Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information: | ||
Entity Registrant Name | AMERICAN RIVER BANKSHARES | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001108236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 5,887,654 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 16,610 | $ 20,987 |
Interest-bearing deposits in banks | 2,835 | 1,746 |
Federal funds sold | 0 | 7,000 |
Total cash and cash equivalents | 19,445 | 29,733 |
Investment securities: | ||
Available-for-sale, at fair value | 286,602 | 294,933 |
Held-to-maturity, at amortized cost fair value of $293 in 2019 and $306 in 2018 | 277 | 292 |
Loans and leases, less allowance for loan and lease losses of $4,577 at March 31, 2019 and $4,392 at December 31, 2018 | 336,007 | 318,516 |
Premises and equipment, net | 1,151 | 1,071 |
Federal Home Loan Bank stock | 3,932 | 3,932 |
Goodwill and other intangible assets | 16,321 | 16,321 |
Other real estate owned | 957 | 957 |
Bank owned life insurance | 15,509 | 15,429 |
Accrued interest receivable and other assets | 9,167 | 6,908 |
Total Assets | 689,368 | 688,092 |
Deposits: | ||
Noninterest bearing | 213,012 | 214,745 |
Interest-bearing | 359,367 | 375,929 |
Total deposits | 572,379 | 590,674 |
Short-term borrowings | 19,000 | 5,000 |
Long-term borrowings | 10,500 | 10,500 |
Accrued interest payable and other liabilities | 9,913 | 7,197 |
Total liabilities | 611,792 | 613,371 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, no par value; 10,000,000 shares authorized; none outstanding | 0 | 0 |
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 5,887,962 shares at March 31, 2019 and 5,858,428 shares at December 31, 2018 | 30,281 | 30,103 |
Retained earnings | 47,347 | 46,494 |
Accumulated other comprehensive loss, net of taxes | (52) | (1,876) |
Total shareholders' equity | 77,576 | 74,721 |
Total liabilities and shareholders' euity | $ 689,368 | $ 688,092 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity, at amortized cost fair value (in dollars) | $ 293 | $ 306 |
Allowance for loan and lease losses (in dollars) | $ 4,577 | $ 4,392 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,887,962 | 5,858,428 |
Common stock, shares outstanding | 5,887,962 | 5,858,428 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and fees on loans: | ||
Taxable | $ 3,818 | $ 3,328 |
Exempt from Federal income taxes | 149 | 128 |
Interest on Federal funds sold | 5 | 50 |
Interest on deposits in banks | 44 | 6 |
Interest and dividends on investment securities: | ||
Taxable | 2,024 | 1,391 |
Exempt from Federal income taxes | 92 | 163 |
Total interest income | 6,132 | 5,066 |
Interest expense: | ||
Interest on deposits | 489 | 275 |
Interest on borrowings | 94 | 54 |
Total interest expense | 583 | 329 |
Net interest income | 5,549 | 4,737 |
Provision for loan and lease losses | 180 | 0 |
Net interest income after provision for loan and lease losses | 5,369 | 4,737 |
Noninterest income: | ||
Service charges on deposit accounts | 121 | 117 |
Gain on sale of securities | 36 | 1 |
Other noninterest income | 254 | 254 |
Total noninterest income | 411 | 372 |
Noninterest expense: | ||
Salaries and employee benefits | 2,781 | 2,206 |
Occupancy | 257 | 262 |
Furniture and equipment | 140 | 138 |
Federal Deposit Insurance Corporation assessments | 50 | 53 |
Expenses related to other real estate owned | 4 | 5 |
Other expense | 1,028 | 686 |
Total noninterest expense | 4,260 | 3,350 |
Income before provision for income taxes | 1,520 | 1,759 |
Provision for income taxes | 374 | 406 |
Net income | $ 1,146 | $ 1,353 |
Basic earnings per share | $ 0.20 | $ 0.23 |
Diluted earnings per share | $ 0.20 | $ 0.22 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,146 | $ 1,353 |
Other comprehensive (loss) income: | ||
Increase (decrease) in net unrealized gains on investment securities | 2,626 | (2,730) |
Deferred tax (expense) benefit | (776) | 821 |
Increase in net unrealized gains (losses) on investment securities, net of tax | 1,850 | (1,909) |
Reclassification adjustment for realized gains included in net income | (36) | (1) |
Tax effect | 10 | |
Realized gains, net of tax | (26) | (1) |
Total other comprehensive income (loss) | 1,824 | (1,908) |
Comprehensive income (loss) | $ 2,970 | $ (555) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Begining Balance, Amount at Dec. 31, 2017 | $ 34,463 | $ 42,779 | $ (321) | $ 76,921 |
Begining Balance, Shares at Dec. 31, 2017 | 6,132,362 | |||
Net income | 1,353 | 1,353 | ||
Other comprehensive income, net of tax | (1,908) | (1,908) | ||
Cash dividends ($0.15 per share) | (307) | (307) | ||
Net restricted stock award activity and related compensation expense, Amount | $ 65 | 1 | 66 | |
Net restricted stock award activity and related compensation expense, Shares | 6,944 | |||
Stock options exercised, Amount | $ 65 | 65 | ||
Stock options exercised, Shares | 7,086 | |||
Stock option compensation expense, Amount | $ 7 | 7 | ||
Retirement of common stock, Amount | $ (4,099) | (4,099) | ||
Retirement of common stock, Shares | (264,178) | |||
Ending Balance, Amount at Mar. 31, 2018 | $ 30,501 | 43,826 | (2,229) | 72,098 |
Ending Balance, Shares at Mar. 31, 2018 | 5,882,214 | |||
Begining Balance, Amount at Dec. 31, 2018 | $ 30,103 | 46,494 | (1,876) | 74,721 |
Begining Balance, Shares at Dec. 31, 2018 | 5,858,428 | |||
Net income | 1,146 | 1,146 | ||
Other comprehensive income, net of tax | 1,824 | 1,824 | ||
Cash dividends ($0.15 per share) | (293) | (293) | ||
Net restricted stock award activity and related compensation expense, Amount | $ 79 | 79 | ||
Net restricted stock award activity and related compensation expense, Shares | 18,394 | |||
Stock options exercised, Amount | $ 95 | 95 | ||
Stock options exercised, Shares | 11,140 | |||
Stock option compensation expense, Amount | $ 4 | 4 | ||
Ending Balance, Amount at Mar. 31, 2019 | $ 30,281 | $ 47,347 | $ (52) | $ 77,576 |
Ending Balance, Shares at Mar. 31, 2019 | 5,887,962 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,146 | $ 1,353 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 180 | 0 |
Decrease in deferred loan origination fees and costs, net | (231) | (16) |
Depreciation and amortization | 66 | 70 |
Gain on sale and call of investment securities | (36) | (1) |
Amortization of investment security premiums and discounts, net | 404 | 792 |
Increase in cash surrender values of life insurance policies | (81) | (75) |
Stock based compensation expense | 83 | 73 |
Decrease (increase) in accrued interest receivable and other assets | 349 | (729) |
(Decrease) increase in accrued interest payable and other liabilities | (656) | 241 |
Net cash provided by operating activities | 1,224 | 1,708 |
Cash flows from investing activities: | ||
Proceeds from the sale of available-for-sale investment securities | 2,022 | 0 |
Proceeds from matured available-for-sale investment securities | 0 | 500 |
Proceeds from called available-for-sale investment securities | 3,000 | 0 |
Purchases of available-for-sale investment securities | (4,702) | (39,933) |
Proceeds from principal repayments for available-for-sale investment securities | 10,232 | 9,867 |
Proceeds from principal repayments for held-to-maturity investment securities | 15 | 21 |
Net (increase) decrease in loans | (11,746) | 9,662 |
Purchases of loans | (5,694) | 0 |
Purchases of equipment | (146) | (35) |
Net cash used in investing activities | (7,019) | (19,918) |
Cash flows from financing activities: | ||
Net (decrease) increase in demand, interest-bearing and savings deposits | (17,895) | 44,041 |
Net (decrease) increase in time deposits | (400) | 66 |
Increase in short term borrowing | 14,000 | 0 |
Proceeds from stock option exercise | 95 | 65 |
Cash dividends paid | (293) | (307) |
Cash paid to repurchase common stock | 0 | (4,099) |
Net cash (used in) provided by financing activities | (4,493) | 39,766 |
(Decrease) increase in cash and cash equivalents | (10,288) | 21,556 |
Cash and cash equivalents at beginning of year | 29,733 | 38,467 |
Cash and cash equivalents at end of period | 19,445 | 60,023 |
Supplemental noncash disclosures: | ||
Right of use asset and obligation recorded upon adoption of ASU 2016-02 | $ 3,570 | $ 0 |
1. CONSOLIDATED FINANCIAL STATE
1. CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
CONSOLIDATED FINANCIAL STATEMENTS | |
CONSOLIDATED FINANCIAL STATEMENTS | In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the “Company”) at March 31, 2019 and December 31, 2018, the results of its operations and its cash flows for the three-month periods ended March 31, 2019 and 2018 in conformity with accounting principles generally accepted in the United States of America. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. The results of operations for the three-month period ended March 31, 2019 may not necessarily be indicative of the operating results for the full year. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank. Adoption of New Accounting Standard: Leases |
2. STOCK-BASED COMPENSATION
2. STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | Equity Plans On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. In 2000, the Board of Directors adopted and the Company’s shareholders approved a stock option plan (the “2000 Plan”). There were 11,140 stock options outstanding at December 31, 2018, all of which were exercised during the first quarter of 2019; accordingly, there are no further grants outstanding under the 2000 Plan. At March 31, 2019, there were 29,958 stock options and 47,058 restricted shares outstanding and the total number of authorized shares that remain available for issuance under the 2010 Plan was 1,283,232. The 2010 Plan provides for the following types of stock-based awards: incentive stock options; nonqualified stock options; stock appreciation rights; restricted stock; restricted performance stock; unrestricted Company stock; and performance units. Under the 2010 Plan, the awards may be granted to employees and directors under incentive and nonqualified option agreements, restricted stock agreements, and other awards agreements. The 2010 Plan requires that the option price may not be less than the fair market value of the stock at the date the option is awarded. The option awards under the 2010 Plan expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards under the 2010 Plan are exercisable until their expiration. New shares are issued upon exercise of an option. The award date fair value of awards is determined by the market price of the Company’s common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended March 31, 2019 and 2018, the compensation cost recognized for equity compensation was $83,000 and $73,000, respectively. The recognized tax benefit for equity compensation expense was $21,000 and $18,000, for the three-month periods ended March 31, 2019 and 2018, respectively. At March 31, 2019, the total compensation cost related to nonvested stock option awards not yet recorded is $13,000. This amount will be recognized over the next 1.3 years and the weighted average period of recognizing these costs is expected to be 0.6 years. At March 31, 2019, the total compensation cost related to restricted stock awards not yet recorded is $497,000. This amount will be recognized over the next 4.2 years and the weighted average period of recognizing these costs is expected to be 1.2 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month periods ended March 31, 2019 and 2018. A summary of option activity under the Plans as of March 31, 2018 and changes during the period then ended is presented below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2019 41,098 $ 8.71 2.3 years $ 215 Granted — — — — Exercised 11,140 8.50 — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2019 29,958 $ 8.79 5.2 years $ 126 Vested at March 31, 2019 22,822 $ 8.64 5.0 years $ 100 Non-vested at March 31, 2019 7,136 $ 9.29 5.8 years $ 26 Restricted Stock There were 18,394 shares of restricted stock awarded during the three-month period ended March 31, 2019 and 11,599 shares of restricted stock awarded during the three-month period ended March 31, 2018. There were 3,864 and 14,917 restricted stock awards that were fully vested during the three-month periods ended March 31, 2019 and 2018, respectively. The intrinsic value of nonvested restricted stock at March 31, 2019 was $612,000. Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 32,528 $ 14.60 Awarded 18,394 14.05 Less: Vested 3,864 15.30 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2019 47,058 $ 14.32 Other Equity Awards There were no stock appreciation rights, restricted performance stock, unrestricted Company stock, or performance units awarded during the three-month periods ended March 31, 2019 or 2018 or outstanding at March 31, 2019 or December 31, 2018. The intrinsic value used for stock options and restricted stock was derived from the market price of the Company’s common stock of $13.00 as of March 31, 2019. |
3. COMMITMENTS AND CONTINGENCIE
3. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $32,047,000 and standby letters of credit of approximately $240,000 at March 31, 2019 and loan commitments of approximately $34,276,000 and standby letters of credit of approximately $361,000 at December 31, 2018. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2019 as some of these are expected to expire without being fully drawn upon. Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at March 31, 2019 or December 31, 2018. |
4. EARNINGS PER SHARE COMPUTATI
4. EARNINGS PER SHARE COMPUTATION | 3 Months Ended |
Mar. 31, 2019 | |
EARNINGS PER SHARE COMPUTATION | |
EARNINGS PER SHARE COMPUTATION | Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (5,836,579 shares and 5,996,146 shares for the three-month periods ended March 31, 2019 and 2018, respectively). Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards (21,048 shares for the three-month period ended March 31, 2019 and 36,641 shares for the three-month period ended March 31, 2018). For the three-month periods ended March 31, 2019 and 2018, there were zero stock options that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented. |
5. INVESTMENT SECURITIES
5. INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
INVESTMENTS SECURITIES (Tables) | |
INVESTMENT SECURITIES | The amortized cost and estimated fair values of investment securities at March 31, 2019 and December 31, 2018 consisted of the following (dollars in thousands): Available-for-Sale March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: US Government Agencies and Sponsored Agencies $ 265,796 $ 1,922 $ (2,291 ) $ 265,427 Obligations of states and political subdivisions 12,398 287 (46 ) 12,639 Corporate bonds 6,494 80 (27 ) 6,547 US Treasury securities 1,988 1 — 1,989 $ 286,676 $ 2,290 $ (2,364 ) $ 286,602 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: US Government Agencies and Sponsored Agencies $ 271,685 $ 984 $ (3,620 ) $ 269,049 Obligations of states and political subdivisions 14,440 165 (205 ) 14,400 Corporate bonds 6,493 74 (59 ) 6,508 US Treasury securities 4,979 — (3 ) 4,976 $ 297,597 $ 1,223 $ (3,887 ) $ 294,933 Net unrealized losses on available-for-sale investment securities totaling $74,000 were recorded, net of $22,000 in tax assets, as accumulated other comprehensive loss within shareholders’ equity at March 31, 2019. Net unrealized losses on available-for-sale investment securities totaling $2,664,000 were recorded, net of $788,000 in tax liabilities, as accumulated other comprehensive loss within shareholders’ equity at December 31, 2018. There were no transfers of available-for-sale investment securities for the three-month periods ended March 31, 2019 or March 31, 2018. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2019 totaled $2,022,000 and $36,000, respectively. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2018 totaled $500,000 and $1,000, respectively. Held-to-Maturity March 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: US Government Agencies and Sponsored Agencies $ 277 $ 16 $ — $ 293 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: US Government Agencies and Sponsored Agencies $ 292 $ 14 $ — $ 306 There were no sales or transfers of held-to-maturity investment securities for the periods ended March 31, 2019 and March 31, 2018. Investment securities with unrealized losses at March 31, 2019 and December 31, 2018 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): March 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 14,404 $ (99 ) $ 144,192 $ (2,192 ) $ 158,596 $ (2,291 ) Obligations of states and political subdivisions — — 1,179 (46 ) 1,179 (46 ) Corporate bonds — — 2,467 (27 ) 2,467 (27 ) $ 14,404 $ (99 ) $ 147,838 $ (2,265 ) $ 162,242 $ (2,364 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,267 $ (310 ) $ 138,894 $ (3,310 ) $ 178,161 $ (3,620 ) Obligations of states and political subdivisions 2,168 (28 ) 5,583 (177 ) 7,751 (205 ) Corporate bonds 497 (4 ) 1,938 (55 ) 2,435 (59 ) US Treasury securities 4,976 (3 ) — — 4,976 (3 ) $ 46,908 $ (345 ) $ 146,415 $ (3,542 ) $ 193,323 $ (3,887 ) There were no held-to-maturity investment securities with unrealized losses as of March 31, 2019 or December 31, 2018. At March 31, 2019, the Company held 217 securities of which 8 were in a loss position for less than twelve months and 97 were in a loss position for twelve months or more. Of the 97 securities in a loss position for greater than twelve months at March 31, 2019, one was a municipal security, two were corporate securities, and 94 were US Government Agencies and Sponsored Agencies securities. At December 31, 2018, the Company held 220 securities of which 26 were in a loss position for less than twelve months and 97 were in a loss position for twelve months or more. Of the 97 securities in a loss position for greater than twelve months at December 31, 2018, one was a corporate securities, five were municipal securities and 91 were US Government Agencies and Sponsored Agencies securities. The unrealized loss on the Company’s investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired. The amortized cost and estimated fair values of investment securities at March 31, 2019 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ 2,243 $ 2,244 After one year through five years 3,596 3,609 After five years through ten years 11,893 12,061 After ten years 3,148 3,261 20,880 21,175 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 265,796 265,427 $ 277 $ 293 $ 286,676 $ 286,602 $ 277 $ 293 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. |
6. IMPAIRED AND NONPERFORMING L
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2019 | |
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | |
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | At March 31, 2019 and December 31, 2018, the recorded investment in nonperforming loans and leases was approximately $25,000 and $27,000, respectively. Nonperforming loans and leases include all such loans and leases that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. At March 31, 2019, the recorded investment in loans and leases that were considered to be impaired totaled $8,640,000. Of the total impaired loans of $8,640,000, loans totaling $5,936,000 were deemed to require no specific reserve and loans totaling $2,704,000 were deemed to require a related valuation allowance of $164,000. At December 31, 2018, the recorded investment in loans and leases that were considered to be impaired totaled $8,702,000 and had a related valuation allowance of $185,000. At March 31, 2019 and December 31, 2018, the recorded investment in other real estate owned (“OREO”) was $957,000. During the first quarter of 2019, the Company did not add any new or sell or impair any of the OREO properties. The March 31, 2019 and December 31, 2018 OREO balance of $957,000 consisted of one commercial land property. Nonperforming loans and leases and other assets and OREO at March 31, 2019 and December 31, 2018 are summarized as follows (in thousands): March 31, 2019 December 31, 2018 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 25 $ 27 Nonaccrual loans and leases that are past due — — Loans and leases past due 90 days and accruing interest — — Other real estate owned 957 957 Total nonperforming assets $ 982 $ 984 Nonperforming loans and leases to total loans and leases 0.01 % 0.01 % Total nonperforming assets to total assets 0.14 % 0.14 % Impaired loans and leases as of and for the periods ended March 31, 2019 and December 31, 2018 are summarized as follows: (in thousands) As of March 31, 2019 As of December 31, 2018 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate-commercial $ 5,613 $ 5,746 $ — $ 5,645 $ 5,879 $ — Real estate-residential 323 410 — 323 410 — Subtotal $ 5,936 $ 6,156 $ — $ 5,968 $ 6,289 $ — With an allowance recorded: Real estate-commercial $ 2,116 $ 2,193 $ 117 2,138 2,217 132 Real estate-residential 588 588 47 596 596 53 Subtotal $ 2,704 $ 2,781 $ 164 $ 2,734 $ 2,813 $ 185 Total: Real estate-commercial $ 7,729 $ 7,939 $ 117 $ 7,783 $ 8,096 $ 32 Real estate-residential 911 998 47 919 1,006 53 $ 8,640 $ 8,937 $ 164 $ 8,702 $ 9,102 $ 185 The following table presents the average balance related to impaired loans and leases for the periods indicated (in thousands): Average Recorded Investments for the three months ended March 31, 2019 March 31, 2018 Commercial $ — $ 1,580 Real estate-commercial 7,823 8,861 Real estate-multi-family — 473 Real estate-residential 915 1,609 Total $ 8,738 $ 12,523 The following table presents the interest income recognized on impaired loans and leases for the periods indicated (in thousands): Interest Income Recognized for the three months ended March 31, 2019 March 31, 2018 Commercial $ — $ — Real estate-commercial 114 108 Real estate-multi-family — 8 Real estate-residential 11 22 Agriculture — — Total $ 125 $ 138 |
7. TROUBLED DEBT RESTRUCTURINGS
7. TROUBLED DEBT RESTRUCTURINGS | 3 Months Ended |
Mar. 31, 2019 | |
TROUBLED DEBT RESTRUCTURINGS | |
TROUBLED DEBT RESTRUCTURINGS | During the periods ended March 31, 2019 and 2018, there were no loans that were modified as troubled debt restructurings. There were no payment defaults during the three months ended March 31, 2019 or March 31, 2018 on troubled debt restructurings made in the preceding twelve months. At March 31, 2019 and December 31, 2018, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans and Leases” in Item 2. |
8. ALLOWANCE FOR LOAN AND LEASE
8. ALLOWANCE FOR LOAN AND LEASE LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Troubled Debt Restructurings on Financing Receivables (Tables) | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | The Company’s loan and lease portfolio allocated by management’s internal risk ratings as of March 31, 2019 and December 31, 2019 are summarized below: March 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,754 $ 185,247 $ 50,904 $ 8,862 $ 24,941 Watch 48 10,016 3,821 — 951 Special mention — 1,069 — — — Substandard 25 139 — — — Doubtful or loss — — — — — Total $ 29,827 $ 196,471 $ 54,725 $ 8,862 $ 25,892 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 10 $ 8,787 $ 15,719 $ 324,224 Watch — — 22 14,858 Special mention — — 1 1,070 Substandard — — — 164 Doubtful or loss — — — — Total $ 10 $ 8,787 $ 15,742 $ 340,316 December 31, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,570 $ 185,548 $ 52,301 $ 5,685 $ 15,373 Watch 53 13,118 3,838 — 965 Special mention — 1,087 — — — Substandard 27 141 — — — Doubtful or loss — — — — — Total $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 32 $ 4,419 $ 10,691 $ 303,619 Watch — — 22 17,996 Special mention — — 1 1,088 Substandard — — — 168 Doubtful or loss — — — — Total $ 32 $ 4,419 $ 10,714 $ 322,871 The allocation of the Company’s allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below: March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 $ — $ 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 — 80 65 4 180 Loans charged-off — — — — — — — — — — Recoveries 2 3 — — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ — $ 168 $ 257 $ 283 $ 4,577 Ending balance: Individually evaluated for impairment $ — $ 117 $ — $ — $ 47 $ — $ — $ — $ — $ 164 Ending balance: Collectively evaluated for impairment $ 661 $ 1,914 $ 420 $ 408 $ 302 $ — $ 168 $ 257 $ 283 $ 4,413 Loans Ending balance $ 29,827 $ 196,471 $ 54,725 $ 8,862 $ 25,892 $ 10 $ 8,787 $ 15,742 $ — $ 340,316 Ending balance: Individually evaluated for impairment $ — $ 7,729 $ — $ — $ 911 $ — $ — $ — $ — $ 8,640 Ending balance: Collectively evaluated for impairment $ 29,827 $ 188,742 $ 54,725 $ 8,862 $ 24,981 $ 10 $ 8,787 $ 15,742 $ — $ 331,676 December 31, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 132 $ — $ — $ 53 $ — $ — $ — $ — $ 185 Ending balance: Collectively evaluated for impairment $ 668 $ 1,982 $ 564 $ 267 $ 167 $ — $ 88 $ 192 $ 279 $ 4,207 Loans Ending balance $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 $ 32 $ 4,419 $ 10,714 $ — $ 322,871 Ending balance: Individually evaluated for impairment $ — $ 7,783 $ — $ — $ 919 $ — $ — $ — $ — $ 8,702 Ending balance: Collectively evaluated for impairment $ 29,650 $ 192,111 $ 56,139 $ 5,685 $ 15,419 $ 32 $ 4,419 $ 10,714 $ — $ 314,169 March 31, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 92 (33 ) (81 ) 19 13 (1 ) — 1 (10 ) — Loans charged-off — — — — — — — — — — Recoveries 7 2 — — — 1 — — — 10 Ending balance, March 31, 2018 $ 546 $ 2,143 $ 966 $ 288 $ 218 $ — $ 31 $ 15 $ 281 $ 4,488 The Company’s aging analysis of the loan and lease portfolio at March 31, 2019 and December 31, 2018 are summarized below: March 31, 2019 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,827 $ 29,827 $ — $ 25 Real estate: Commercial 423 — — 423 196,048 196,471 — — Multi-family — — — — 54,725 54,725 — — Construction — — — — 8,862 8,862 — — Residential — — — — 25,892 25,892 — — Other: Leases — — — — 10 10 — — Agriculture — — — — 8,787 8,787 — — Consumer — — — — 15,742 15,742 — — Total $ 423 $ — $ — $ 423 $ 339,893 $ 340,316 $ — $ 25 December 31, 2018 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,650 $ 29,650 $ — $ 27 Real estate: Commercial — — — — 199,894 199,894 — — Multi-family — — — — 56,139 56,139 — — Construction — — — — 5,685 5,685 — — Residential — — — — 16,338 16,338 — — Other: Leases — — — — 32 32 — — Agriculture — — — — 4,419 4,419 — — Consumer — — — — 10,714 10,714 — — Total $ — $ — $ — $ — $ 322,871 $ 322,871 $ — $ 27 |
9. LEASES
9. LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | The Company adopted ASU 2016-02, Leases (Topic 842), The Company leases nine locations for administrative offices and branch locations. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company elected to use the practical expedient to not recognize short-term leases on the consolidated balance sheet and instead account for them as executory contracts. Certain leases include options to renew, with renewal terms that can extend the lease term, typically for five years. Lease assets and liabilities include related options that are reasonably certain of being exercised, however, in the case of those leases that have renewal options, the Company is not including those additional lease terms as the rates are undeterminable and it has been the Company’s historical practice to renegotiate lease terms upon expiration of the original lease terms. The depreciable life of leased assets are limited by the expected lease term. Adoption of this standard resulted in the Company recognizing a right of use asset and a corresponding lease liability of $3,570,000 on January 1, 2019. Supplemental lease information at or for the three months ended March 31, 2019 is as follows: Balance Sheet Operating lease asset classified as premises and equipment $ 3,372,000 Operating lease liability classified as other liabilities 3,372,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 188,000 Weighted average lease term, in years 6.33 Weighted average discount rate (1) 3.03 % Operating cash flows $ 189,000 (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the Federal Home Loan Bank of San Francisco for a term correlating to the remaining life of each lease. A maturity analysis of the Company’s lease liabilities at March 31, 2019 was as follows: Balance April 1, 2019 to March 31, 2020 $ 728,000 April 1, 2020 to March 31, 2021 689,000 April 1, 2021 to March 31, 2022 653,000 April 1, 2022 to March 31, 2023 539,000 April 1, 2023 to March 31, 2024 283,000 Thereafter 859,000 Total lease payments 3,751,000 Less: Interest (379,000 ) Present value of lease liabilities $ 3,372,000 |
10. BORROWING ARRANGEMENTS
