Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | NEW PEOPLES BANKSHARES INC | |
Entity Central Index Key | 1,163,389 | |
Document Type | 10-Q | |
Trading Symbol | NWPP | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Elected Not To Use the Extended Transition Period | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,922,086 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans including fees | $ 6,658 | $ 6,123 | $ 19,578 | $ 17,902 |
Interest-earning deposits with banks | 122 | 59 | 283 | 151 |
Investments | 373 | 391 | 1,178 | 1,122 |
Dividends on equity securities (restricted) | 38 | 39 | 111 | 105 |
Total Interest and Dividend Income | 7,191 | 6,612 | 21,150 | 19,280 |
INTEREST EXPENSE | ||||
Deposits | 901 | 646 | 2,366 | 1,791 |
Borrowed funds | 263 | 187 | 700 | 554 |
Total Interest Expense | 1,164 | 833 | 3,066 | 2,345 |
NET INTEREST INCOME | 6,027 | 5,779 | 18,084 | 16,935 |
PROVISION FOR LOAN LOSSES | 63 | 189 | ||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,964 | 5,779 | 17,895 | 16,935 |
NONINTEREST INCOME | ||||
Service charges and fees | 1,662 | 1,628 | 4,837 | 4,726 |
Gain on sale and leaseback transactions | 2,619 | |||
Insurance and investment fees | 129 | 40 | 382 | 146 |
Other noninterest income | 126 | 140 | 319 | 440 |
Total Noninterest Income | 1,917 | 1,808 | 5,538 | 7,931 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 3,614 | 3,413 | 10,928 | 10,135 |
Occupancy and equipment expense | 1,249 | 1,227 | 3,840 | 3,526 |
Data processing and telecommunications | 717 | 630 | 2,057 | 1,853 |
Other operating expenses | 6,288 | 6,185 | 1,999 | 1,828 |
Total Noninterest Expenses | 7,579 | 7,098 | 23,113 | 21,699 |
INCOME BEFORE INCOME TAXES | 302 | 489 | 320 | 3,167 |
INCOME TAX EXPENSE (BENEFIT) | 94 | 5 | 81 | (9) |
NET INCOME | $ 208 | $ 484 | $ 239 | $ 3,176 |
Income Per Share | ||||
Basic | $ 0 | $ 0.02 | $ 0.01 | $ 0.14 |
Fully Diluted | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.14 |
Average Weighted Shares of Common Stock | ||||
Basic | 23,922,086 | 23,355,580 | 23,922,086 | 23,355,611 |
Fully Diluted | 23,922,086 | 23,355,580 | 23,922,086 | 23,355,611 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
NET INCOME | $ 208 | $ 484 | $ 239 | $ 3,176 |
Investment Securities Activity | ||||
Unrealized gains (losses) arising during the period | (407) | (216) | (1,655) | 391 |
Tax related to unrealized gains (losses) | 86 | 73 | 349 | (133) |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (321) | (143) | (1,306) | 258 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (113) | $ 341 | $ (1,067) | $ 3,434 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 16,427 | $ 18,249 |
Interest-bearing deposits with banks | 21,385 | 14,452 |
Federal funds sold | 252 | 4 |
Total Cash and Cash Equivalents | 38,064 | 32,705 |
Investment securities available-for-sale | 60,391 | 71,088 |
Loans receivable | 531,969 | 513,008 |
Allowance for loan losses | (5,280) | (6,196) |
Net Loans | 526,689 | 506,812 |
Bank premises and equipment, net | 24,807 | 26,115 |
Other real estate owned | 6,465 | 6,859 |
Accrued interest receivable | 2,063 | 2,036 |
Deferred taxes, net | 5,765 | 5,499 |
Right-of-use assets - operating leases | 5,021 | 5,253 |
Other assets | 10,253 | 10,333 |
Total Assets | 679,518 | 666,700 |
Deposits: | ||
Noninterest bearing | 170,969 | 154,631 |
Interest bearing | 427,243 | 427,913 |
Total Deposits | 598,212 | 582,544 |
Borrowed funds | 23,496 | 24,054 |
Lease liabilities - operating leases | 5,021 | 5,253 |
Accrued interest payable | 547 | 426 |
Accrued expenses and other liabilities | 2,336 | 3,450 |
Total Liabilities | 629,612 | 615,727 |
STOCKHOLDERS' EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at September 30, 2018 and December 31, 2017 | 47,844 | 47,844 |
Additional paid-in-capital | 14,570 | 14,570 |
Retained deficit | (10,608) | (10,847) |
Accumulated other comprehensive loss | (1,900) | (594) |
Total Stockholders' Equity | 49,906 | 50,973 |
Total Liabilities and Stockholders' Equity | $ 679,518 | $ 666,700 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 23,922,086 | 23,922,086 |
Common stock, outstanding | 23,922,086 | 23,922,086 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Common Stock [Member] | Common Stock Warrants [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at beginning at Dec. 31, 2016 | $ 46,709 | $ 764 | $ 13,965 | $ (14,065) | $ (456) | $ 46,917 |
Balance at beginning (in shares) at Dec. 31, 2016 | 23,354 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,176 | 3,176 | ||||
Exercise of common stock warrants | $ 5 | (2) | 1 | 4 | ||
Exercise of common stock warrants (in shares) | 3 | |||||
Other comprehensive income (loss), net of tax | 258 | 258 | ||||
Balance at end at Sep. 30, 2017 | $ 46,714 | 762 | 13,966 | (10,889) | (198) | 50,355 |
Balance at end (in shares) at Sep. 30, 2017 | 23,357 | |||||
Balance at beginning at Dec. 31, 2017 | $ 47,844 | 14,570 | (10,847) | (594) | $ 50,973 | |
Balance at beginning (in shares) at Dec. 31, 2017 | 23,922 | 23,922,086 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 239 | $ 239 | ||||
Other comprehensive income (loss), net of tax | (1,306) | (1,306) | ||||
Balance at end at Sep. 30, 2018 | $ 47,844 | $ 14,570 | $ (10,608) | $ (1,900) | $ 49,906 | |
Balance at end (in shares) at Sep. 30, 2018 | 23,922 | 23,922,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 239 | $ 3,176 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,935 | 1,911 |
Provision for loan losses | 189 | |
Income on life insurance | (42) | (82) |
