2021 803 2022 569 2023 424 2024 346 Thereafter 1,369 Total $ 4,352 Less: Imputed Interest (517 ) Operating Lease Liability $ 3,835

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investment securities available for sale
Amortized cost	$ 180,623	$ 193,296
Estimated fair value	186,263	194,578
Mortgage-backed securities
Investment securities available for sale
Amortized cost	69,330	52,145
Gross unrealized gains	1,534	516
Gross unrealized losses	164	558
Estimated fair value	70,700	52,103
U.S. Government sponsored enterprises
Investment securities available for sale
Amortized cost	28,800	35,356
Gross unrealized gains	620	71
Gross unrealized losses	302	793
Estimated fair value	29,118	34,634
State and political subdivisions
Investment securities available for sale
Amortized cost	82,243	105,545
Gross unrealized gains	3,952	2,089
Gross unrealized losses	0	43
Estimated fair value	86,195	107,591
Trust preferred securities
Investment securities available for sale
Amortized cost	250	250
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	250	250
Total
Investment securities available for sale
Amortized cost	180,623	193,296
Gross unrealized gains	6,106	2,676
Gross unrealized losses	466	1,394
Estimated fair value	$ 186,263	$ 194,578

2. Investment securities (Det_2

2. Investment securities (Details 1) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Investment securities with continuous unrealized loss position
Less than 12 months, fair value	$ 12,273	$ 13,531
Less than 12 months, unrealized losses	77	151
12 months or more, fair value	14,171	44,420
12 months or more, unrealized losses	389	1,243
Total, fair value	26,444	57,951
Total, unrealized losses	466	1,394
Mortgage-backed securities
Investment securities with continuous unrealized loss position
Less than 12 months, fair value	12,273	6,932
Less than 12 months, unrealized losses	77	56
12 months or more, fair value	7,689	17,670
12 months or more, unrealized losses	87	502
Total, fair value	19,962	24,602
Total, unrealized losses	164	558
U.S. Government sponsored enterprises
Investment securities with continuous unrealized loss position
Less than 12 months, fair value	0	1,784
Less than 12 months, unrealized losses	0	69
12 months or more, fair value	6,482	25,172
12 months or more, unrealized losses	302	724
Total, fair value	6,482	26,956
Total, unrealized losses	$ 302	793
State and political subdivisions
Investment securities with continuous unrealized loss position
Less than 12 months, fair value		4,815
Less than 12 months, unrealized losses		26
12 months or more, fair value		1,578
12 months or more, unrealized losses		17
Total, fair value		6,393
Total, unrealized losses		$ 43

2. Investment securities (Det_3

2. Investment securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amortized Cost
Due within one year	$ 8,551
Due from one to five years	57,481
Due from five to ten years	39,650
Due after ten years	5,361
Mortgage-backed securities	69,330
Trust preferred securities	250
Total	180,623	$ 193,296
Estimated Fair Value
Due within one year	8,506
Due from one to five years	59,511
Due from five to ten years	41,658
Due after ten years	5,638
Mortgage-backed securities	70,700
Trust preferred securities	250
Total	$ 186,263

2. Investment Securities (Det_4

2. Investment Securities (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Pledged to secure public deposits	$ 64,300	$ 93,000

3. Loans (Details)

3. Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Major classifications
Total loans	$ 845,599		$ 804,023	$ 786,724
Less allowance for loan losses	6,578	$ 6,541	6,445	6,295	$ 6,277	$ 6,366
Total net loans	839,021		797,578
Construction and land development
Major classifications
Total loans	95,622		94,178	76,987
Less allowance for loan losses	695	763	813	692	668	804
Single-family residential
Major classifications
Total loans	269,304		252,983	249,812
Less allowance for loan losses	1,364	1,312	1,325	1,459	1,638	1,812
Single-family residential - Banco de la Gente stated income
Major classifications
Total loans	31,673		34,261	34,742
Less allowance for loan losses	1,090	1,116	1,177	1,205	1,233	1,280
Commercial
Major classifications
Total loans	281,607		270,055	275,629
Less allowance for loan losses	1,279	1,334	1,278	1,461	1,420	1,193
Multifamily and Farmland
Major classifications
Total loans	47,266		33,163	31,102
Less allowance for loan losses	118	110	83	78	72	72
Total real estate loans
Major classifications
Total loans	725,472		684,640
Commercial loans (not secured by real estate)
Major classifications
Total loans	99,382		97,465	97,085
Less allowance for loan losses	650	548	626	605	587	574
Farm loans (not secured by real estate)
Major classifications
Total loans	1,101		926	994
Less allowance for loan losses	0	$ 0	0	$ 0	$ 0	$ 0
Consumer loans (not secured by real estate)
Major classifications
Total loans	8,473		9,165
All other loans (not secured by real estate)
Major classifications
Total loans	$ 11,171		$ 11,827

