Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Moss Adams LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 659 |
Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-32987 | ||
Entity Registrant Name | UNITED SECURITY BANCSHARES | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 91-2112732 | ||
Entity Address, Address Line One | 2126 Inyo Street | ||
Entity Address, City or Town | Fresno | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 93721 | ||
City Area Code | 559 | ||
Local Phone Number | 248-4943 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 111,143,275 | ||
Entity Common Stock, Shares Outstanding | 17,028,239 | ||
Documents Incorporated by Reference | The information required by Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K will be found in the Company's definitive proxy statement for its 2022 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and such information is incorporated herein by this reference. | ||
Entity Central Index Key | 0001137547 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2021 | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | ||
Assets | ||||
Cash and noninterest-bearing deposits in other banks | $ 31,057 | $ 29,490 | ||
Due from Federal Reserve Bank ("FRB") | 188,162 | 264,579 | ||
Cash and cash equivalents | 219,219 | 294,069 | ||
Investment securities (at fair value) | ||||
Available-for-sale ("AFS") securities | 178,902 | 82,341 | ||
Marketable equity securities | 3,744 | 3,851 | ||
Total investment securities | 182,646 | 86,192 | ||
Loans and Leases Receivable, Net Amount [Abstract] | ||||
Loans | 869,314 | 655,411 | ||
Unearned fees and unamortized loan origination costs - net | 2,219 | (1,064) | ||
Allowance for credit losses | (9,333) | (8,522) | ||
Net loans | 862,200 | 645,825 | ||
Premises and equipment - net | 8,950 | 9,110 | ||
Accrued interest receivable | 7,530 | 8,164 | ||
Other real estate owned ("OREO") | 4,582 | 5,004 | ||
Goodwill | 4,488 | 4,488 | ||
Deferred tax assets - net | 3,615 | 2,907 | ||
Cash surrender value of life insurance | 22,338 | 20,715 | ||
Operating lease right-of-use assets | 2,594 | 2,864 | ||
Other assets | 12,782 | 13,316 | ||
Total assets | 1,330,944 | 1,092,654 | ||
Deposits | ||||
Noninterest-bearing | 476,749 | 391,897 | ||
Interest-bearing | 711,357 | 560,754 | ||
Total deposits | 1,188,106 | 952,651 | ||
Operating lease liabilities | 2,705 | 2,967 | ||
Other liabilities | 8,737 | 8,305 | ||
Junior subordinated debentures (at fair value) | 11,189 | 10,924 | ||
Total liabilities | 1,210,737 | 974,847 | ||
Shareholders' Equity | ||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,028,239 at December 31, 2021 and 17,009,883 at December 31, 2020 | 59,636 | 59,397 | ||
Retained earnings | 61,745 | 59,138 | ||
Accumulated other comprehensive loss | (1,174) | (728) | ||
Total shareholders' equity | 120,207 | [1] | 117,807 | [2] |
Total liabilities and shareholders' equity | $ 1,330,944 | $ 1,092,654 | ||
[1] | (3) Excludes 27,949 unvested restricted shares | |||
[2] | (2) Excludes 11,924 unvested restricted shares |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares, issued (in shares) | 17,028,239 | 17,009,883 |
Common stock, shares, outstanding (in shares) | 17,028,239 | 17,009,883 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income: | ||
Interest and fees on loans | $ 35,154 | $ 32,404 |
Interest on investment securities | 2,337 | 1,433 |
Interest on deposits in FRB | 239 | 730 |
Total interest income | 37,730 | 34,567 |
Interest Expense: | ||
Interest on deposits | 1,899 | 2,014 |
Interest on other borrowed funds | 180 | 276 |
Total interest expense | 2,079 | 2,290 |
Net Interest Income | 35,651 | 32,277 |
Provision for Credit Losses | 2,107 | 2,769 |
Net Interest Income after Provision for Credit Losses | 33,544 | 29,508 |
Noninterest Income: | ||
Customer service fees | 2,793 | 2,663 |
Increase in cash surrender value of bank-owned life insurance | 555 | 504 |
Unrealized (loss) gain on fair value of marketable equity securities | (106) | 74 |
Gain on proceeds from bank-owned life insurance | 0 | 310 |
(Loss) gain on fair value of junior subordinated debentures | (660) | 970 |
Gain on sale of assets | 8 | 0 |
Other | 795 | 653 |
Total noninterest income | 3,385 | 5,174 |
Noninterest Expense: | ||
Salaries and employee benefits | 11,713 | 10,825 |
Occupancy expense | 3,537 | 3,475 |
Data processing | 565 | 493 |
Professional fees | 3,572 | 3,327 |
Regulatory assessments | 743 | 459 |
Director fees | 385 | 376 |
Correspondent bank service charges | 88 | 71 |
Net cost on operation and sale of OREO | 256 | 972 |
Other | 2,756 | 2,272 |
Total noninterest income | 23,615 | 22,270 |
Income Before Provision for Taxes | 13,314 | 12,412 |
Provision for Taxes on Income | 3,216 | 3,451 |
Net Income | $ 10,098 | $ 8,961 |
Net Income per common share | ||
Basic (in dollars per share) | $ 0.59 | $ 0.53 |
Diluted (in dollars per share) | $ 0.59 | $ 0.53 |
Shares on which net income per common share were based | ||
Basic (in shares) | 17,011,379 | 16,976,704 |
Diluted (in shares) | 17,030,874 | 16,998,585 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 10,098 | $ 8,961 |
Unrealized holdings (losses) gains on debt securities | (1,229) | 1,143 |
Unrealized gain (loss) on unrecognized post-retirement costs | 203 | (135) |
Unrealized gain (loss) on junior subordinated debentures | 392 | (1,144) |
Other comprehensive loss, before tax | (634) | (136) |
Tax benefit (expense) related to debt securities | 363 | (338) |
Tax (expense) benefit related to unrecognized post-retirement costs | (60) | 40 |
Tax (expense) benefit related to junior subordinated debentures | (115) | 338 |
Total other comprehensive loss | (446) | (96) |
Comprehensive Income | $ 9,652 | $ 8,865 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance (in shares) at Dec. 31, 2019 | [1] | 16,973,885 | ||||
Beginning balance at Dec. 31, 2019 | [1] | $ 115,988 | $ 58,973 | $ 57,647 | $ (632) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (96) | (96) | ||||
Dividends on common stock | (5,600) | (5,600) | ||||
Dividends payable | (1,870) | (1,870) | ||||
Restricted stock units released (in shares) | 35,998 | |||||
Tax benefit from restricted stock units released | (1) | $ (1) | ||||
Stock-based compensation expense | 425 | $ 425 | ||||
Net Income | $ 8,961 | 8,961 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 17,009,883 | 17,009,883 | [2] | |||
Ending balance at Dec. 31, 2020 | [2] | $ 117,807 | $ 59,397 | 59,138 | (728) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (446) | (446) | ||||
Dividends on common stock | (5,619) | (5,619) | ||||
Dividends payable | (1,872) | (1,872) | ||||
Restricted stock units released (in shares) | 18,356 | |||||
Tax benefit from restricted stock units released | (10) | $ (10) | ||||
Stock-based compensation expense | 249 | $ 249 | ||||
Net Income | $ 10,098 | 10,098 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 17,028,239 | 17,028,239 | [3] | |||
Ending balance at Dec. 31, 2021 | [3] | $ 120,207 | $ 59,636 | $ 61,745 | $ (1,174) | |
[1] | (1) Excludes 35,575 unvested restricted shares | |||||
[2] | (2) Excludes 11,924 unvested restricted shares | |||||
[3] | (3) Excludes 27,949 unvested restricted shares |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Non-vested awards (in shares) | 27,949 | 11,924 |
Dividends on common stock (in dollars per share) | $ 0.33 | $ 0.33 |
Dividends payable (in dollars per share) | $ 0.11 | $ 0.11 |
Restricted Stock | ||
Non-vested awards (in shares) | 27,949 | 11,924 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 10,098 | $ 8,961 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for credit losses | 2,107 | 2,769 |
Depreciation and amortization | 1,408 | 1,411 |
Amortization of operating lease right-of-use assets | (262) | (600) |
Amortization of premium/discount on investment securities, net | 953 | 1,073 |
Decrease in accrued interest receivable | 634 | 44 |
Decrease in accrued interest payable | (4) | (27) |
(Increase) decrease in unearned fees and unamortized loan origination costs, net | (151) | 244 |
(Increase) decrease in income taxes receivable | (73) | 367 |
Stock-based compensation expense and tax benefit | 238 | 425 |
(Provision) benefit for deferred income taxes | (521) | 324 |
Increase (decrease) in accounts payable and accrued liabilities | 623 | (160) |
Write down on other real estate owned | 0 | 727 |
Loss on sale of other real estate owned | 1 | 113 |
Unrealized loss (gain) on marketable equity securities | 106 | (74) |
Loss (gain) on fair value option of junior subordinated debentures | 660 | (970) |
Gain on bank owned life insurance | 0 | (310) |
Increase in cash surrender value of bank-owned life insurance | (555) | (504) |
Gain on sale of premises and equipment | (8) | 0 |
Net decrease (increase) in other assets | 1,296 | (13) |
Net cash provided by operating activities | 16,550 | 13,800 |
Cash Flows From Investing Activities: | ||
Purchase of correspondent bank stock | (8) | (45) |
Principal payments on available-for-sale securities | 27,009 | 23,055 |
Purchases of available-for-sale securities | (125,749) | (29,016) |
Purchase of bank-owned life insurance | (1,140) | (220) |
Net increase in loans | (218,331) | (60,192) |
Cash proceeds from sales of other real estate owned | 251 | 909 |
Cash proceeds from sales of premises and equipment | 13 | 0 |
Proceeds from bank owned life insurance | 0 | 1,243 |
Capital expenditures of premises and equipment | (1,253) | (1,141) |
Investment in limited partnership | (158) | (140) |
Net cash used in investing activities | (319,366) | (65,547) |
Cash Flows From Financing Activities: | ||
Net increase in demand deposit and savings accounts | 229,389 | 138,171 |
Net increase (decrease) in time deposits | 6,066 | (3,882) |
Dividends on common stock | (7,489) | (7,468) |
Net cash provided by financing activities | 227,966 | 126,821 |
Net (decrease) increase in cash and cash equivalents | (74,850) | 75,074 |
Cash and cash equivalents at beginning of year | 294,069 | 218,995 |
Cash and cash equivalents at end of year | $ 219,219 | $ 294,069 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting and Reporting Policies | Organization and Summary of Significant Accounting and Reporting Policies Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, with rules and regulations of the Securities and Exchange Commission ("SEC"), and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly-owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the "Trust"). The Trust is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures and are presented as a separate liability category (see Note 10 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. United Security Bancshares has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. The Bank was founded in 1987 and currently operates twelve branches, one commercial lending office, one consumer lending office, and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full complement of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. York Monterey Properties, Inc. (“YMP”) was incorporated in California on April 17, 2019, for the purpose of holding specific parcels of real estate acquired by the Bank through, or in lieu of, loan foreclosures in Monterey County. These properties exceeded the 10-year holding period for other real estate owned, or “OREO.” YMP was funded with a $250,000 cash investment and the transfer of those parcels by the Bank to YMP. As of December 31, 2021 and 2020, these properties are included within the consolidated balance sheets as part of “other real estate owned.” Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, goodwill, fair value of junior subordinated debt, deferred tax assets and liabilities, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. Subsequent events - The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification , sometimes referred to as the Codification or ASC. The following is a summary of significant policies: a. Cash and cash equivalents – Cash and cash equivalents include cash on hand and amounts due from banks. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2021 or 2020. All cash and cash equivalents have maturities when purchased of three months or less. b. Securities - Debt securities classified as available-for-sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company classifies its debt securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, and those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. Debt securities with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. The Company evaluates investment securities for other-than-temporary impairment (OTTI) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities of high credit quality are generally evaluated for OTTI under ASC Topic 320-10, " Investments – Debt and Equity Instruments" and ASC Topic 321, "Investment – Equity Securities" . The Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. Equity securities are reported at fair value with gains and losses included in non interest income on the Consolidated Statements of Income. c. Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Outside of student loans, loans are typically placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. Student loans are typically placed on non-accrual status when principal or interest is past due for 120 days. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed based upon management's assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Nonrefundable fees and related direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The net deferred fees and costs are generally amortized into interest income over the loan term using the interest method. Other credit-related fees, such as standby letter of credit fees and loan placement fees are recognized as noninterest income during the period the related service is performed. d. Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include: • The formula allowance • Specific allowances for problem graded loans identified as impaired; and • The unallocated allowance The formula allowance is calculated by applying loss factors to outstanding loans and certain unfunded loan commitments. Loss factors are based on the Company’s historical loss experience and on the internal risk grade of those loans, and may be adjusted for significant factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Factors that may affect collectability of the loan portfolio include: • Levels of, and trends in delinquencies and nonaccrual loans; • Trends in volumes and term of loans; • Effects of any changes in lending policies and procedures including those for underwriting, collection, charge-off, and recovery; • Experience, ability, and depth of lending management and staff; • National and local economic trends and conditions and; • Concentrations of credit that might affect loss experience across one or more components of the portfolio, including high-balance loan concentrations and participations. Management determines the loss factors for problem graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. The migration analysis incorporates loan losses over the previous quarters as determined by management (time horizons adjusted as business cycles or environment changes) and loss factors are adjusted to recognize and quantify the loss exposure from changes in market conditions and trends in the Company’s loan portfolio. For purposes of this analysis, loans are grouped by internal risk classifications and categorized as pass, special mention, substandard, doubtful, or loss. Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. Special mention loans are currently performing but are potentially weak, as the borrower has begun to exhibit deteriorating trends which, if not corrected, could jeopardize repayment of the loan and result in further downgrades. Substandard loans have well-defined weaknesses which, if not corrected, could jeopardize the full satisfaction of the debt. A loan classified as doubtful has critical weaknesses that make full collection of the obligation improbable. The student loan portfolio is reviewed for allowance adequacy under the same guidelines as other loans in the Company's portfolio, with additional emphasis for specific risks associated with the portfolio. For student loans, principal amounts outstanding also include interest that has been capitalized. Charge-offs and recoveries of amounts that relate to capitalized interest on student loans are treated as principal charge-offs and recoveries, affecting the allowance for loan losses rather than interest income. Capitalized interest earned in the current year is reversed from interest income. Accrued but unpaid interest related to charged-off student loans is reversed against interest income. In general, the Company reserves for a percentage of loans in forbearance and loans rated substandard. Loan participations are reviewed for allowance adequacy under the same guidelines as other loans in the Company’s portfolio, with an additional participation factor added, if required, for specific risks associated with participations. In general, participations are subject to certain thresholds set by the Company, and are reviewed for geographic location as well as the well-being of the underlying agent bank. Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the net realizable value of the underlying collateral, the net present value of the anticipated cash flows, or the market value of the underlying assets. Formula allowances for classified loans, excluding impaired loans, are determined on the basis of additional risks involved with individual loans that may be in excess of risk factors associated with the loan portfolio as a whole. The specific allowance is different from the formula allowance in that the specific allowance is determined on a loan-by-loan basis based on risk factors directly related to a particular loan, as opposed to the formula allowance which is determined for a pool of loans with similar risk characteristics, based on past historical trends and other risk factors which may be relevant on an ongoing basis. The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. e. Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years f. Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. g. Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in certain branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2021 and 2020, goodwill totaled $4.5 million, held at the Company as the reporting unit. During 2021 and 2020, the Company did not recognize impairment charges on goodwill. h. Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. Estimates are based on the enacted tax rate of the applicable period. i. Net Income per Share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. If applicable, net income per share is retroactively adjusted for all stock dividends declared. j. Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, and deposits held for customers. k. Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right, beyond a trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. l. Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 12. The Company accounts for all share-based payments to employees, including grants of employee stock options and restricted stock units and awards, to be recognized in the consolidated financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2021 and 2020 are $238,000 and $425,000, respectively, of share-based compensation. m. Federal Home Loan Bank Stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank of San Francisco ("FHLB"), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank of San Francisco ("FRB"), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. n. Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans, and unrealized gains and losses on trust preferred securities. Comprehensive income is presented in the Consolidated Statements of Other Comprehensive Income. o. Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in California's San Joaquin Valley. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. p. Revenue from Contracts with Customers - The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income is not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The contracts evaluated that are in scope of Topic 606 are primarily related to service charges and fees on deposit accounts, debit card fees, ATM processing fees, and other service charges, commissions and fees. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. q. Leases - The Company recognizes lease assets and lease liabilities on the consolidated balance sheet. Disclosures related to key lease components and leasing arrangements are included within the footnotes. The Company combines lease and associated non-lease components by class of underlying asset in contract that meet certain criteria. The lease and related non-lease components have the same timing and pattern of transfer, and the lease component, when accounted for on a stand-alone basis, is classified as an operating lease. r. Recent Accounting Standards Not Yet Adopted: In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326) . The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This original amendment was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In October 2019 FASB unanimously approved a vote to delay the effective date of this Standard to be effective for fiscal years beginning after December 15, 2022. The Company has formed a project team that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard. An external provider specializing in community bank loss driver and the Current Expected Credit Loss ("CECL") reserving model design as well as other related consulting services has been retained, and the Company continues to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company has begun to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loan portfolio as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. The Company anticipates impacts to junior subordinated debt and floating rate loans tied to LIBOR. s. Reclassifications - Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2021. None of the reclassifications had an impact on equity or net income. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2021 and December 31, 2020: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2021 Securities available for sale: U.S. Government agencies $ 33,206 $ 260 $ (90) $ 33,376 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 184 (329) 64,735 Asset-backed securities 4,092 38 — 4,130 Municipal bonds 50,872 86 (906) 50,052 Corporate bonds 11,000 429 (7) 11,422 U.S. Treasury securities 15,186 1 — 15,187 Total securities available for sale $ 179,236 $ 998 $ (1,332) $ 178,902 December 31, 2020 Securities available for sale: U.S. Government agencies $ 33,800 $ 142 $ (232) $ 33,710 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,732 722 (9) 38,445 Asset-backed securities 3,871 38 — 3,909 Municipal bonds 1,045 13 — 1,058 Corporate bonds 5,000 219 — 5,219 Total securities available for sale $ 81,448 $ 1,134 $ (241) $ 82,341 There were no sales of securities and no gross realized losses or gains on available-for-sale securities during the years ended December 31, 2021 and 2020. There were no other-than-temporary impairment losses during the years ended December 31, 2021 and 2020. The amortized cost and fair value of securities available for sale at December 31, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. December 31, 2021 Amortized Cost Fair Value (Carrying Amount) (In thousands) Due in one year or less $ 510 $ 510 Due after one year through five years 15,725 15,721 Due after five years through ten years 52,700 52,481 Due after ten years 45,421 45,456 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 64,734 $ 179,236 $ 178,902 At December 31, 2021 and 2020, available-for-sale securities with an amortized cost of approximately $94.9 million and $80.5 million (fair value of $95.2 million and $81.4 million, respectively) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. The following summarizes temporarily impaired investment securities at December 31, 2021 and 2020: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2021 Securities available for sale: U.S. Government agencies $ — $ — $ 9,699 $ (90) $ 9,699 $ (90) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,258 (329) 23 — 37,281 (329) Municipal bonds 39,551 (896) 228 (10) 39,779 (906) Corporate bonds 5,993 (7) — — 5,993 (7) U.S. Treasury securities 7,416 — 7,416 — Total impaired securities $ 90,218 $ (1,232) $ 9,950 $ (100) $ 100,168 $ (1,332) December 31, 2020 Securities available for sale: U.S. Government agencies $ 9,013 $ (73) $ 16,963 $ (159) $ 25,976 $ (232) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30 (1) 1,684 (8) 1,714 (9) Total impaired securities $ 9,043 $ (74) $ 18,647 $ (167) $ 27,690 $ (241) Temporarily impaired securities at December 31, 2021, were comprised of thirty-six municipal bonds, twelve U.S. Government sponsored entities & agencies collateralized by mortgage obligations, six U.S. Government agency securities, two corporate bonds, and one U.S. treasury security. Temporarily impaired securities at December 31, 2020, were comprised of twelve U.S. Government agency securities and three U.S. Government sponsored entities & agencies collateralized by mortgage obligations. At December 31, 2021, the decline in fair value of the thirty-six municipal bonds, the twelve U.S. Government sponsored entities and agencies collateralized by mortgage obligations securities, the six U.S. Government agency securities, the two corporate bonds, and one U.S. treasury security is attributable to changes in interest rates and not credit quality. Because the Company does not have the intent to sell these impaired securities, and it is more likely than not that it will not be required to sell these securities before its anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2021. During the year ended December 31, 2021, the Company recognized $106,000 of unrealized losses related to marketable equity securities, related to one mutual fund, held at December 31, 2021 in the consolidated statements of income. During the year ended December 31, 2020, the Company recognized $74,000 of unrealized gains related to marketable equity securities held at December 31, 2020 in the consolidated statements of income. The Company had no held-to-maturity or trading securities at December 31, 2021 or December 31, 2020. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans | Loans Loans are comprised of the following: (In thousands) December 31, 2021 December 31, 2020 Commercial and business loans $ 42,194 $ 37,349 Government program loans 3,310 10,165 Total commercial and industrial 45,504 47,514 Real estate – mortgage: Commercial real estate 331,050 282,951 Residential mortgages 226,926 37,236 Home improvement and home equity loans 80 107 Total real estate mortgage 558,056 320,294 Real estate construction and development 154,270 175,016 Agricultural 60,239 51,079 Installment and student loans 51,245 61,508 Total loans $ 869,314 $ 655,411 The Company's loans are predominantly in the San Joaquin Valley, and the greater Oakhurst/East Madera County area, as well as the Campbell area of Santa Clara County. Although the Company does participate in loans with other financial institutions, they are primarily in the state of California. Commercial and industrial loans represent 5.2% of total loans at December 31, 2021, and are generally made to support the ongoing operations of small-to-medium sized commercial businesses. Commercial and industrial loans have a high degree of industry diversification and provide working capital, financing for the purchase of manufacturing plants and equipment, or funding for growth and general expansion of businesses. A substantial portion of commercial and industrial loans are secured by accounts receivable, inventory, leases, or other collateral including real estate. The remainder are unsecured; however, extensions of credit are predicated upon the financial capacity of the borrower. Repayment of commercial and industrial loans generally comes from the cash flow of the borrower. Included within the balance of Commercial and industrial loans is $1,731,000 in Paycheck Protection Program ("PPP") loans administrated by the Small Business Administration ("SBA"). PPP loans have a two Real estate mortgage loans, representing 64.2% of total loans at December 31, 2021, are secured by trust deeds on primarily commercial property and by trust deeds on single family residences. Repayment of real estate mortgage loans is generally from the cash flow of the borrower. • Commercial real estate mortgage loans comprise the largest segment of this loan category and are available on all types of income producing and commercial properties, including: office buildings and shopping centers; apartments and motels; owner occupied buildings; manufacturing facilities and more. Commercial real estate mortgage loans can also be used to refinance existing debt. Commercial real estate loans are made under the premise that the loan will be repaid from the borrower's business operations, rental income associated with the real property, or personal assets. • Residential mortgage loans are provided to individuals to finance or refinance single-family residences. Residential mortgages are not a primary business line offered by the Company, and a majority are conventional mortgages that were purchased as a pool. • Home improvement and home equity loans comprise a relatively small portion of total real estate mortgage loans. Home equity loans are generally secured by junior trust deeds, but may be secured by 1 st trust deeds. Real estate construction and development loans, representing 17.7% of total loans at December 31, 2021, consist of loans for residential and commercial construction projects, as well as land acquisition and development, or land held for future development. Loans in this category are secured by real estate including improved and unimproved land, as well as single-family residential, multi-family residential, and commercial properties in various stages of completion. All real estate loans have established equity requirements. Repayment on construction loans generally comes from long-term mortgages with other lending institutions obtained at completion of the project or from the sale of the constructed homes to individuals. Agricultural loans represent 6.9% of total loans at December 31, 2021, and are generally secured by land, equipment, inventory and receivables. Repayment is from the cash flow of the borrower. Installment loans, including student loans, represent 5.9% of total loans at December 31, 2021 and generally consist of student loans as well as loans to individuals for household, family, and other personal expenditures such as credit cards, automobiles or other consumer items. See Note 4 - Student Loans for specific information on the student loan portfolio. In the normal course of business, the Company is party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. At December 31, 2021 and 2020, these financial instruments include commitments to extend credit of $239.1 million and $216.8 million, respectively, and standby letters of credit of $1.7 million and $3.7 million, respectively. These instruments involve elements of credit risk in excess of the amount recognized on the consolidated balance sheet. The contract amounts of these instruments reflect the extent of the involvement the Company has in off-balance sheet financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the Prime rate. Commitments generally have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Loans to directors, officers, principal shareholders and their affiliates are summarized below: (In thousands) 2021 2020 Aggregate amount outstanding, beginning of year $ 1,900 $ 1,093 New loans or advances during year 7,899 4,950 Repayments during year (198) (4,143) Aggregate amount outstanding, end of year $ 9,601 $ 1,900 Undisbursed commitments, end of year $ 13,100 $ 21,000 Key terms and conditions for loans to directors, officers, principal shareholders and their affiliates do not differ from that of other borrowers. Past Due Loans The Company monitors delinquency and potential problem loans on an ongoing basis through weekly reports to the Loan Committee and monthly reports to the Board of Directors. The following is a summary of delinquent loans at December 31, 2021 (in thousands): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — 42,194 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 The following is a summary of delinquent loans at December 31, 2020 (in thousands): December 31, 2020 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ 184 $ — $ — $ 184 $ 37,165 $ 37,349 $ — Government program loans — — — — 10,165 10,165 — Total commercial and industrial 184 — — 184 47,330 47,514 — Commercial real estate loans — — — — 282,951 282,951 — Residential mortgages — — — — 37,236 37,236 — Home improvement and home equity loans — — — — 107 107 — Total real estate mortgage — — — — 320,294 320,294 — Real estate construction and development loans — — 8,605 8,605 166,411 175,016 — Agricultural loans — — 439 439 50,640 51,079 — Installment and student loans 510 875 513 1,898 59,610 61,508 513 Total loans $ 694 $ 875 $ 9,557 $ 11,126 $ 644,285 $ 655,411 $ 513 Nonaccrual Loans Commercial, construction and commercial real estate loans are placed on non-accrual status under the following circumstances: - When there is doubt regarding the full repayment of interest and principal. - When principal and/or interest on the loan has been in default for a period of 90-days or more, unless the asset is both well secured and in the process of collection that will result in repayment in the near future. - When the loan is identified as having loss elements and/or is risk rated "8" Doubtful. Other circumstances which jeopardize the ultimate collectability of the loan include certain troubled debt restructurings, identified loan impairment, and certain loans to facilitate the sale of OREO. All loans, outside of student loans, where principal or interest is due and unpaid for 90 days or more are placed on nonaccrual and the accrual of interest for financial statement purposes is discontinued. Previously accrued but unpaid interest is reversed and charged against interest income. See Note 4- Student Loans for specific information on the student loan portfolio. When a loan is placed on non-accrual status and subsequent payments of interest (and principal) are received, the interest received may be accounted for in two separate ways. Cost recovery method : If the loan is in doubt as to full collection, the interest received in subsequent payments is diverted from interest income and treated as a reduction of principal for financial reporting purposes. Cash basis : This method is only used if the recorded investment or total contractual amount is expected to be fully collectible, under which circumstances the subsequent payments of interest is credited to interest income as received. Loans on non-accrual status are usually not returned to accruing status unless and until all delinquent principal and/or interest has been brought current, there is no identified element of loss, and current and continued satisfactory performance is expected (loss of the contractual amount not the carrying amount of the loan). Repayment ability is generally demonstrated through the timely receipt of at least six monthly payments on a loan with monthly amortization. There were no remaining undisbursed commitments to extend credit on nonaccrual loans at December 31, 2021 and 2020. The following is a summary of nonaccrual loan balances at December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Commercial and business loans $ — $ — Government program loans — — Total commercial and industrial — — Commercial real estate loans — — Residential mortgages — — Home improvement and home equity loans — — Total real estate mortgage — — Real estate construction and development loans 11,226 11,057 Agricultural loans 212 439 Installment and student loans — — Total loans $ 11,438 $ 11,496 Impaired Loans A loan is considered impaired when based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Company applies its normal loan review procedures in making judgments regarding probable losses and loan impairment. The Company evaluates for impairment those loans on nonaccrual status, graded doubtful, graded substandard or those that are troubled debt restructures. The primary basis for inclusion in impaired status under generally accepted accounting pronouncements is that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan is not considered impaired if there is merely an insignificant delay or shortfall in the amounts of payments and the Company expects to collect all amounts due, including interest accrued, at the contractual interest rate for the period of the delay. Review for impairment does not include large groups of smaller balance homogeneous loans that are collectively evaluated to estimate the allowance for loan losses. The Company’s present allowance for loan losses methodology, including migration analysis, captures required reserves for these loans in the formula allowance. For loans determined to be impaired, the Company evaluates impairment based upon either the fair value of underlying collateral, discounted cash flows of expected payments, or observable market price. - For loans secured by collateral including real estate and equipment, the fair value of the collateral less selling costs will determine the carrying value of the loan. The difference between the recorded investment in the loan and the fair value, less selling costs, determines the amount of impairment. The Company uses the measurement method based on fair value of collateral when the loan is collateral dependent and foreclosure is probable. For loans that are not considered collateral dependent, a discounted cash flow methodology is used. - The discounted cash flow method of measuring the impairment of a loan is used for impaired loans that are not considered to be collateral dependent. Under this method, the Company assesses both the amount and timing of cash flows expected from impaired loans. The estimated cash flows are discounted using the loan's effective interest rate. The difference between the amount of the loan on the Bank's books and the discounted cash flow amounts determines the amount of impairment to be provided. This method is used for most of the Company’s troubled debt restructurings or other impaired loans where some payment stream is being collected. - The observable market price method of measuring the impairment of a loan is only used by the Company when the sale of loans or a loan is in process. The method for recognizing interest income on impaired loans is dependent on whether the loan is on nonaccrual status or is a troubled debt restructure. For income recognition, the existing nonaccrual and troubled debt restructuring policies are applied to impaired loans. Generally, except for certain troubled debt restructurings which are performing under the restructure agreement, the Company does not recognize interest income received on impaired loans, but reduces the carrying amount of the loan for financial reporting purposes. Loans other than certain homogeneous loan portfolios are reviewed on a quarterly basis for impairment. Impaired loans are written down to estimated realizable values by the establishment of specific reserves for loans utilizing the discounted cash flow method, or charge-offs for collateral-based impaired loans, or those using observable market pricing. The following is a summary of impaired loans at December 31, 2021 (in thousands): December 31, 2021 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ 156 $ — Government program loans — — — — — 110 — Total commercial and industrial — — — — — 266 — Commercial real estate loans — — — — — 538 — Residential mortgages 146 — 146 146 3 377 6 Home improvement and home equity loans — — — — — — — Total real estate mortgage 146 — 146 146 3 915 6 Real estate construction and development loans 11,226 11,226 — 11,226 — 11,133 272 Agricultural loans 660 453 209 662 127 499 41 Installment and student loans — — — — — — — Total impaired loans $ 12,032 $ 11,679 $ 355 $ 12,034 $ 130 $ 12,813 $ 319 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on the year ended December 31, 2021. The following is a summary of impaired loans at December 31, 2020 (in thousands). December 31, 2020 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ 250 $ 251 $ — $ 251 $ — $ 551 $ 23 Government program loans 214 215 — 215 — 236 14 Total commercial and industrial 464 466 — 466 — 787 37 Commercial real estate loans 874 878 — 878 — 1,822 54 Residential mortgages 365 — 366 366 13 867 17 Home improvement and home equity loans — — — — — — — Total real estate mortgage 1,239 878 366 1,244 13 2,689 71 Real estate construction and development loans 11,057 11,057 — 11,057 — 11,223 252 Agricultural loans 610 293 316 609 196 675 39 Installment and student loans — — — — — — — Total impaired loans $ 13,370 $ 12,694 $ 682 $ 13,376 $ 209 $ 15,374 $ 399 (1) The recorded investment in loans includes accrued interest receivable of $6. (2) Information is based on the twelve month period ended December 31, 2020. In most cases, the Company uses the cash basis method of income recognition for impaired loans. In the case of certain troubled debt restructuring for which the loan is performing under the current contractual terms for a reasonable period of time, income is recognized under the accrual method. Troubled Debt Restructurings Under the circumstances, when the Company grants a concession to a borrower as part of a loan restructuring, the restructuring is accounted for as a troubled debt restructuring (TDR). TDRs are reported as a component of impaired loans. A TDR is a type of restructuring in which the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession (either imposed by court order, law, or agreement between the borrower and the Bank) to the borrower that it would not otherwise consider. Although the restructuring may take different forms, the Company's objective is to maximize recovery of its investment by granting relief to the borrower. A TDR may include, but is not limited to, one or more of the following: - A transfer from the borrower to the Company of receivables from third parties, real estate, other assets, or an equity interest in the borrower is granted to fully or partially satisfy the loan. - A modification of terms of a debt such as one or a combination of: ◦ The reduction (absolute or contingent) of the stated interest rate. ◦ The extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk. ◦ The reduction (absolute or contingent) of the face amount or maturity amount of debt as stated in the instrument or agreement. ◦ The reduction (absolute or contingent) of accrued interest. For a restructured loan to return to accrual status there needs to be, among other factors, at least six months successful payment history and continued satisfactory performance is expected. In addition, the Company typically performs a financial analysis of the credit to determine whether the borrower has the ability to continue to meet payments over the remaining life of the loan. This includes, but is not limited to, a review of financial statements and cash flow analysis of the borrower. Only after determination that the borrower has the ability to perform under the terms of the loans will the restructured credit be considered for accrual status. Although the Company does not have a policy which specifically addresses when a loan may be removed from TDR classification, as a matter of practice, loans classified as TDRs generally remain classified as such until the loan either reaches maturity, a conforming loan is renewed at market terms, or its outstanding balance is paid off. There were no TDR modifications or defaults during year ended December 31, 2021. There was one new TDR and no defaults during the year ended December 31, 2020. The following tables illustrate TDR modification activity for the year ended December 31, 2020 (in thousands): Year ended December 31, 2020 Number of Pre- Post- Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and business loans — $ — $ — — $ — Government program loans — — — — — Commercial real estate term loans — — — — — Single family residential loans — — — — — Home improvement and home equity loans — — — — — Real estate construction and development loans — — — — — Agricultural loans 1 179 — — — Installment and student loans — — — — — Overdraft protection lines — — — — — Total loans 1 $ 179 $ — — $ — The following tables summarizes all TDR activity by loan category for the years ended December 31, 2021 and 2020 (in thousands). Year ended December 31, 2021 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Defaults — — — — — — — — Additions — — — — — — — — Principal reductions — — (219) — (246) (367) — (832) Charge-offs — — — — — — — — Ending balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 127 $ — $ 130 Year ended December 31, 2020 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ 9 $ 898 $ 1,060 $ — $ 2,654 $ 566 $ — $ 5,187 Defaults — — — — — — — — Principal reductions (9) (898) (695) — (202) (136) — (1,940) Charge-offs — — — — — — — Ending balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Allowance for loan loss $ — $ — $ 13 $ — $ — $ 196 $ — $ 209 The Company makes various types of concessions when structuring TDRs including rate reductions, payment extensions, and forbearance. At December 31, 2021, the Company had 5 restructured loans totaling $2.6 million, as compared to 7 restructured loans totaling $3.4 million at December 31, 2020. The Company had no unfunded commitments outstanding for TDRs at December 31, 2021 and December 31, 2020. Credit Quality Indicators As part of its credit monitoring program, the Company utilizes a risk rating system which quantifies the risk the Company estimates it has assumed during the life of a loan. The system rates the strength of the borrower and the facility or transaction, and is designed to provide a program for risk management and early detection of problems. For each new credit approval, credit extension, renewal, or modification of existing credit facilities, the Company assigns risk ratings utilizing the rating scale identified in this policy. In addition, on an on-going basis, loans and credit facilities are reviewed for internal and external influences impacting the credit facility that would warrant a change in the risk rating. Each loan credit facility is given a risk rating that takes into account factors that materially affect credit quality. When assigning risk ratings, the Company evaluates two risk rating approaches, a facility rating and a borrower rating as follows: Facility Rating: The facility rating is determined by the analysis of positive and negative factors that may indicate that the quality of a particular loan or credit arrangement requires that it be rated differently from the risk rating assigned to the borrower. The Company assesses the risk impact of these factors: Collateral - The rating may be affected by the type and quality of the collateral, the degree of coverage, the economic life of the collateral, liquidation value, and the Company's ability to dispose of the collateral. Guarantees - The value of third party support arrangements varies widely. Unconditional guaranties from persons with demonstrable ability to perform are more substantial than that of closely related persons to the borrower who offer only modest support. Unusual Terms - Credit may be extended on terms that subject the Company to a higher level of risk than indicated in the rating of the borrower. Borrower Rating: The borrower rating is a measure of loss possibility based on the historical, current and anticipated financial characteristics of the borrower in the current risk environment. To determine the rating, the Company considers at least the following factors: - Quality of management - Liquidity - Leverage/capitalization - Profit margins/earnings trend - Adequacy of financial records - Alternative funding sources - Geographic risk - Industry risk - Cash flow risk - Accounting practices - Asset protection - Extraordinary risks The Company assigns risk ratings to loans other than consumer loans and other homogeneous loan pools based on the following scale. The risk ratings are used when determining borrower ratings as well as facility ratings. When the borrower rating and the facility ratings differ, the lowest rating applied is: - Grades 1 and 2 – These grades include loans which are given to high quality borrowers with high credit quality and sound financial strength. Key financial ratios are generally above industry averages and the borrower’s strong earnings history or net worth. These may be secured by deposit accounts or high-grade investment securities. - Grade 3 – This grade includes loans to borrowers with solid credit quality with minimal risk. The borrower’s balance sheet and financial ratios are generally in line with industry averages, and the borrower has historically demonstrated the ability to manage economic adversity. Real estate and asset-based loans assigned this risk rating must have characteristics which place them well above the minimum underwriting requirements for those departments. Asset-based borrowers assigned this rating must exhibit extremely favorable leverage and cash flow characteristics, and consistently demonstrate a high level of unused borrowing capacity. - Grades 4 and 5 – These include “pass” grade loans to borrowers of acceptable credit quality and risk. The borrower’s balance sheet and financial ratios may be below industry averages, but above the lowest industry quartile. Leverage is above and liquidity is below industry averages. Inadequacies evident in financial performance and/or management sufficiency are offset by readily available features of support, such as adequate collateral, or good guarantors having the liquid assets and/or cash flow capacity to repay the debt. While the borrower may have recognized a loss over three These loans warrant a higher than average level of monitoring, supervision, and attention from the Company, but do not reflect credit weakness trends that weaken or inadequately protect the Company’s credit position. Loans with a grade rating of 5 are not normally acceptable as new credits unless they are adequately secured or carry substantial endorsers/guarantors. - Grade 6 – This grade includes “special mention” loans which are loans that are currently protected but are potentially weak. This generally is an interim grade classification and these loans will usually be upgraded to an "acceptable" rating or downgraded to a "substandard" rating within a reasonable time period. Weaknesses in special mention loans may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. Special mention loans are often loans with weaknesses inherent in the loan origination and loan servicing, and may have some technical deficiencies. The main theme in special mention credits is the distinct probability that the classification will deteriorate to a more adverse class if the noted deficiencies are not addressed by the loan officer or loan management. - Grade 7 – This grade includes “substandard” loans which are inadequately supported by the current sound net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that may impair the regular liquidation of the debt. When a loan has been downgraded to "substandard," there exists a distinct possibility that the Company will sustain a loss if the deficiencies are not corrected. Substandard loans also include impaired loans. - Grade 8 – This grade includes “doubtful” loans which exhibit the same characteristics as the "substandard" loans. Additionally, loan weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include a proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. - Grade 9 – This grade includes loans classified “loss” which are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off the asset even though partial recovery may be achieved in the future. The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2021 and 2020. The Company did not carry any loans graded as loss at December 31, 2021 or December 31, 2020: Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total December 31, 2021 (In thousands) Grades 1 and 2 $ 3,447 $ — $ — $ — $ 3,447 Grade 3 — 92 — — 92 Grades 4 and 5 – pass 42,054 301,866 143,044 46,739 533,703 Grade 6 – special mention — 29,092 — 11,197 40,289 Grade 7 – substandard 3 — 11,226 2,303 13,532 Grade 8 – doubtful — — — — — Total $ 45,504 $ 331,050 $ 154,270 $ 60,239 $ 591,063 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total December 31, 2020 (In thousands) Grades 1 and 2 $ 9,811 $ — $ — $ 30 $ 9,841 Grade 3 — 519 — — 519 Grades 4 and 5 – pass 35,919 267,215 163,959 49,006 516,099 Grade 6 – special mention 1,307 14,343 — 1,434 17,084 Grade 7 – substandard 477 874 11,057 609 13,017 Grade 8 – doubtful — — — — — Total $ 47,514 $ 282,951 $ 175,016 $ 51,079 $ 556,560 The Company follows consistent underwriting standards outlined in its loan policy for consumer and other homogeneous loans but does not specifically assign a risk rating when these loans are originated. Consumer loans are monitored for credit risk and are considered “pass” loans until some issue or event requires that the credit be downgraded to special mention or worse. Within the student loan portfolio, the Company does not grade these loans individually, but monitors credit quality indicators such as delinquency and program defined status codes such as forbearance. The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Residential Mortgages Home Installment and Student Loans Total Residential Mortgages Home Installment and Student Loans Total Not graded $ 211,622 $ 68 $ 50,421 $ 262,111 $ 27,484 $ 92 $ 60,414 $ 87,990 Pass 15,304 12 371 15,687 9,752 15 570 10,337 Special Mention — — — — — — 11 11 Substandard — — 453 453 — — 513 513 Doubtful — — — — — — — — Total $ 226,926 $ 80 $ 51,245 $ 278,251 $ 37,236 $ 107 $ 61,508 $ 98,851 Allowance for Loan Losses The Company analyzes risk characteristics inherent in each loan portfolio segment as part of the quarterly review of the adequacy of the allowance for loan losses. The following summarizes some of the key risk characteristics for the ten segments of the loan portfolio (Consumer loans include three segments): Commercial and industrial loans – Commercial loans are subject to the effects of economic cycles and tend to exhibit increased risk as economic conditions deteriorate, or if the economic downturn is prolonged. The Company considers this segment to be one of higher risk given the size of individual loans and the balances in the overall portfolio. Government program loans – This is a relatively a small part of the Company’s loan portfolio, but has historically had a high percentag |
Student Loans