Gain on sale and leaseback transactions | (2,619) | |
(Gain) loss on sale of premises and equipment | 76 | (2) |
Loss on sale of foreclosed assets | 96 | 29 |
Adjustment of carrying value of other real estate owned | 421 | 668 |
Accretion of bond premiums/discounts | 500 | 589 |
Deferred taxes | 83 | |
Net change in: | ||
Interest receivable | (27) | (108) |
Other assets | 101 | 390 |
Accrued interest payable | 121 | 63 |
Accrued expenses and other liabilities | (1,114) | 826 |
Net Cash Provided by Operating Activities | 2,578 | 4,841 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in loans | (21,235) | (29,348) |
Purchase of securities available-for-sale | (13,032) | |
Proceeds from sales, maturities, and principal paydowns of securities available-for-sale | 8,542 | 14,614 |
Net sale of equity securities (restricted) | 21 | 232 |
Payments for the purchase of premises and equipment | (1,509) | (1,866) |
Proceeds from sale of premises and equipment | 806 | 5 |
Proceeds from sales and leaseback transactions | 1,042 | |
Proceeds from insurance claims on other real estate owned | 12 | |
Proceeds from sales of other real estate owned | 1,046 | 4,145 |
Net Cash Used In Investing Activities | (12,329) | (24,196) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Exercise of common stock warrants | 4 | |
Net decrease in Federal Home Loan Bank advances | (558) | (5,900) |
Increase in deposits | 15,668 | 27,178 |
Net Cash Provided by Financing Activities | 15,110 | 21,282 |
Net increase in cash and cash equivalents | 5,359 | 1,927 |
Cash and Cash Equivalents, Beginning of Period | 32,705 | 35,448 |
Cash and Cash Equivalents, End of Period | 38,064 | 37,375 |
Supplemental Disclosure of Cash Paid During the Period for: | ||
Interest | 2,945 | 2,282 |
Taxes | 320 | |
Supplemental Disclosure of Non Cash Transactions: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 5,252 | |
Loan made to finance sale of premises and equipment | 4,935 | |
Other real estate acquired in settlement of foreclosed loans | 1,636 | 2,761 |
Loans made to finance sale of foreclosed real estate | 467 | 1,225 |
Transfer of premises and equipment to other real estate | 125 | |
Change in unrealized gains (losses) on securities available-for-sale | $ 1,655 | $ 391 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“the Company”) is a financial holding company whose principal activity is the ownership and management of a community bank, New Peoples Bank, Inc. (the “Bank”). The Bank was organized and incorporated under the laws of the Commonwealth of Virginia. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank. The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee. Services include commercial and consumer loans along with traditional deposit products such as checking and savings accounts. |
ACCOUNTING PRINCIPLES
ACCOUNTING PRINCIPLES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
ACCOUNTING PRINCIPLES | NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2018 and December 31, 2017, and the results of operations for the three and nine-month periods ended September 30, 2018 and 2017. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Income Per Share | |
EARNINGS PER SHARE | NOTE 3 EARNINGS PER SHARE: Basic earnings per share computations are based on the weighted average number of shares outstanding during each period. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued related to outstanding common stock warrants are determined by the Treasury method. For the three and nine months ended September 30, 2017, potential common shares of 879,803 were anti-dilutive and were not included in the calculation. There were no anti-dilutive potential common shares at September 30, 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the nine months 2018 2017 2018 2017 Net income $ 208 $ 484 $ 239 $ 3,176 Weighted average shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Dilutive shares for warrants — — — — Weighted average dilutive shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Basic and diluted income per share $ 0.01 $ 0.02 $ 0.01 $ 0.14 |
CAPITAL
CAPITAL | 9 Months Ended |
Sep. 30, 2018 | |
Capital [Abstract] | |
CAPITAL | NOTE 4 CAPITAL: Capital Requirements and Ratios The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of 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. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum ratios of Tier 1 and total capital as a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 1250%. Tier 1 capital consists of common stockholders’ equity, excluding the unrealized gain or loss on securities available-for-sale, minus certain intangible assets. Tier 2 capital consists of the allowance for loan losses subject to certain limitations. Total capital for purposes of computing the capital ratios consists of the sum of Tier 1 and Tier 2 capital. The Bank is also required to maintain capital at a minimum level based on quarterly average assets, which is known as the leverage ratio. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2018 and December 31, 2017, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,080 14.57 % $ 37,928 8.0 % $ 47,411 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,800 13.46 % 28,446 6.0 % 37,928 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,800 9.39 % 27,170 4.0 % 33,962 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,800 13.46 % 21,335 4.5 % 30,817 6.5 % December 31, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 68,787 15.30 % $ 35,970 8.0 % $ 44,962 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05 % 26,977 6.0 % 35,970 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,160 9.56 % 26,422 4.0 % 33,028 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,160 14.05 % 20,233 4.5 % 29,225 6.5 % As of September 30, 2018, the Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and Common Equity Tier 1 ratios as set forth in the above tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Under Basel III Capital requirements, a capital conservation buffer of 0.625% became effective beginning on January 1, 2016. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.50%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions, such as dividends, or discretionary bonus payments. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investment Securities Activity | |