10. BORROWING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Borrowing Arrangements | |
BORROWING ARRANGEMENTS | At March 31, 2019, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of March 31, 2019 or December 31, 2018. The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the “FHLB”) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as well as loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $29,500,000 were outstanding from the FHLB at March 31, 2019, bearing interest rates ranging from 1.18% to 3.17% and maturing between April 1, 2021 and November 24, 2023. Advances totaling $15,500,000 were outstanding from the FHLB at December 31, 2018, bearing interest rates ranging from 1.18% to 3.17% and maturing between April 30, 2019 and November 24, 2023. Remaining amounts available under the borrowing arrangement with the FHLB at March 31, 2019 and December 31, 2018 totaled $92,451,000 and $107,262,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at March 31, 2019 and December 31, 2018 were $6,465,000 and $8,340,000, respectively. There were no advances outstanding under this borrowing arrangement as of March 31, 2019 and December 31, 2018. |
11. INCOME TAXES
11. INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for (benefit from) income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month periods ended March 31, 2019 and 2018. |
12. FAIR VALUE MEASUREMENTS
12. FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table | |
FAIR VALUE MEASUREMENTS | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of March 31, 2019 and December 31, 2018. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In 2018, the Company adopted the provisions of Accounting Standard Update 2016-01 “ Recognition and Measurement of Financial Assets and Financial Liabilities Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. 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 any of these estimates. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: March 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 16,610 $ 16,610 $ — $ — $ 16,610 Federal funds sold — — — — — Interest-bearing deposits in banks 2,835 1,089 1,746 — 2,835 Available-for-sale securities 286,602 1,989 284,613 — 286,602 Held-to-maturity securities 277 — 293 — 293 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 336,007 — — 338,298 338,298 Accrued interest receivable 2,050 — 1,030 898 1,928 Financial liabilities: Deposits: Noninterest-bearing $ 213,012 $ 213,012 $ — $ — $ 213,012 Savings 72,576 72,576 — — 72,576 Money market 132,966 132,966 — — 132,966 NOW accounts 66,148 66,148 — — 66,148 Time Deposits 87,677 — 87,649 — 87,649 Short-term borrowings 19,000 19,000 — — 19,000 Long-term borrowings 10,500 — 10,737 — 10,737 Accrued interest payable 95 7 88 — 95 Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 20,987 $ 20,987 $ — $ — $ 20,987 Federal funds sold 7,000 7,000 7,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 294,933 4,976 289,957 — 294,933 Held-to-maturity securities 292 — 306 — 306 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 318,516 — — 315,235 315,235 Accrued interest receivable 1,959 — 1,044 915 1,959 Financial liabilities: Deposits: Noninterest-bearing $ 214,745 $ 214,745 $ — $ — $ 214,745 Savings 72,522 72,522 — — 72,522 Money market 145,831 145,831 — — 145,831 NOW accounts 69,489 69,489 — — 69,489 Time Deposits 88,087 — 88,078 — 88,078 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10.500 — 10,733 — 10,733 Accrued interest payable 63 — 63 — 63 Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. 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 fair values presented. Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table: Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) March 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 265,427 $ — $ 265,427 $ — $ — Obligations of states and political subdivisions 12,639 — 12,639 — — Corporate bonds 6,547 — 6,547 — — US Treasury securities 1,989 1,989 — — — Total recurring $ 286,602 $ 1,989 $ 284,613 $ — $ — At March 31, 2019, there were no assets or liabilities measured on a nonrecurring basis. Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 269,049 $ — $ 269,049 $ — $ — Corporate Debt securities 6,508 — 6,508 Obligations of states and political subdivisions 14,400 — 14,400 — — US Treasury securities 4,976 4,976 — — — Total recurring $ 294,933 $ 4,976 $ 289,957 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,274 $ — $ — $ 5,274 $ — Other real estate owned Land 957 — — 957 (4 ) Total nonrecurring $ 6,231 $ — $ — $ 6,231 $ (4 ) There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2019 or the twelve months ended December 31, 2018. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other real estate owned |
13. RECENTLY ISSUED ACCOUNTING
13. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Recently Issued Accounting Pronouncements | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | In February 2016, the FASB issued ASU No. 2016-02, “ Leases. . In June 2016, the FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments. |
2. STOCK-BASED COMPENSATION (Ta
2. STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
STOCK BASED COMPENSATION. (Tables) | |
Schedule of Share-based Compensation, Stock Options, Activity | Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2019 41,098 $ 8.71 2.3 years $ 215 Granted — — — — Exercised 11,140 8.50 — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2019 29,958 $ 8.79 5.2 years $ 126 Vested at March 31, 2019 22,822 $ 8.64 5.0 years $ 100 Non-vested at March 31, 2019 7,136 $ 9.29 5.8 years $ 26 |
Schedule of Nonvested Share Activity | Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 32,528 $ 14.60 Awarded 18,394 14.05 Less: Vested 3,864 15.30 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2019 47,058 $ 14.32 |
5. INVESTMENT SECURITIES (Table
5. INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
INVESTMENTS SECURITIES (Tables) | |
Available-for-sale Securities | March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: US Government Agencies and Sponsored Agencies $ 265,796 $ 1,922 $ (2,291 ) $ 265,427 Obligations of states and political subdivisions 12,398 287 (46 ) 12,639 Corporate bonds 6,494 80 (27 ) 6,547 US Treasury securities 1,988 1 — 1,989 $ 286,676 $ 2,290 $ (2,364 ) $ 286,602 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: US Government Agencies and Sponsored Agencies $ 271,685 $ 984 $ (3,620 ) $ 269,049 Obligations of states and political subdivisions 14,440 165 (205 ) 14,400 Corporate bonds 6,493 74 (59 ) 6,508 US Treasury securities 4,979 — (3 ) 4,976 $ 297,597 $ 1,223 $ (3,887 ) $ 294,933 |
Held-to-maturity Securities | Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: US Government Agencies and Sponsored Agencies $ 277 $ 16 $ — $ 293 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: US Government Agencies and Sponsored Agencies $ 292 $ 14 $ — $ 306 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | March 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 14,404 $ (99 ) $ 144,192 $ (2,192 ) $ 158,596 $ (2,291 ) Obligations of states and political subdivisions — — 1,179 (46 ) 1,179 (46 ) Corporate bonds — — 2,467 (27 ) 2,467 (27 ) $ 14,404 $ (99 ) $ 147,838 $ (2,265 ) $ 162,242 $ (2,364 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,267 $ (310 ) $ 138,894 $ (3,310 ) $ 178,161 $ (3,620 ) Obligations of states and political subdivisions 2,168 (28 ) 5,583 (177 ) 7,751 (205 ) Corporate bonds 497 (4 ) 1,938 (55 ) 2,435 (59 ) US Treasury securities 4,976 (3 ) — — 4,976 (3 ) $ 46,908 $ (345 ) $ 146,415 $ (3,542 ) $ 193,323 $ (3,887 ) |
Available-for-sale Securities, Debt Maturities, Basis of Allocation | Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ 2,243 $ 2,244 After one year through five years 3,596 3,609 After five years through ten years 11,893 12,061 After ten years 3,148 3,261 20,880 21,175 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 265,796 265,427 $ 277 $ 293 $ 286,676 $ 286,602 $ 277 $ 293 |
6. IMPAIRED AND NONPERFORMING_2
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Impaired And Nonperforming Loans And Leases And Other Real Estate Owned Tables | |
Schedule of Nonperforming loans and leases and other assets and OREO | March 31, 2019 December 31, 2018 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 25 $ 27 Nonaccrual loans and leases that are past due — — Loans and leases past due 90 days and accruing interest — — Other real estate owned 957 957 Total nonperforming assets $ 982 $ 984 Nonperforming loans and leases to total loans and leases 0.01 % 0.01 % Total nonperforming assets to total assets 0.14 % 0.14 % |
Schedule of Impaired Financing Receivables | (in thousands) As of March 31, 2019 As of December 31, 2018 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate-commercial $ 5,613 $ 5,746 $ — $ 5,645 $ 5,879 $ — Real estate-residential 323 410 — 323 410 — Subtotal $ 5,936 $ 6,156 $ — $ 5,968 $ 6,289 $ — With an allowance recorded: Real estate-commercial $ 2,116 $ 2,193 $ 117 2,138 2,217 132 Real estate-residential 588 588 47 596 596 53 Subtotal $ 2,704 $ 2,781 $ 164 $ 2,734 $ 2,813 $ 185 Total: Real estate-commercial $ 7,729 $ 7,939 $ 117 $ 7,783 $ 8,096 $ 32 Real estate-residential 911 998 47 919 1,006 53 $ 8,640 $ 8,937 $ 164 $ 8,702 $ 9,102 $ 185 |
Schedule of Average Balance Recorded to Imapired Loans and Leases | Average Recorded Investments for the three months ended March 31, 2019 March 31, 2018 Commercial $ — $ 1,580 Real estate-commercial 7,823 8,861 Real estate-multi-family — 473 Real estate-residential 915 1,609 Total $ 8,738 $ 12,523 |