3. Loans (Details 1)

3. Loans (Details 1) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Past due loans
Loans 30-89 days past due	$ 4,170	$ 9,564
Loans 90 or more days past due	421	1,244
Total past due loans	4,591	10,808
Total current loans	841,008	793,215
Total loans	845,599	804,023	$ 786,724
Accruing loans 90 or more days past due	0	0
Construction and land development
Past due loans
Loans 30-89 days past due	123	3
Loans 90 or more days past due	0	0
Total past due loans	123	3
Total current loans	95,499	94,175
Total loans	95,622	94,178
Accruing loans 90 or more days past due	0	0
Single-family residential
Past due loans
Loans 30-89 days past due	1,854	4,162
Loans 90 or more days past due	189	570
Total past due loans	2,043	4,732
Total current loans	267,261	248,251
Total loans	269,304	252,983
Accruing loans 90 or more days past due	0	0
Single-family residential - Banco de la Gente stated income
Past due loans
Loans 30-89 days past due	1,568	4,627
Loans 90 or more days past due	50	580
Total past due loans	1,618	5,207
Total current loans	30,055	29,054
Total loans	31,673	34,261
Accruing loans 90 or more days past due	0	0
Commercial
Past due loans
Loans 30-89 days past due	98	228
Loans 90 or more days past due	178	0
Total past due loans	276	228
Total current loans	281,331	269,827
Total loans	281,607	270,055
Accruing loans 90 or more days past due	0	0
Multifamily and Farmland
Past due loans
Loans 30-89 days past due	0	0
Loans 90 or more days past due	0	0
Total past due loans	0	0
Total current loans	47,266	33,163
Total loans	47,266	33,163
Accruing loans 90 or more days past due	0	0
Total real estate loans
Past due loans
Loans 30-89 days past due	3,643	9,020
Loans 90 or more days past due	417	1,150
Total past due loans	4,060	10,170
Total current loans	721,412	674,470
Total loans	725,472	684,640
Accruing loans 90 or more days past due	0	0
Commercial loans (not secured by real estate)
Past due loans
Loans 30-89 days past due	412	445
Loans 90 or more days past due	0	90
Total past due loans	412	535
Total current loans	98,970	96,930
Total loans	99,382	97,465
Accruing loans 90 or more days past due	0	0
Farm loans (not secured by real estate)
Past due loans
Loans 30-89 days past due	0	0
Loans 90 or more days past due	0	0
Total past due loans	0	0
Total current loans	1,101	926
Total loans	1,101	926
Accruing loans 90 or more days past due	0	0
Consumer loans (not secured by real estate)
Past due loans
Loans 30-89 days past due	115	99
Loans 90 or more days past due	4	4
Total past due loans	119	103
Total current loans	8,354	9,062
Total loans	8,473	9,165
Accruing loans 90 or more days past due	0	0
All other loans (not secured by real estate)
Past due loans
Loans 30-89 days past due	0	0
Loans 90 or more days past due	0	0
Total past due loans	0	0
Total current loans	11,171	11,827
Total loans	11,171	11,827
Accruing loans 90 or more days past due	$ 0	$ 0

3. Loans (Details 2)

3. Loans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Non-accrual loans
Non-accrual loans	$ 3,258	$ 3,314
Construction and land development
Non-accrual loans
Non-accrual loans	0	1
Single-family residential
Non-accrual loans
Non-accrual loans	1,293	1,530
Single-family residential - Banco de la Gente stated income
Non-accrual loans
Non-accrual loans	1,559	1,440
Commercial
Non-accrual loans
Non-accrual loans	260	244
Multifamily and Farmland
Non-accrual loans
Non-accrual loans	0	0
Total real estate loans
Non-accrual loans
Non-accrual loans	3,112	3,215
Commercial loans (not secured by real estate)
Non-accrual loans
Non-accrual loans	131	89
Consumer loans (not secured by real estate)
Non-accrual loans
Non-accrual loans	$ 15	$ 10