INVESTMENT SECURITIES | NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2018 U.S. Government Agencies $ 20,792 $ 3 $ (607) $ 20,188 Taxable municipals 4,438 - (227) 4,211 Corporate bonds 5,426 57 (137) 5,346 Mortgage backed securities 32,141 1 (1,496) 30,646 Total Securities AFS $ 62,797 $ 61 $ (2,467) $ 60,391 December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ (221) $ 23,844 Taxable municipals 4,466 9 (78) 4,397 Corporate bonds 5,437 168 (26) 5,579 Mortgage backed securities 37,950 3 (685) 37,268 Total Securities AFS $ 71,839 $ 259 $ (1,010) $ 71,088 The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U.S. Government Agencies $ 8,959 $ (162) $ 9,406 $ (445) $ 18,365 $ (607) Taxable municipals 2,706 (148) 1,505 (79) 4,211 (227) Corporate bonds 2,393 (137) - - 2,393 (137) Mtg. backed securities 4,553 (173) 26,060 (1,323) 30,613 (1,496) Total Securities AFS $ 18,611 $ (620) $ 36,971 $ (1,847) $ 55,582 $ (2,467) December 31, 2017 U.S. Government Agencies $ 7,840 $ (69) $ 7,189 $ (152) $ 15,029 $ (221) Taxable municipals 2,403 (44) 767 (34) 3,170 (78) Corporate bonds 1,507 (26) - - 1,507 (26) Mtg. backed securities 14,720 (145) 21,500 (540) 36,220 (685) Total Securities AFS $ 26,470 $ (284) $ 29,456 $ (726) $ 55,926 $ (1,010) At September 30, 2018, there were nineteen U.S. Government Agency securities, four taxable municipal securities, and eighty-three mortgage backed securities that had been in a loss position for greater than twelve months. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. Management does not intend to sell, and it is not likely that the Bank will be required to sell any of the securities referenced in the table above before recovery of their amortized cost. Investment securities with a carrying value of $9.3 million and $11.0 million at September 30, 2018 and December 31, 2017, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $3.2 million for the nine months ended September 30, 2017. There were no sales of investment securities during the nine months ended September 30, 2018. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Gross gains realized $ — $ 30 $ — $ 30 Gross losses realized — (30 ) — (30 ) Net realized gains $ — $ — $ — $ — The amortized cost and fair value of investment securities at September 30, 2018, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 32 $ 33 0.00% Due after one year through five years 4,656 4,560 2.53% Due after five years through ten years 14,955 14,499 3.20% Due after ten years 43,154 41,299 2.40% Total $ 62,797 $ 60,391 2.60% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.5 million and $2.6 million as of September 30, 2018 and December 31, 2017, respectively. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS | NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 139,384 $ 127,688 Construction and land development 29,403 29,763 Residential 1-4 family 249,138 249,159 Multifamily 13,461 15,481 Farmland 21,656 22,998 Total real estate loans 453,042 445,089 Commercial 49,945 41,345 Agriculture 4,895 3,494 Consumer installment loans 23,471 22,411 All other loans 616 669 Total loans $ 531,969 $ 513,008 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 970 $ 2,035 Construction and land development 186 470 Residential 1-4 family 3,604 2,991 Multifamily 79 152 Farmland 1,665 800 Total real estate loans 6,504 6,448 Commercial 61 1,065 Agriculture — 3 Consumer installment loans 34 48 Total loans receivable on nonaccrual status $ 6,599 $ 7,564 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2018 and 2017 was $358 thousand and $456 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2018 and December 31, 2017: As of September 30, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,656 $ 2,762 $ — Construction and land development 140 409 — Residential 1-4 family 3,043 3,327 — Multifamily 79 120 — Farmland 1,770 1,954 — Commercial 14 14 — Agriculture — — — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 542 661 46 Construction and land development — — — Residential 1-4 family 431 453 114 Multifamily — — — Farmland 346 358 131 Commercial 109 109 15 Agriculture — — — Consumer installment loans 7 7 1 All other loans — — — Total $ 9,137 $ 10,174 $ 307 As of December 31, 2017 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,646 $ 2,719 $ — Construction and land development 424 680 — Residential 1-4 family 3,586 3,885 — Multifamily 281 321 — Farmland 1,264 1,664 — Commercial 628 628 — Agriculture 12 12 — Consumer installment loans 8 8 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,503 2,622 499 Construction and land development — — — Residential 1-4 family 421 437 91 Multifamily — — — Farmland 378 378 243 Commercial 489 572 413 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 12,640 $ 13,926 $ 