Student Loans | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Student Loans | Student Loans Included in installment loans are $48.5 million and $57.4 million in student loans at December 31, 2021 and 2020 made to medical and pharmacy school students. Upon graduation the loan is automatically placed on deferment for six months. This may be extended up to 48 months for graduates enrolling in internship, medical residency, or fellowship. As approved, the student may receive additional deferment for hardship or administrative reasons in the form of forbearance for a maximum of 24 months throughout the life of the loan. Accrued interest on loans that had not entered repayment status totaled $2.0 million at December 31, 2021 and $3.2 million at December 31, 2020. At December 31, 2021 there were 901 loans within repayment, deferment, and forbearance which represented $23.8 million, $9.0 million, and $8.2 million, respectively. At December 31, 2020, there were 944 loans within repayment, deferment, and forbearance which represented $28.9 million, $7.4 million and $7.2 million, respectively. No new student loans were originated during the years ended December 31, 2021 and 2020. As of December 31, 2021 and December 31, 2020, the reserve against the student loan portfolio was $2.6 million and $2.5 million, respectively. There were no TDRs within the portfolio as of December 31, 2021 or December 31, 2020. At December 31, 2021 and December 31, 2020, student loans totaling $453,000 and $513,000 were included in the substandard category, respectively. ZuntaFi is the third-party servicer for the student loan portfolio. ZuntaFi's services include application administration, processing, approval, documenting, funding, and collection of current and charged off balances. They also provide file custodial responsibilities. Except in cases where applicants/loans do not meet program requirements, or extreme delinquency, ZuntaFi provides complete program management. ZuntaFi is paid a monthly servicing fee based on the principal balance outstanding. This servicing fee is presented as part of professional fees within noninterest expense. The following tables summarize the credit quality indicators for outstanding student loans as of December 31, 2021 and December 31, 2020 (in 000's, except for number of loans): December 31, 2021 December 31, 2020 Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 185 $ 6,555 $ 2,021 319 $ 12,905 $ 3,201 Grace 28 912 317 34 988 719 Repayment 500 23,834 715 623 28,906 292 Deferment 224 8,984 508 187 7,407 209 Forbearance 177 8,172 1,077 134 7,179 553 Total 1,114 $ 48,457 $ 4,638 1,297 $ 57,385 $ 4,974 School - The time in which the borrower is still actively in school at least half time. No payments are expected during this stage, though the borrower may begin immediate payments. Grace - A six month period of time granted to the borrower immediately upon graduation, or if deemed no longer an active student. Interest continues to accrue. Upon completion of the six month grace period the loan is transferred to repayment status. Additionally, if applicable, this status may represent a borrower activated to military duty while in their in-school period, they will be allowed to return to that status once their active duty has expired. The borrower must return to an at least half time status within six months of the active duty end date in order to return to an in-school status. Repayment - The time in which the borrower is no longer actively in school at least half time, and has not received an approved grace, deferment, or forbearance. Regular payment is expected from these borrowers under an allotted payment plan. Deferment - May be granted up to 48 months for borrowers who have begun the repayment period on their loans but are (1) actively enrolled in an eligible school at least half time, or (2) are actively enrolled in an approved and verifiable medical residency, internship, or fellowship program. Forbearance - The period of time during which the borrower may postpone making principal and interest payments, which may be granted for either hardship or administrative reasons. Interest will continue to accrue on loans during periods of authorized forbearance. If the borrower is delinquent at the time the forbearance is granted, the delinquency will be covered by the forbearance and all accrued and unpaid interest from the date of delinquency or if none, from the date of beginning of the forbearance period, will be capitalized at the end of each forbearance period. The term of the loan will not change and payments may be increased to allow the loan to pay off in the required time frame. A forbearance that results in only a delay in payment considered insignificant, is not a concessionary change in terms, provided the borrower affirms the obligation. Forbearance is not an uncommon status designation, this designation is standard industry practice, and is consistent with the succession of students migrating to employed medical professionals. However, additional risk is associated with this designation. Student Loan Aging Student loans are generally charged off at the end of the month during which an account becomes 120 days contractually past due. Accrued but unpaid interest related to charged off student loans is reversed and charged against interest income. For the year ended December 31, 2021, $122,000 in accrued interest receivable was reversed due to charge-offs of $1.4 million within the student loan portfolio. For the year ended December 31, 2020, $125,000 in accrued interest receivable was reversed due to charge-offs of $1.9 million within the student loan portfolio. The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2021 and December 31, 2020 (in 000's, except for number of borrowers): December 31, 2021 December 31, 2020 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 272 $ 29,596 304 $ 34,188 31 - 60 days 10 1,628 4 510 61 - 90 days 3 328 10 875 Greater than 90 days 5 453 5 512 Total 290 $ 32,005 323 $ 36,085 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The components of premises and equipment are as follows: (In thousands) December 31, 2021 December 31, 2020 Land $ 968 $ 968 Buildings and improvements 16,391 16,111 Furniture and equipment 10,068 9,921 27,427 27,000 Less accumulated depreciation (18,477) (17,890) Total premises and equipment $ 8,950 $ 9,110 |
Investment in Limited Partnersh
Investment in Limited Partnership | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Limited Partnership | Investment in Limited PartnershipThe Bank owns a 2.22% interest in a limited partnership which provides private capital for small to mid-sized businesses used to finance later stage growth, strategic acquisitions, ownership transitions, and recapitalizations, or mezzanine capital. At December 31, 2021 and December 31, 2020, the total investment in this limited partnership was $2,480,000, and $2,322,000, respectively. The investment is accounted for under the cost method. During the year ended December 31, 2021, $303,000 in income related to the limited partnership was recognized and is reflected in other non-interest income on the Consolidated Statement of Income. No income was recognized for the year ended December 31, 2020. Remaining unfunded commitments as of December 31, 2021 and 2020 totaled $1,879,000 and $2,239,000, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits include the following: (In thousands) December 31, 2021 December 31, 2020 Noninterest-bearing deposits $ 476,749 $ 391,897 Interest-bearing deposits: NOW and money market accounts 529,841 402,566 Savings accounts 113,930 96,669 Time deposits: Under $250,000 46,631 40,302 $250,000 and over 20,955 21,217 Total interest-bearing deposits 711,357 560,754 Total deposits $ 1,188,106 $ 952,651 At December 31, 2021, the scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2021 December 31, 2020 One year or less $ 58,685 $ 49,253 More than one year, but less than or equal to two years 7,335 10,577 More than two years, but less than or equal to three years 573 1,021 More than three years, but less than or equal to four years 390 184 More than four years, but less than or equal to five years 603 385 Greater than five years — 100 $ 67,586 $ 61,520 Deposit balances representing overdrafts reclassified as loan balances totaled $102,000 and $506,000 as of December 31, 2021 and 2020, respectively. |
Short-term Borrowings_Other Bor
Short-term Borrowings/Other Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings/Other Borrowings | Short-term Borrowings/Other Borrowings At December 31, 2021, the Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $320.6 million, as well as Federal Home Loan Bank (FHLB) lines of credit totaling $3.1 million. At December 31, 2021, the Company had uncollateralized lines of credit with PNC of $40 million, Pacific Coast Bankers Bank (PCBB) totaling $50 million, $20 million with Zions First National Bank, and $10 million with Union Bank. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. As of December 31, 2021, $3.4 million in investment securities at FHLB were pledged as collateral for FHLB advances. Additionally, $490.5 million in real-estate secured loans were pledged at December 31, 2021 as collateral for used and unused borrowing lines with the Federal Reserve Bank. At December 31, 2021, the Company had no outstanding borrowing balances. The Company had collateralized lines of credit with the Federal Reserve Bank of San Francisco totaling $336.8 million, as well as Federal Home Loan Bank (FHLB) lines of credit totaling $4.9 million at December 31, 2020. At December 31, 2020, the Company had uncollateralized lines of credit with Pacific Coast Bankers Bank (PCBB) and Union Bank totaling $10 million each and a Fed Funds line of $20 million with Zions First National Bank. All lines of credit are on an “as available” basis and can be revoked by the grantor at any time. These lines of credit have interest rates that are generally tied to the Federal Funds rate or are indexed to short-term U.S. Treasury rates or LIBOR. FHLB advances are collateralized by the Company’s stock in the FHLB, investment securities, and certain qualifying mortgage loans. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesThe Company leases land and premises for its branch banking offices, administration facilities, and ATMs. The initial terms of these leases expire at various dates through 2032. Under the provisions of most of these leases, the Company has the option to extend the leases beyond their original terms at rental rates adjusted for changes reported in certain economic indices or as reflected by market conditions. Lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise that option. As of December 31, 2021, the Company had 13 operating leases and no financing leases. The components of lease expense were as follows: Year Ended Year Ended (in 000's) December 31, 2021 December 31, 2020 Operating lease expense $ 704 $ 764 Short-term lease expense — — Variable lease expense 283 249 Sublease income — — Total $ 987 $ 1,013 Supplemental balance sheet information related to leases was as follows: (in 000's) December 31, 2021 December 31, 2020 Operating cash flows used in operating leases (years ended) $ 691 $ 764 ROU assets obtained in exchange for new operating lease liabilities $ 285 $ 104 Weighted-average remaining lease terms in years for operating leases 5.06 5.85 Weighted-average discount rate for operating leases 5.13 % 5.16 % Maturities of lease liabilities were as follows: Year Ended (in 000's) December 31, 2021 2021 $ 739 2022 738 2023 580 2024 402 2025 183 Thereafter 432 Total undiscounted cash flows 3,074 Less: present value discount (369) Present value of net future minimum lease payments $ 2,705 Year Ended (in 000's) December 31, 2020 2020 $ 665 2021 675 2022 674 2023 513 2024 333 Thereafter 580 Total undiscounted cash flows 3,440 Less: present value discount (473) Present value of net future minimum lease payments $ 2,967 |
Junior Subordinated Debt_Trust
Junior Subordinated Debt/Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2021 | |
Junior Subordinated Debt/Trust Preferred Securities [Abstract] | |
Junior Subordinated Debt/Trust Preferred Securities | Junior Subordinated Debt/Trust Preferred SecuritiesThe contractual principal balance of the Company's debentures relating to its trust preferred securities is $12 million as of December 31, 2021. The Company may redeem the junior subordinated debentures at any time at par. The Company accounts for its junior subordinated debt issued under USB Capital Trust II at fair value. The Company believes the election of fair value accounting for the junior subordinated debentures better reflects the true economic value of the debt instrument on the consolidated balance sheet. As of December 31, 2021, the rate paid on the junior subordinated debt issued under USB Capital Trust II is 3-month LIBOR plus 129 basis points, and is adjusted quarterly. At December 31, 2021, the Company performed a fair value measurement analysis on its junior subordinated debt using a cash flow model approach to determine the present value of those cash flows. The cash flow model utilizes the forward 3-month LIBOR curve to estimate future quarterly interest payments due over remaining life of the debt instrument. These cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for additional credit and liquidity risks associated with junior subordinated debt. The 3.90% discount rate used represents what a market participant would consider under the circumstances based on current market assumptions. At December 31, 2021, the total cumulative gain recorded on the debt was $1.3 million. The net fair value calculation performed as of December 31, 2021 resulted in a pretax loss adjustment of $268,000 for the year ended December 31, 2021, compared to a pretax loss adjustment of $174,000 for the year ended December 31, 2020. For the year ended December 31, 2021, the $268,000 fair value loss adjustment was separately presented as a $660,000 loss recognized on the consolidated statements of income, and a $392,000 gain associated with the instrument-specific credit risk recognized in other comprehensive income. For the year ended December 31, 2020, the $174,000 fair value loss adjustment was separately presented as a $970,000 gain recognized on the consolidated statements of income, and a $1,144,000 loss associated with the instrument-specific credit risk recognized in other comprehensive income. The Company calculated the change in the discounted cash flows based on updated market credit spreads for the periods ended. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2021 2020 Deferred tax assets: Credit losses not currently deductible $ 2,173 $ 2,906 Deferred compensation 1,230 1,506 Depreciation 311 256 Accrued reserves 75 109 Write-down on other real estate owned 291 291 Unrealized gain on retirement obligation 265 325 Unrealized gain on TRUPs 131 246 Unrealized gain (loss) on available for sale securities 99 (265) Interest on nonaccrual loans 653 443 Lease liability 798 875 Other 1,528 467 Total deferred tax assets 7,554 7,159 Deferred tax liabilities: State Tax (243) (211) FHLB dividend (46) (46) Loss on limited partnership investment (524) (1,353) Deferred gain ASC 825 – fair value option (561) (771) Fair value adjustments for purchase accounting (98) (98) Deferred loan costs (1,553) (689) Prepaid expenses (149) (239) Right-of-use asset (765) (845) Total deferred tax liabilities (3,939) (4,252) Net deferred tax assets $ 3,615 $ 2,907 The Company periodically evaluates its deferred tax assets to determine whether a valuation allowance is required based upon a determination that some or all of the deferred assets may not be ultimately realized. The Company did not record a valuation allowance at December 31, 2021 or December 31, 2020. Income tax expense for the years ended December 31, consist of the following: (In thousands) 2021 Federal State Total Current $ 2,407 $ 1,330 $ 3,737 Deferred (370) (151) (521) $ 2,037 $ 1,179 $ 3,216 2020 Current $ 1,871 $ 1,256 $ 3,127 Deferred 399 (75) 324 $ 2,270 $ 1,181 $ 3,451 A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % State franchise tax, net of federal income tax benefit 7.1 8.2 Other (3.9) (1.4) 24.2 % 27.8 % The Company periodically reviews its tax positions under the accounting standards related to uncertainty in income taxes, which defines the criteria that an individual tax position would have to meet for some or all of the income tax benefit to be recognized in a taxable entity’s financial statements. Under the guidelines, an entity should recognize the financial statement benefit of a tax position if it determines that it is more likely than not that the position will be sustained on examination. The term, “more likely than not," means a likelihood of more than 50 percent. In assessing whether the more-likely-than-not criterion is met, the entity should assume that the tax position will be reviewed by the applicable taxing authority and all available information is known to the taxing authority. As of December 31, 2021 and 2020, the Company has no uncertain tax positions. The Company and its subsidiary file income tax returns in the U.S federal jurisdiction and California. There are no filings in foreign jurisdictions. The Company is no longer subject to income tax examinations by taxing authorities for years before 2018 and 2017 for Federal and California jurisdictions, respectively. The Company's policy is to recognize any interest or penalties related to uncertain tax positions in income tax expense. Interest and penalties recognized during the periods ended December 31, 2021 and December 31, 2020 were insignificant. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Options and restricted stock units and awards have been granted to officers and key employees at an exercise price equal to estimated fair value at the date of grant as determined by the Board of Directors. All options, units, and awards granted are service awards, and are based solely upon fulfilling a requisite service period (the vesting period). At December 31, 2021, the Company had two stock based compensation plans. In May 2005, the Company adopted the United Security Bancshares 2005 Stock Option Plan (2005 Plan) for which 34,601 shares remain reserved for issuance for options already granted to employees and directors under incentive and nonstatutory agreements. The 2005 plan expired in May 2015. While outstanding arrangements to issue shares under this plan, including options, continue in force until their expiration, no new options will be granted under this plan. In May 2015, the Company adopted the United Security Bancshares 2015 Equity Incentive Award Plan (2015 Plan). The 2015 Plan provides for the granting of up to 758,000 shares of authorized and unissued shares of common stock in the form of stock options, restricted stock units, and restricted stock awards. The 2015 Plan requires that the exercise price may not be less than the fair value of the stock at the date the option is granted, and that the option price must be paid in full at the time it is exercised. The options granted (incentive stock options for employees and non-qualified stock options for Directors) have an exercise price at the prevailing market price on the date of grant. All options granted are exercisable 20% each year commencing one year after the date of grant and expire ten years after the date of grant. Restricted stock awards are granted at the prevailing market price of the Company's stock, subject to time based vesting. Restricted stock awards are subject to forfeiture if employment terminates prior to vesting. The cost of these awards is recognized over the vesting period of the awards based on the fair value of the common stock on the date of the grant. Under the 2005 Plan, 34,601 granted options are outstanding and vested (34,601 incentive stock options and zero nonqualified stock options) as of December 31, 2021 and 2020. No options were granted under this plan during the year ended December 31, 2021 and 2020. Under the 2015 Plan, 87,949 granted stock instruments are outstanding as of December 31, 2021, of which 48,000 are exercisable. Of the 87,949 granted stock instruments, 27,949 are restricted stock units and 60,000 are nonqualified stock options. A summary of the status of the Company's stock option plan and changes during the year are presented below: Shares Weighted Average Exercise Price Options outstanding December 31, 2020 94,601 $ 7.87 Granted during the year — — Exercised during the year — — Forfeited during the year — — Options outstanding December 31, 2021 94,601 $ 7.87 A summary of the status of the Company's restricted stock and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2020 11,924 $ 10.85 Granted during the year 35,739 7.53 Vested during the year 19,714 8.24 Forfeited during the year — — Non-vested units at December 31, 2021 27,949 $ 8.45 Included in total outstanding options at December 31, 2021, are 82,601 exercisable shares at a weighted average price of $7.54, a weighted average remaining contract term of 4.03 years and intrinsic value of $145,031. Included in salaries and employee benefits for the years ended December 31, 2021 and 2020 is $238,000 and $425,000 of share-based compensation, respectively. The related tax benefit on share-based compensation recorded in the provision for income taxes was not material to any year. As of December 31, 2021 and 2020 there was $61,000 and $147,000, respectively, of total unrecognized compensation expense related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 0.97 years. A summary of the status of the Company's stock option values and activity is presented below: December 31, 2021 December 31, 2020 Weighted average grant-date fair value per share of stock options granted $ — $ — Weighted average fair value of stock options vested $ 86,000 $ 86,000 Total intrinsic value of stock options exercised $ — $ — As of December 31, 2021 and 2020 there was $218,000 and $106,000, respectively, of total unrecognized compensation expense related to restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 2.00 years. The Bank determines fair value of stock options at grant date using the Black-Scholes-Merton pricing model that takes into account the stock price at the grant date, the exercise price, the expected life of the option, the volatility of the underlying stock and the expected dividend yield and the risk-free interest rate over the expected life of the option. The Bank determines fair value of restricted stock based on the quoted stock price as of the grant date. The expected term of options granted is derived from management's experience, which is based upon historical data on employee exercise and post-vesting behavior. The risk free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatility is based on the historical volatility of the Bank's stock over a period commensurate with the expected term of the options. The Company believes that historical volatility is indicative of expectations about its future volatility over the expected term of the options. The Bank expenses the fair value of the option on a straight-line basis over the vesting period for each separate service period portion of the award. The Bank estimates forfeitures and only recognizes expense for those shares expected to vest. Based upon historical evidence, the Company has determined that because options are granted to a limited number of key employees rather than a broad segment of the employee base, expected forfeitures, if any, are not material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401K Plan The Company has a Cash or Deferred 401(k) Stock Ownership Plan (the “401(k) Plan”) organized under Section 401(k) of the Code. All employees of the Company are initially eligible to participate in the 401(k) Plan upon the first day of the month after date of hire. Under the terms of the plan, the participants may elect to make contributions to the 401(k) Plan as determined by the Board of Directors. Participants are automatically vested 100% in all employee contributions. Participants may direct the investment of their contributions to the 401(k) Plan in any of several authorized investment vehicles. The Company contributes funds to the Plan up to 4% of the employees’ eligible annual compensation. Company contributions are immediately 100% vested at the time of contribution. The Company made matching contributions of $262,000 and $250,000 to the 401(k) Plan for the years ended December 31, 2021 and 2020, respectively. Salary Continuation Plan The Company has an unfunded, non-qualified Salary Continuation Plan for senior executive officers and certain other key officers of the Company, which provides additional compensation benefits upon retirement for a period of at least 15 years. Future compensation under the Plan is earned by the employees for services rendered through retirement and vests over a period of 12 to 32 years. As of December 31, 2021, the Company maintains a total of twelve Salary Continuation agreements. The Company’s current benefit liability is determined based upon vesting and the present value of the benefits at a corresponding discount rate. The discount rate used is an equivalent rate for high-quality investment-grade bonds with lives matching those of the service periods remaining for the salary continuation contracts, which averages approximately 20 years. At December 31, 2021 and 2020, $4,753,000 and $4,731,000, respectively, had been accrued to date, based on a discounted cash flow using an average discount rate of 1.91% a nd 1.36%, respectively, and is included in other liabilities on the consolidated balance sheets. Salary continuation expense is included in salaries and benefits expense, and totaled $430,000 and $284,000 for the years ended December 31, 2021 and 2020, respectively. Included within the twelve total Salary Continuation agreements, the Company has four separate agreements with officers of the Bank and accrues for this salary continuation liability based on anticipated years of service and vesting schedules provided under the individual agreements. The four policies are considered individual contracts, and the Company applies guidance contained in ASC Topic 710. Additionally, the Company purchased company owned life insurance (COLI) and bank owned life insurance policies (BOLI) on the life of the officers in connection with the salary continuation agreements. The COLI policy premiums are paid over a seven For the other eight Salary Continuation agreements in place prior to 2015, the Company recognizes in accumulated other comprehensive (loss) income, the amounts that have not yet been recognized as components of net periodic benefit costs, per the guidance contained in ASC Topic 715 “ Compensation ”. These unrecognized costs arise from changes in estimated interest rates used in the calculation of net liabilities under the Plan. As of December 31, 2021 and 2020, the Company had approximately $627,000 and $770,000, respectively in unrecognized net periodic benefit costs arising from changes in interest rates used in calculating the current post-retirement liability required under the Plan. This amount represents the difference between the plan liabilities calculated under net present value calculations, and the net plan liabilities actually recorded on the Company’s books at December 31, 2021 and 2020. Officer Supplemental Life Insurance Plan |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Financial Instruments with Off-Balance Sheet Risk: The Company is party to financial instruments with off-balance sheet risk which arise in the normal course of business. These instruments may contain elements of credit risk, interest rate risk and liquidity risk, and include commitments to extend credit and standby letters of credit. The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual amount – December 31, (In thousands) 2021 2020 Commitments to extend credit $ 239,095 $ 216,799 Standby letters of credit 1,719 3,668 Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Substantially all of these commitments are at floating interest rates based on the Prime rate, and most have fixed expiration dates. The Company evaluates each customer's creditworthiness on a case-by-case basis, and the amount of collateral obtained, if deemed necessary, is based on management's credit evaluation. Collateral held varies but includes accounts receivable, inventory, leases, property, plant and equipment, residential real estate, and income-producing properties. Many of the commitments are expected to expire without being drawn upon and, as a result, the total commitment amounts do not necessarily represent future cash requirements of the Company. Standby letters of credit are generally unsecured and are issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company’s letters of credit are short-term guarantees and generally have terms from less than one month to approximately 3 years. At December 31, 2021, the maximum potential amount of future undiscounted payments the Company could be required to make under outstanding standby letters of credit totaled $1.7 million. During the fourth quarter of 2021, the Company entered into a firm commitment to purchase $15.8 million in 30 year residential mortgage loans with an expected close of first quarter of 2022. The credit metrics for the pool is consistent with pools purchased by the Company during 2021. In the ordinary course of business, the Company becomes involved in litigation arising out of its normal business activities. Management, after consultation with legal counsel, believes that the ultimate liability, if any, resulting from the disposition of such claims would not be material to the financial position of the Company. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosure | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosure | Fair Value Measurements and Disclosure The following summary disclosures are made in accordance with the guidance provided by ASC Topic 825 “ Fair Value Measurements and Disclosures ” which requires the disclosure of fair value information for both on- and off-balance sheet financial instruments where it is practicable to estimate that value. GAAP guidance clarifies the definition of fair value, describes methods used to appropriately measure fair value in accordance with generally accepted accounting principles and expands fair value disclosure requirements. This guidance applies whenever other accounting pronouncements require or permit fair value measurements. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). Level 1 inputs are unadjusted quoted prices in active markets (as defined) for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, and reflect the reporting entity’s assumptions regarding the pricing of an asset or liability by a market participant (including assumptions about risk). The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2021 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 182,646 $ 182,645 $ 3,744 $ 178,901 $ — Loans 862,200 854,697 — — 854,697 Accrued interest receivable 7,530 7,530 — 7,530 — Financial Liabilities: Deposits: Noninterest-bearing 476,749 476,749 476,749 — — NOW and money market 529,841 529,841 529,841 — — Savings 113,930 113,930 113,930 — — Time deposits 67,586 67,922 — — 67,922 Total deposits 1,188,106 1,188,442 1,120,520 — 67,922 Junior subordinated debt 11,189 11,189 — — 11,189 Accrued interest payable — — — — — December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 86,192 $ 86,192 $ 3,851 $ 82,341 $ — Loans 645,825 636,470 — — 636,470 Accrued interest receivable 8,164 8,164 — 8,164 — Financial Liabilities: Deposits: Noninterest-bearing 391,897 430,210 430,210 — — NOW and money market 402,566 406,707 406,707 — — Savings 96,669 94,467 94,467 — — Time deposits 61,519 61,806 — — 61,806 Total deposits 952,651 993,190 931,384 — 61,806 Junior subordinated debt 10,924 10,924 — — 10,924 Accrued interest payable — — — — — The Company performs fair value measurements on certain assets and liabilities as the result of the application of current accounting guidelines. Some fair value measurements, such as investment securities and junior subordinated debt are performed on a recurring basis, while others, such as impairment of loans, other real estate owned, goodwill and other intangibles, are performed on a nonrecurring basis. The Company’s Level 1 financial assets consist of money market funds and highly liquid mutual funds for which fair values are based on quoted market prices. The Company’s Level 2 financial assets include highly liquid debt instruments of U.S. Government agencies, collateralized mortgage obligations, corporate debt instruments, and debt obligations of states and political subdivisions, whose fair values are obtained from readily-available pricing sources for the identical or similar underlying security that may, or may not, be actively traded. The Company’s Level 3 assets include certain impaired loans, other real estate owned, and goodwill where the assumptions may be made by us or third parties about assumptions that market participants would use in pricing the asset or liability. From time to time, the Company recognizes transfers between Level 1, 2, and 3 when a change in circumstances warrants a transfer. There were no transfers in or out of Level 1 and Level 2 fair value measurements during the year ended December 31, 2021. The following methods and assumptions were used in estimating the fair values of financial instruments measured at fair value on a recurring and non-recurring basis: Investments Available for sale and marketable securities are valued based upon open-market price quotes obtained from reputable third-party brokers that actively make a market in those securities. Market pricing is based upon specific CUSIP identification for each individual security. To the extent there are observable prices in the market, the mid-point of the bid/ask price is used to determine fair value of individual securities. If that data is not available for the last 30 days, a Level 2-type matrix pricing approach based on comparable securities in the market is utilized. Level-2 pricing may include using a forward spread from the last observable trade or may use a proxy bond such as a TBA mortgage to determine a price for the security being valued. Changes in fair market value are recorded through other comprehensive income as the securities are available for sale. Impaired Loans – Fair value measurements for collateral dependent impaired loans are performed pursuant to authoritative accounting guidance and are based upon either collateral values supported by appraisals and observed market prices. Collateral dependent loans are measured for impairment using the fair value of the collateral. Changes are recorded directly as an adjustment to current earnings. Other Real Estate Owned – Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Junior Subordinated Debt – The fair value of the junior subordinated debt was determined based upon a discounted cash flows model utilizing observable market rates and credit characteristics for similar debt instruments. In its analysis, the Company used characteristics that market participants generally use, and considered factors specific to (a) the liability, (b) the principal (or most advantageous) market for the liability, and (c) market participants with whom the reporting entity would transact in that market. Cash flows are discounted at a rate which incorporates a current market rate for similar-term debt instruments, adjusted for credit and liquidity risks associated with similar junior subordinated debt and circumstances unique to the Company. The Company believes that the subjective nature of these inputs, and credit concerns in the capital markets and inactivity in the trust preferred markets that have limited the observability of the market spreads, require the junior subordinated debt to be classified as a Level 3 fair value. The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.90% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.57% Management believes that the credit risk adjusted spread utilized in the fair value measurement of the junior subordinated debentures carried at fair value is indicative of the nonperformance risk premium a willing market participant would require under current market conditions, that is, the inactive market. Management attributes the change in fair value of the junior subordinated debentures during the period to market changes in the nonperformance expectations and pricing of this type of debt, and not as a result of changes to the entity-specific credit risk. Generally, an increase in the credit risk adjusted spread and/or a decrease in the three month LIBOR swap curve will result in positive fair value adjustments (and decrease the fair value measurement). Conversely, a decrease in the credit risk adjusted spread and/or an increase in the three month LIBOR swap curve will result in negative fair value adjustments (and increase the fair value measurement). The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2021 (in 000’s): Description of Assets December 31, 2021 Quoted Prices in Significant Other Significant AFS Securities (2): U.S. Government agencies $ 33,376 $ — $ 33,376 $ — U.S Govt collateralized mortgage obligations 64,735 — 64,735 — Asset-backed securities 4,130 — 4,130 — Municipal bonds 50,052 — 50,052 — Treasury securities 15,187 — 15,187 — Corporate bonds 11,422 — 11,422 — Total AFS securities 178,902 — 178,902 — Marketable equity securities (2) 3,744 3,744 — — Total $ 182,646 $ 3,744 $ 178,902 $ — Description of Liabilities December 31, 2021 Quoted Prices Significant Significant Junior subordinated debt (2) $ 11,189 $ — $ — $ 11,189 Total $ 11,189 $ — $ — $ 11,189 (1) Nonrecurring (2) Recurring There were no non-recurring fair value adjustments at December 31, 2021. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2020 (in 000’s): Description of Assets December 31, 2020 Quoted Prices Significant Significant AFS Securities (2): U.S. Government agencies $ 33,710 $ — $ 33,710 $ — U.S Govt collateralized mortgage obligations 38,445 — 38,445 — Total AFS securities 72,155 — 72,155 — Marketable equity securities (2) 3,851 3,851 — Impaired Loans (1): Commercial and industrial — — — — Real estate mortgage 3,364 — — 3,364 Total impaired loans 3,364 — — 3,364 Other real estate owned (1) 5,004 — — 5,004 Total $ 84,374 $ 3,851 $ 72,155 $ 8,368 Description of Liabilities December 31, 2020 Quoted Prices Significant Significant Junior subordinated debt (2) $ 10,924 $ — $ — $ 10,924 Total $ 10,924 $ — $ — $ 10,924 (1) Nonrecurring (2) Recurring The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2020 (in 000's). December 31, 2020 Financial Instrument Fair Value Valuation Technique Unobservable Input Adjustment Percentage Impaired Loans: Real estate mortgage $3,364 Fair Value of Collateral Method for Collateral Dependent Loans Adjustment for difference between appraised value and net realizable value 6.00% Other real estate owned $5,004 Fair Value of Collateral Method for Collateral Dependent Loans Adjustment for difference between appraised value and net realizable value 13.69% The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended (in 000’s): December 31, 2021 December 31, 2020 Reconciliation of Liabilities: Junior Junior Beginning balance $ 10,924 $ 10,808 Total losses (gains) included in earnings 660 (970) Total (gains) losses included in OCI (392) 1,144 Capitalized interest (3) (58) Ending balance $ 11,189 $ 10,924 The amount of total losses (gains) for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ 660 $ (970) |
Supplemental Cash Flow Disclosu
Supplemental Cash Flow Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Supplemental Cash Flow Disclosures Year Ended December 31, (In thousands) 2021 2020 Cash paid during the period for: Interest $ 2,083 $ 2,316 Income Taxes 3,030 3,443 Noncash activities: Unrealized losses on junior subordinated debentures 392 (1,144) Unrealized gains on available for sale securities (1,229) 1,143 Unrealized losses on unrecognized post-retirement costs 203 (135) Cash dividend declared 1,872 1,870 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table provides a reconciliation of the numerator and the denominator of the basic net income per share computation with the numerator and the denominator of the diluted net income per share computation. Year Ended December 31, (In thousands, except earnings per share data) 2021 2020 Net income available to common shareholders $ 10,098 $ 8,961 Weighted average shares outstanding 17,011,379 16,976,704 Add: dilutive effect of stock options 19,495 21,881 Weighted average shares outstanding adjusted for potential dilution 17,030,874 16,998,585 Basic earnings per share $ 0.59 $ 0.53 Diluted earnings per share $ 0.59 $ 0.53 Anti-dilutive shares excluded from earnings per share calculation 67,000 72,000 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeThe components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: Year ended December 31, 2021 Year ended December 31, 2020 (in 000's) Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Beginning balance $ 630 $ (770) $ (588) $ (175) $ (675) $ 218 Current period comprehensive (loss) income, net of tax (866) 143 277 805 (95) (806) Ending balance $ (236) $ (627) $ (311) $ 630 $ (770) $ (588) Accumulated other comprehensive loss $ (1,174) $ (728) |
Investment in York Monterey Pro
Investment in York Monterey Properties | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in York Monterey Properties | Investment in York Monterey Properties The Bank wholly-owns the subsidiary York Monterey Properties Inc., organized as a California corporation. The Bank capitalized the subsidiary through a transfer of eight unimproved lots at a historical cost of $5.3 million comprised of approximately 186.97 acres in the York Highlands subdivision of the Monterra Ranch residential development in Monterey County, California ("Properties") together with cash contributions. The Bank transferred the Properties to York Monterey Properties Inc, in order to maintain ownership beyond the ten year regulatory holding period applicable to a national bank. The Bank acquired five of the lots through a non-judicial foreclosure on or about May 29, 2009. In addition, the Bank purchased three of the lots from another bank. The Bank had continuously held the Properties since the date of foreclosure and acquisition. At the time of transfer, the Properties had reached the end of the ten year regulatory holding period limit. As of December 31, 2021, the Bank's investment in York Monterey Properties Inc. totaled $5.2 million. York Monterey Properties Inc. is included within the consolidated financial statements of the Company, with $4.6 million of the total investment recognized within the balance of other real estate owned on the consolidated balance sheets. As of December 31, 2020, the Bank's investment in York Monterey Properties Inc. totaled $4.7 million. York Monterey Properties Inc. is included within the consolidated financial statements of the Company, with $4.6 million of the total investment recognized within the balance of other real estate owned on the consolidated balance sheets. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial StatementsThe following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2021 and 2020 (In thousands) 2021 2020 Assets Cash and equivalents $ 2,813 $ 2,810 Investment in bank subsidiary 129,042 126,459 Other assets 1,413 1,332 Total assets 133,268 130,601 Liabilities & Shareholders' Equity Liabilities: Junior subordinated debt securities (at fair value) 11,189 10,924 Accrued interest payable — — Dividends declared 1,872 1,870 Other liabilities — — Total liabilities 13,061 12,794 Shareholders' Equity: Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,028,239 at December 31, 2021 and 17,009,883 at December 31, 2020 59,636 59,397 Retained earnings 61,745 59,138 Accumulated other comprehensive (loss) income (1,174) (728) Total shareholders' equity 120,207 117,807 Total liabilities and shareholders' equity $ 133,268 $ 130,601 United Security Bancshares – (parent only) Year ended December 31, Income Statements (In thousands) 2021 2020 Income Gain (loss) on fair value of junior subordinated debentures $ (660) $ 970 Gain on redemption of JR subordinated debentures — — Dividends from subsidiary 7,889 8,025 Total income 7,229 8,995 Expense Interest expense 179 276 Other expense 217 305 Total expense 396 581 Income before taxes and equity in undistributed income of subsidiary 6,833 8,414 Income tax expense (199) 115 Equity in undistributed income of subsidiary 3,066 662 Net Income $ 10,098 $ 8,961 United Security Bancshares – (parent only) Year ended December 31, Statement of Cash Flows (In thousands) 2021 2020 Cash Flows From Operating Activities Net income $ 10,098 $ 8,961 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (3,066) (662) Provision for deferred income taxes 80 54 (Gain) loss on fair value of junior subordinated debentures 660 (970) Decrease in income tax receivable 15 51 Net change in other assets (295) 185 Net cash provided by operating activities 7,492 7,619 Cash Flows From Financing Activities Dividends paid (7,489) (7,468) Net cash used in by financing activities (7,489) (7,468) Net increase in cash and cash equivalents 3 151 Cash and cash equivalents at beginning of year 2,810 2,659 Cash and cash equivalents at end of year $ 2,813 $ 2,810 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Regulatory Matters | Regulatory Matters Capital Adequacy The Company and Bank are subject to various regulatory capital requirements adopted by the Board of Governors of the Federal Reserve System and the FDIC. Failure to meet minimum capital requirements can initiate certain mandates and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework, the consolidated Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, includes quantitative measures designed to ensure capital adequacy. The Basel III Rules require the Company and the Bank to maintain (i) a minimum common equity Tier 1 ratio minimum of 4.50 percent plus a 2.50 percent “capital conservation buffer” , (ii) Tier 1 risk-based capital minimum of 6.00 percent plus the capital conservation buffer, (iii) total risk-based capital ratio minimum of 8.00 percent plus the capital conservation buffer and (iv) Tier 1 leverage capital ratio minimum of 4.00 percent. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to meet minimum capital requirements may result in certain actions by regulators that could have a direct material effect on the consolidated financial statements. The federal banking agencies published a final rule on November 13, 2019, that provided a simplified measure of capital adequacy for qualifying community banking organizations. A qualifying community banking organization that opts into the community bank leverage ratio framework and maintains a leverage ratio greater than 9 percent will be considered to have met the minimum capital requirements, the capital ratio requirements for the well capitalized category under the Prompt Corrective Action framework, and any other capital or leverage requirements to which the qualifying banking organization is subject. A qualifying community banking organization with a leverage ratio of greater than 9 percent may opt into the community bank leverage ratio framework if it has average consolidated total assets of less than $10 billion, has off-balance-sheet exposures of 25% or less of total consolidated assets, and has total trading assets and trading liabilities of 5 percent or less of total consolidated assets. Further, the bank must not be an advance approaches banking organization. The final rule became effective January 1, 2020 and banks that meet the qualifying criteria can elect to use the community bank leverage framework starting with the quarter ended March 31, 2020. The Company and the Bank meet the qualifying criteria and adopted the community bank leverage ratio framework in the third quarter 2020. The CARES Act reduced the required community bank leverage ratio to 8% until December 31, 2020 and 8.5% through December 31, 2021. As of December 31, 2021, the Company and Bank met all capital adequacy requirements to which they were subject. The following table shows the Company's and the Bank's regulatory capital and regulatory capital ratios at December 31, 2021 and 2020 as compared to the applicable capital adequacy guidelines: Actual Minimum requirement for Community Bank Leverage Ratio (1) (2) Amount Ratio Amount Ratio As of December 31, 2021 (Company): Tier 1 Leverage (to Average Assets) $127,618 9.79% $110,748 8.50% As of December 31, 2021 (Bank): Tier 1 Leverage (to Average Assets) 125,416 9.64% $110,624 8.50% As of December 31, 2020 (Company): Tier 1 Leverage (to Average Assets) 124,507 11.37% $87,577 8.00% As of December 31, 2020 (Bank): Tier 1 Leverage (to Average Assets) 122,112 11.17% $87,491 8.00% (1) The minimum required Community Bank Leverage Ratio is 9.00%, but the CARES Act temporarily lowers this to 8.0% through December 31, 2020 and 8.5% through December 31, 2021. (2) If the subsidiary bank’s Leverage Ratio exceeds the minimum ratio under the Community Bank Leverage Ratio Framework, it is deemed to be “well capitalized” under all other regulatory capital requirements. The Company may revert back to the regulatory framework for Prompt Corrective Action if the subsidiary bank’s Leverage Ratio falls below the minimum under the Community Bank Leverage Ratio Framework Dividends Dividends paid to shareholders are subject to restrictions set forth in the California General Corporation Law. The California General Corporation Law provides that distributions may be made to shareholders if retained earnings immediately prior to the dividend payment are at least equal to the amount of the proposed distribution or if, immediately after the distribution, the value of assets equals the sum of total liabilities. The primary source of funds with which dividends will be paid to shareholders come from cash dividends received by the Holding Company from the Bank. During the year ended December 31, 2021, the Holding Company paid $7,486,000 in cash dividends to shareholders. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting and Reporting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, with rules and regulations of the Securities and Exchange Commission ("SEC"), and with prevailing practices within the banking industry. The consolidated financial statements include the accounts of United Security Bancshares, and its wholly-owned subsidiaries, United Security Bank and subsidiary (the “Bank”) and USB Capital Trust II (the "Trust"). The Trust is deconsolidated pursuant to ASC 810. As a result, the Trust Preferred Securities are not presented on the Company’s consolidated financial statements as equity, but instead they are presented as Junior Subordinated Debentures and are presented as a separate liability category (see Note 10 to the Company’s consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. In the following notes, references to the Bank are references to United Security Bank. References to the Company are references to United Security Bancshares (including the Bank). United Security Bancshares operates as one business segment providing banking services to commercial establishments and individuals primarily in the San Joaquin Valley of California. |
Nature of Operations | Nature of Operations – United Security Bancshares is a bank holding company, incorporated in the state of California for the purpose of acquiring all the capital stock of the Bank through a holding company reorganization (the “Reorganization”) of the Bank. United Security Bancshares has provided the Company greater operating and financial flexibility and has permitted expansion into a broader range of financial services and other business activities. The Bank was founded in 1987 and currently operates twelve branches, one commercial lending office, one consumer lending office, and one construction lending office in an area from eastern Madera County to western Fresno County, as well as Taft and Bakersfield in Kern County, and Campbell in Santa Clara County. The Bank’s primary source of revenue is interest income through providing loans to customers, who are predominantly small and middle-market businesses and individuals. The Bank engages in a full complement of lending activities, including real estate mortgage, commercial and industrial, real estate construction, agricultural and consumer loans, with particular emphasis on short and medium term obligations. The Bank offers a wide range of deposit instruments. These include personal and business checking accounts and savings accounts, interest-bearing negotiable order of withdrawal (NOW) accounts, money market accounts and time certificates of deposit. Most of the Bank's deposits are attracted from individuals and from small and medium-sized business-related sources. The Bank also offers a wide range of specialized services designed to attract and service the needs of commercial customers and account holders. These services include cashiers checks, travelers checks, money orders, and foreign drafts. In addition, the Bank offers Internet banking services to its commercial and retail customers. The Bank does not operate a trust department, however it makes arrangements with its correspondent bank to offer trust services to its customers upon request. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, goodwill, fair value of junior subordinated debt, deferred tax assets and liabilities, and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. |
Subsequent events | Subsequent events - The Company has evaluated events and transactions for potential recognition or disclosure through the day the financial statements were issued. |
Significant Accounting Policies | Significant Accounting Policies - The Company follows accounting standards set by the Financial Accounting Standards Board, commonly referred to as “FASB.” FASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure the consistent reporting of its consolidated financial condition, consolidated results of operations, and consolidated cash flows. References to GAAP issued by FASB in these footnotes are to FASB Accounting Standards Codification |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents include cash on hand and amounts due from banks. At times throughout the year, balances can exceed FDIC insurance limits. Generally, federal funds sold and repurchase agreements are sold for one-day periods. The Bank did not have any repurchase agreements during 2021 or 2020. All cash and cash equivalents have maturities when purchased of three months or less. |
Securities | Securities - Debt securities classified as available-for-sale are reported at fair value, with unrealized gains and losses excluded from net income and reported, net of tax, as a separate component of comprehensive income and shareholders’ equity. Debt securities classified as held to maturity are carried at amortized cost. Gains and losses on disposition are reported using the specific identification method for the adjusted basis of the securities sold. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. The Company classifies its debt securities as available for sale or held to maturity, and periodically reviews its investment portfolio on an individual security basis. Securities that are to be held for indefinite periods of time (including, but not limited to, those that management intends to use as part of its asset/liability management strategy, and those which may be sold in response to changes in interest rates, changes in prepayments or any such other factors) are classified as securities available for sale. Securities which the Company has the ability and intent to hold to maturity are classified as held to maturity. Debt securities with fair values that are less than amortized cost are considered impaired. Impairment may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates. The Company evaluates investment securities for other-than-temporary impairment (OTTI) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities of high credit quality are generally evaluated for OTTI under ASC Topic 320-10, " Investments – Debt and Equity Instruments" and ASC Topic 321, "Investment – Equity Securities" . The Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. Equity securities are reported at fair value with gains and losses included in non interest income on the Consolidated Statements of Income. |
Loans | Loans - Interest income on loans is credited to income as earned and is calculated by using the simple interest method on the daily balance of the principal amounts outstanding. Outside of student loans, loans are typically placed on non-accrual status when principal or interest is past due for 90 days and/or when management believes the collection of amounts due is doubtful. Student loans are typically placed on non-accrual status when principal or interest is past due for 120 days. For loans placed on nonaccrual status, the accrued and unpaid interest receivable may be reversed based upon management's assessment of collectability, and interest is thereafter credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. |