3. Loans (Details 3)

3. Loans (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Impaired loans
Unpaid contractual principal balance	$ 23,045		$ 23,045		$ 24,126
Recorded investment with no allowance	509		509		511
Recorded investment with allowance	20,895		20,895		22,282
Recorded investment in impaired loans	21,404		21,404		22,793
Related allowance	1,016		1,016		1,098
Average outstanding impaired loans	21,408	$ 23,923	21,924	$ 26,694	23,621
Interest income recognized	357	331	1,025	1,062	1,342
Construction and land development
Impaired loans
Unpaid contractual principal balance	187		187		281
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	187		187		279
Recorded investment in impaired loans	187		187		279
Related allowance	5		5		5
Average outstanding impaired loans	188	320	232	253	327
Interest income recognized	3	2	9	11	19
Single-family residential
Impaired loans
Unpaid contractual principal balance	4,900		4,900		5,059
Recorded investment with no allowance	409		409		422
Recorded investment with allowance	4,010		4,010		4,188
Recorded investment in impaired loans	4,419		4,419		4,610
Related allowance	31		31		32
Average outstanding impaired loans	4,360	6,441	4,724	5,113	6,271
Interest income recognized	70	73	188	202	261
Single-family residential - Banco de la Gente stated income
Impaired loans
Unpaid contractual principal balance	15,392		15,392		16,424
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	14,634		14,634		15,776
Recorded investment in impaired loans	14,634		14,634		15,776
Related allowance	966		966		1,042
Average outstanding impaired loans	14,805	14,602	14,916	17,235	14,619
Interest income recognized	241	236	732	694	944
Commercial
Impaired loans
Unpaid contractual principal balance	1,896		1,896		1,995
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	1,888		1,888		1,925
Recorded investment in impaired loans	1,888		1,888		1,925
Related allowance	12		12		17
Average outstanding impaired loans	1,808	2,320	1,823	3,712	2,171
Interest income recognized	26	17	71	144	111
Multifamily and Farmland
Impaired loans
Unpaid contractual principal balance	0		0		0
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	0		0		0
Recorded investment in impaired loans	0		0		0
Related allowance	0		0		0
Average outstanding impaired loans	0	0	0	45	0
Interest income recognized	0	0	0	0	0
Total real estate loans
Impaired loans
Unpaid contractual principal balance	22,375		22,375		23,759
Recorded investment with no allowance	409		409		422
Recorded investment with allowance	20,719		20,719		22,168
Recorded investment in impaired loans	21,128		21,128		22,590
Related allowance	1,014		1,014		1,096
Average outstanding impaired loans	21,161	23,683	21,695	26,358	23,388
Interest income recognized	340	328	1,000	1,051	1,335
Commercial loans (not secured by real estate)
Impaired loans
Unpaid contractual principal balance	578		578		251
Recorded investment with no allowance	100		100		89
Recorded investment with allowance	88		88		1
Recorded investment in impaired loans	188		188		90
Related allowance	1		1		0
Average outstanding impaired loans	153	96	127	130	96
Interest income recognized	16	0	20	3	0
Consumer loans (not secured by real estate)
Impaired loans
Unpaid contractual principal balance	92		92		116
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	88		88		113
Recorded investment in impaired loans	88		88		113
Related allowance	1		1		2
Average outstanding impaired loans	94	144	102	206	137
Interest income recognized	1	3	5	8	$ 7
Farm loans (not secured by real estate)
Impaired loans
Average outstanding impaired loans	0	0	0	0
Interest income recognized	$ 0	$ 0	$ 0	$ 0