1,246 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2018 September 30, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,724 $ 95 $ 2,976 $ 73 Construction and land development 220 1 2 — Residential 1-4 family 3,229 137 3,827 152 Multifamily 163 5 402 15 Farmland 1,515 51 2,538 52 Commercial 166 1 — — Agriculture 4 — 19 1 Consumer installment loans 2 — 13 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,409 16 1,208 80 Construction and land development — — 222 — Residential 1-4 family 391 13 634 14 Multifamily — — 660 48 Farmland 365 — 673 26 Commercial 293 2 282 24 Agriculture — — 2 — Consumer installment loans 6 1 2 — All other loans — — — — Total $ 10,487 $ 322 $ 13,460 $ 485 Three Months Ended September 30, 2018 September 30, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,710 41 $ 2,757 $ 9 Construction and land development 145 1 - - Residential 1-4 family 3,093 50 3,833 50 Multifamily 80 1 287 4 Farmland 1,816 9 1,193 26 Commercial 10 1 - - Agriculture 1 - 18 - Consumer installment loans - - 9 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 544 - 1,516 74 Construction and land development - - 209 - Residential 1-4 family 393 6 567 5 Multifamily - - 1,321 16 Farmland 357 - 756 10 Commercial 110 - 497 8 Agriculture - - - - Consumer installment loans 7 - - - All other loans - - - - Total $ 9,266 $ 109 $ 12,963 $ 202 An age analysis of past due loans receivable is below. At September 30, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of September 30, 2018 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ — $ 176 $ 578 $ 754 $ 138,630 $ 139,384 Construction and land development 14 — 42 56 29,347 29,403 Residential 1-4 family 2,201 461 711 3,373 245,765 249,138 Multifamily — — — — 13,461 13,461 Farmland 40 809 281 1,130 20,526 21,656 Total real estate loans 2,255 1,446 1,612 5,313 447,729 453,402 Commercial 65 — 61 126 49,819 49,945 Agriculture — — 7 7 4,888 4,895 Consumer installment Loans 20 2 8 30 23,441 23,471 All other loans — — — — 616 616 Total loans $ 2,340 $ 1,448 $ 1,688 $ 5,476 $ 526,493 $ 531,969 As of December 31, 2017 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land development 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 — 214 15,267 15,481 Farmland 309 — — 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 — — 38 3,456 3,494 Consumer installment Loans 102 15 28 145 22,266 22,411 All other loans — — — — 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 135,856 $ 1,918 $ 1,610 $ 139,384 Construction and land development 28,455 743 205 29,403 Residential 1-4 family 242,853 1,603 4,682 249,138 Multifamily 13,261 67 133 13,461 Farmland 17,626 2,300 1,730 21,656 Total real estate loans 438,051 6,631 8,360 453,042 Commercial 47,179 2,705 61 49,945 Agriculture 4,875 6 14 4,895 Consumer installment loans 23,403 — 68 23,471 All other loans 616 — — 616 Total $ 514,124 $ 9,342 $ 8,503 $ 531,969 As of December 31, 2017 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 — — 669 Total $ 489,049 $ 12,076 $ 11,883 $ 513,008 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 7 ALLOWANCE FOR LOAN LOSSES: The following table details activity in the allowance for loan losses by portfolio segment for the period ended September 30, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of September 30, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334 ) $ 73 $ (345 ) $ 1,383 Construction and land development 191 (96 ) 12 64 171 Residential 1-4 family 2,400 (270 ) 62 17 2,209 Multifamily 106 — — (15 ) 91 Farmland 415 (58 ) 66 (141 ) 282 Total real estate loans 5,101 (758 ) 213 (420 ) 4,136 Commercial 660 (617 ) 77 260 380 Agriculture 20 — 1 12 33 Consumer installment loans 156 (59 ) 38 16 151 All other loans 3 — — — 3 Unallocated 256 — — 321 577 Total $ 6,196 $ (1,434 ) $ 329 $ 189 $ 5,280 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2018 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 46 $ 1,337 $ 1,383 $ 3,198 $ 136,186 $ 139,384 Construction and land development - 171 171 140 29,263 29,403 Residential 1-4 family 114 2,095 2,209 3,474 245,664 249,138 Multifamily - 91 91 79 13,382 13,461 Farmland 131 151 282 2,116 19,540 21,656 Total real estate loans 291 3,845 4,136 9,007 444,035 453,042 Commercial 15 365 380 123 49,822 49,945 Agriculture - 33 33 - 4,895 4,895 Consumer installment loans 1 150 151 7 23,464 23,471 All other loans - 3 3 - 616 616 Unallocated - 577 577 - - - Total $ 307 $ 4,973 $ 5,280 $ 9,137 $ 522,832 $ 531,969 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2017 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179 ) $ 193 $ 350 $ 1,989 Construction and land development 346 (1 ) — (154 ) 191 Residential 1-4 family 2,376 (714 ) 48 690 2,400 Multifamily 241 — — (135 ) 106 Farmland 428 (49 ) 361 (325 ) 415 Total real estate loans 5,016 (943 ) 602 426 5,101 Commercial 163 (11 ) 153 355 660 Agriculture 31 (4 ) 5 (12 ) 20 Consumer installment loans 123 (147 ) 19 161 156 All other loans — — — 3 3 Unallocated 739 — — (483 ) 256 Total $ 6,072 $ (1,105 ) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 $ 6,196 $ 12,640 $ 500,368 $ 513,008 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. |
TROUBLED DEBT RESTRUCTURINGS
TROUBLED DEBT RESTRUCTURINGS | 9 Months Ended |
Sep. 30, 2018 | |
Troubled Debt Restructurings | |
TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At September 30, 2018 there were $5.5 million in loans that are classified as troubled debt restructurings compared to $6.9 million at December 31, 2017. The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 For the nine months ended September 30, 2017 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — — — — Commercial — — — 1 443 443 Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 443 $ 443 D uring the nine and three months ended September 30, 2018, the Company did not modify any loans that were considered to be troubled debt restructurings. During the nine months ended September 30, 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the three months ended September 30, 2017, the Company modified no loans that were considered to be troubled debt restructurings. No loans previously modified as troubled debt restructurings defaulted during the nine months ended September 30, 2018. There were no loans modified as troubled debt restructurings that defaulted during the three months ended September 30, 2018 and 2017, which were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2018 and the year ended December 31, 2017: (Dollars are in thousands) September 30, December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,636 3,087 Transfers from premises and equipment — 125 Proceeds from sales (1,046 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (467 ) (1,477 ) Adjustment of carrying value (421 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,465 $ 6,859 |
FAIR VALUES
FAIR VALUES | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES | NOTE 10 FAIR VALUES: The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair Value Measurements and Disclosures also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available-for-Sale Assets measured at fair value on a recurring basis are as follows. There were no liabilities measured at fair value on a recurring basis. (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 U.S. Government Agencies $ — $ 20,188 $ — Taxable municipals — 4,211 — Corporate bonds — 5,346 — Mortgage backed securities — 30,646 — Total $ — $ 60,391 $ — December 31, 2017 Available-for-sale investments U.S. Government Agencies $ — $ 23,844 $ — Taxable municipals — 4,397 — Corporate bonds — 5,579 — Mortgage backed securities — 37,268 — Total $ — $ 71,088 $ — Loans - Other Real Estate Owned – Assets measured at fair value on a non-recurring basis are as follows (for purpose of this table the impaired loans are shown net of the related allowance). There were no liabilities measured at fair value on a non-recurring basis. (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 Other real estate owned — — $ 6,465 Impaired loans — — 8,830 Total — — $ 15,295 December 31, 2017 Other real estate owned — — $ 6,859 Impaired loans — — 11,394 Total — — $ 18,253 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2018 the significant unobservable inputs used in the fair value measurements were as follows: For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 8,830 $ Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 6,465 $ Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2018 and December 31, 2017. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 Financial Instruments – Assets Net Loans $ 526,689 $ 514,232 $ — $ 505,402 $ 8,830 Financial Instruments – Liabilities Time Deposits 258,926 258,512 — 258,512 — FHLB Advances 7,000 7,296 — 7,296 — Trust Preferred Securities 16,496 16,496 — 16,496 — December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ — $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 — 272,352 — FHLB Advances 7,558 7,794 — 7,794 — Trust Preferred Securities 16,496 16,496 — 16,496 — |
SALE AND LEASEBACK TRANSACTIONS
SALE AND LEASEBACK TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
SALE AND LEASEBACK TRANSACTIONS | NOTE 11 SALE AND LEASEBACK TRANSACTIONS: On May 31, 2017, the Bank sold four of its properties, one each located in Abingdon, Bristol, Gate City and Castlewood, Virginia to a nonaffiliated third party for a total purchase price of $6.2 million. After selling expenses of $192 thousand, the net proceeds on the transactions were $6.0 million. The sales prices for the properties were based on outside appraisals obtained by the Bank. The Bank provided $4.9 million of financing to the purchaser for a term of 10 years for this transaction. In connection with the sale of the four properties, on May 31, 2017, the Bank entered into commercial lease agreements with the purchaser for the properties (the “Leases”), which will allow the Bank to continue to service customers from these locations. The Leases, which commenced on June 1, 2017, provide the Bank with use of the properties for an initial term of fifteen years. Base rent payments for years one through five of the Leases are approximately $417 thousand a year. The base rent payments will increase by 8% for years 6 through 10 of the Leases and then by another 8% for years eleven through fifteen of the Leases. The Bank has the option to renew the Leases five times and each renewal would be for a term of five years. The base rent for the renewals would be negotiated at the time the renewal option is exercised by the Bank. While the cash lease payments are currently $417 thousand a year, the Company is required to straight-line the expense over the initial term of fifteen years. As a result, the annual lease expense will be approximately $451 thousand. The weighted average remaining life of the leases is 13.67 years. In anticipation of this transaction the Company adopted ASU No. 2016-02 Leases (Topic 842) early. This ASU revised certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. As a result of this transaction the Company recognized initial right-to-use assets – operating leases of approximately $5.3 million, along with corresponding lease liabilities of approximately $5.3 million. The $5.3 million was determined by calculating the present value of the annual cash lease payments using a discount rate of 3.25%. The 3.25% discount rate was determined to be our fifteen year incremental borrowing rate as of May 31, 2017. As a result of the sale and the determination that the corresponding leases were operating leases, the Company also recognized a gain in 2017 of $2.6 million on the sale and leaseback transactions. |