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - The allowance for credit losses is maintained to provide for losses that can reasonably be anticipated. The allowance is based on ongoing quarterly assessments of the probable losses inherent in the loan portfolio, and to a lesser extent, unfunded loan commitments. The reserve for unfunded loan commitments is a liability on the Company’s consolidated financial statements and is included in other liabilities. The liability is computed using a methodology similar to that used to determine the allowance for credit losses, modified to take into account the probability of a drawdown on the commitment. The allowance for credit losses is increased by provisions charged to operations during the current period and reduced by negative provisions and loan charge-offs, net of recoveries. Loans are charged against the allowance when management believes that the collection of the principal is unlikely. The allowance is an amount that management believes will be adequate to absorb losses inherent in existing loans, based on evaluations of the probability of collection. In evaluating the probability of collection, management is required to make estimates and assumptions that affect the reported amounts of loans, allowance for credit losses and the provision for credit losses charged to operations. Actual results could differ significantly from those estimates. These evaluations take into consideration such factors as the composition of the portfolio, overall portfolio quality, loan concentrations, specific problem loans, and current economic conditions that may affect the borrowers' ability to pay. The Company’s methodology for assessing the adequacy of the allowance for credit losses consists of several key elements, which include: • The formula allowance • Specific allowances for problem graded loans identified as impaired; and • The unallocated allowance The formula allowance is calculated by applying loss factors to outstanding loans and certain unfunded loan commitments. Loss factors are based on the Company’s historical loss experience and on the internal risk grade of those loans, and may be adjusted for significant factors that, in management's judgment, affect the collectability of the portfolio as of the evaluation date. Factors that may affect collectability of the loan portfolio include: • Levels of, and trends in delinquencies and nonaccrual loans; • Trends in volumes and term of loans; • Effects of any changes in lending policies and procedures including those for underwriting, collection, charge-off, and recovery; • Experience, ability, and depth of lending management and staff; • National and local economic trends and conditions and; • Concentrations of credit that might affect loss experience across one or more components of the portfolio, including high-balance loan concentrations and participations. Management determines the loss factors for problem graded loans (substandard, doubtful, and loss), special mention loans, and pass graded loans, based on a loss migration model. The migration analysis incorporates loan losses over the previous quarters as determined by management (time horizons adjusted as business cycles or environment changes) and loss factors are adjusted to recognize and quantify the loss exposure from changes in market conditions and trends in the Company’s loan portfolio. For purposes of this analysis, loans are grouped by internal risk classifications and categorized as pass, special mention, substandard, doubtful, or loss. Certain loans are homogeneous in nature and are therefore pooled by risk grade. These homogeneous loans include consumer installment and home equity loans. Special mention loans are currently performing but are potentially weak, as the borrower has begun to exhibit deteriorating trends which, if not corrected, could jeopardize repayment of the loan and result in further downgrades. Substandard loans have well-defined weaknesses which, if not corrected, could jeopardize the full satisfaction of the debt. A loan classified as doubtful has critical weaknesses that make full collection of the obligation improbable. The student loan portfolio is reviewed for allowance adequacy under the same guidelines as other loans in the Company's portfolio, with additional emphasis for specific risks associated with the portfolio. For student loans, principal amounts outstanding also include interest that has been capitalized. Charge-offs and recoveries of amounts that relate to capitalized interest on student loans are treated as principal charge-offs and recoveries, affecting the allowance for loan losses rather than interest income. Capitalized interest earned in the current year is reversed from interest income. Accrued but unpaid interest related to charged-off student loans is reversed against interest income. In general, the Company reserves for a percentage of loans in forbearance and loans rated substandard. Loan participations are reviewed for allowance adequacy under the same guidelines as other loans in the Company’s portfolio, with an additional participation factor added, if required, for specific risks associated with participations. In general, participations are subject to certain thresholds set by the Company, and are reviewed for geographic location as well as the well-being of the underlying agent bank. Specific allowances are established based on management’s periodic evaluation of loss exposure inherent in impaired loans. For impaired loans, specific allowances are determined based on the net realizable value of the underlying collateral, the net present value of the anticipated cash flows, or the market value of the underlying assets. Formula allowances for classified loans, excluding impaired loans, are determined on the basis of additional risks involved with individual loans that may be in excess of risk factors associated with the loan portfolio as a whole. The specific allowance is different from the formula allowance in that the specific allowance is determined on a loan-by-loan basis based on risk factors directly related to a particular loan, as opposed to the formula allowance which is determined for a pool of loans with similar risk characteristics, based on past historical trends and other risk factors which may be relevant on an ongoing basis. The unallocated portion of the allowance is based upon management’s evaluation of various conditions that are not directly measured in the determination of the formula and specific allowances. The conditions may include, but are not limited to, general economic and business conditions affecting the key lending areas of the Company, credit quality trends, collateral values, loan volumes and concentrations, and other business conditions. |
Premises and Equipment | Premises and Equipment - Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years |
Other Real Estate Owned | Other Real Estate Owned - Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value of the property, less estimated costs to sell. The excess, if any, of the loan amount over the fair value is charged to the allowance for credit losses. Subsequent declines in the fair value of other real estate owned, along with related revenue and expenses from operations, are charged to noninterest expense. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill - Intangible assets are comprised of core deposit intangibles, other specific identifiable intangibles, and goodwill acquired in certain branch acquisitions where the consideration given exceeded the fair value of the net assets acquired. Goodwill amounts resulting from acquisitions are considered to have an indefinite life and are not amortized. At December 31, 2021 and 2020, goodwill totaled $4.5 million, held at the Company as the reporting unit. During 2021 and 2020, the Company did not recognize impairment charges on goodwill. |
Income Taxes | Income Taxes - Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities using the liability method, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. Estimates are based on the enacted tax rate of the applicable period. |
Net Income per Share | Net Income per Share - Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per share includes the effect of stock options and other potentially dilutive securities using the treasury stock method to the extent they have a dilutive impact. If applicable, net income per share is retroactively adjusted for all stock dividends declared. |
Cash Flow Reporting | Cash Flow Reporting - For purposes of reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks, federal funds sold and securities purchased under agreements to resell. Federal funds and securities purchased under agreements to resell are generally sold for one-day periods. Net cash flows are reported for interest-bearing deposits with other banks, loans to customers, and deposits held for customers. |
Transfers of Financial Assets | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right, beyond a trivial benefit) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Stock Based Compensation | Stock Based Compensation - The Company has a stock-based employee compensation plan, which is described more fully in Note 12. The Company accounts for all share-based payments to employees, including grants of employee stock options and restricted stock units and awards, to be recognized in the consolidated financial statements based on the grant date fair value of the award. The fair value is amortized over the requisite service period (generally the vesting period). Included in salaries and employee benefits for the years ended December 31, 2021 and 2020 are $238,000 and $425,000, respectively, of share-based compensation. |
Federal Home Loan Bank stock and Federal Reserve Stock | Federal Home Loan Bank Stock and Federal Reserve Stock - As a member of the Federal Home Loan Bank of San Francisco ("FHLB"), the Company is required to maintain an investment in capital stock of the FHLB. In addition, as a member of the Federal Reserve Bank of San Francisco ("FRB"), the Company is required to maintain an investment in capital stock of the FRB. The investments in both the FHLB and the FRB are carried at cost in the accompanying consolidated balance sheets under other assets and are subject to certain redemption requirements by the FHLB and FRB. Stock redemptions are at the discretion of the FHLB and FRB. While technically these are considered equity securities, there is no market for the FHLB or FRB stock. Therefore, the shares are considered as restricted investment securities. Management periodically evaluates the stock for other-than-temporary impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB or FRB as compared to the capital stock amount of the FHLB or FRB and the length of time this situation has persisted, (2) commitments by the FHLB or FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB or FRB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB or FRB, and (4) the liquidity position of the FHLB or FRB. |
Comprehensive Income | Comprehensive Income - Comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes items recorded directly to equity, such as unrealized gains and losses on securities available-for-sale, unrecognized costs of salary continuation defined benefit plans, and unrealized gains and losses on trust preferred securities. Comprehensive income is presented in the Consolidated Statements of Other Comprehensive Income. |
Segment Reporting | Segment Reporting - The Company's operations are solely in the financial services industry and include providing to its customers traditional banking and other financial services. The Company operates primarily in California's San Joaquin Valley. Management makes operating decisions and assesses performance based on an ongoing review of the Company's consolidated financial results. Therefore, the Company has a single operating segment for financial reporting purposes. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers - The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. |
Leases | Leases - The Company recognizes lease assets and lease liabilities on the consolidated balance sheet. Disclosures related to key lease components and leasing arrangements are included within the footnotes. The Company combines lease and associated non-lease components by class of underlying asset in contract that meet certain criteria. The lease and related non-lease components have the same timing and pattern of transfer, and the lease component, when accounted for on a stand-alone basis, is classified as an operating lease. |
Recent Accounting Standards Not Yet Adopted | Recent Accounting Standards Not Yet Adopted: In June 2016, FASB issued ASU 2016-13, Financial Instruments- Credit Losses (Topic 326) . The FASB is issuing this Update to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Update requires enhanced disclosures and judgments in estimating credit losses and also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This original amendment was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In October 2019 FASB unanimously approved a vote to delay the effective date of this Standard to be effective for fiscal years beginning after December 15, 2022. The Company has formed a project team that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard. An external provider specializing in community bank loss driver and the Current Expected Credit Loss ("CECL") reserving model design as well as other related consulting services has been retained, and the Company continues to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. The Company has begun to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loan portfolio as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on the Company's consolidated financial statements. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU and its effects on our consolidated financial statements. The Company anticipates impacts to junior subordinated debt and floating rate loans tied to LIBOR. |
Reclassification | Reclassifications - Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2021. None of the reclassifications had an impact on equity or net income. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Premises and Equipment | Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years The components of premises and equipment are as follows: (In thousands) December 31, 2021 December 31, 2020 Land $ 968 $ 968 Buildings and improvements 16,391 16,111 Furniture and equipment 10,068 9,921 27,427 27,000 Less accumulated depreciation (18,477) (17,890) Total premises and equipment $ 8,950 $ 9,110 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Comparison of Amortized Cost and Fair Value of Securities Available for Sale | Following is a comparison of the amortized cost and approximate fair value of investment securities at December 31, 2021 and December 31, 2020: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Carrying Amount) December 31, 2021 Securities available for sale: U.S. Government agencies $ 33,206 $ 260 $ (90) $ 33,376 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 184 (329) 64,735 Asset-backed securities 4,092 38 — 4,130 Municipal bonds 50,872 86 (906) 50,052 Corporate bonds 11,000 429 (7) 11,422 U.S. Treasury securities 15,186 1 — 15,187 Total securities available for sale $ 179,236 $ 998 $ (1,332) $ 178,902 December 31, 2020 Securities available for sale: U.S. Government agencies $ 33,800 $ 142 $ (232) $ 33,710 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,732 722 (9) 38,445 Asset-backed securities 3,871 38 — 3,909 Municipal bonds 1,045 13 — 1,058 Corporate bonds 5,000 219 — 5,219 Total securities available for sale $ 81,448 $ 1,134 $ (241) $ 82,341 |
Contractual Maturities on Collateralized Mortgage Obligations | The amortized cost and fair value of securities available for sale at December 31, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns. December 31, 2021 Amortized Cost Fair Value (Carrying Amount) (In thousands) Due in one year or less $ 510 $ 510 Due after one year through five years 15,725 15,721 Due after five years through ten years 52,700 52,481 Due after ten years 45,421 45,456 U.S. Government sponsored entities & agencies collateralized by mortgage obligations 64,880 64,734 $ 179,236 $ 178,902 |
Temporarily Impaired Investment Securities | The following summarizes temporarily impaired investment securities at December 31, 2021 and 2020: Less than 12 Months 12 Months or More Total (In thousands) Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses Fair Value (Carrying Amount) Unrealized Losses December 31, 2021 Securities available for sale: U.S. Government agencies $ — $ — $ 9,699 $ (90) $ 9,699 $ (90) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 37,258 (329) 23 — 37,281 (329) Municipal bonds 39,551 (896) 228 (10) 39,779 (906) Corporate bonds 5,993 (7) — — 5,993 (7) U.S. Treasury securities 7,416 — 7,416 — Total impaired securities $ 90,218 $ (1,232) $ 9,950 $ (100) $ 100,168 $ (1,332) December 31, 2020 Securities available for sale: U.S. Government agencies $ 9,013 $ (73) $ 16,963 $ (159) $ 25,976 $ (232) U.S. Government sponsored entities & agencies collateralized by mortgage obligations 30 (1) 1,684 (8) 1,714 (9) Total impaired securities $ 9,043 $ (74) $ 18,647 $ (167) $ 27,690 $ (241) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans | Loans are comprised of the following: (In thousands) December 31, 2021 December 31, 2020 Commercial and business loans $ 42,194 $ 37,349 Government program loans 3,310 10,165 Total commercial and industrial 45,504 47,514 Real estate – mortgage: Commercial real estate 331,050 282,951 Residential mortgages 226,926 37,236 Home improvement and home equity loans 80 107 Total real estate mortgage 558,056 320,294 Real estate construction and development 154,270 175,016 Agricultural 60,239 51,079 Installment and student loans 51,245 61,508 Total loans $ 869,314 $ 655,411 |
Loans to Affiliates | Loans to directors, officers, principal shareholders and their affiliates are summarized below: (In thousands) 2021 2020 Aggregate amount outstanding, beginning of year $ 1,900 $ 1,093 New loans or advances during year 7,899 4,950 Repayments during year (198) (4,143) Aggregate amount outstanding, end of year $ 9,601 $ 1,900 Undisbursed commitments, end of year $ 13,100 $ 21,000 |
Delinquent Loans | The following is a summary of delinquent loans at December 31, 2021 (in thousands): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — 42,194 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 The following is a summary of delinquent loans at December 31, 2020 (in thousands): December 31, 2020 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ 184 $ — $ — $ 184 $ 37,165 $ 37,349 $ — Government program loans — — — — 10,165 10,165 — Total commercial and industrial 184 — — 184 47,330 47,514 — Commercial real estate loans — — — — 282,951 282,951 — Residential mortgages — — — — 37,236 37,236 — Home improvement and home equity loans — — — — 107 107 — Total real estate mortgage — — — — 320,294 320,294 — Real estate construction and development loans — — 8,605 8,605 166,411 175,016 — Agricultural loans — — 439 439 50,640 51,079 — Installment and student loans 510 875 513 1,898 59,610 61,508 513 Total loans $ 694 $ 875 $ 9,557 $ 11,126 $ 644,285 $ 655,411 $ 513 The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2021 and December 31, 2020 (in 000's, except for number of borrowers): December 31, 2021 December 31, 2020 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 272 $ 29,596 304 $ 34,188 31 - 60 days 10 1,628 4 510 61 - 90 days 3 328 10 875 Greater than 90 days 5 453 5 512 Total 290 $ 32,005 323 $ 36,085 |
Nonaccrual Loan Balances | The following is a summary of nonaccrual loan balances at December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Commercial and business loans $ — $ — Government program loans — — Total commercial and industrial — — Commercial real estate loans — — Residential mortgages — — Home improvement and home equity loans — — Total real estate mortgage — — Real estate construction and development loans 11,226 11,057 Agricultural loans 212 439 Installment and student loans — — Total loans $ 11,438 $ 11,496 |
Impaired Loans | The following is a summary of impaired loans at December 31, 2021 (in thousands): December 31, 2021 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ — $ — $ — $ — $ — $ 156 $ — Government program loans — — — — — 110 — Total commercial and industrial — — — — — 266 — Commercial real estate loans — — — — — 538 — Residential mortgages 146 — 146 146 3 377 6 Home improvement and home equity loans — — — — — — — Total real estate mortgage 146 — 146 146 3 915 6 Real estate construction and development loans 11,226 11,226 — 11,226 — 11,133 272 Agricultural loans 660 453 209 662 127 499 41 Installment and student loans — — — — — — — Total impaired loans $ 12,032 $ 11,679 $ 355 $ 12,034 $ 130 $ 12,813 $ 319 (1) The recorded investment in loans includes accrued interest receivable of $2. (2) Information is based on the year ended December 31, 2021. The following is a summary of impaired loans at December 31, 2020 (in thousands). December 31, 2020 Unpaid Recorded Recorded Total Related Allowance Average Interest Recognized (2) Commercial and business loans $ 250 $ 251 $ — $ 251 $ — $ 551 $ 23 Government program loans 214 215 — 215 — 236 14 Total commercial and industrial 464 466 — 466 — 787 37 Commercial real estate loans 874 878 — 878 — 1,822 54 Residential mortgages 365 — 366 366 13 867 17 Home improvement and home equity loans — — — — — — — Total real estate mortgage 1,239 878 366 1,244 13 2,689 71 Real estate construction and development loans 11,057 11,057 — 11,057 — 11,223 252 Agricultural loans 610 293 316 609 196 675 39 Installment and student loans — — — — — — — Total impaired loans $ 13,370 $ 12,694 $ 682 $ 13,376 $ 209 $ 15,374 $ 399 (1) The recorded investment in loans includes accrued interest receivable of $6. (2) Information is based on the twelve month period ended December 31, 2020. |
Troubled Debt Restructuring Activity | The following tables illustrate TDR modification activity for the year ended December 31, 2020 (in thousands): Year ended December 31, 2020 Number of Pre- Post- Number of Contracts in Default Recorded Investment on Defaulted TDRs Troubled Debt Restructurings Commercial and business loans — $ — $ — — $ — Government program loans — — — — — Commercial real estate term loans — — — — — Single family residential loans — — — — — Home improvement and home equity loans — — — — — Real estate construction and development loans — — — — — Agricultural loans 1 179 — — — Installment and student loans — — — — — Overdraft protection lines — — — — — Total loans 1 $ 179 $ — — $ — The following tables summarizes all TDR activity by loan category for the years ended December 31, 2021 and 2020 (in thousands). Year ended December 31, 2021 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Defaults — — — — — — — — Additions — — — — — — — — Principal reductions — — (219) — (246) (367) — (832) Charge-offs — — — — — — — — Ending balance $ — $ — $ 146 $ — $ 2,206 $ 242 $ — $ 2,594 Allowance for loan loss $ — $ — $ 3 $ — $ — $ 127 $ — $ 130 Year ended December 31, 2020 Commercial and Industrial Commercial Real Estate Residential Mortgages Home Improvement and Home Equity Real Estate Construction Development Agricultural Installment Total Beginning balance $ 9 $ 898 $ 1,060 $ — $ 2,654 $ 566 $ — $ 5,187 Defaults — — — — — — — — Principal reductions (9) (898) (695) — (202) (136) — (1,940) Charge-offs — — — — — — — Ending balance $ — $ — $ 365 $ — $ 2,452 $ 609 $ — $ 3,426 Allowance for loan loss $ — $ — $ 13 $ — $ — $ 196 $ — $ 209 |
Credit Risk Rating for Commercial, Construction and Non-consumer Related Loans | The following tables summarize the credit risk ratings for commercial, construction, and other non-consumer related loans for December 31, 2021 and 2020. The Company did not carry any loans graded as loss at December 31, 2021 or December 31, 2020: Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total December 31, 2021 (In thousands) Grades 1 and 2 $ 3,447 $ — $ — $ — $ 3,447 Grade 3 — 92 — — 92 Grades 4 and 5 – pass 42,054 301,866 143,044 46,739 533,703 Grade 6 – special mention — 29,092 — 11,197 40,289 Grade 7 – substandard 3 — 11,226 2,303 13,532 Grade 8 – doubtful — — — — — Total $ 45,504 $ 331,050 $ 154,270 $ 60,239 $ 591,063 Commercial and Industrial Commercial Real Estate Real Estate Construction and Development Agricultural Total December 31, 2020 (In thousands) Grades 1 and 2 $ 9,811 $ — $ — $ 30 $ 9,841 Grade 3 — 519 — — 519 Grades 4 and 5 – pass 35,919 267,215 163,959 49,006 516,099 Grade 6 – special mention 1,307 14,343 — 1,434 17,084 Grade 7 – substandard 477 874 11,057 609 13,017 Grade 8 – doubtful — — — — — Total $ 47,514 $ 282,951 $ 175,016 $ 51,079 $ 556,560 |
Credit Risk Ratings for Consumer Related Loans and Other Homogenous Loans | The following table summarizes the credit risk ratings for consumer related loans and other homogeneous loans for December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Residential Mortgages Home Installment and Student Loans Total Residential Mortgages Home Installment and Student Loans Total Not graded $ 211,622 $ 68 $ 50,421 $ 262,111 $ 27,484 $ 92 $ 60,414 $ 87,990 Pass 15,304 12 371 15,687 9,752 15 570 10,337 Special Mention — — — — — — 11 11 Substandard — — 453 453 — — 513 513 Doubtful — — — — — — — — Total $ 226,926 $ 80 $ 51,245 $ 278,251 $ 37,236 $ 107 $ 61,508 $ 98,851 |
Allowance for Credit Loses by Loan Category | The following summarizes the activity in the allowance for credit losses by loan category for the years ended December 31, 2021 and 2020 (in thousands). December 31, 2021 Commercial and Industrial Real Estate Mortgage Real Estate Construction Development Agricultural Installment & Student Loans Unallocated Total Beginning balance $ 625 $ 575 $ 3,722 $ 711 $ 2,614 $ 275 $ 8,522 (Recovery of provision) provision for credit losses (119) 581 (882) 522 1,511 494 2,107 Charge-offs — — — — (1,543) — (1,543) Recoveries 91 18 — — 138 — 247 Net recoveries (charge-offs) 91 18 — — (1,405) — (1,296) Ending balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 2,720 $ 769 $ 9,333 Period-end amount allocated to: Loans individually evaluated for impairment — 3 — 127 — — 130 Loans collectively evaluated for impairment 597 1,171 2,840 1,106 2,720 769 9,203 Ending balance $ 597 $ 1,174 $ 2,840 $ 1,233 $ 2,720 $ 769 $ 9,333 December 31, 2020 Commercial and Industrial Real Estate Mortgage Real Estate Construction and Development Agricultural Installment Unallocated Total Beginning balance $ 1,322 $ 712 $ 2,808 $ 761 $ 2,132 $ 173 $ 7,908 Provision (recovery of provision) for credit losses (726) (227) 1,235 (50) 2,435 102 2,769 Charge-offs — (1) (358) — (1,961) — (2,320) Recoveries 29 91 37 0 8 — 165 Net recoveries (charge-offs) 29 90 (321) 0 (1,953) — (2,155) Ending balance $ 625 $ 575 $ 3,722 $ 711 $ 2,614 $ 275 $ 8,522 Period-end amount allocated to: Loans individually evaluated for impairment — 13 — 196 — — 209 Loans collectively evaluated for impairment 625 562 3,722 515 2,614 275 8,313 Ending balance $ 625 $ 575 $ 3,722 $ 711 $ 2,614 $ 275 $ 8,522 |
Summarized Loan Balances | The following summarizes information with respect to the loan balances at December 31, 2021 and 2020. December 31, 2021 Loans Loans Total Loans (In thousands) Commercial and business loans $ — $ 42,194 $ 42,194 Government program loans — 3,310 3,310 Total commercial and industrial — 45,504 45,504 Commercial real estate loans — 331,050 331,050 Residential mortgage loans 146 226,780 226,926 Home improvement and home equity loans — 80 80 Total real estate mortgage 146 557,910 558,056 Real estate construction and development loans 11,226 143,044 154,270 Agricultural loans 662 59,577 60,239 Installment and student loans — 51,245 51,245 Total loans $ 12,034 $ 857,280 $ 869,314 December 31, 2020 Loans Loans Total Loans (In thousands) Commercial and business loans $ 251 $ 37,098 $ 37,349 Government program loans 215 9,950 10,165 Total commercial and industrial 466 47,048 47,514 Commercial real estate loans 878 282,073 282,951 Residential mortgage loans 366 36,870 37,236 Home improvement and home equity loans — 107 107 Total real estate mortgage 1,244 319,050 320,294 Real estate construction and development loans 11,057 163,959 175,016 Agricultural loans 609 50,470 51,079 Installment and student loans — 61,508 61,508 Total loans $ 13,376 $ 642,035 $ 655,411 |
Student Loans (Tables)
Student Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Credit Quality Indicators for Outstanding Student Loans | The following tables summarize the credit quality indicators for outstanding student loans as of December 31, 2021 and December 31, 2020 (in 000's, except for number of loans): December 31, 2021 December 31, 2020 Number of Loans Amount Accrued Interest Number of Loans Amount Accrued Interest School 185 $ 6,555 $ 2,021 319 $ 12,905 $ 3,201 Grace 28 912 317 34 988 719 Repayment 500 23,834 715 623 28,906 292 Deferment 224 8,984 508 187 7,407 209 Forbearance 177 8,172 1,077 134 7,179 553 Total 1,114 $ 48,457 $ 4,638 1,297 $ 57,385 $ 4,974 |
Student Loan Aging | The following is a summary of delinquent loans at December 31, 2021 (in thousands): December 31, 2021 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ — $ — $ — $ — 42,194 42,194 $ — Government program loans — — — — 3,310 3,310 — Total commercial and industrial — — — — 45,504 45,504 — Commercial real estate loans — — — — 331,050 331,050 — Residential mortgages 6,745 — — 6,745 220,181 226,926 — Home improvement and home equity loans 12 — — 12 68 80 — Total real estate mortgage 6,757 — — 6,757 551,299 558,056 — Real estate construction and development loans — — 9,021 9,021 145,249 154,270 — Agricultural loans — — 209 209 60,030 60,239 — Installment and student loans 1,628 328 453 2,409 48,836 51,245 453 Total loans $ 8,385 $ 328 $ 9,683 $ 18,396 $ 850,918 $ 869,314 $ 453 The following is a summary of delinquent loans at December 31, 2020 (in thousands): December 31, 2020 Loans Loans Loans Total Past Due Loans Current Loans Total Loans Accruing Commercial and business loans $ 184 $ — $ — $ 184 $ 37,165 $ 37,349 $ — Government program loans — — — — 10,165 10,165 — Total commercial and industrial 184 — — 184 47,330 47,514 — Commercial real estate loans — — — — 282,951 282,951 — Residential mortgages — — — — 37,236 37,236 — Home improvement and home equity loans — — — — 107 107 — Total real estate mortgage — — — — 320,294 320,294 — Real estate construction and development loans — — 8,605 8,605 166,411 175,016 — Agricultural loans — — 439 439 50,640 51,079 — Installment and student loans 510 875 513 1,898 59,610 61,508 513 Total loans $ 694 $ 875 $ 9,557 $ 11,126 $ 644,285 $ 655,411 $ 513 The following tables summarize the student loan aging for loans in repayment and forbearance as of December 31, 2021 and December 31, 2020 (in 000's, except for number of borrowers): December 31, 2021 December 31, 2020 Number of Borrowers Amount Number of Borrowers Amount Current or less than 31 days 272 $ 29,596 304 $ 34,188 31 - 60 days 10 1,628 4 510 61 - 90 days 3 328 10 875 Greater than 90 days 5 453 5 512 Total 290 $ 32,005 323 $ 36,085 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Estimated useful lives are as follows: Buildings 31 years Furniture and equipment 3 -7 years The components of premises and equipment are as follows: (In thousands) December 31, 2021 December 31, 2020 Land $ 968 $ 968 Buildings and improvements 16,391 16,111 Furniture and equipment 10,068 9,921 27,427 27,000 Less accumulated depreciation (18,477) (17,890) Total premises and equipment $ 8,950 $ 9,110 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits Summary | Deposits include the following: (In thousands) December 31, 2021 December 31, 2020 Noninterest-bearing deposits $ 476,749 $ 391,897 Interest-bearing deposits: NOW and money market accounts 529,841 402,566 Savings accounts 113,930 96,669 Time deposits: Under $250,000 46,631 40,302 $250,000 and over 20,955 21,217 Total interest-bearing deposits 711,357 560,754 Total deposits $ 1,188,106 $ 952,651 |