Schedule of interest income recognized on impaired loans and leases | Interest Income Recognized for the three months ended March 31, 2019 March 31, 2018 Commercial $ — $ — Real estate-commercial 114 108 Real estate-multi-family — 8 Real estate-residential 11 22 Agriculture — — Total $ 125 $ 138 |
8. ALLOWANCE FOR LOAN AND LEA_2
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans And Leases And Allowance For Loan And Lease Losses Tables | |
Schedule Of Recorded Investment Evaluated Based On Internal Risk Ratings | March 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,754 $ 185,247 $ 50,904 $ 8,862 $ 24,941 Watch 48 10,016 3,821 — 951 Special mention — 1,069 — — — Substandard 25 139 — — — Doubtful or loss — — — — — Total $ 29,827 $ 196,471 $ 54,725 $ 8,862 $ 25,892 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 10 $ 8,787 $ 15,719 $ 324,224 Watch — — 22 14,858 Special mention — — 1 1,070 Substandard — — — 164 Doubtful or loss — — — — Total $ 10 $ 8,787 $ 15,742 $ 340,316 December 31, 2018 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 29,570 $ 185,548 $ 52,301 $ 5,685 $ 15,373 Watch 53 13,118 3,838 — 965 Special mention — 1,087 — — — Substandard 27 141 — — — Doubtful or loss — — — — — Total $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 32 $ 4,419 $ 10,691 $ 303,619 Watch — — 22 17,996 Special mention — — 1 1,088 Substandard — — — 168 Doubtful or loss — — — — Total $ 32 $ 4,419 $ 10,714 $ 322,871 |
Summary Of Analysis Of Allowance For Loan Losses | March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 $ — $ 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 — 80 65 4 180 Loans charged-off — — — — — — — — — — Recoveries 2 3 — — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ — $ 168 $ 257 $ 283 $ 4,577 Ending balance: Individually evaluated for impairment $ — $ 117 $ — $ — $ 47 $ — $ — $ — $ — $ 164 Ending balance: Collectively evaluated for impairment $ 661 $ 1,914 $ 420 $ 408 $ 302 $ — $ 168 $ 257 $ 283 $ 4,413 Loans Ending balance $ 29,827 $ 196,471 $ 54,725 $ 8,862 $ 25,892 $ 10 $ 8,787 $ 15,742 $ — $ 340,316 Ending balance: Individually evaluated for impairment $ — $ 7,729 $ — $ — $ 911 $ — $ — $ — $ — $ 8,640 Ending balance: Collectively evaluated for impairment $ 29,827 $ 188,742 $ 54,725 $ 8,862 $ 24,981 $ 10 $ 8,787 $ 15,742 $ — $ 331,676 December 31, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ — $ 132 $ — $ — $ 53 $ — $ — $ — $ — $ 185 Ending balance: Collectively evaluated for impairment $ 668 $ 1,982 $ 564 $ 267 $ 167 $ — $ 88 $ 192 $ 279 $ 4,207 Loans Ending balance $ 29,650 $ 199,894 $ 56,139 $ 5,685 $ 16,338 $ 32 $ 4,419 $ 10,714 $ — $ 322,871 Ending balance: Individually evaluated for impairment $ — $ 7,783 $ — $ — $ 919 $ — $ — $ — $ — $ 8,702 Ending balance: Collectively evaluated for impairment $ 29,650 $ 192,111 $ 56,139 $ 5,685 $ 15,419 $ 32 $ 4,419 $ 10,714 $ — $ 314,169 March 31, 2018 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Beginning balance, January 1, 2018 $ 447 $ 2,174 $ 1,047 $ 269 $ 205 $ — $ 31 $ 14 $ 291 $ 4,478 Provision for loan losses 92 (33 ) (81 ) 19 13 (1 ) — 1 (10 ) — Loans charged-off — — — — — — — — — — Recoveries 7 2 — — — 1 — — — 10 Ending balance, March 31, 2018 $ 546 $ 2,143 $ 966 $ 288 $ 218 $ — $ 31 $ 15 $ 281 $ 4,488 |
Summary Of Activity in Allowance For Loan Losses By Loan Class | March 31, 2019 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,827 $ 29,827 $ — $ 25 Real estate: Commercial 423 — — 423 196,048 196,471 — — Multi-family — — — — 54,725 54,725 — — Construction — — — — 8,862 8,862 — — Residential — — — — 25,892 25,892 — — Other: Leases — — — — 10 10 — — Agriculture — — — — 8,787 8,787 — — Consumer — — — — 15,742 15,742 — — Total $ 423 $ — $ — $ 423 $ 339,893 $ 340,316 $ — $ 25 December 31, 2018 Past Due (dollars in thousands) Past Due Greater Than 30-59 Days 60-89 Days Greater Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 29,650 $ 29,650 $ — $ 27 Real estate: Commercial — — — — 199,894 199,894 — — Multi-family — — — — 56,139 56,139 — — Construction — — — — 5,685 5,685 — — Residential — — — — 16,338 16,338 — — Other: Leases — — — — 32 32 — — Agriculture — — — — 4,419 4,419 — — Consumer — — — — 10,714 10,714 — — Total $ — $ — $ — $ — $ 322,871 $ 322,871 $ — $ 27 |
9. LEASES (Tables)
9. LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases Tables Abstract | |
Supplemental lease information | Balance Sheet Operating lease asset classified as premises and equipment $ 3,372,000 Operating lease liability classified as other liabilities 3,372,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 188,000 Weighted average lease term, in years 6.33 Weighted average discount rate (1) 3.03 % Operating cash flows $ 189,000 |
Maturity analysis of the Company's lease liabilities | Balance April 1, 2019 to March 31, 2020 $ 728,000 April 1, 2020 to March 31, 2021 689,000 April 1, 2021 to March 31, 2022 653,000 April 1, 2022 to March 31, 2023 539,000 April 1, 2023 to March 31, 2024 283,000 Thereafter 859,000 Total lease payments 3,751,000 Less: Interest (379,000 ) Present value of lease liabilities $ 3,372,000 |
12. FAIR VALUE MEASUREMENTS (Ta
12. FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table | |
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings | Carrying Fair Value Measurements Using: March 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 16,610 $ 16,610 $ — $ — $ 16,610 Federal funds sold — — — — — Interest-bearing deposits in banks 2,835 1,089 1,746 — 2,835 Available-for-sale securities 286,602 1,989 284,613 — 286,602 Held-to-maturity securities 277 — 293 — 293 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 336,007 — — 338,298 338,298 Accrued interest receivable 2,050 — 1,030 898 1,928 Financial liabilities: Deposits: Noninterest-bearing $ 213,012 $ 213,012 $ — $ — $ 213,012 Savings 72,576 72,576 — — 72,576 Money market 132,966 132,966 — — 132,966 NOW accounts 66,148 66,148 — — 66,148 Time Deposits 87,677 — 87,649 — 87,649 Short-term borrowings 19,000 19,000 — — 19,000 Long-term borrowings 10,500 — 10,737 — 10,737 Accrued interest payable 95 7 88 — 95 Carrying Fair Value Measurements Using: December 31, 2018 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 20,987 $ 20,987 $ — $ — $ 20,987 Federal funds sold 7,000 7,000 7,000 Interest-bearing deposits in banks 1,746 — 1,746 — 1,746 Available-for-sale securities 294,933 4,976 289,957 — 294,933 Held-to-maturity securities 292 — 306 — 306 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 318,516 — — 315,235 315,235 Accrued interest receivable 1,959 — 1,044 915 1,959 Financial liabilities: Deposits: Noninterest-bearing $ 214,745 $ 214,745 $ — $ — $ 214,745 Savings 72,522 72,522 — — 72,522 Money market 145,831 145,831 — — 145,831 NOW accounts 69,489 69,489 — — 69,489 Time Deposits 88,087 — 88,078 — 88,078 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10.500 — 10,733 — 10,733 Accrued interest payable 63 — 63 — 63 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) March 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 265,427 $ — $ 265,427 $ — $ — Obligations of states and political subdivisions 12,639 — 12,639 — — Corporate bonds 6,547 — 6,547 — — US Treasury securities 1,989 1,989 — — — Total recurring $ 286,602 $ 1,989 $ 284,613 $ — $ — At March 31, 2019, there were no assets or liabilities measured on a nonrecurring basis. Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2018 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Agencies $ 269,049 $ — $ 269,049 $ — $ — Corporate Debt securities 6,508 — 6,508 Obligations of states and political subdivisions 14,400 — 14,400 — — US Treasury securities 4,976 4,976 — — — Total recurring $ 294,933 $ 4,976 $ 289,957 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 5,274 $ — $ — $ 5,274 $ — Other real estate owned Land 957 — — 957 (4 ) Total nonrecurring $ 6,231 $ — $ — $ 6,231 $ (4 ) |
2. STOCK-BASED COMPENSATION (De
2. STOCK-BASED COMPENSATION (Details) - Options Shares $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Outstanding | shares | 41,098 |
Granted | shares | 0 |
Exercised | shares | 11,140 |
Expired, forfeited or cancelled | shares | 0 |
Outstanding | shares | 29,958 |
Number of options vested | shares | 22,822 |
Nonvested, Shares | shares | 7,136 |
Weighted average exercise price, outstanding beginning | $ / shares | $ 8.71 |
Awarded | $ / shares | 0 |
Exercised | $ / shares | 8.50 |
Expired, forfeited or cancelled | $ / shares | 0 |
Weighted average exercise price, outstanding ending | $ / shares | 8.79 |
Weighted average exercise price of vested stock options (in dollars per share) | $ / shares | 8.64 |
Weighted average exercise price of nonvested stock options (in dollars per share) | $ / shares | $ 9.29 |
Weighted years to maturity outstanding beginning | 2 years 3 months 18 days |
Weighted years to maturity outstanding Ending | 5 years 2 months 12 days |
Weighted average remaining contractual term in years, vested | 5 years |
Weighted average remaining contractual term in years, non-vested | 5 years 9 months 18 days |
Aggregate Intrinsic Value, options outstanding, beginning | $ | $ 215 |
Aggregate Intrinsic Value, options outstanding, ending | $ | 126 |
Aggregate Intrinsic Value, options vested | $ | 100 |
Aggregate Intrinsic Value, options non-vested | $ | $ 26 |
2. STOCK-BASED COMPENSATION (_2
2. STOCK-BASED COMPENSATION (Details 1) - Restricted stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Nonvested beginning balance | shares | 32,528 |