NONINTEREST EXPENSES
NONINTEREST EXPENSES | 9 Months Ended |
Sep. 30, 2018 | |
Noninterest Expenses | |
NONINTEREST EXPENSES | NOTE 12 NONINTEREST EXPENSES: Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Advertising $ 340 $ 316 $ 79 $ 110 ATM network expense 1,272 1,232 430 401 Legal and professional fees 1,057 926 284 301 Loan related expenses 480 500 150 167 Printing and supplies 248 88 46 34 FDIC insurance premiums 279 298 98 86 Other real estate owned, net 772 1,280 411 227 Other 1,840 1,545 501 502 Total noninterest expenses $ 6,288 $ 6,185 $ 1,999 $ 1,828 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 13 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. Non-recognized 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 available to be issued and no subsequent events occurred requiring accrual or disclosure. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 14 RECENT ACCOUNTING DEVELOPMENTS: The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance became effective January 1, 2018. The amendment does not apply to revenue associated with financial instruments, such as loans and investment securities available for sale, and therefore had no material effect on our consolidated financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“ASC”), to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments became effective on January 1, 2018 and did not have a material effect on the financial statements. As discussed in Note 10, the Company measured the fair value of its loan portfolio using an exit price notion as of September 30, 2018. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The guidance became effective January 1, 2018. The Company completed an assessment of revenue streams and a review of related contracts potentially affected by the ASU and, based on this assessment, the Company concluded that the ASU did not materially change the method in which the Company currently recognizes revenue for these revenue streams. As such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The amendment became effective on January 1, 2018 and did not have a material effect on the financial statements. In January 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the ASC. The ASU incorporates into the ASC recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In February 2017, the FASB amended the Other Income Topic of the ASC to clarify the scope of the guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. The amendment became effective on January 1, 2018 and did not have a material effect on the financial statements. In September 2017, the FASB updated the Revenue from Contracts with Customers and the Leases Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance about certain public business entities (PBEs) electing to use the non-PBE effective dates solely to adopt the FASB’s new standards on revenue and leases. The amendments were effective upon issuance. The Company is currently in the process of evaluating the impact of adoption of this guidance, however it does not expect these amendments to have a material effect on its financial statements. In November 2017, the FASB updated the Income Statement and Revenue from Contracts with Customers Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance related to revenue recognition. The amendments were effective upon issuance and did not have a material effect on the financial statements. In February 2018, the FASB Issued (ASU 2018-02), Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which requires Companies to reclassify the stranded effects in other comprehensive income to retained earnings as a result of the change in the tax rates under the Tax Cuts and Jobs Act. The Company has opted to early adopt this pronouncement by retrospective application to each period (or periods) in which the effect of the change in the tax rate under the Tax Cuts and Jobs Act is recognized. The impact of the reclassification from other comprehensive income to retained earnings was $98 thousand as of December 31, 2017. In February 2018, the FASB amended the Financial Instruments Topic of the ASC. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments will be effective for the third quarter of 2018 subsequent to adopting the amendments in ASU 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016-01. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Income Taxes Topic of the ASC. The amendments incorporate into the ASC recent SEC guidance related to the income tax accounting implications of the Tax Cuts and Jobs Act. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In May 2018, the FASB amended the Financial Services—Depository and Lending Topic of the ASC to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the financial statements. In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to make narrow amendments to clarify how to apply certain aspects of the new standard. The amendments are effective for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to give entities another option for transition and to provide lessors with a practical expedient. The amendments will be effective for the Company for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). In August 2018, the FASB amended the Fair Value Measurement Topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the Accounting Standards Codification to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2018 and December 31, 2017, and the results of operations for the three and nine-month periods ended September 30, 2018 and 2017. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Per Share | |