Time Deposit Maturities | At December 31, 2021, the scheduled maturities of all certificates of deposit and other time deposits are as follows: (In thousands) December 31, 2021 December 31, 2020 One year or less $ 58,685 $ 49,253 More than one year, but less than or equal to two years 7,335 10,577 More than two years, but less than or equal to three years 573 1,021 More than three years, but less than or equal to four years 390 184 More than four years, but less than or equal to five years 603 385 Greater than five years — 100 $ 67,586 $ 61,520 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of lease expense and supplemental balance sheet information | The components of lease expense were as follows: Year Ended Year Ended (in 000's) December 31, 2021 December 31, 2020 Operating lease expense $ 704 $ 764 Short-term lease expense — — Variable lease expense 283 249 Sublease income — — Total $ 987 $ 1,013 Supplemental balance sheet information related to leases was as follows: (in 000's) December 31, 2021 December 31, 2020 Operating cash flows used in operating leases (years ended) $ 691 $ 764 ROU assets obtained in exchange for new operating lease liabilities $ 285 $ 104 Weighted-average remaining lease terms in years for operating leases 5.06 5.85 Weighted-average discount rate for operating leases 5.13 % 5.16 % |
Maturities of lease liabilities | Maturities of lease liabilities were as follows: Year Ended (in 000's) December 31, 2021 2021 $ 739 2022 738 2023 580 2024 402 2025 183 Thereafter 432 Total undiscounted cash flows 3,074 Less: present value discount (369) Present value of net future minimum lease payments $ 2,705 Year Ended (in 000's) December 31, 2020 2020 $ 665 2021 675 2022 674 2023 513 2024 333 Thereafter 580 Total undiscounted cash flows 3,440 Less: present value discount (473) Present value of net future minimum lease payments $ 2,967 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | The tax effects of significant items comprising the Company’s net deferred tax assets (liabilities) are as follows: December 31, (In thousands) 2021 2020 Deferred tax assets: Credit losses not currently deductible $ 2,173 $ 2,906 Deferred compensation 1,230 1,506 Depreciation 311 256 Accrued reserves 75 109 Write-down on other real estate owned 291 291 Unrealized gain on retirement obligation 265 325 Unrealized gain on TRUPs 131 246 Unrealized gain (loss) on available for sale securities 99 (265) Interest on nonaccrual loans 653 443 Lease liability 798 875 Other 1,528 467 Total deferred tax assets 7,554 7,159 Deferred tax liabilities: State Tax (243) (211) FHLB dividend (46) (46) Loss on limited partnership investment (524) (1,353) Deferred gain ASC 825 – fair value option (561) (771) Fair value adjustments for purchase accounting (98) (98) Deferred loan costs (1,553) (689) Prepaid expenses (149) (239) Right-of-use asset (765) (845) Total deferred tax liabilities (3,939) (4,252) Net deferred tax assets $ 3,615 $ 2,907 |
Income Taxes | Income tax expense for the years ended December 31, consist of the following: (In thousands) 2021 Federal State Total Current $ 2,407 $ 1,330 $ 3,737 Deferred (370) (151) (521) $ 2,037 $ 1,179 $ 3,216 2020 Current $ 1,871 $ 1,256 $ 3,127 Deferred 399 (75) 324 $ 2,270 $ 1,181 $ 3,451 |
Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % State franchise tax, net of federal income tax benefit 7.1 8.2 Other (3.9) (1.4) 24.2 % 27.8 % |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Options Activity | A summary of the status of the Company's stock option plan and changes during the year are presented below: Shares Weighted Average Exercise Price Options outstanding December 31, 2020 94,601 $ 7.87 Granted during the year — — Exercised during the year — — Forfeited during the year — — Options outstanding December 31, 2021 94,601 $ 7.87 A summary of the status of the Company's restricted stock and changes during the year are presented below: Shares Weighted Average Grant-Date Fair Value Non-vested units at December 31, 2020 11,924 $ 10.85 Granted during the year 35,739 7.53 Vested during the year 19,714 8.24 Forfeited during the year — — Non-vested units at December 31, 2021 27,949 $ 8.45 |
Intrinsic Value of Stock Options Exercised | A summary of the status of the Company's stock option values and activity is presented below: December 31, 2021 December 31, 2020 Weighted average grant-date fair value per share of stock options granted $ — $ — Weighted average fair value of stock options vested $ 86,000 $ 86,000 Total intrinsic value of stock options exercised $ — $ — |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Off-Balance Sheet Risks | The credit risk associated with these instruments is essentially the same as that involved in extending credit to customers and is represented by the contractual amount indicated in the table below: Contractual amount – December 31, (In thousands) 2021 2020 Commitments to extend credit $ 239,095 $ 216,799 Standby letters of credit 1,719 3,668 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized at the periods indicated: December 31, 2021 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 182,646 $ 182,645 $ 3,744 $ 178,901 $ — Loans 862,200 854,697 — — 854,697 Accrued interest receivable 7,530 7,530 — 7,530 — Financial Liabilities: Deposits: Noninterest-bearing 476,749 476,749 476,749 — — NOW and money market 529,841 529,841 529,841 — — Savings 113,930 113,930 113,930 — — Time deposits 67,586 67,922 — — 67,922 Total deposits 1,188,106 1,188,442 1,120,520 — 67,922 Junior subordinated debt 11,189 11,189 — — 11,189 Accrued interest payable — — — — — December 31, 2020 (In thousands) Carrying Amount Estimated Fair Value Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Financial Assets: Investment securities $ 86,192 $ 86,192 $ 3,851 $ 82,341 $ — Loans 645,825 636,470 — — 636,470 Accrued interest receivable 8,164 8,164 — 8,164 — Financial Liabilities: Deposits: Noninterest-bearing 391,897 430,210 430,210 — — NOW and money market 402,566 406,707 406,707 — — Savings 96,669 94,467 94,467 — — Time deposits 61,519 61,806 — — 61,806 Total deposits 952,651 993,190 931,384 — 61,806 Junior subordinated debt 10,924 10,924 — — 10,924 Accrued interest payable — — — — — |
Assets and Liabilities Measured at Fair Value on Recurring and Non-recurring Basis | The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2021 (in 000’s): Description of Assets December 31, 2021 Quoted Prices in Significant Other Significant AFS Securities (2): U.S. Government agencies $ 33,376 $ — $ 33,376 $ — U.S Govt collateralized mortgage obligations 64,735 — 64,735 — Asset-backed securities 4,130 — 4,130 — Municipal bonds 50,052 — 50,052 — Treasury securities 15,187 — 15,187 — Corporate bonds 11,422 — 11,422 — Total AFS securities 178,902 — 178,902 — Marketable equity securities (2) 3,744 3,744 — — Total $ 182,646 $ 3,744 $ 178,902 $ — Description of Liabilities December 31, 2021 Quoted Prices Significant Significant Junior subordinated debt (2) $ 11,189 $ — $ — $ 11,189 Total $ 11,189 $ — $ — $ 11,189 (1) Nonrecurring (2) Recurring There were no non-recurring fair value adjustments at December 31, 2021. The following tables summarize the Company’s assets and liabilities that were measured at fair value on a recurring and non-recurring basis as of December 31, 2020 (in 000’s): Description of Assets December 31, 2020 Quoted Prices Significant Significant AFS Securities (2): U.S. Government agencies $ 33,710 $ — $ 33,710 $ — U.S Govt collateralized mortgage obligations 38,445 — 38,445 — Total AFS securities 72,155 — 72,155 — Marketable equity securities (2) 3,851 3,851 — Impaired Loans (1): Commercial and industrial — — — — Real estate mortgage 3,364 — — 3,364 Total impaired loans 3,364 — — 3,364 Other real estate owned (1) 5,004 — — 5,004 Total $ 84,374 $ 3,851 $ 72,155 $ 8,368 Description of Liabilities December 31, 2020 Quoted Prices Significant Significant Junior subordinated debt (2) $ 10,924 $ — $ — $ 10,924 Total $ 10,924 $ — $ — $ 10,924 (1) Nonrecurring (2) Recurring |
Description of the Valuation Technique, Unobservable Input, and Qualitative Information about the Unobservable Inputs for the Company's Assets and Liabilities Classified as Level 3 and Measured at Fair Value on a Recurring Basis | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s liabilities classified as Level 3 and measured at fair value on a recurring basis at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Financial Instrument Valuation Technique Unobservable Input Weighted Average Financial Instrument Valuation Technique Unobservable Input Weighted Average Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.90% Junior Subordinated Debt Discounted cash flow Market credit risk adjusted spreads 3.57% The following table presents quantitative information about Level 3 fair value measurements for the Company's assets measured at fair value on a non-recurring basis at December 31, 2020 (in 000's). December 31, 2020 Financial Instrument Fair Value Valuation Technique Unobservable Input Adjustment Percentage Impaired Loans: Real estate mortgage $3,364 Fair Value of Collateral Method for Collateral Dependent Loans Adjustment for difference between appraised value and net realizable value 6.00% Other real estate owned $5,004 Fair Value of Collateral Method for Collateral Dependent Loans Adjustment for difference between appraised value and net realizable value 13.69% |
Significant Unobservable Inputs (Level 3) on a Recurring Basis | The following tables provide a reconciliation of liabilities at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended (in 000’s): December 31, 2021 December 31, 2020 Reconciliation of Liabilities: Junior Junior Beginning balance $ 10,924 $ 10,808 Total losses (gains) included in earnings 660 (970) Total (gains) losses included in OCI (392) 1,144 Capitalized interest (3) (58) Ending balance $ 11,189 $ 10,924 The amount of total losses (gains) for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date $ 660 $ (970) |
Supplemental Cash Flow Disclo_2
Supplemental Cash Flow Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Disclosures | Year Ended December 31, (In thousands) 2021 2020 Cash paid during the period for: Interest $ 2,083 $ 2,316 Income Taxes 3,030 3,443 Noncash activities: Unrealized losses on junior subordinated debentures 392 (1,144) Unrealized gains on available for sale securities (1,229) 1,143 Unrealized losses on unrecognized post-retirement costs 203 (135) Cash dividend declared 1,872 1,870 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Income Per Share | The following table provides a reconciliation of the numerator and the denominator of the basic net income per share computation with the numerator and the denominator of the diluted net income per share computation. Year Ended December 31, (In thousands, except earnings per share data) 2021 2020 Net income available to common shareholders $ 10,098 $ 8,961 Weighted average shares outstanding 17,011,379 16,976,704 Add: dilutive effect of stock options 19,495 21,881 Weighted average shares outstanding adjusted for potential dilution 17,030,874 16,998,585 Basic earnings per share $ 0.59 $ 0.53 Diluted earnings per share $ 0.59 $ 0.53 Anti-dilutive shares excluded from earnings per share calculation 67,000 72,000 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income | The components of accumulated other comprehensive income, included in shareholders’ equity, are as follows: Year ended December 31, 2021 Year ended December 31, 2020 (in 000's) Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Net unrealized loss on available for sale securities Unfunded status of the supplemental retirement plans Net unrealized gain on junior subordinated debentures Beginning balance $ 630 $ (770) $ (588) $ (175) $ (675) $ 218 Current period comprehensive (loss) income, net of tax (866) 143 277 805 (95) (806) Ending balance $ (236) $ (627) $ (311) $ 630 $ (770) $ (588) Accumulated other comprehensive loss $ (1,174) $ (728) |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent | The following are the condensed financial statements of United Security Bancshares and should be read in conjunction with the consolidated financial statements: United Security Bancshares – (parent only) Balance Sheets - December 31, 2021 and 2020 (In thousands) 2021 2020 Assets Cash and equivalents $ 2,813 $ 2,810 Investment in bank subsidiary 129,042 126,459 Other assets 1,413 1,332 Total assets 133,268 130,601 Liabilities & Shareholders' Equity Liabilities: Junior subordinated debt securities (at fair value) 11,189 10,924 Accrued interest payable — — Dividends declared 1,872 1,870 Other liabilities — — Total liabilities 13,061 12,794 Shareholders' Equity: Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,028,239 at December 31, 2021 and 17,009,883 at December 31, 2020 59,636 59,397 Retained earnings 61,745 59,138 Accumulated other comprehensive (loss) income (1,174) (728) Total shareholders' equity 120,207 117,807 Total liabilities and shareholders' equity $ 133,268 $ 130,601 United Security Bancshares – (parent only) Year ended December 31, Income Statements (In thousands) 2021 2020 Income Gain (loss) on fair value of junior subordinated debentures $ (660) $ 970 Gain on redemption of JR subordinated debentures — — Dividends from subsidiary 7,889 8,025 Total income 7,229 8,995 Expense Interest expense 179 276 Other expense 217 305 Total expense 396 581 Income before taxes and equity in undistributed income of subsidiary 6,833 8,414 Income tax expense (199) 115 Equity in undistributed income of subsidiary 3,066 662 Net Income $ 10,098 $ 8,961 United Security Bancshares – (parent only) Year ended December 31, Statement of Cash Flows (In thousands) 2021 2020 Cash Flows From Operating Activities Net income $ 10,098 $ 8,961 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed income of subsidiary (3,066) (662) Provision for deferred income taxes 80 54 (Gain) loss on fair value of junior subordinated debentures 660 (970) Decrease in income tax receivable 15 51 Net change in other assets (295) 185 Net cash provided by operating activities 7,492 7,619 Cash Flows From Financing Activities Dividends paid (7,489) (7,468) Net cash used in by financing activities (7,489) (7,468) Net increase in cash and cash equivalents 3 151 Cash and cash equivalents at beginning of year 2,810 2,659 Cash and cash equivalents at end of year $ 2,813 $ 2,810 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking and Thrift, Other Disclosures [Abstract] | |
Capital Requirements Under Banking Regulations | The following table shows the Company's and the Bank's regulatory capital and regulatory capital ratios at December 31, 2021 and 2020 as compared to the applicable capital adequacy guidelines: Actual Minimum requirement for Community Bank Leverage Ratio (1) (2) Amount Ratio Amount Ratio As of December 31, 2021 (Company): Tier 1 Leverage (to Average Assets) $127,618 9.79% $110,748 8.50% As of December 31, 2021 (Bank): Tier 1 Leverage (to Average Assets) 125,416 9.64% $110,624 8.50% As of December 31, 2020 (Company): Tier 1 Leverage (to Average Assets) 124,507 11.37% $87,577 8.00% As of December 31, 2020 (Bank): Tier 1 Leverage (to Average Assets) 122,112 11.17% $87,491 8.00% (1) The minimum required Community Bank Leverage Ratio is 9.00%, but the CARES Act temporarily lowers this to 8.0% through December 31, 2020 and 8.5% through December 31, 2021. (2) If the subsidiary bank’s Leverage Ratio exceeds the minimum ratio under the Community Bank Leverage Ratio Framework, it is deemed to be “well capitalized” under all other regulatory capital requirements. The Company may revert back to the regulatory framework for Prompt Corrective Action if the subsidiary bank’s Leverage Ratio falls below the minimum under the Community Bank Leverage Ratio Framework |
Organization and Summary of S_4
Organization and Summary of Significant Accounting and Reporting Policies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)branchofficesegment | Dec. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating segments | segment | 1 | |
Number of branches | branch | 12 | |
Number of commercial lending offices | office | 1 | |
Number of consumer lending offices | office | 1 | |
Number of construction lending offices | office | 1 | |
Investments by bank on real estate | $ | $ 250 | |
Number of general segments for the segregation of portfolio | segment | 2 | |
Goodwill | $ | $ 4,488 | $ 4,488 |
Share-based compensation | $ | $ 238 | $ 425 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting and Reporting Policies- Estimate life (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 31 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | $ 179,236 | $ 81,448 |
Gross Unrealized Gains | 998 | 1,134 |
Gross Unrealized Losses | (1,332) | (241) |
Fair Value (Carrying Amount) | 178,902 | 82,341 |
U.S. Government agencies | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 33,206 | 33,800 |
Gross Unrealized Gains | 260 | 142 |
Gross Unrealized Losses | (90) | (232) |
Fair Value (Carrying Amount) | 33,376 | 33,710 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 64,880 | 37,732 |
Gross Unrealized Gains | 184 | 722 |
Gross Unrealized Losses | (329) | (9) |
Fair Value (Carrying Amount) | 64,735 | 38,445 |
Asset-backed securities | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 4,092 | 3,871 |
Gross Unrealized Gains | 38 | 38 |
Gross Unrealized Losses | 0 | 0 |
Fair Value (Carrying Amount) | 4,130 | 3,909 |
Municipal bonds | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 50,872 | 1,045 |
Gross Unrealized Gains | 86 | 13 |
Gross Unrealized Losses | (906) | 0 |
Fair Value (Carrying Amount) | 50,052 | 1,058 |
Corporate bonds | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 11,000 | 5,000 |
Gross Unrealized Gains | 429 | 219 |
Gross Unrealized Losses | (7) | 0 |
Fair Value (Carrying Amount) | 11,422 | $ 5,219 |
U.S. Treasury securities | ||
Comparison of amortized cost and fair value of securities available for sale [Abstract] | ||
Amortized Cost | 15,186 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value (Carrying Amount) | $ 15,187 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Gross realized gains (losses), sale proceeds | $ 0 | $ 0 |
Realized losses on sales of available-for-sale securities | 0 | 0 |
Other-than-temporary impairment losses | 0 | 0 |
Unrealized loss (gain) on marketable equity securities | 106,000 | (74,000) |
Held-to-maturity | 0 | |
Investment securities | 0 | |
Carrying Amount | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 94,900,000 | 80,500,000 |
Investment securities | 182,646,000 | 86,192,000 |
Estimated Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of available-for-sale securities pledged as collateral for FHLB borrowings | 95,200,000 | 81,400,000 |
Investment securities | $ 182,645,000 | $ 86,192,000 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | security | 36 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | security | 12 | 3 |
U.S. Government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | security | 6 | 12 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | security | 2 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, temporarily impaired, number of positions | security | 1 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities on Collateralized Mortgage Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 510 | |
Due after one year through five years | 15,725 | |
Due after five years through ten years | 52,700 | |
Due after ten years | 45,421 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 64,880 | |
Amortized Cost | 179,236 | $ 81,448 |
Fair Value (Carrying Amount) | ||
Due in one year or less | 510 | |
Due after one year through five years | 15,721 | |
Due after five years through ten years | 52,481 | |
Due after ten years | 45,456 | |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 64,734 | |
Fair Value (Carrying Amount) | $ 178,902 | $ 82,341 |
Investment Securities - Tempora
Investment Securities - Temporarily Impaired Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value (Carrying Amount) | ||
Less than 12 Months | $ 90,218 | $ 9,043 |
12 Months or More | 9,950 | 18,647 |
Total | 100,168 | 27,690 |
Unrealized Losses | ||
Less than 12 Months | (1,232) | (74) |
12 Months or More | (100) | (167) |
Total | (1,332) | (241) |
U.S. Government agencies | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 0 | 9,013 |
12 Months or More | 9,699 | 16,963 |
Total | 9,699 | 25,976 |
Unrealized Losses | ||
Less than 12 Months | 0 | (73) |
12 Months or More | (90) | (159) |
Total | (90) | (232) |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 37,258 | 30 |
12 Months or More | 23 | 1,684 |
Total | 37,281 | 1,714 |
Unrealized Losses | ||
Less than 12 Months | (329) | (1) |
12 Months or More | 0 | (8) |
Total | (329) | $ (9) |
Municipal bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 39,551 | |
12 Months or More | 228 | |
Total | 39,779 | |
Unrealized Losses | ||
Less than 12 Months | (896) | |
12 Months or More | (10) | |
Total | (906) | |
Corporate bonds | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 5,993 | |
12 Months or More | 0 | |
Total | 5,993 | |
Unrealized Losses | ||
Less than 12 Months | (7) | |
12 Months or More | 0 | |
Total | (7) | |
U.S. Treasury securities | ||
Fair Value (Carrying Amount) | ||
Less than 12 Months | 7,416 | |
12 Months or More | ||
Total | 7,416 | |
Unrealized Losses | ||
Less than 12 Months | 0 | |
12 Months or More | ||
Total | $ 0 |
Loans- Loans (Details)
Loans- Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 869,314 | $ 655,411 |
Commercial And Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45,504 | 47,514 |
Commercial And Industrial | Commercial and business loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 42,194 | 37,349 |
Commercial And Industrial | Government program loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,310 | 10,165 |
Real Estate Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 558,056 | 320,294 |
Real Estate Mortgage | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 331,050 | 282,951 |
Real Estate Mortgage | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 226,926 | 37,236 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 80 | 107 |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 154,270 | 175,016 |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 60,239 | 51,079 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 51,245 | $ 61,508 |
Loans- Narrative (Details)
Loans- Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)segmentcontractpaymentloanrating | Dec. 31, 2020USD ($)loancontract | Dec. 31, 2019USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Minimum period of default | 90 days | ||
Number of monthly payments to demonstrate repayment ability | payment | 6 | ||
Remaining undisbursed commitments, loan funds | $ 0 | $ 0 | |
Period of successful payment history used for restructured loan accrual status | 6 months | ||
Number of Contracts in Default | contract | 0 | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 179,000 | ||
Post- Modification Outstanding Recorded Investment | $ 0 | ||
Number of restructured loans | loan | 5 | 7 | |
Total restructured loans | $ 2,600,000 | $ 3,400,000 | |
Troubled debt restructuring, commitment to lend | 0 | 0 | |
TDRs | $ 2,594,000 | 3,426,000 | $ 5,187,000 |
Number of risk rating approaches | rating | 2 | ||
Number of loan portfolio segment | segment | 10 | ||
Minimum | Grades 4 and 5 – pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Notes receivable, period of loss recognition | 3 years | ||
Maximum | Grades 4 and 5 – pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Notes receivable, period of loss recognition | 4 years | ||
Commitments to extend credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Contractual amount | $ 239,095,000 | 216,799,000 | |
Standby letters of credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Contractual amount | 1,719,000 | 3,668,000 | |
Paycheck Protection Program | Unsecured Debt | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Amount issued in trust preferred securities | $ 1,731,000,000 | ||
Initial coupon rate (in percent) | 1.00% | ||
Debt fees | $ 129,000 | ||
Paycheck Protection Program | Unsecured Debt | Minimum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Debt instrument, term | 2 years | ||
Processing fee (in percent) | 3.00% | ||
Paycheck Protection Program | Unsecured Debt | Maximum | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Debt instrument, term | 5 years | ||
Processing fee (in percent) | 5.00% | ||
Commercial And Industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percentage of total loans (in percent) | 5.20% | ||
TDRs | $ 0 | 0 | 9,000 |
Real Estate Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percentage of total loans (in percent) | 64.20% | ||
Real estate construction and development | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percentage of total loans (in percent) | 17.70% | ||
Number of Contracts in Default | contract | 0 | ||
Pre- Modification Outstanding Recorded Investment | $ 0 | ||
Post- Modification Outstanding Recorded Investment | 0 | ||
TDRs | $ 2,206,000 | 2,452,000 | 2,654,000 |
Agricultural loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percentage of total loans (in percent) | 6.90% | ||
Number of Contracts in Default | contract | 0 | ||
Pre- Modification Outstanding Recorded Investment | $ 179,000 | ||
Post- Modification Outstanding Recorded Investment | 0 | ||
TDRs | $ 242,000 | 609,000 | 566,000 |
Installment and student loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Percentage of total loans (in percent) | 5.90% | ||
TDRs | $ 0 | $ 0 | $ 0 |
Number of loan portfolio segment | segment | 3 |
Loans- Loans to affiliates (Det
Loans- Loans to affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Due From Related Parties Roll Forward [Abstract] | ||
Aggregate amount outstanding, beginning of year | $ 1,900 | $ 1,093 |
New loans or advances during year | 7,899 | 4,950 |
Repayments during year | (198) | (4,143) |
Aggregate amount outstanding, end of year | 9,601 | 1,900 |
Undisbursed commitments, end of year | $ 13,100 | $ 21,000 |
Loans- Past due (Details)
Loans- Past due (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 869,314 | $ 655,411 |
Accruing Loans 90 or More Days Past Due | 453 | 513 |
Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 8,385 | 694 |
Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 328 | 875 |
Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,683 | 9,557 |
Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 18,396 | 11,126 |
Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 850,918 | 644,285 |
Commercial And Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45,504 | 47,514 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial And Industrial | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 184 |
Commercial And Industrial | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 184 |
Commercial And Industrial | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 45,504 | 47,330 |
Commercial And Industrial | Commercial and business loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 42,194 | 37,349 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial And Industrial | Commercial and business loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 184 |
Commercial And Industrial | Commercial and business loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Commercial and business loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Commercial and business loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 184 |
Commercial And Industrial | Commercial and business loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 42,194 | 37,165 |