Awarded | shares | 18,394 |
Less: Vested | shares | 3,864 |
Less: Expired, forfeited or cancelled | shares | 0 |
Restricted Stock Nonvested ending balance | shares | 47,058 |
Weighted Average Grant Date Fair Value Nonvested beginning balance | $ / shares | $ 14.60 |
Awarded | $ / shares | 14.05 |
Less: Vested | $ / shares | 15.30 |
Less: Expired, forfeited or cancelled | $ / shares | 0 |
Weighted Average Grant Date Fair Value Nonvested ending balance | $ / shares | $ 14.32 |
2. STOCK-BASED COMPENSATION (_3
2. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Share based compensation | $ 83 | $ 73 | |
Tax benefit of equity compensation expense | 21 | $ 18 | |
Compensation cost related to nonvested stock option awards not yet recorded | 13 | ||
Compensation cost related to restricted stock awards not yet recorded | $ 497 | ||
Restricted stock | |||
Stock options outstanding under Equity Incentive Plan | 47,058 | ||
Period for recognition | 4 years 2 months 12 days | ||
Weighted average costs is expected period | 1 year 2 months 12 days | ||
Options Shares | |||
Stock options outstanding under Equity Incentive Plan | 29,958 | 41,098 | |
Period for recognition | 1 year 3 months 18 days | ||
Weighted average costs is expected period | 7 months 6 days | ||
2010 Plan | |||
Stock options outstanding under Equity Incentive Plan | 1,283,232 |
3. COMMITMENTS AND CONTINGENC_2
3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments | ||
Loan commitments | ||
Commitments | 32,047 | 34,276 |
Standby letters of credit | ||
Commitments | $ 240 | $ 361 |
4. EARNINGS PER SHARE COMPUTA_2
4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Computation Details Narrative | ||
Weighted average common shares outstanding | 5,836,579 | 5,996,146 |
Dilutive effect of stock based awards | 21,048 | 36,641 |
Antidilutive stock option excluded from earnings per share | 0 | 0 |
5. INVESTMENT SECURITIES (Detai
5. INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Available for sale securities, Amortized Cost | $ 286,676 | $ 297,597 |
Available for sale securities, Unrealized Gains | 2,290 | 1,223 |
Available for sale securities, Unrealized Losses | (2,364) | (3,887) |
Available for sale securities, Estimated Fair Value | 286,602 | 294,933 |
Held-to-Maturity Debt securities Estimated Fair Value | 293 | 306 |
US Government Agencies and Sponsored Agencies | ||
Available for sale securities, Amortized Cost | 265,796 | 271,685 |
Available for sale securities, Unrealized Gains | 1,922 | 984 |
Available for sale securities, Unrealized Losses | (2,291) | (3,620) |
Available for sale securities, Estimated Fair Value | 265,427 | 269,049 |
Held-to-Maturity Debt securities Amortized Cost | 277 | 292 |
Held-to-Maturity Debt securities Gross Unrealized Gains | 16 | 14 |
Held-to-Maturity Debt securities Gross Unrealized Losses | 0 | 0 |
Held-to-Maturity Debt securities Estimated Fair Value | 293 | 306 |
Obligations of states and political subdivisions | ||
Available for sale securities, Amortized Cost | 12,398 | 14,440 |
Available for sale securities, Unrealized Gains | 287 | 165 |
Available for sale securities, Unrealized Losses | (46) | (205) |
Available for sale securities, Estimated Fair Value | 12,639 | 14,400 |
Corporate Bonds | ||
Available for sale securities, Amortized Cost | 6,494 | 6,493 |
Available for sale securities, Unrealized Gains | 80 | 74 |
Available for sale securities, Unrealized Losses | (27) | (59) |
Available for sale securities, Estimated Fair Value | 6,547 | 6,508 |
US Treasury securities | ||
Available for sale securities, Amortized Cost | 1,988 | |
Available for sale securities, Unrealized Gains | 1 | |
Available for sale securities, Unrealized Losses | 0 | |
Available for sale securities, Estimated Fair Value | $ 1,989 | |
Equity Securities - Corporate Stock | ||
Available for sale securities, Amortized Cost | 4,979 | |
Available for sale securities, Unrealized Gains | 0 | |
Available for sale securities, Unrealized Losses | (3) | |
Available for sale securities, Estimated Fair Value | $ 4,976 |
5. INVESTMENT SECURITIES (Det_2
5. INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Less than 12 months, Estimated Fair Value | $ 14,404 | $ 46,908 |
Less than 12 months, Unrealized Loss | (99) | (345) |
12 months or more, Estimated Fair Value | 147,838 | 146,415 |
12 months or more, Unrealized Loss | (2,265) | (3,542) |
Total Estimated Fair Value | 162,242 | 193,323 |
Total Unrealized Loss | (2,364) | (3,887) |
US Government Agencies and Sponsored Agencies | ||
Less than 12 months, Estimated Fair Value | 14,404 | 39,267 |
Less than 12 months, Unrealized Loss | (99) | (310) |
12 months or more, Estimated Fair Value | 144,192 | 138,894 |
12 months or more, Unrealized Loss | (2,192) | (3,310) |
Total Estimated Fair Value | 158,596 | 178,161 |
Total Unrealized Loss | (2,291) | (3,620) |
Obligations of states and political subdivisions | ||
Less than 12 months, Estimated Fair Value | 0 | 2,168 |
Less than 12 months, Unrealized Loss | 0 | (28) |
12 months or more, Estimated Fair Value | 1,179 | 5,583 |
12 months or more, Unrealized Loss | (46) | (177) |
Total Estimated Fair Value | 1,179 | 7,751 |
Total Unrealized Loss | (46) | (205) |
Corporate Bonds | ||
Less than 12 months, Estimated Fair Value | 0 | 497 |
Less than 12 months, Unrealized Loss | 0 | (4) |
12 months or more, Estimated Fair Value | 2,467 | 1,938 |
12 months or more, Unrealized Loss | (27) | (55) |
Total Estimated Fair Value | 2,467 | 2,435 |
Total Unrealized Loss | $ (27) | (59) |
US Treasury securities | ||
Less than 12 months, Estimated Fair Value | 4,976 | |
Less than 12 months, Unrealized Loss | (3) | |
12 months or more, Estimated Fair Value | 0 | |
12 months or more, Unrealized Loss | 0 | |
Total Estimated Fair Value | 4,976 | |
Total Unrealized Loss | $ (3) |
5. Disclosure - 5. INVESTMENT S
5. Disclosure - 5. INVESTMENT SECURITIES (Details 2) $ in Thousands | Mar. 31, 2019USD ($) |
Amortized Cost | |
Net Investment Income [Line Items] | |
Within one year | $ 2,243 |
After one year through five years | 3,596 |
After five years through ten years | 11,893 |
After ten years | 3,148 |
Total | 20,880 |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: Available-for-Sale | 286,676 |
Investment securities not due at a single maturity date: Held-to-Maturity | 277 |
Amortized Cost | US Government Agencies Debt Securities [Member] | |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: Available-for-Sale | 265,796 |
Investment securities not due at a single maturity date: Held-to-Maturity | 277 |
Estimated Fair Value | |
Net Investment Income [Line Items] | |
Within one year | 2,244 |
After one year through five years | 3,609 |
After five years through ten years | 12,061 |
After ten years | 3,261 |
Total | 21,175 |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: Available-for-Sale | 286,602 |
Investment securities not due at a single maturity date: Held-to-Maturity | 293 |
Estimated Fair Value | US Government Agencies Debt Securities [Member] | |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: Available-for-Sale | 265,427 |
Investment securities not due at a single maturity date: Held-to-Maturity | $ 293 |
6. IMPAIRED AND NONPERFORMING_3
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total nonperforming assets | $ 982 | $ 984 |
Nonperforming loans and leases to total loans and leases | 0.01% | 0.01% |
Total nonperforming assets to total assets | 0.14% | 0.14% |
Nonaccrual loans and leases that are current to terms (less than 30 days past due) | ||
Total nonperforming assets | $ 25 | $ 27 |
Nonaccrual loans and leases that are past due | ||
Total nonperforming assets | 0 | 0 |
Loans and leases past due 90 days and accruing interest | ||
Total nonperforming assets | 0 | 0 |
Other real estate owned | ||
Total nonperforming assets | $ 957 | $ 957 |
6. IMPAIRED AND NONPERFORMING_4
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
With no related allowance recorded: Recorded Investment | $ 5,936 | $ 5,968 |
With no related allowance recorded: Unpaid Principal Balance | 6,156 | 6,289 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 2,704 | 2,734 |
With an allowance recorded: Unpaid Principal Balance | 2,781 | 2,813 |
With an allowance recorded: Related Allowance | 164 | 185 |
Recorded Investment | 8,640 | 8,702 |
Unpaid Principal Balance | 8,937 | 9,102 |
Related Allowance | 164 | 185 |
Real estate-commercial | ||
With no related allowance recorded: Recorded Investment | 5,613 | 5,645 |
With no related allowance recorded: Unpaid Principal Balance | 5,746 | 5,879 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 2,116 | 2,138 |
With an allowance recorded: Unpaid Principal Balance | 2,193 | 2,217 |
With an allowance recorded: Related Allowance | 117 | 132 |
Recorded Investment | 7,729 | 7,783 |
Unpaid Principal Balance | 7,939 | 8,096 |
Related Allowance | 117 | 32 |
Real Estate Residential | ||
With no related allowance recorded: Recorded Investment | 323 | 323 |
With no related allowance recorded: Unpaid Principal Balance | 410 | 410 |
With no related allowance recorded: Related Allowance | 0 | 0 |
With an allowance recorded: Recorded Investment | 588 | 596 |
With an allowance recorded: Unpaid Principal Balance | 588 | 596 |
With an allowance recorded: Related Allowance | 47 | 53 |
Recorded Investment | 911 | 919 |
Unpaid Principal Balance | 998 | 1,006 |
Related Allowance | $ 47 | $ 53 |
6. IMPAIRED AND NONPERFORMING_5
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Impaired Loans and Leases | $ 8,738 | $ 12,523 |