Schedule of anti-dilutive income per common share | Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the nine months 2018 2017 2018 2017 Net income $ 208 $ 484 $ 239 $ 3,176 Weighted average shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Dilutive shares for warrants — — — — Weighted average dilutive shares outstanding 23,922,086 23,355,580 23,922,086 23,355,611 Basic and diluted income per share $ 0.01 $ 0.02 $ 0.01 $ 0.14 |
CAPITAL (Tables)
CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Capital [Abstract] | |
Schedule of capital requirements | These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,080 14.57 % $ 37,928 8.0 % $ 47,411 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,800 13.46 % 28,446 6.0 % 37,928 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,800 9.39 % 27,170 4.0 % 33,962 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,800 13.46 % 21,335 4.5 % 30,817 6.5 % December 31, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 68,787 15.30 % $ 35,970 8.0 % $ 44,962 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,160 14.05 % 26,977 6.0 % 35,970 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,160 9.56 % 26,422 4.0 % 33,028 5.0 % Common Equity Tier 1 Capital New Peoples Bank, Inc. 63,160 14.05 % 20,233 4.5 % 29,225 6.5 % |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investment Securities Activity | |
Schedule of securities' amortized cost and estimated fair value | The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2018 U.S. Government Agencies $ 20,792 $ 3 $ (607) $ 20,188 Taxable municipals 4,438 - (227) 4,211 Corporate bonds 5,426 57 (137) 5,346 Mortgage backed securities 32,141 1 (1,496) 30,646 Total Securities AFS $ 62,797 $ 61 $ (2,467) $ 60,391 December 31, 2017 U.S. Government Agencies $ 23,986 $ 79 $ (221) $ 23,844 Taxable municipals 4,466 9 (78) 4,397 Corporate bonds 5,437 168 (26) 5,579 Mortgage backed securities 37,950 3 (685) 37,268 Total Securities AFS $ 71,839 $ 259 $ (1,010) $ 71,088 |
Schedule of fair value and gross unrealized losses on investment securities in a continuous unrealized loss position | The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2018 and December 31, 2017. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2018 U.S. Government Agencies $ 8,959 $ (162) $ 9,406 $ (445) $ 18,365 $ (607) Taxable municipals 2,706 (148) 1,505 (79) 4,211 (227) Corporate bonds 2,393 (137) - - 2,393 (137) Mtg. backed securities 4,553 (173) 26,060 (1,323) 30,613 (1,496) Total Securities AFS $ 18,611 $ (620) $ 36,971 $ (1,847) $ 55,582 $ (2,467) December 31, 2017 U.S. Government Agencies $ 7,840 $ (69) $ 7,189 $ (152) $ 15,029 $ (221) Taxable municipals 2,403 (44) 767 (34) 3,170 (78) Corporate bonds 1,507 (26) - - 1,507 (26) Mtg. backed securities 14,720 (145) 21,500 (540) 36,220 (685) Total Securities AFS $ 26,470 $ (284) $ 29,456 $ (726) $ 55,926 $ (1,010) |
Schedule of gross realized gains and losses pertaining to the sale of investment securities available for sale | Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the nine months (Dollars are in thousands) 2018 2017 2018 2017 Gross gains realized $ — $ 30 $ — $ 30 Gross losses realized — (30 ) — (30 ) Net realized gains $ — $ — $ — $ — |
Schedule of amortized cost and fair value of investment securities' contractual maturity | The amortized cost and fair value of investment securities at September 30, 2018, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 32 $ 33 0.00% Due after one year through five years 4,656 4,560 2.53% Due after five years through ten years 14,955 14,499 3.20% Due after ten years 43,154 41,299 2.40% Total $ 62,797 $ 60,391 2.60% |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of loans receivable outstanding | Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 139,384 $ 127,688 Construction and land development 29,403 29,763 Residential 1-4 family 249,138 249,159 Multifamily 13,461 15,481 Farmland 21,656 22,998 Total real estate loans 453,042 445,089 Commercial 49,945 41,345 Agriculture 4,895 3,494 Consumer installment loans 23,471 22,411 All other loans 616 669 Total loans $ 531,969 $ 513,008 |
Summary of loans receivable on nonaccrual status | Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2018 December 31, 2017 Real estate secured: Commercial $ 970 $ 2,035 Construction and land development 186 470 Residential 1-4 family 3,604 2,991 Multifamily 79 152 Farmland 1,665 800 Total real estate loans 6,504 6,448 Commercial 61 1,065 Agriculture — 3 Consumer installment loans 34 48 Total loans receivable on nonaccrual status $ 6,599 $ 7,564 |