Commercial And Industrial | Government program loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,310 | 10,165 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial And Industrial | Government program loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Government program loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Government program loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Government program loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Commercial And Industrial | Government program loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 3,310 | 10,165 |
Real Estate Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 558,056 | 320,294 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real Estate Mortgage | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,757 | 0 |
Real Estate Mortgage | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,757 | 0 |
Real Estate Mortgage | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 551,299 | 320,294 |
Real Estate Mortgage | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 331,050 | 282,951 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real Estate Mortgage | Commercial real estate | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Commercial real estate | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Commercial real estate | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Commercial real estate | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Commercial real estate | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 331,050 | 282,951 |
Real Estate Mortgage | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 226,926 | 37,236 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real Estate Mortgage | Residential mortgages | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,745 | 0 |
Real Estate Mortgage | Residential mortgages | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Residential mortgages | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Residential mortgages | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 6,745 | 0 |
Real Estate Mortgage | Residential mortgages | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 220,181 | 37,236 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 80 | 107 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real Estate Mortgage | Home improvement and home equity loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12 | 0 |
Real Estate Mortgage | Home improvement and home equity loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Home improvement and home equity loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real Estate Mortgage | Home improvement and home equity loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 12 | 0 |
Real Estate Mortgage | Home improvement and home equity loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 68 | 107 |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 154,270 | 175,016 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate construction and development | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real estate construction and development | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Real estate construction and development | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,021 | 8,605 |
Real estate construction and development | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 9,021 | 8,605 |
Real estate construction and development | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 145,249 | 166,411 |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 60,239 | 51,079 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Agricultural loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Agricultural loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 0 | 0 |
Agricultural loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 209 | 439 |
Agricultural loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 209 | 439 |
Agricultural loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 60,030 | 50,640 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 51,245 | 61,508 |
Accruing Loans 90 or More Days Past Due | 453 | 513 |
Installment and student loans | Loans 30-60 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 1,628 | 510 |
Installment and student loans | Loans 61-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 328 | 875 |
Installment and student loans | Loans 90 or More Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 453 | 513 |
Installment and student loans | Total Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | 2,409 | 1,898 |
Installment and student loans | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total loans | $ 48,836 | $ 59,610 |
Loans- Non accruals and impaire
Loans- Non accruals and impaired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | $ 11,438 | $ 11,496 |
Unpaid Contractual Principal Balance | 12,032 | 13,370 |
Recorded investment with no allowance | 11,679 | 12,694 |
Recorded investment with allowance | 355 | 682 |
Total Recorded Investment | 12,034 | 13,376 |
Related Allowance | 130 | 209 |
Average recorded investment | 12,813 | 15,374 |
Interest recognized | 319 | 399 |
Accrued interest receivable | 2 | 6 |
Commercial And Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 0 | 464 |
Recorded investment with no allowance | 0 | 466 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 466 |
Related Allowance | 0 | 0 |
Average recorded investment | 266 | 787 |
Interest recognized | 0 | 37 |
Commercial And Industrial | Commercial and business loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 0 | 250 |
Recorded investment with no allowance | 0 | 251 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 251 |
Related Allowance | 0 | 0 |
Average recorded investment | 156 | 551 |
Interest recognized | 0 | 23 |
Commercial And Industrial | Government program loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 0 | 214 |
Recorded investment with no allowance | 0 | 215 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 215 |
Related Allowance | 0 | 0 |
Average recorded investment | 110 | 236 |
Interest recognized | 0 | 14 |
Real Estate Mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 146 | 1,239 |
Recorded investment with no allowance | 0 | 878 |
Recorded investment with allowance | 146 | 366 |
Total Recorded Investment | 146 | 1,244 |
Related Allowance | 3 | 13 |
Average recorded investment | 915 | 2,689 |
Interest recognized | 6 | 71 |
Real Estate Mortgage | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 0 | 874 |
Recorded investment with no allowance | 0 | 878 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 878 |
Related Allowance | 0 | 0 |
Average recorded investment | 538 | 1,822 |
Interest recognized | 0 | 54 |
Real Estate Mortgage | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 146 | 365 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with allowance | 146 | 366 |
Total Recorded Investment | 146 | 366 |
Related Allowance | 3 | 13 |
Average recorded investment | 377 | 867 |
Interest recognized | 6 | 17 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest recognized | 0 | 0 |
Real estate construction and development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 11,226 | 11,057 |
Unpaid Contractual Principal Balance | 11,226 | 11,057 |
Recorded investment with no allowance | 11,226 | 11,057 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 11,226 | 11,057 |
Related Allowance | 0 | 0 |
Average recorded investment | 11,133 | 11,223 |
Interest recognized | 272 | 252 |
Agricultural loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 212 | 439 |
Unpaid Contractual Principal Balance | 660 | 610 |
Recorded investment with no allowance | 453 | 293 |
Recorded investment with allowance | 209 | 316 |
Total Recorded Investment | 662 | 609 |
Related Allowance | 127 | 196 |
Average recorded investment | 499 | 675 |
Interest recognized | 41 | 39 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | 0 | 0 |
Installment and student loans | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loan balance | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded investment with no allowance | 0 | 0 |
Recorded investment with allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average recorded investment | 0 | 0 |
Interest recognized | $ 0 | $ 0 |
Loans- TDR modification (Detail
Loans- TDR modification (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)contractnumberOfAgreement | Dec. 31, 2020USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 179 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | 1 |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 3,426 | $ 5,187 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | (832) | (1,940) |
Charge-offs | 0 | 0 |
Ending balance | 2,594 | 3,426 |
Allowance for loan loss | 130 | 209 |
Commercial And Industrial | ||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 0 | 9 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | 0 | (9) |
Charge-offs | 0 | 0 |
Ending balance | 0 | 0 |
Allowance for loan loss | $ 0 | 0 |
Commercial And Industrial | Commercial and business loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Commercial And Industrial | Government program loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Real Estate Mortgage | ||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Charge-offs | $ 0 | |
Real Estate Mortgage | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 0 | 898 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | 0 | (898) |
Charge-offs | 0 | 0 |
Ending balance | 0 | 0 |
Allowance for loan loss | $ 0 | 0 |
Real Estate Mortgage | Residential mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 365 | 1,060 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | (219) | (695) |
Charge-offs | ||
Ending balance | 146 | 365 |
Allowance for loan loss | $ 3 | 13 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 0 | 0 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | 0 | |
Charge-offs | 0 | |
Ending balance | 0 | 0 |
Allowance for loan loss | $ 0 | 0 |
Real estate construction and development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 2,452 | 2,654 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | (246) | (202) |
Charge-offs | 0 | 0 |
Ending balance | 2,206 | 2,452 |
Allowance for loan loss | $ 0 | 0 |
Agricultural loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | numberOfAgreement | 1 | |
Pre- Modification Outstanding Recorded Investment | $ 179 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 609 | 566 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | (367) | (136) |
Charge-offs | 0 | 0 |
Ending balance | 242 | 609 |
Allowance for loan loss | 127 | 196 |
Installment and student loans | ||
Financing Receivable, Modifications, Recorded Investment [Roll Forward] | ||
Beginning balance | 0 | 0 |
Defaults | 0 | 0 |
Additions | 0 | |
Principal reductions | 0 | 0 |
Charge-offs | 0 | 0 |
Ending balance | 0 | 0 |
Allowance for loan loss | $ 0 | $ 0 |
Installment and student loans | Installment and student loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 | |
Installment and student loans | Overdraft protection lines | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre- Modification Outstanding Recorded Investment | $ 0 | |
Post- Modification Outstanding Recorded Investment | $ 0 | |
Number of Contracts in Default | contract | 0 | |
Recorded Investment on Defaulted TDRs | $ 0 |
Loans - Credit risk rating (Det
Loans - Credit risk rating (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 862,200 | $ 645,825 |
Commercial And Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 45,504 | 47,514 |
Commercial And Industrial | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 3,447 | 9,811 |
Commercial And Industrial | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Commercial And Industrial | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 42,054 | 35,919 |
Commercial And Industrial | Grade 6 – special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 1,307 |
Commercial And Industrial | Grade 7 – substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 3 | 477 |
Commercial And Industrial | Grade 8 – doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 331,050 | 282,951 |
Real Estate Mortgage | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 226,926 | 37,236 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 80 | 107 |
Real Estate Mortgage | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 92 | 519 |
Real Estate Mortgage | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 301,866 | 267,215 |
Real Estate Mortgage | Grade 6 – special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 29,092 | 14,343 |
Real Estate Mortgage | Grade 7 – substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 874 |
Real Estate Mortgage | Grade 8 – doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Not graded | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 211,622 | 27,484 |
Real Estate Mortgage | Not graded | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 68 | 92 |
Real Estate Mortgage | Pass | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 15,304 | 9,752 |
Real Estate Mortgage | Pass | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 12 | 15 |
Real Estate Mortgage | Special Mention | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Special Mention | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Substandard | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Substandard | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Doubtful | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real Estate Mortgage | Doubtful | Home improvement and home equity loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real estate construction and development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 154,270 | 175,016 |
Real estate construction and development | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real estate construction and development | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real estate construction and development | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 143,044 | 163,959 |
Real estate construction and development | Grade 6 – special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Real estate construction and development | Grade 7 – substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 11,226 | 11,057 |
Real estate construction and development | Grade 8 – doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Agricultural loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 60,239 | 51,079 |
Agricultural loans | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 30 |
Agricultural loans | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Agricultural loans | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 46,739 | 49,006 |
Agricultural loans | Grade 6 – special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 11,197 | 1,434 |
Agricultural loans | Grade 7 – substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 2,303 | 609 |
Agricultural loans | Grade 8 – doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Commercial risk construction and other non consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 591,063 | 556,560 |
Commercial risk construction and other non consumer loans | Grades 1 and 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 3,447 | 9,841 |
Commercial risk construction and other non consumer loans | Grade 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 92 | 519 |
Commercial risk construction and other non consumer loans | Grades 4 and 5 – pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 533,703 | 516,099 |
Commercial risk construction and other non consumer loans | Grade 6 – special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 40,289 | 17,084 |
Commercial risk construction and other non consumer loans | Grade 7 – substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 13,532 | 13,017 |
Commercial risk construction and other non consumer loans | Grade 8 – doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Installment and student loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 51,245 | 61,508 |
Installment and student loans | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 50,421 | 60,414 |
Installment and student loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 371 | 570 |
Installment and student loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 11 |
Installment and student loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 453 | 513 |
Installment and student loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 278,251 | 98,851 |
Total | Not graded | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 262,111 | 87,990 |
Total | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 15,687 | 10,337 |
Total | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 11 |
Total | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 453 | 513 |
Total | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 0 | $ 0 |
Loans- Allowance for credit los
Loans- Allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | $ 8,522 | $ 7,908 |
(Recovery of provision) provision for credit losses | 2,107 | 2,769 |
Charge-offs | (1,543) | (2,320) |
Recoveries | 247 | 165 |
Net recoveries (charge-offs) | (1,296) | (2,155) |
Ending balance | 9,333 | 8,522 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 130 | 209 |
Loans collectively evaluated for impairment | 9,203 | 8,313 |
Financing Receivable, Individually Evaluated for Impairment | 12,034 | 13,376 |
Loans Collectively Evaluated for Impairment | 857,280 | 642,035 |
Total loans | 869,314 | 655,411 |
Commercial And Industrial | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 625 | 1,322 |
(Recovery of provision) provision for credit losses | (119) | 726 |
Charge-offs | 0 | 0 |
Recoveries | 91 | 29 |
Net recoveries (charge-offs) | 91 | 29 |
Ending balance | 597 | 625 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 597 | 625 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 466 |
Loans Collectively Evaluated for Impairment | 45,504 | 47,048 |
Total loans | 45,504 | 47,514 |
Commercial And Industrial | Commercial and business loans | ||
Period-end amount allocated to: | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 251 |
Loans Collectively Evaluated for Impairment | 42,194 | 37,098 |
Total loans | 42,194 | 37,349 |
Commercial And Industrial | Government program loans | ||
Period-end amount allocated to: | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 215 |
Loans Collectively Evaluated for Impairment | 3,310 | 9,950 |
Total loans | 3,310 | 10,165 |
Real Estate Mortgage | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 575 | 712 |
(Recovery of provision) provision for credit losses | 581 | 227 |
Charge-offs | 0 | (1) |
Recoveries | 18 | 91 |
Net recoveries (charge-offs) | 18 | 90 |
Ending balance | 1,174 | 575 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 3 | 13 |
Loans collectively evaluated for impairment | 1,171 | 562 |
Financing Receivable, Individually Evaluated for Impairment | 146 | 1,244 |
Loans Collectively Evaluated for Impairment | 557,910 | 319,050 |
Total loans | 558,056 | 320,294 |
Real Estate Mortgage | Commercial real estate | ||
Period-end amount allocated to: | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 878 |
Loans Collectively Evaluated for Impairment | 331,050 | 282,073 |
Total loans | 331,050 | 282,951 |
Real Estate Mortgage | Residential mortgages | ||
Period-end amount allocated to: | ||
Financing Receivable, Individually Evaluated for Impairment | 146 | 366 |
Loans Collectively Evaluated for Impairment | 226,780 | 36,870 |
Total loans | 226,926 | 37,236 |
Real Estate Mortgage | Home improvement and home equity loans | ||
Period-end amount allocated to: | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 80 | 107 |
Total loans | 80 | 107 |
Real estate construction and development | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 3,722 | 2,808 |
(Recovery of provision) provision for credit losses | (882) | (1,235) |
Charge-offs | 0 | (358) |
Recoveries | 0 | 37 |
Net recoveries (charge-offs) | 0 | (321) |
Ending balance | 2,840 | 3,722 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 2,840 | 3,722 |
Financing Receivable, Individually Evaluated for Impairment | 11,226 | 11,057 |
Loans Collectively Evaluated for Impairment | 143,044 | 163,959 |
Total loans | 154,270 | 175,016 |
Agricultural loans | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 711 | 761 |
(Recovery of provision) provision for credit losses | 522 | 50 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 1,233 | 711 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 127 | 196 |
Loans collectively evaluated for impairment | 1,106 | 515 |
Financing Receivable, Individually Evaluated for Impairment | 662 | 609 |
Loans Collectively Evaluated for Impairment | 59,577 | 50,470 |
Total loans | 60,239 | 51,079 |
Installment and student loans | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 2,614 | 2,132 |
(Recovery of provision) provision for credit losses | 1,511 | (2,435) |
Charge-offs | (1,543) | (1,961) |
Recoveries | 138 | 8 |
Net recoveries (charge-offs) | (1,405) | (1,953) |
Ending balance | 2,720 | 2,614 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 2,720 | 2,614 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans Collectively Evaluated for Impairment | 51,245 | 61,508 |
Total loans | 51,245 | 61,508 |
Unallocated | ||
Summarizes activity in allowance for credit losses by loan category [Roll Forward] | ||
Beginning balance | 275 | 173 |
(Recovery of provision) provision for credit losses | 494 | (102) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net recoveries (charge-offs) | 0 | 0 |
Ending balance | 769 | 275 |
Period-end amount allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | $ 769 | $ 275 |
Student Loans - Narrative (Deta
Student Loans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 869,314,000 | $ 655,411,000 | |
Interest Receivable | 7,530,000 | 8,164,000 | |
Allowance for losses | 9,333,000 | 8,522,000 | $ 7,908,000 |
TDRs | 2,594,000 | 3,426,000 | $ 5,187,000 |
Student loan | 862,200,000 | 645,825,000 | |
Accrued interest receivable, charged against interest income | (35,651,000) | (32,277,000) | |
Student loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 48,457,000 | 57,385,000 | |
Interest Receivable | $ 4,638,000 | $ 4,974,000 | |
Number of Loans | loan | 1,114 | 1,297 | |
Allowance for losses | $ 2,600,000 | $ 2,500,000 | |
TDRs | 0 | 0 | |
Student loan | 453,000 | 513,000 | |
Accrued interest receivable, charged against interest income | 122,000 | 125,000 | |
Charge-off of loans | 1,400,000 | 1,900,000 | |
Student loan | School | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,555,000 | 12,905,000 | |
Interest Receivable | $ 2,021,000 | $ 3,201,000 | |
Number of Loans | loan | 185 | 319 | |
Student loan | Repayment, Deferment, and Forbearance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Loans | loan | 901 | 944 | |
Student loan | Repayment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 23,834,000 | $ 28,906,000 | |
Interest Receivable | $ 715,000 | $ 292,000 | |
Number of Loans | loan | 500 | 623 | |
Student loan | Deferment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 8,984,000 | $ 7,407,000 | |
Interest Receivable | $ 508,000 | $ 209,000 | |
Number of Loans | loan | 224 | 187 | |
Student loan | Forbearance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 8,172,000 | $ 7,179,000 | |
Interest Receivable | $ 1,077,000 | $ 553,000 | |
Number of Loans | loan | 177 | 134 |
Student Loans - Credit Quality
Student Loans - Credit Quality Indicators (Details) $ in Thousands | Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amount | $ 869,314 | $ 655,411 |
Accrued Interest | $ 7,530 | $ 8,164 |
Student loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 1,114 | 1,297 |
Amount | $ 48,457 | $ 57,385 |
Accrued Interest | $ 4,638 | $ 4,974 |
Student loan | School | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 185 | 319 |
Amount | $ 6,555 | $ 12,905 |
Accrued Interest | $ 2,021 | $ 3,201 |
Student loan | Grace | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 28 | 34 |
Amount | $ 912 | $ 988 |
Accrued Interest | $ 317 | $ 719 |
Student loan | Repayment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 500 | 623 |
Amount | $ 23,834 | $ 28,906 |
Accrued Interest | $ 715 | $ 292 |
Student loan | Deferment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 224 | 187 |
Amount | $ 8,984 | $ 7,407 |
Accrued Interest | $ 508 | $ 209 |
Student loan | Forbearance | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 177 | 134 |
Amount | $ 8,172 | $ 7,179 |
Accrued Interest | $ 1,077 | $ 553 |
Student Loans - Aging for Loans
Student Loans - Aging for Loans (Details) $ in Thousands | Dec. 31, 2021USD ($)borrower | Dec. 31, 2020USD ($)borrower |
Total Past Due Loans | ||
Total loans | $ 869,314 | $ 655,411 |
Loans 30-60 Days Past Due | ||
Total Past Due Loans | ||
Total loans | 8,385 | 694 |
Loans 61-89 Days Past Due | ||
Total Past Due Loans | ||
Total loans | 328 | 875 |
Greater than 90 days | ||
Total Past Due Loans | ||
Total loans | 9,683 | 9,557 |
Student loan | ||
Total Past Due Loans | ||
Total loans | $ 48,457 | $ 57,385 |
Student loan | Repayment and Forbearance | ||
Number of Borrowers | ||
Number of borrowers | borrower | 290,000 | 323,000 |
Total Past Due Loans | ||
Total loans | $ 32,005 | $ 36,085 |
Student loan | Repayment and Forbearance | Current or less than 31 days | ||
Number of Borrowers | ||
Number of borrowers, current | borrower | 272,000 | 304,000 |
Total Past Due Loans | ||
Total loans | $ 29,596 | $ 34,188 |
Student loan | Repayment and Forbearance | Loans 30-60 Days Past Due | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 10,000 | 4,000 |
Total Past Due Loans | ||
Total loans | $ 1,628 | $ 510 |
Student loan | Repayment and Forbearance | Loans 61-89 Days Past Due | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 3,000 | 10,000 |
Total Past Due Loans | ||
Total loans | $ 328 | $ 875 |
Student loan | Repayment and Forbearance | Greater than 90 days | ||
Number of Borrowers | ||
Number of borrowers, past due | borrower | 5,000 | 5,000 |
Total Past Due Loans | ||
Total loans | $ 453 | $ 512 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 27,427 | $ 27,000 |
Less accumulated depreciation | (18,477) | (17,890) |
Total premises and equipment | 8,950 | 9,110 |
Depreciation expenses on premises equipment | 1,408 | 1,411 |
Land | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 968 | 968 |
Buildings and improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 16,391 | 16,111 |
Furniture and equipment | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 10,068 | $ 9,921 |
Investment in Limited Partner_2
Investment in Limited Partnership (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Income | $ 303,000 | $ 0 |
Limited Partnership | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership (percent) | 2.22% | |
Total investment | $ 2,480,000 | 2,322,000 |
Limited Partnership | Unfunded loan commitment | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment | $ 1,879,000 | $ 2,239,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 476,749 | $ 391,897 |
Interest-bearing deposits: | ||
NOW and money market accounts | 529,841 | 402,566 |
Savings accounts | 113,930 | 96,669 |
Time deposits: | ||
Under $250,000 | 46,631 | 40,302 |
$250,000 and over | 20,955 | 21,217 |
Total interest-bearing deposits | 711,357 | 560,754 |
Total deposits | 1,188,106 | 952,651 |
Maturities of Deposits [Abstract] | ||
One year or less | 58,685 | 49,253 |
More than one year, but less than or equal to two years | 7,335 | 10,577 |
More than two years, but less than or equal to three years | 573 | 1,021 |
More than three years, but less than or equal to four years | 390 | 184 |
More than four years, but less than or equal to five years | 603 | 385 |
Greater than five years | 0 | 100 |
Time Deposits | 67,586 | 61,520 |
Deposit overdrafts | 102,000 | 506 |
Deposits of related parties | $ 18,400 | $ 11,200 |
Short-term Borrowings_Other B_2
Short-term Borrowings/Other Borrowings (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Short-term debt outstanding | $ 0 | $ 0 |
PNC | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 40,000,000 | |
Federal Reserve Bank of San Francisco | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 320,600,000 | 336,800,000 |
Qualifying loans pledged as collateral for borrowing lines | 490,500,000 | 517,500,000 |
Federal Home Loan Bank (FHLB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 3,100,000 | 4,900,000 |
Investment securities pledged as collateral | 3,400,000 | 5,300,000 |
Pacific Coast Bankers Bank (PCBB) | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 50,000,000 | 10,000,000 |
Union Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | 10,000,000 | 10,000,000 |