3. Loans (Details 4)

3. Loans (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Allowance for loan losses
Beginning balance	$ 6,541	$ 6,277	$ 6,445	$ 6,366
Charge-offs	(551)	(259)	(911)	(766)
Recoveries	166	167	367	323
Provision	422	110	677	372
Ending balance	6,578	6,295	6,578	6,295
Ending balance: individually evaluated for impairments	960	1,055	960	1,055
Ending balance: collectively evaluated for impairments	5,618	5,240	5,618	5,240
Ending balance	6,578	6,295	6,578	6,295
Loans
Ending balance	845,599	786,724	845,599	786,724
Ending balance: individually evaluated for impairment	16,654	18,799	16,654	18,799
Ending balance: collectively evaluated for impairment	828,945	767,925	828,945	767,925
Construction and land development
Allowance for loan losses
Beginning balance	763	668	813	804
Charge-offs	0	(53)	(21)	(53)
Recoveries	41	1	44	4
Provision	(109)	76	(141)	(63)
Ending balance	695	692	695	692
Ending balance: individually evaluated for impairments	0	5	0	5
Ending balance: collectively evaluated for impairments	695	687	695	687
Ending balance	695	692	695	692
Loans
Ending balance	95,622	76,987	95,622	76,987
Ending balance: individually evaluated for impairment	11	98	11	98
Ending balance: collectively evaluated for impairment	95,611	76,889	95,611	76,889
Single-family residential
Allowance for loan losses
Beginning balance	1,312	1,638	1,325	1,812
Charge-offs	(19)	(73)	(42)	(115)
Recoveries	6	28	59	55
Provision	65	(134)	22	(293)
Ending balance	1,364	1,459	1,364	1,459
Ending balance: individually evaluated for impairments	2	2	2	2
Ending balance: collectively evaluated for impairments	1,362	1,457	1,362	1,457
Ending balance	1,364	1,459	1,364	1,459
Loans
Ending balance	269,304	249,812	269,304	249,812
Ending balance: individually evaluated for impairment	1,719	2,171	1,719	2,171
Ending balance: collectively evaluated for impairment	267,585	247,641	267,585	247,641
Single-family residential - Banco de la Gente stated income
Allowance for loan losses
Beginning balance	1,116	1,233	1,177	1,280
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	(26)	(28)	(87)	(75)
Ending balance	1,090	1,205	1,090	1,205
Ending balance: individually evaluated for impairments	948	1,036	948	1,036
Ending balance: collectively evaluated for impairments	142	169	142	169
Ending balance	1,090	1,205	1,090	1,205
Loans
Ending balance	31,673	34,742	31,673	34,742
Ending balance: individually evaluated for impairment	13,196	14,557	13,196	14,557
Ending balance: collectively evaluated for impairment	18,477	20,185	18,477	20,185
Commercial
Allowance for loan losses
Beginning balance	1,334	1,420	1,278	1,193
Charge-offs	0	0	0	(271)
Recoveries	4	94	27	101
Provision	(59)	(53)	(26)	438
Ending balance	1,279	1,461	1,279	1,461
Ending balance: individually evaluated for impairments	10	12	10	12
Ending balance: collectively evaluated for impairments	1,269	1,449	1,269	1,449
Ending balance	1,279	1,461	1,279	1,461
Loans
Ending balance	281,607	275,629	281,607	275,629
Ending balance: individually evaluated for impairment	1,628	1,879	1,628	1,879
Ending balance: collectively evaluated for impairment	279,979	273,750	279,979	273,750
Multifamily and Farmland
Allowance for loan losses
Beginning balance	110	72	83	72
Charge-offs	0	0	0	(5)
Recoveries	0	0	0	1
Provision	8	6	35	10
Ending balance	118	78	118	78
Ending balance: individually evaluated for impairments	0	0	0	0
Ending balance: collectively evaluated for impairments	118	78	118	78
Ending balance	118	78	118	78
Loans
Ending balance	47,266	31,102	47,266	31,102
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	47,266	31,102	47,266	31,102
Commercial loans (not secured by real estate)
Allowance for loan losses
Beginning balance	548	587	626	574
Charge-offs	(388)	(1)	(389)	(4)
Recoveries	66	7	80	23
Provision	424	12	333	12
Ending balance	650	605	650	605
Ending balance: individually evaluated for impairments	0	0	0	0
Ending balance: collectively evaluated for impairments	650	605	650	605
Ending balance	650	605	650	605
Loans
Ending balance	99,382	97,085	99,382	97,085
Ending balance: individually evaluated for impairment	100	94	100	94
Ending balance: collectively evaluated for impairment	99,282	96,991	99,282	96,991
Farm loans (not secured by real estate)
Allowance for loan losses
Beginning balance	0	0	0	0
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	0	0	0	0
Ending balance	0	0	0	0
Ending balance: individually evaluated for impairments	0	0	0	0
Ending balance: collectively evaluated for impairments	0	0	0	0
Ending balance	0	0	0	0
Loans
Ending balance	1,101	994	1,101	994
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	1,101	994	1,101	994
Consumer And All Other Loans
Allowance for loan losses
Beginning balance	161	150	161	155
Charge-offs	(144)	(132)	(459)	(318)
Recoveries	49	37	157	139
Provision	96	103	303	182
Ending balance	162	158	162	158
Ending balance: individually evaluated for impairments	0	0	0	0
Ending balance: collectively evaluated for impairments	162	158	162	158
Ending balance	162	158	162	158
Loans
Ending balance		20,373		20,373
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	19,644	20,373	19,644	20,373
Unallocated
Allowance for loan losses
Beginning balance	1,197	509	982	476
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	23	128	238	161
Ending balance	1,220	637	1,220	637
Ending balance: individually evaluated for impairments	0	0	0	0
Ending balance: collectively evaluated for impairments	1,220	637	1,220	637
Ending balance	1,220	637	1,220	637
Loans
Ending balance		0		0
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	$ 0	$ 0	$ 0	$ 0