Interest income recognized on impaired loans and leases | 125 | 138 |
Commercial | ||
Impaired Loans and Leases | 0 | 1,580 |
Interest income recognized on impaired loans and leases | 0 | 0 |
Real estate-commercial | ||
Impaired Loans and Leases | 7,823 | 8,861 |
Interest income recognized on impaired loans and leases | 114 | 108 |
Real estate-multi-family | ||
Impaired Loans and Leases | 0 | 473 |
Interest income recognized on impaired loans and leases | 0 | 8 |
Real Estate Residential | ||
Impaired Loans and Leases | 915 | 1,609 |
Interest income recognized on impaired loans and leases | 11 | 22 |
Agriculture | ||
Interest income recognized on impaired loans and leases | $ 0 | $ 0 |
8. ALLOWANCE FOR LOAN AND LEA_3
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total | $ 340,316 | $ 322,871 |
Pass | ||
Total | 324,224 | 303,619 |
Watch | ||
Total | 14,858 | 17,996 |
Special mention | ||
Total | 1,070 | 1,088 |
Substandard | ||
Total | 164 | 168 |
Doubtful or loss | ||
Total | 0 | 0 |
Commercial Loan [Member] | Pass | ||
Total | 29,754 | 29,570 |
Commercial Loan [Member] | Watch | ||
Total | 48 | 53 |
Commercial Loan [Member] | Special mention | ||
Total | 0 | 0 |
Commercial Loan [Member] | Substandard | ||
Total | 25 | 27 |
Commercial Loan [Member] | Doubtful or loss | ||
Total | 0 | 0 |
Commercial | ||
Total | 29,827 | 29,650 |
Real estate-commercial | ||
Total | 196,471 | 199,894 |
Real estate-commercial | Pass | ||
Total | 185,247 | 185,548 |
Real estate-commercial | Watch | ||
Total | 10,016 | 13,118 |
Real estate-commercial | Special mention | ||
Total | 1,069 | 1,087 |
Real estate-commercial | Substandard | ||
Total | 139 | 141 |
Real estate-commercial | Doubtful or loss | ||
Total | 0 | 0 |
Real estate-multi-family | ||
Total | 54,725 | 56,139 |
Real estate-multi-family | Pass | ||
Total | 50,904 | 52,301 |
Real estate-multi-family | Watch | ||
Total | 3,821 | 3,838 |
Real estate-multi-family | Special mention | ||
Total | 0 | 0 |
Real estate-multi-family | Substandard | ||
Total | 0 | 0 |
Real estate-multi-family | Doubtful or loss | ||
Total | 0 | 0 |
Real Estate Construction | Pass | ||
Total | 8,862 | 5,685 |
Real Estate Construction | Watch | ||
Total | 0 | 0 |
Real Estate Construction | Special mention | ||
Total | 0 | 0 |
Real Estate Construction | Substandard | ||
Total | 0 | 0 |
Real Estate Construction | Doubtful or loss | ||
Total | 0 | 0 |
Real estate-construction | ||
Total | 8,862 | 5,685 |
Residential Real Estate [Member] | Pass | ||
Total | 24,941 | 15,373 |
Residential Real Estate [Member] | Watch | ||
Total | 951 | 965 |
Residential Real Estate [Member] | Special mention | ||
Total | 0 | 0 |
Residential Real Estate [Member] | Substandard | ||
Total | 0 | 0 |
Residential Real Estate [Member] | Doubtful or loss | ||
Total | 0 | 0 |
Real Estate Residential | ||
Total | 25,892 | 16,338 |
Leases | ||
Total | 10 | 32 |
Leases | Pass | ||
Total | 10 | 32 |
Leases | Watch | ||
Total | 0 | 0 |
Leases | Special mention | ||
Total | 0 | 0 |
Leases | Substandard | ||
Total | 0 | 0 |
Leases | Doubtful or loss | ||
Total | 0 | 0 |
Agriculture | ||
Total | 8,787 | 4,419 |
Agriculture | Pass | ||
Total | 8,787 | 4,419 |
Agriculture | Watch | ||
Total | 0 | 0 |
Agriculture | Special mention | ||
Total | 0 | 0 |
Agriculture | Substandard | ||
Total | 0 | 0 |
Agriculture | Doubtful or loss | ||
Total | 0 | 0 |
Consumer Loan [Member] | Pass | ||
Total | 15,719 | 10,691 |
Consumer Loan [Member] | Watch | ||
Total | 22 | 22 |
Consumer Loan [Member] | Special mention | ||
Total | 1 | 1 |
Consumer Loan [Member] | Substandard | ||
Total | 0 | 0 |
Consumer Loan [Member] | Doubtful or loss | ||
Total | 0 | 0 |
Consumer | ||
Total | $ 15,742 | $ 10,714 |
8. ALLOWANCE FOR LOAN AND LEA_4
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses Beginning balance | $ 4,392 | $ 4,478 | |
Provision for loan losses | 180 | 0 | |
Loans charged off | 0 | 0 | |
Recoveries | 5 | 10 | |
Allowance for Loan and Lease Losses Ending balance | 4,577 | 4,488 | |
Allowance related to: Loans individually evaluated for impairment | 164 | $ 185 | |
Allowance related to: Loans collectively evaluated for impairment | 4,413 | 4,207 | |
Loans | 340,316 | 322,871 | |
Loans individually evaluated for impairment | 8,640 | 8,702 | |
Loans collectively evaluated for impairment | 331,676 | 314,169 | |
Commercial | |||
Allowance for Loan and Lease Losses Beginning balance | 668 | 447 | |
Provision for loan losses | (9) | 92 | |
Loans charged off | 0 | 0 | |
Recoveries | 2 | 7 | |
Allowance for Loan and Lease Losses Ending balance | 661 | 546 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 661 | 668 | |
Loans | 29,827 | 29,650 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 29,827 | 29,650 | |
Real estate-commercial | |||
Allowance for Loan and Lease Losses Beginning balance | 2,114 | 2,174 | |
Provision for loan losses | (86) | (33) | |
Loans charged off | 0 | 0 | |
Recoveries | 3 | 2 | |
Allowance for Loan and Lease Losses Ending balance | 2,031 | 2,143 | |
Allowance related to: Loans individually evaluated for impairment | 117 | 132 | |
Allowance related to: Loans collectively evaluated for impairment | 1,914 | 1,982 | |
Loans | 196,471 | 199,894 | |
Loans individually evaluated for impairment | 7,729 | 7,783 | |
Loans collectively evaluated for impairment | 188,742 | 192,111 | |
Real estate-multi-family | |||
Allowance for Loan and Lease Losses Beginning balance | 564 | 1,047 | |
Provision for loan losses | (144) | (81) | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 420 | 966 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 420 | 564 | |
Loans | 54,725 | 56,139 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 54,725 | 56,139 | |
Real estate-construction | |||
Allowance for Loan and Lease Losses Beginning balance | 267 | 269 | |
Provision for loan losses | 141 | 19 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 408 | 288 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 408 | 267 | |
Loans | 8,862 | 5,685 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 8,862 | 5,685 | |
Real Estate Residential | |||
Allowance for Loan and Lease Losses Beginning balance | 220 | 205 | |
Provision for loan losses | 129 | 13 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 349 | 218 | |
Allowance related to: Loans individually evaluated for impairment | 47 | 53 | |
Allowance related to: Loans collectively evaluated for impairment | 302 | 167 | |
Loans | 25,892 | 16,338 | |
Loans individually evaluated for impairment | 911 | 919 | |
Loans collectively evaluated for impairment | 24,981 | 15,419 | |
Leases | |||
Allowance for Loan and Lease Losses Beginning balance | 0 | 0 | |
Provision for loan losses | 0 | (1) | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 1 | |
Allowance for Loan and Lease Losses Ending balance | 0 | 0 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 0 | 0 | |
Loans | 10 | 32 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 10 | 32 | |
Agriculture | |||
Allowance for Loan and Lease Losses Beginning balance | 88 | 31 | |
Provision for loan losses | 80 | 0 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 168 | 31 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 168 | 88 | |
Loans | 8,787 | 4,419 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 8,787 | 4,419 | |
Consumer | |||
Allowance for Loan and Lease Losses Beginning balance | 192 | 14 | |
Provision for loan losses | 65 | 1 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 257 | 15 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 257 | 192 | |
Loans | 15,742 | 10,714 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 15,742 | 10,714 | |
Unallocated | |||
Allowance for Loan and Lease Losses Beginning balance | 279 | 291 | |
Provision for loan losses | 4 | (10) | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for Loan and Lease Losses Ending balance | 283 | $ 281 | |
Allowance related to: Loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: Loans collectively evaluated for impairment | 283 | 279 | |
Loans | 0 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | $ 0 | $ 0 |
8. ALLOWANCE FOR LOAN AND LEA_5
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total Past Due | $ 423 | $ 0 |
Current | 339,893 | 322,871 |
Total Loans | 340,316 | 322,871 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 25 | 27 |
30 -59 Days Past Due | ||
Total Past Due | 423 | 0 |
60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Commercial | ||
Total Past Due | 0 | 0 |
Current | 29,827 | 29,650 |
Total Loans | 29,827 | 29,650 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 25 | 27 |
Commercial | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Commercial | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Commercial | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real estate-commercial | ||
Total Past Due | 423 | 0 |
Current | 196,048 | 199,894 |
Total Loans | 196,471 | 199,894 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real estate-commercial | 30 -59 Days Past Due | ||
Total Past Due | 423 | 0 |
Real estate-commercial | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-commercial | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real estate-multi-family | ||
Total Past Due | 0 | 0 |
Current | 54,725 | 56,139 |
Total Loans | 54,725 | 56,139 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real estate-multi-family | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-multi-family | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-multi-family | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real estate-construction | ||