Zions First National Bank | ||
Short-term Debt [Line Items] | ||
Unused borrowing lines | $ 20,000,000 | $ 20,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021contract | |
Leases [Abstract] | |
Operating lease, number of contracts | 13 |
Financing lease, number of contracts | 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 704 | $ 764 |
Short-term lease expense | 0 | 0 |
Variable lease expense | 283 | 249 |
Sublease income | 0 | 0 |
Total | $ 987 | $ 1,013 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows used in operating leases (years ended) | $ 691 | $ 764 |
ROU assets obtained in exchange for new operating lease liabilities | $ 285 | $ 104 |
Weighted-average remaining lease terms in years for operating leases | 5 years 21 days | 5 years 10 months 6 days |
Weighted-average discount rate for operating leases | 5.13% | 5.16% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 739 | $ 665 |
2022 | 738 | 675 |
2023 | 580 | 674 |
2024 | 402 | 513 |
2025 | 183 | 333 |
Thereafter | 432 | 580 |
Total undiscounted cash flows | 3,074 | 3,440 |
Less: present value discount | (369) | (473) |
Present value of net future minimum lease payments | $ 2,705 | $ 2,967 |
Junior Subordinated Debt_Trus_2
Junior Subordinated Debt/Trust Preferred Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Fair value, option, credit risk, gains (losses) on assets | $ (268) | $ (174) |
Gross losses on asset | (660) | |
Unrealized losses on junior subordinated debentures | 392 | (1,144) |
Credit Risk, losses on assets | $ 970 | |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Amount issued in trust preferred securities | 12,000 | |
Cumulative gain recorded on debt | $ 1,300 | |
Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument variable interest rate | 129.00% |
Taxes on Income - Deferred Tax
Taxes on Income - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Credit losses not currently deductible | $ 2,173 | $ 2,906 |
Deferred compensation | 1,230 | 1,506 |
Depreciation | 311 | 256 |
Accrued reserves | 75 | 109 |
Write-down on other real estate owned | 291 | 291 |
Unrealized gain on retirement obligation | 265 | 325 |
Unrealized gain on TRUPs | 131 | 246 |
Unrealized gain (loss) on available for sale securities | 99 | (265) |
Interest on nonaccrual loans | 653 | 443 |
Lease liability | 798 | 875 |
Other | 1,528 | 467 |
Total deferred tax assets | 7,554 | 7,159 |
Deferred tax liabilities: | ||
State Tax | (243) | (211) |
FHLB dividend | (46) | (46) |
Loss on limited partnership investment | (524) | (1,353) |
Deferred gain ASC 825 – fair value option | (561) | (771) |
Fair value adjustments for purchase accounting | (98) | (98) |
Deferred loan costs | (1,553) | (689) |
Prepaid expenses | (149) | (239) |
Right-of-use asset | (765) | (845) |
Total deferred tax liabilities | (3,939) | (4,252) |
Net deferred tax assets | $ 3,615 | $ 2,907 |
Taxes on Income - Income Tax Ex
Taxes on Income - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | ||
Current | $ 2,407 | $ 1,871 |
Deferred | (370) | 399 |
Total Federal Income Taxes | 2,037 | 2,270 |
State | ||
Current | 1,330 | 1,256 |
Deferred | (151) | (75) |
Total State Income Taxes | 1,179 | 1,181 |
Total | ||
Current | 3,737 | 3,127 |
Deferred | (521) | 324 |
Total Income Taxes | $ 3,216 | $ 3,451 |
Taxes on Income - Income Tax Ra
Taxes on Income - Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory federal income tax rate | 21.00% | 21.00% |
State franchise tax, net of federal income tax benefit | 7.10% | 8.20% |
Other | (3.90%) | (1.40%) |
Total | 24.20% | 27.80% |
Taxes on Income - Narrative (De
Taxes on Income - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Uncertain tax positions | $ 0 | $ 0 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 0 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 0 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2005 | Dec. 31, 2021USD ($)plan$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019shares | May 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation plans | plan | 2 | ||||
Number of shares granted outstanding (in shares) | 94,601 | 94,601 | |||
Options, granted (in shares) | 0 | ||||
Non-vested, outstanding (in shares) | 27,949 | 11,924 | 35,575 | ||
Number of stock option vested in period (in shares) | 82,601 | ||||
Options exercisable weighted average exercise price (in dollars per share) | $ / shares | $ 7.54 | ||||
Options exercisable weighted average remaining contract term (in year) | 4 years 10 days | ||||
Options exercisable intrinsic value | $ | $ 145,031 | ||||
Share-based compensation | $ | 238,000 | $ 425,000 | |||
Unrecognized compensation expense | $ | $ 61,000 | $ 147,000 | |||
Period of recognition | 11 months 19 days | ||||
Incentive and Nonqualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option exercisable (in percent) | 20.00% | ||||
Option commencing period | 1 year | ||||
Options expiration period | 10 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested, outstanding (in shares) | 27,949 | 11,924 | |||
Stock, exercisable (in shares) | 19,714 | ||||
Unrecognized compensation expense | $ | $ 218,000 | $ 106,000 | |||
Period of recognition | 2 years | ||||
2005 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted outstanding (in shares) | 34,601 | 34,601 | |||
Options, granted (in shares) | 0 | 0 | |||
2005 Plan | Incentive Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted outstanding (in shares) | 34,601 | 34,601 | |||
2005 Plan | Nonqualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted outstanding (in shares) | 0 | 0 | |||
2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 758,000 | ||||
2015 Plan | Nonqualified Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted outstanding (in shares) | 60,000 | ||||
2015 Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested, outstanding (in shares) | 87,949 | ||||
Stock, exercisable (in shares) | 48,000 | ||||
2015 Plan | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-vested, outstanding (in shares) | 27,949 |
Stock Based Compensation - Opti
Stock Based Compensation - Options Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested awards, beginning balance (in shares) | 11,924 | 35,575 |
Non-vested awards, ending balance (in shares) | 27,949 | 11,924 |
Options outstanding, exercisable, exercised and forfeited [Roll Forward] | ||
Options outstanding (in shares) | 94,601 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Options outstanding (in shares) | 94,601 | 94,601 |
Weighted Average Exercise Price | ||
Options outstanding (in dollars per share) | $ 7.87 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Options outstanding (in dollars per share) | $ 7.87 | $ 7.87 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested awards, beginning balance (in shares) | 11,924 | |
Granted during the year (in shares) | 35,739 | |
Restricted stock units released (in shares) | 19,714 | |
Forfeited during the year (in shares) | 0 | |
Non-vested awards, ending balance (in shares) | 27,949 | 11,924 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Non-vested awards, beginning balance (in dollars per share) | $ 10.85 | |
Granted during the year (in dollars per share) | 7.53 | |
Vested during the year (in dollars per share) | 8.24 | |
Forfeited during the year (in dollars per share) | 0 | |
Non-vested awards, ending balance (in dollars per share) | $ 8.45 | $ 10.85 |
Stock Based Compensation - Intr
Stock Based Compensation - Intrinsic Value of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average grant-date fair value per share of stock options granted (in dollars per share) | $ 0 | $ 0 |
Weighted average fair value of stock options vested | $ 86 | $ 86 |
Total intrinsic value of stock options exercised | $ 0 | $ 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)numberOfAgreementpolicy | Dec. 31, 2020USD ($) | Dec. 31, 2015numberOfAgreement | |
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contribution (in percent) | 4.00% | ||
Matching contributions | $ 262,000 | $ 250,000 | |
Employers matching contribution vesting percentage (in percent) | 100.00% | ||
Salary continuation plan accrued liability | $ 4,753,000 | $ 4,731,000 | |
Discounted cash flow rate (in percent) | 1.91% | 1.36% | |
Salaries and benefits expense | $ 430,000 | $ 284,000 | |
Number of officers | numberOfAgreement | 4 | ||
Number of policies | policy | 4 | ||
COLI policy premium payment term | 7 years | ||
Life insurance premium expense | $ 42,000 | 30,000 | |
Unrecognized net periodic benefit costs | $ 627,000 | 770,000 | |
Salary continuation contracts, service period | 20 years | ||
Cash surrender value of life insurance | $ 22,338 | 20,715 | |
Income (loss) on bank owned life insurance policies | $ 513,000 | $ 474,000 | |
Salary Continuation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional compensation benefits term | 15 years | ||
Number of salary continuation agreements | numberOfAgreement | 12 | 8 | |
Salary Continuation Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan vesting period | 12 years | ||
Salary Continuation Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit plan vesting period | 32 years |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Financial Instruments Off-balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Minimum term of guarantees (less than one month) | 1 month | |
Maximum term of guarantees | 3 years | |
Residential mortgages | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other commitment | $ 15,800 | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amount | 239,095 | $ 216,799 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amount | $ 1,719 | $ 3,668 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosure - Summary of Fair Value Estimates (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Investment securities | $ 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Financial Assets: | ||
Investment securities | $ 3,744,000 | 3,851,000 |
Loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 476,749,000 | 430,210,000 |
NOW and money market | 529,841,000 | 406,707,000 |
Savings | 113,930,000 | 94,467,000 |
Time deposits | 0 | 0 |
Total deposits | 1,120,520,000 | 931,384,000 |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Financial Assets: | ||
Investment securities | 178,901,000 | 82,341,000 |
Loans | 0 | 0 |
Accrued interest receivable | 7,530,000 | 8,164,000 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Total deposits | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Financial Assets: | ||
Investment securities | 0 | 0 |
Loans | 854,697,000 | 636,470,000 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 67,922,000 | 61,806,000 |
Total deposits | 67,922,000 | 61,806,000 |
Junior subordinated debt | 11,189,000 | 10,924,000 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Financial Assets: | ||
Investment securities | 182,646,000 | 86,192,000 |
Loans | 862,200,000 | 645,825,000 |
Accrued interest receivable | 7,530,000 | 8,164,000 |
Deposits: | ||
Noninterest-bearing | 476,749,000 | 391,897,000 |
NOW and money market | 529,841,000 | 402,566,000 |
Savings | 113,930,000 | 96,669,000 |
Time deposits | 67,586,000 | 61,519,000 |
Total deposits | 1,188,106,000 | 952,651,000 |
Junior subordinated debt | 11,189,000 | 10,924,000 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | ||
Financial Assets: | ||
Investment securities | 182,645,000 | 86,192,000 |
Loans | 854,697,000 | 636,470,000 |
Accrued interest receivable | 7,530,000 | 8,164,000 |
Deposits: | ||
Noninterest-bearing | 476,749,000 | 430,210,000 |
NOW and money market | 529,841,000 | 406,707,000 |
Savings | 113,930,000 | 94,467,000 |
Time deposits | 67,922,000 | 61,806,000 |
Total deposits | 1,188,442,000 | 993,190,000 |
Junior subordinated debt | 11,189,000 | 10,924,000 |
Accrued interest payable | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosure - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
AFS Securities: | ||
Available-for-sale ("AFS") securities | $ 178,902 | $ 82,341 |
Marketable equity securities | 3,744 | 3,851 |
Impaired Loans: | ||
Total | 182,646 | 84,374 |
Description of Liabilities | ||
Total | 11,189 | 10,924 |
Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 178,902 | 72,155 |
Marketable equity securities | 3,744 | 3,851 |
Description of Liabilities | ||
Junior subordinated debt | 11,189 | 10,924 |
Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Commercial and industrial | 0 | |
Real estate mortgage | 3,364 | |
Total impaired loans | 3,364 | |
U.S. Government agencies | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 33,376 | 33,710 |
U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 33,376 | 33,710 |
U.S Govt collateralized mortgage obligations | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 64,735 | 38,445 |
U.S Govt collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 64,735 | 38,445 |
Asset-backed securities | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 4,130 | 3,909 |
Asset-backed securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 4,130 | |
Municipal bonds | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 50,052 | 1,058 |
Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 50,052 | |
U.S. Treasury securities | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 15,187 | |
U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 15,187 | |
Corporate bonds | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 11,422 | 5,219 |
Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 11,422 | |
Other Real Estate Owned | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Real estate mortgage | 5,004 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | ||
Impaired Loans: | ||
Total | 3,744 | 3,851 |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Total | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Marketable equity securities | 3,744 | 3,851 |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Commercial and industrial | 0 | |
Real estate mortgage | 0 | |
Total impaired loans | 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S Govt collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Quoted Prices In Active Markets for Identical Assets Level 1 | Asset-backed securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Quoted Prices In Active Markets for Identical Assets Level 1 | Other Real Estate Owned | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Real estate mortgage | 0 | |
Significant Other Observable Inputs Level 2 | ||
Impaired Loans: | ||
Total | 178,902 | 72,155 |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs Level 2 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 178,902 | 72,155 |
Marketable equity securities | 0 | |
Description of Liabilities | ||
Junior subordinated debt | 0 | 0 |
Significant Other Observable Inputs Level 2 | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Commercial and industrial | 0 | |
Real estate mortgage | 0 | |
Total impaired loans | 0 | |
Significant Other Observable Inputs Level 2 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 33,376 | 33,710 |
Significant Other Observable Inputs Level 2 | U.S Govt collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 64,735 | 38,445 |
Significant Other Observable Inputs Level 2 | Asset-backed securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 4,130 | |
Significant Other Observable Inputs Level 2 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 50,052 | |
Significant Other Observable Inputs Level 2 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 15,187 | |
Significant Other Observable Inputs Level 2 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 11,422 | |
Significant Other Observable Inputs Level 2 | Other Real Estate Owned | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Real estate mortgage | 0 | |
Significant Unobservable Inputs Level 3 | ||
Impaired Loans: | ||
Total | 0 | 8,368 |
Description of Liabilities | ||
Junior subordinated debt | 11,189 | 10,924 |
Total | 11,189 | 10,924 |
Significant Unobservable Inputs Level 3 | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Marketable equity securities | 0 | 0 |
Description of Liabilities | ||
Junior subordinated debt | 11,189 | 10,924 |
Significant Unobservable Inputs Level 3 | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Commercial and industrial | 0 | |
Real estate mortgage | 3,364 | |
Total impaired loans | 3,364 | |
Significant Unobservable Inputs Level 3 | U.S. Government agencies | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Significant Unobservable Inputs Level 3 | U.S Govt collateralized mortgage obligations | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | 0 |
Significant Unobservable Inputs Level 3 | Asset-backed securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Significant Unobservable Inputs Level 3 | Municipal bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Significant Unobservable Inputs Level 3 | U.S. Treasury securities | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | 0 | |
Significant Unobservable Inputs Level 3 | Corporate bonds | Fair value, measurements, recurring | ||
AFS Securities: | ||
Available-for-sale ("AFS") securities | $ 0 | |
Significant Unobservable Inputs Level 3 | Other Real Estate Owned | Fair value, measurements, nonrecurring | ||
Impaired Loans: | ||
Real estate mortgage | $ 5,004 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosure - Company's Assets Measured at Fair Value On a Non-Recurring Basis (Details) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020USD ($) |
Real estate construction and development | Fair Value of Collateral Method for Collateral Dependent Loans | Significant Unobservable Inputs Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Real estate mortgage, adjustment percentage | 0.0600 | |
Other Real Estate Owned | Fair Value of Collateral Method for Collateral Dependent Loans | Significant Unobservable Inputs Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Real estate mortgage, adjustment percentage | 0.1369 | |
Fair value, measurements, nonrecurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total impaired loans | $ 3,364 | |
Real estate mortgage | 3,364 | |
Fair value, measurements, nonrecurring | Significant Unobservable Inputs Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total impaired loans | 3,364 | |
Real estate mortgage | 3,364 | |
Fair value, measurements, nonrecurring | Real estate construction and development | Significant Unobservable Inputs Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Real estate mortgage | 3,364 | |
Fair value, measurements, nonrecurring | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Real estate mortgage | 5,004 | |
Fair value, measurements, nonrecurring | Other Real Estate Owned | Significant Unobservable Inputs Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Real estate mortgage | $ 5,004 | |
Measurement Input, Entity Credit Risk | Fair value, measurements, recurring | Significant Unobservable Inputs Level 3 | Junior Subordinated Debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted average inputs (in percent) | 0.0390 | 0.0357 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosure - Reconciliation of Liabilities at Fair Value (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Liabilities: | ||
Beginning balance | $ 10,924 | $ 10,808 |
Total losses (gains) included in earnings | 660 | (970) |
Total (gains) losses included in OCI | (392) | 1,144 |
Capitalized interest | (3) | (58) |
Ending balance | 11,189 | 10,924 |
The amount of total losses (gains) for the period included in earnings attributable to the change in unrealized gains or losses relating to liabilities still held at the reporting date | $ 660 | $ (970) |
Supplemental Cash Flow Disclo_3
Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid during the period for: | ||
Interest | $ 2,083 | $ 2,316 |
Income Taxes | 3,030 | 3,443 |
Noncash activities: | ||
Unrealized losses on junior subordinated debentures | 392 | (1,144) |
Unrealized gains on available for sale securities | (1,229) | 1,143 |
Unrealized gain (loss) on unrecognized post-retirement costs | (203) | 135 |
Cash dividend declared | $ 1,872 | $ 1,870 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 10,098 | $ 8,961 |
Weighted average shares outstanding (in shares) | 17,011,379 | 16,976,704 |
Add: dilutive effect of stock options (in shares) | 19,495 | 21,881 |
Weighted average shares outstanding adjusted for potential dilution (in shares) | 17,030,874 | 16,998,585 |
Basic earnings per share (in dollars per share) | $ 0.59 | $ 0.53 |
Diluted earnings per share (in dollars per share) | $ 0.59 | $ 0.53 |
Anti-dilutive shares excluded from earnings per share calculation (in shares) | 67,000 | 72,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 117,807 | [1] | $ 115,988 | [2] |
Current period comprehensive (loss) income, net of tax | (446) | (96) | ||
Ending balance | 120,207 | [3] | 117,807 | [1] |
Net unrealized loss on available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 630 | (175) | ||
Current period comprehensive (loss) income, net of tax | (866) | 805 | ||
Ending balance | (236) | 630 | ||
Unfunded status of the supplemental retirement plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (770) | (675) | ||
Current period comprehensive (loss) income, net of tax | 143 | (95) | ||
Ending balance | (627) | (770) | ||
Net unrealized gain on junior subordinated debentures | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (588) | 218 | ||
Current period comprehensive (loss) income, net of tax | 277 | (806) | ||
Ending balance | (311) | (588) | ||
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (728) | [1] | (632) | [2] |
Current period comprehensive (loss) income, net of tax | (446) | (96) | ||
Ending balance | $ (1,174) | [3] | $ (728) | [1] |
[1] | (2) Excludes 11,924 unvested restricted shares | |||
[2] | (1) Excludes 35,575 unvested restricted shares | |||
[3] | (3) Excludes 27,949 unvested restricted shares |
Investment in York Monterey P_2
Investment in York Monterey Properties (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)anumberOfAgreement | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Other real estate owned ("OREO") | $ 4,582 | $ 5,004 |
York Monterey Properties Inc | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in bank subsidiary | 5,200 | 4,700 |
Other real estate owned ("OREO") | $ 4,600 | $ 4,600 |
York Monterey Properties Inc | Wholly Owned Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 8 | |
Contribution of Property | $ 5,300 | |
Area of real estate property | a | 186.97 | |
York Monterey Properties Inc | Wholly Owned Properties | Real Estate Acquired in Satisfaction of Debt | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 5 | |
York Monterey Properties Inc | Wholly Owned Properties | Real Estate Acquired From Bank | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | numberOfAgreement | 3 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [3] | ||
Assets | ||||||
Other assets | $ 12,782 | $ 13,316 | ||||
Total assets | 1,330,944 | 1,092,654 | ||||
Liabilities | ||||||
Junior subordinated debt securities (at fair value) | 11,189 | 10,924 | ||||
Total liabilities | 1,210,737 | 974,847 | ||||
Shareholders' Equity | ||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,028,239 at December 31, 2021 and 17,009,883 at December 31, 2020 | 59,636 | 59,397 | ||||
Retained earnings | 61,745 | 59,138 | ||||
Accumulated other comprehensive (loss) income | (1,174) | (728) | ||||
Total shareholders' equity | 120,207 | [1] | 117,807 | [2] | $ 115,988 | |
Total liabilities and shareholders' equity | $ 1,330,944 | $ 1,092,654 | ||||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | ||||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||||
Common stock, shares, issued (in shares) | 17,028,239 | 17,009,883 | ||||
Common stock, shares, outstanding (in shares) | 17,028,239 | 17,009,883 | ||||
Parent Company | ||||||
Assets | ||||||
Cash and equivalents | $ 2,813 | $ 2,810 | ||||
Investment in bank subsidiary | 129,042 | 126,459 | ||||
Other assets | 1,413 | 1,332 | ||||
Total assets | 133,268 | 130,601 | ||||
Liabilities | ||||||
Junior subordinated debt securities (at fair value) | 11,189 | 10,924 | ||||
Accrued interest payable | 0 | 0 | ||||
Dividends declared | 1,872 | 1,870 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | 13,061 | 12,794 | ||||
Shareholders' Equity | ||||||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding: 17,028,239 at December 31, 2021 and 17,009,883 at December 31, 2020 | 59,636 | 59,397 | ||||
Retained earnings | 61,745 | 59,138 | ||||
Accumulated other comprehensive (loss) income | (1,174) | (728) | ||||
Total shareholders' equity | 120,207 | 117,807 | ||||
Total liabilities and shareholders' equity | $ 133,268 | $ 130,601 | ||||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 | ||||
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||||
Common stock, shares, issued (in shares) | 17,028,239 | 17,009,883 | ||||
Common stock, shares, outstanding (in shares) | 17,028,239 | 17,009,883 | ||||
[1] | (3) Excludes 27,949 unvested restricted shares | |||||
[2] | (2) Excludes 11,924 unvested restricted shares | |||||
[3] | (1) Excludes 35,575 unvested restricted shares |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income | ||
(Loss) gain on fair value of junior subordinated debentures | $ (660) | $ 970 |
Expense | ||
Interest expense | 2,079 | 2,290 |
Other expense | 2,756 | 2,272 |
Income tax expense | 3,216 | 3,451 |
Net Income | 10,098 | 8,961 |
Parent Company | ||
Income | ||
(Loss) gain on fair value of junior subordinated debentures | (660) | 970 |
Gain on redemption of JR subordinated debentures | 0 | 0 |
Dividends from subsidiary | 7,889 | 8,025 |
Total income | 7,229 | 8,995 |
Expense | ||
Interest expense | 179 | 276 |
Other expense | 217 | 305 |
Total expense | 396 | 581 |
Income before taxes and equity in undistributed income of subsidiary | 6,833 | 8,414 |
Income tax expense | (199) | 115 |
Equity in undistributed income of subsidiary | 3,066 | 662 |
Net Income | $ 10,098 | $ 8,961 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 10,098 | $ 8,961 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for deferred income taxes | (521) | 324 |
(Gain) loss on fair value of junior subordinated debentures | 660 | (970) |
(Increase) decrease in income taxes receivable | (73) | 367 |
Net cash provided by operating activities | 16,550 | 13,800 |
Cash Flows From Financing Activities: | ||
Dividends on common stock | (7,489) | (7,468) |
Net cash provided by financing activities | 227,966 | 126,821 |
Net (decrease) increase in cash and cash equivalents | (74,850) | 75,074 |
Cash and cash equivalents at beginning of year | 294,069 | 218,995 |
Cash and cash equivalents at end of year | 219,219 | 294,069 |
Parent Company | ||
Cash Flows From Operating Activities: | ||
Net Income | 10,098 | 8,961 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Equity in undistributed income of subsidiary | (3,066) | (662) |
Provision for deferred income taxes | 80 | 54 |
(Gain) loss on fair value of junior subordinated debentures | 660 | (970) |
(Increase) decrease in income taxes receivable | 15 | 51 |
Net change in other assets | (295) | 185 |
Net cash provided by operating activities | 7,492 | 7,619 |
Cash Flows From Financing Activities: | ||
Dividends on common stock | (7,489) | (7,468) |
Net cash provided by financing activities | (7,489) | (7,468) |
Net (decrease) increase in cash and cash equivalents | 3 | 151 |
Cash and cash equivalents at beginning of year | 2,810 | 2,659 |
Cash and cash equivalents at end of year | $ 2,813 | $ 2,810 |
Regulatory Matters - Company's
Regulatory Matters - Company's and the Bank's Regulatory Capital and Regulatory Capital Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital (to average assets) actual | $ 127,618 | $ 124,507 |
Tier 1 capital (to average assets) actual (in percent) | 0.0979 | 0.1137 |
Banking regulation, tier one leverage capital, community bank, actual | $ 110,748 | $ 87,577 |
Banking regulation, tier one leverage capital, community bank leverage ratio (in percent) | 0.0850 | 0.0800 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital (to average assets) actual | $ 125,416 | $ 122,112 |
Tier 1 capital (to average assets) actual (in percent) | 0.0964 | 0.1117 |
Banking regulation, tier one leverage capital, community bank, actual | $ 110,624 | $ 87,491 |
Banking regulation, tier one leverage capital, community bank leverage ratio (in percent) | 0.0850 | 0.0800 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash dividend | $ 1,872 | $ 1,870 |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash dividend | 7,486 | |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash dividend | $ 7,889 |