3. Loans (Details 5)

3. Loans (Details 5) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Credit risk profile
Total loans	$ 845,599	$ 804,023	$ 786,724
Excellent Quality
Credit risk profile
Total loans	10,410	7,577
High Quality
Credit risk profile
Total loans	211,406	204,792
Good Quality
Credit risk profile
Total loans	518,136	489,142
Management Attention
Credit risk profile
Total loans	87,235	81,903
Watch
Credit risk profile
Total loans	12,115	13,824
Substandard
Credit risk profile
Total loans	6,297	6,785
Doubtful
Credit risk profile
Total loans	0	0
Loss
Credit risk profile
Total loans	0	0
Construction and land development
Credit risk profile
Total loans	95,622	94,178
Single-family residential
Credit risk profile
Total loans	269,304	252,983
Single-family residential - Banco de la Gente stated income
Credit risk profile
Total loans	31,673	34,261
Commercial
Credit risk profile
Total loans	281,607	270,055
Multifamily and Farmland
Credit risk profile
Total loans	47,266	33,163
Commercial loans (not secured by real estate)
Credit risk profile
Total loans	99,382	97,465
Farm loans (not secured by real estate)
Credit risk profile
Total loans	1,101	926
Consumer loans (not secured by real estate)
Credit risk profile
Total loans	8,473	9,165
All other loans (not secured by real estate)
Credit risk profile
Total loans	11,171	11,827
Construction and land development
Credit risk profile
Total loans	95,622	94,178	76,987
Construction and land development | Excellent Quality
Credit risk profile
Total loans	0	504
Construction and land development | High Quality
Credit risk profile
Total loans	29,679	24,594
Construction and land development | Good Quality
Credit risk profile
Total loans	57,270	59,549
Construction and land development | Management Attention
Credit risk profile
Total loans	5,582	5,707
Construction and land development | Watch
Credit risk profile
Total loans	3,025	3,669
Construction and land development | Substandard
Credit risk profile
Total loans	66	155
Construction and land development | Doubtful
Credit risk profile
Total loans	0	0
Construction and land development | Loss
Credit risk profile
Total loans	0	0
Single-family residential
Credit risk profile
Total loans	269,304	252,983	249,812
Single-family residential | Excellent Quality
Credit risk profile
Total loans	9,078	5,795
Single-family residential | High Quality
Credit risk profile
Total loans	132,304	128,588
Single-family residential | Good Quality
Credit risk profile
Total loans	103,843	92,435
Single-family residential | Management Attention
Credit risk profile
Total loans	17,828	19,200
Single-family residential | Watch
Credit risk profile
Total loans	3,261	3,761
Single-family residential | Substandard
Credit risk profile
Total loans	2,990	3,204
Single-family residential | Doubtful
Credit risk profile
Total loans	0	0
Single-family residential | Loss
Credit risk profile
Total loans	0	0
Single-family residential - Banco de la Gente stated income
Credit risk profile
Total loans	31,673	34,261	34,742
Single-family residential - Banco de la Gente stated income | Excellent Quality
Credit risk profile
Total loans	0	0
Single-family residential - Banco de la Gente stated income | High Quality
Credit risk profile
Total loans	0	0
Single-family residential - Banco de la Gente stated income | Good Quality
Credit risk profile
Total loans	12,494	13,776
Single-family residential - Banco de la Gente stated income | Management Attention
Credit risk profile
Total loans	14,213	15,012
Single-family residential - Banco de la Gente stated income | Watch
Credit risk profile
Total loans	2,147	2,408
Single-family residential - Banco de la Gente stated income | Substandard
Credit risk profile
Total loans	2,819	3,065
Single-family residential - Banco de la Gente stated income | Doubtful
Credit risk profile
Total loans	0	0
Single-family residential - Banco de la Gente stated income | Loss
Credit risk profile
Total loans	0	0
Commercial
Credit risk profile
Total loans	281,607	270,055	275,629
Commercial | Excellent Quality
Credit risk profile
Total loans	0	0
Commercial | High Quality
Credit risk profile
Total loans	22,363	25,321
Commercial | Good Quality
Credit risk profile
Total loans	219,509	211,541
Commercial | Management Attention
Credit risk profile