Total Past Due | 0 | 0 |
Current | 8,862 | 5,685 |
Total Loans | 8,862 | 5,685 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real estate-construction | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-construction | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real estate-construction | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Real Estate Residential | ||
Total Past Due | 0 | 0 |
Current | 25,892 | 16,338 |
Total Loans | 25,892 | 16,338 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Residential | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Real Estate Residential | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Real Estate Residential | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Leases | ||
Total Past Due | 0 | 0 |
Current | 10 | 32 |
Total Loans | 10 | 32 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Leases | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Leases | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Leases | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Agriculture | ||
Total Past Due | 0 | 0 |
Current | 8,787 | 4,419 |
Total Loans | 8,787 | 4,419 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Agriculture | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Agriculture | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Agriculture | Past Due Greater Than 90 Days | ||
Total Past Due | 0 | 0 |
Consumer | ||
Total Past Due | 0 | 0 |
Current | 15,742 | 10,714 |
Total Loans | 15,742 | 10,714 |
Past Due Greater Than 90 Days and Accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Consumer | 30 -59 Days Past Due | ||
Total Past Due | 0 | 0 |
Consumer | 60 -89 Days Past Due | ||
Total Past Due | 0 | 0 |
Consumer | Past Due Greater Than 90 Days | ||
Total Past Due | $ 0 | $ 0 |
9. LEASES (Details)
9. LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Balance Sheet | |
Operating lease asset classified as premises and equipment | $ 3,372,000 |
Operating lease liability classified as other liabilities | 3,372,000 |
Income Statement | |
Operating lease cost classified as occupancy and equipment expense | $ 188,000 |
Weighted average lease term, in years | 6 years 3 months 29 days |
Weighted average discount rate (1) | 3.03% |
Operating cash flows | $ 189,000 |
9. LEASES (Details 1)
9. LEASES (Details 1) $ in Thousands | Mar. 31, 2019USD ($) |
Leases Details 1Abstract | |
April 1, 2019 to March 31, 2020 | $ 728,000 |
April 1, 2020 to March 31, 2021 | 689,000 |
April 1, 2021 to March 31, 2022 | 653,000 |
April 1, 2022 to March 31, 2023 | 539,000 |
April 1, 2023 to March 31, 2024 | 283,000 |
Thereafter | 859,000 |
Total lease payments | 3,751,000 |
Less: Interest | (379,000) |
Present value of lease liabilities | $ 3,372,000 |
10. BORROWING ARRANGEMENTS (Det
10. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Borrowing Arrangements | ||
Unsecured short-term borrowing arrangements with two of its correspondent banks | $ 17,000,000 | $ 17,000,000 |
FHLB advances | $ 29,500,000 | $ 15,500,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Minimum | 1.18% | 1.18% |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Maximum | 3.17% | 3.17% |
Remaining amounts available under the borrowing arrangement with the FHLB | $ 92,451,000 | $ 107,262,000 |
Secured borrowing agreement with the Federal Reserve Bank of San Francisco | $ 6,465,000 | $ 8,340,000 |
12. FAIR VALUE MEASUREMENTS (De
12. FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Cash and due from banks | $ 16,610 | $ 20,987 |
Federal funds sold | 0 | (7,000) |
Interest-bearing deposits in banks | 2,835 | 1,746 |
Available-for-sale securities | 286,602 | 294,933 |
Held-to-maturity securities | 293 | 306 |
FHLB stock | 3,932 | 3,932 |
Net loans and leases: | 338,298 | 315,235 |
Accrued interest receivable | 1,928 | 1,959 |
Deposits: | ||
Noninterest-bearing | 213,012 | 214,745 |
Savings | 72,576 | 72,522 |
Money market | 132,966 | 145,831 |
NOW accounts | 66,148 | 69,489 |
Time Deposits | 87,649 | 88,078 |
Short-term borrowings | 19,000 | 5,000 |
Long-term borrowings | 10,737 | 10,733 |
Accrued interest payable | 95 | 63 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 16,610 | 20,987 |
Federal funds sold | 0 | 7,000 |
Interest-bearing deposits in banks | 2,835 | 1,746 |
Available-for-sale securities | 286,602 | 294,933 |
Held-to-maturity securities | 277 | 292 |
FHLB stock | 3,932 | 3,932 |
Net loans and leases: | 336,007 | 318,516 |
Accrued interest receivable | 2,050 | 1,959 |
Deposits: | ||
Noninterest-bearing | 213,012 | 214,745 |
Savings | 72,576 | 72,522 |
Money market | 132,966 | 145,831 |
NOW accounts | 66,148 | 69,489 |
Time Deposits | 87,677 | 88,087 |
Short-term borrowings | 19,000 | 5,000 |
Long-term borrowings | 10,500 | 10,500 |
Accrued interest payable | 95 | 63 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 16,610 | 20,987 |
Federal funds sold | 0 | 7,000 |
Interest-bearing deposits in banks | 1,089 | 0 |
Available-for-sale securities | 1,989 | 4,976 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans and leases: | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 213,012 | 214,745 |
Savings | 72,576 | 72,522 |
Money market | 132,966 | 145,831 |
NOW accounts | 66,148 | 69,489 |
Time Deposits | 0 | 0 |
Short-term borrowings | 19,000 | 5,000 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 7 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Interest-bearing deposits in banks | 1,746 | 1,746 |
Available-for-sale securities | 284,613 | 289,957 |
Held-to-maturity securities | 293 | 306 |
FHLB stock | 0 | 0 |
Net loans and leases: | 0 | 0 |
Accrued interest receivable | 1,030 | 1,044 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time Deposits | 87,649 | 88,078 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 10,737 | 10,733 |
Accrued interest payable | 88 | 63 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans and leases: | 338,298 | 315,235 |
Accrued interest receivable | 898 | 915 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
12. FAIR VALUE MEASUREMENTS (_2
12. FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | |
Non Recurring | ||
Impaired loans: | ||
Total gain (losses) | $ (4) | |
US Government Agencies Debt Securities [Member] | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 269,049 | $ 265,427 |
US Government Agencies Debt Securities [Member] | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
US Government Agencies Debt Securities [Member] | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 269,049 | 265,427 |
US Government Agencies Debt Securities [Member] | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Obligations of states and political subdivisions | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 14,400 | 12,639 |
Obligations of states and political subdivisions | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Obligations of states and political subdivisions | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 14,400 | 12,639 |
Obligations of states and political subdivisions | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Corporate bonds | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,547 | |
Corporate bonds | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Corporate bonds | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,547 | |
Corporate bonds | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
US Treasury securities | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,976 | 1,989 |
US Treasury securities | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,976 | 1,989 |
US Treasury securities | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
US Treasury securities | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Recurring | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 294,933 | 286,602 |
Recurring | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 4,976 | 1,989 |
Recurring | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 289,957 | 284,613 |
Recurring | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | $ 0 |
Commercial Loan [Member] | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,274 | |
Commercial Loan [Member] | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Commercial Loan [Member] | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Commercial Loan [Member] | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 5,274 | |
Land | ||
Impaired loans: | ||
Total gain (losses) | (4) | |
Land | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 957 | |
Land | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Land | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Land | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 957 | |
Non Recurring | Fair Value | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,231 | |
Non Recurring | Level 1 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Non Recurring | Level 2 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 0 | |
Non Recurring | Level 3 | ||
Impaired loans: | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,231 | |
Corporate Bonds | Fair Value | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,508 | |
Corporate Bonds | Level 1 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Corporate Bonds | Level 2 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,508 | |
Corporate Bonds | Level 3 | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Real estate-commercial | ||
Impaired loans: | ||
Total gain (losses) | $ 0 |