Total loans	36,583	30,333
Commercial | Watch
Credit risk profile
Total loans	2,892	2,616
Commercial | Substandard
Credit risk profile
Total loans	260	244
Commercial | Doubtful
Credit risk profile
Total loans	0	0
Commercial | Loss
Credit risk profile
Total loans	0	0
Multifamily and Farmland
Credit risk profile
Total loans	47,266	33,163	31,102
Multifamily and Farmland | Excellent Quality
Credit risk profile
Total loans	0	0
Multifamily and Farmland | High Quality
Credit risk profile
Total loans	291	395
Multifamily and Farmland | Good Quality
Credit risk profile
Total loans	41,730	27,774
Multifamily and Farmland | Management Attention
Credit risk profile
Total loans	4,694	3,906
Multifamily and Farmland | Watch
Credit risk profile
Total loans	551	1,088
Multifamily and Farmland | Substandard
Credit risk profile
Total loans	0	0
Multifamily and Farmland | Doubtful
Credit risk profile
Total loans	0	0
Multifamily and Farmland | Loss
Credit risk profile
Total loans	0	0
Commercial loans (not secured by real estate)
Credit risk profile
Total loans	99,382	97,465	97,085
Commercial loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total loans	632	605
Commercial loans (not secured by real estate) | High Quality
Credit risk profile
Total loans	22,014	20,520
Commercial loans (not secured by real estate) | Good Quality
Credit risk profile
Total loans	69,335	69,651
Commercial loans (not secured by real estate) | Management Attention
Credit risk profile
Total loans	7,033	6,325
Commercial loans (not secured by real estate) | Watch
Credit risk profile
Total loans	231	264
Commercial loans (not secured by real estate) | Substandard
Credit risk profile
Total loans	137	100
Commercial loans (not secured by real estate) | Doubtful
Credit risk profile
Total loans	0	0
Commercial loans (not secured by real estate) | Loss
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate)
Credit risk profile
Total loans	1,101	926	$ 994
Farm loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate) | High Quality
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate) | Good Quality
Credit risk profile
Total loans	980	785
Farm loans (not secured by real estate) | Management Attention
Credit risk profile
Total loans	121	141
Farm loans (not secured by real estate) | Watch
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate) | Substandard
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate) | Doubtful
Credit risk profile
Total loans	0	0
Farm loans (not secured by real estate) | Loss
Credit risk profile
Total loans	0	0
Consumer loans (not secured by real estate)
Credit risk profile
Total loans	8,473	9,165
Consumer loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total loans	700	673
Consumer loans (not secured by real estate) | High Quality
Credit risk profile
Total loans	2,756	3,229
Consumer loans (not secured by real estate) | Good Quality
Credit risk profile
Total loans	4,534	4,699
Consumer loans (not secured by real estate) | Management Attention
Credit risk profile
Total loans	450	529
Consumer loans (not secured by real estate) | Watch
Credit risk profile
Total loans	8	18
Consumer loans (not secured by real estate) | Substandard
Credit risk profile
Total loans	25	17
Consumer loans (not secured by real estate) | Doubtful
Credit risk profile
Total loans	0	0
Consumer loans (not secured by real estate) | Loss
Credit risk profile
Total loans	0	0
All other loans (not secured by real estate)
Credit risk profile
Total loans	11,171	11,827
All other loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total loans	0	0
All other loans (not secured by real estate) | High Quality
Credit risk profile
Total loans	1,999	2,145
All other loans (not secured by real estate) | Good Quality
Credit risk profile
Total loans	8,441	8,932
All other loans (not secured by real estate) | Management Attention
Credit risk profile
Total loans	731	750
All other loans (not secured by real estate) | Watch
Credit risk profile
Total loans	0	0
All other loans (not secured by real estate) | Substandard
Credit risk profile
Total loans	0	0
All other loans (not secured by real estate) | Doubtful
Credit risk profile
Total loans	0	0
All other loans (not secured by real estate) | Loss
Credit risk profile
Total loans	$ 0	$ 0

3. Loans (Details 6)

3. Loans (Details 6) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)Integer	Sep. 30, 2018USD ($)Integer
Single-family residential
Number of contracts | Integer	1	2
Pre-Modification outstanding recorded investment	$ 61	$ 94
Post-Modification outstanding recorded investment	$ 61	$ 94
Total real estate TDR loans
Number of contracts | Integer	1	2
Pre-Modification outstanding recorded investment	$ 61	$ 94
Post-Modification outstanding recorded investment	$ 61	$ 94
Total TDR Loans
Number of contracts | Integer	1	2
Pre-Modification outstanding recorded investment	$ 61	$ 94
Post-Modification outstanding recorded investment	$ 61	$ 94

3. Loans (Details Narrative)

3. Loans (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Receivables [Abstract]
Percentage of construction and land development loans in Bank's loan portfolio	11.00%		11.00%
Percentage of single-family residential loans in Bank's loan portfolio	36.00%		36.00%
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio	4.00%		4.00%
Percentage of commercial real estate loans in Bank's loan portfolio	33.00%		33.00%
Percentage of commercial loans in Bank's loan portfolio	12.00%		12.00%
Accruing impaired loans	$ 21,400	$ 23,600	$ 21,400	$ 23,600	$ 22,800
Interest income recognized on accruing impaired loans	357	331	1,025	1,062	1,342
Provision for loan losses	422	$ 110	677	$ 372
TDR loans modified, past-due TDR loans and non-accrual TDR Loans	2,200		2,200		4,700
Performing loans classified as TDR loans	0		0		$ 92
Lonas modified considered to be new TDR loans	$ 1		$ 2

4. Net Earnings Per Share (Deta

4. Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Earnings
Basic earnings per share	$ 3,621	$ 3,467	$ 11,101	$ 9,946
Effect of dilutive securities: restricted stock units	0	0	0	0
Diluted earnings per share	$ 3,621	$ 3,467	$ 11,101	$ 9,946
Weighted Average Number of Shares
Basic earnings per share (in shares)	5,919,322	5,995,256	5,951,840	5,995,256
Effect of dilutive securities: restricted stock units (in shares)	25,883	21,445	24,908	19,137
Diluted earnings per share (in shares)	5,945,205	6,016,701	5,976,748	6,014,393
Per Share Amount
Basic earnings per share	$ 0.62	$ 0.58	$ 1.87	$ 1.66
Diluted earnings per share	$ 0.61	$ 0.57	$ 1.86	$ 1.65

5. Stock-Based Compensation (De

5. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement [Abstract]
Unrecognized compensation cost	$ 249,000
Recognized compensation expense	$ 201,000	$ 131,000

6. Fair Value (Details)

6. Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Estimated fair value	$ 186,263	$ 194,578
Level 1
Estimated fair value	0	0
Level 2
Estimated fair value	186,013	194,328
Level 3
Estimated fair value	250	250
Mortgage-backed securities
Estimated fair value	70,700	52,103
Mortgage-backed securities | Level 1
Estimated fair value	0	0
Mortgage-backed securities | Level 2
Estimated fair value	70,700	52,103
Mortgage-backed securities | Level 3
Estimated fair value	0	0
U.S. Government sponsored enterprises
Estimated fair value	29,118	34,634
U.S. Government sponsored enterprises | Level 1
Estimated fair value	0	0
U.S. Government sponsored enterprises | Level 2
Estimated fair value	29,118	34,634
U.S. Government sponsored enterprises | Level 3
Estimated fair value	0	0
State and political subdivisions
Estimated fair value	86,195	107,591
State and political subdivisions | Level 1
Estimated fair value	0	0
State and political subdivisions | Level 2
Estimated fair value	86,195	107,591
State and political subdivisions | Level 3
Estimated fair value	0	0
Trust preferred securities
Estimated fair value	250	250
Trust preferred securities | Level 1
Estimated fair value	0	0
Trust preferred securities | Level 2
Estimated fair value	0	0
Trust preferred securities | Level 3
Estimated fair value	$ 250	$ 250

6. Fair Value (Details 1)

6. Fair Value (Details 1) - Level 3 $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Investment Securities Available for Sale Level 3 Valuation
Balance, beginning of period	$ 250
Change in book value	0
Change in gain/(loss) realized and unrealized	0
Purchases/(sales and calls)	0
Transfers in and/or (out) of Level 3	0
Balance, end of period	250
Change in unrealized gain/(loss) for assets still held in Level 3	$ 0

6. Fair Value (Details 2)

6. Fair Value (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Mortgage loans held for sale	$ 4,263	$ 680
Impaired loans	20,388	21,695
Other real estate	$ 26	27
Mortgage loans held for sale [Member]
Valuation technique	Rate lock commitment
Significant unobservable inputs	N/A
General range of significant unobservable input values	N/A
Impaired loans [Member]
Valuation technique	Appraised value and discounted cash flows
Significant unobservable inputs	Discounts to reflect current market conditions and ultimate collectability
General range of significant unobservable input values	0-.25
Other real estate [Member]
Valuation technique	Appraised value
Significant unobservable inputs	Discounts to reflect current market conditions and estimated costs to sell
General range of significant unobservable input values	0-.25
Level 1
Mortgage loans held for sale	$ 0	0
Impaired loans	0	0
Other real estate	0	0
Level 2
Mortgage loans held for sale	0	0
Impaired loans	0	0
Other real estate	0	0
Level 3
Mortgage loans held for sale	4,263	680
Impaired loans	20,388	21,695
Other real estate	$ 26	$ 27

6. Fair Value (Details 3)

6. Fair Value (Details 3) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 129,553	$ 43,370
Investment securities available for sale	186,263	194,578
Other investments	7,239	4,361
Mortgage loans held for sale	4,263	680
Loans, net	839,021	797,578
Cash surrender value of life insurance	16,222	15,936
Liabilities:
Deposits	961,568	877,213
Securities sold under agreements to repurchase	21,927	58,095
FHLB borrowings	70,000	0
Junior subordinated debentures	20,619	20,619
Estimated Fair Value
Assets:
Cash and cash equivalents	129,553	43,370
Investment securities available for sale	186,263	194,578
Other investments	7,239	4,361
Mortgage loans held for sale	4,263	680
Loans, net	816,260	748,917
Cash surrender value of life insurance	16,222	15,936
Liabilities:
Deposits	949,309	857,999
Securities sold under agreements to repurchase	21,927	58,095
FHLB borrowings	70,555
Junior subordinated debentures	20,619	20,619
Level 1
Assets:
Cash and cash equivalents	129,553	43,370
Investment securities available for sale	0	0
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	0	0
Liabilities:
Deposits	0	0
Securities sold under agreements to repurchase	0	0
FHLB borrowings	0
Junior subordinated debentures	0	0
Level 2
Assets:
Cash and cash equivalents	0	0
Investment securities available for sale	186,013	194,328
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	16,222	15,936
Liabilities:
Deposits	0	0
Securities sold under agreements to repurchase	21,927	58,095
FHLB borrowings	0
Junior subordinated debentures	20,619	20,619
Level 3
Assets:
Cash and cash equivalents	0	0
Investment securities available for sale	250	250
Other investments	7,239	4,361
Mortgage loans held for sale	4,263	680
Loans, net	816,260	748,917
Cash surrender value of life insurance	0	0
Liabilities:
Deposits	949,309	857,999
Securities sold under agreements to repurchase	0	0
FHLB borrowings	70,555
Junior subordinated debentures	$ 0	$ 0

7. Leases (Details)

7. Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 3,816
Cash paid for amounts included in the measurement of lease liabilities	650
Operating cash flows from operating leases	0
Right-of-use assets obtained in exchange for new finance operating liabilities	$ 9
Weighted-average remaining lease term - operating leases	4 years
Weighted-average discount rate - operating leases	2.88%

7. Leases (Details 1)

7. Leases (Details 1) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Leases [Abstract]
2020	$ 841
2021	803
2022	569
2023	424
2024	346
Thereafter	1,369
Total	4,352
Less: imputed interest	(517)
Operating lease liability	$ 3,835	$ 0

7. Leases (Details Narrative)

7. Leases (Details Narrative) $ in Thousands	Sep. 30, 2019USD ($)
Leases
Operating ROU assets	$ 3,800
Operating lease liabilities	$ 3,800