Summary of impaired loans | The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2018 and December 31, 2017: As of September 30, 2018 Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,656 $ 2,762 $ — Construction and land development 140 409 — Residential 1-4 family 3,043 3,327 — Multifamily 79 120 — Farmland 1,770 1,954 — Commercial 14 14 — Agriculture — — — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 542 661 46 Construction and land development — — — Residential 1-4 family 431 453 114 Multifamily — — — Farmland 346 358 131 Commercial 109 109 15 Agriculture — — — Consumer installment loans 7 7 1 All other loans — — — Total $ 9,137 $ 10,174 $ 307 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 2,646 $ 2,719 $ — Construction and land development 424 680 — Residential 1-4 family 3,586 3,885 — Multifamily 281 321 — Farmland 1,264 1,664 — Commercial 628 628 — Agriculture 12 12 — Consumer installment loans 8 8 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,503 2,622 499 Construction and land development — — — Residential 1-4 family 421 437 91 Multifamily — — — Farmland 378 378 243 Commercial 489 572 413 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 12,640 $ 13,926 $ 1,246 |
Summary of average impaired loans | The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2018 September 30, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,724 $ 95 $ 2,976 $ 73 Construction and land development 220 1 2 — Residential 1-4 family 3,229 137 3,827 152 Multifamily 163 5 402 15 Farmland 1,515 51 2,538 52 Commercial 166 1 — — Agriculture 4 — 19 1 Consumer installment loans 2 — 13 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,409 16 1,208 80 Construction and land development — — 222 — Residential 1-4 family 391 13 634 14 Multifamily — — 660 48 Farmland 365 — 673 26 Commercial 293 2 282 24 Agriculture — — 2 — Consumer installment loans 6 1 2 — All other loans — — — — Total $ 10,487 $ 322 $ 13,460 $ 485 Three Months Ended September 30, 2018 September 30, 2017 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 2,710 41 $ 2,757 $ 9 Construction and land development 145 1 - - Residential 1-4 family 3,093 50 3,833 50 Multifamily 80 1 287 4 Farmland 1,816 9 1,193 26 Commercial 10 1 - - Agriculture 1 - 18 - Consumer installment loans - - 9 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 544 - 1,516 74 Construction and land development - - 209 - Residential 1-4 family 393 6 567 5 Multifamily - - 1,321 16 Farmland 357 - 756 10 Commercial 110 - 497 8 Agriculture - - - - Consumer installment loans 7 - - - All other loans - - - - Total $ 9,266 $ 109 $ 12,963 $ 202 |
Summary of age analysis of past due loans receivable | An age analysis of past due loans receivable is below. At September 30, 2018 and December 31, 2017, there were no loans over 90 days past due that were accruing. As of September 30, 2018 Loans Loans Loans Total Current Total Real estate secured: Commercial $ — $ 176 $ 578 $ 754 $ 138,630 $ 139,384 Construction and land 14 — 42 56 29,347 29,403 Residential 1-4 family 2,201 461 711 3,373 245,765 249,138 Multifamily — — — — 13,461 13,461 Farmland 40 809 281 1,130 20,526 21,656 Total real estate loans 2,255 1,446 1,612 5,313 447,729 453,402 Commercial 65 — 61 126 49,819 49,945 Agriculture — — 7 7 4,888 4,895 Consumer installment 20 2 8 30 23,441 23,471 All other loans — — — — 616 616 Total loans $ 2,340 $ 1,448 $ 1,688 $ 5,476 $ 526,493 $ 531,969 As of December 31, 2017 Loans Loans Loans Total Current Total Real estate secured: Commercial $ 190 $ 2,396 $ 453 $ 3,039 $ 124,649 $ 127,688 Construction and land 69 246 42 357 29,406 29,763 Residential 1-4 family 3,789 378 969 5,136 244,023 249,159 Multifamily 125 89 — 214 15,267 15,481 Farmland 309 — — 309 22,689 22,998 Total real estate loans 4,482 3,109 1,464 9,055 436,034 445,089 Commercial 103 25 603 731 40,614 41,345 Agriculture 38 — — 38 3,456 3,494 Consumer installment 102 15 28 145 22,266 22,411 All other loans — — — — 669 669 Total loans $ 4,725 $ 3,149 $ 2,095 $ 9,969 $ 503,039 $ 513,008 |
Summary of risk category of loans receivable | Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2018 Pass Special Substandard Total Real estate secured: Commercial $ 135,856 $ 1,918 $ 1,610 $ 139,384 Construction and land development 28,455 743 205 29,403 Residential 1-4 family 242,853 1,603 4,682 249,138 Multifamily 13,261 67 133 13,461 Farmland 17,626 2,300 1,730 21,656 Total real estate loans 438,051 6,631 8,360 453,042 Commercial 47,179 2,705 61 49,945 Agriculture 4,875 6 14 4,895 Consumer installment loans 23,403 — 68 23,471 All other loans 616 — — 616 Total $ 514,124 $ 9,342 $ 8,503 $ 531,969 As of December 31, 2017 Pass Special Mention Substandard Total Real estate secured: Commercial $ 120,104 $ 3,228 $ 4,356 $ 127,688 Construction and land development 28,462 816 485 29,763 Residential 1-4 family 243,048 1,810 4,301 249,159 Multifamily 13,695 1,445 341 15,481 Farmland 19,273 2,445 1,280 22,998 Total real estate loans 424,582 9,744 10,763 445,089 Commercial 37,973 2,307 1,065 41,345 Agriculture 3,468 23 3 3,494 Consumer installment loans 22,357 2 52 22,411 All other loans 669 — — 669 Total $ 489,049 $ 12,076 $ 11,883 $ 513,008 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of activity in the allowance for loan losses by portfolio segment | The following table details activity in the allowance for loan losses by portfolio segment for the period ended September 30, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of September 30, 2018 Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334 ) $ 73 $ (345 ) $ 1,383 Construction and land development 191 (96 ) 12 64 171 Residential 1-4 family 2,400 (270 ) 62 17 2,209 Multifamily 106 — — (15 ) 91 Farmland 415 (58 ) 66 (141 ) 282 Total real estate loans 5,101 (758 ) 213 (420 ) 4,136 Commercial 660 (617 ) 77 260 380 Agriculture 20 — 1 12 33 Consumer installment loans 156 (59 ) 38 16 151 All other loans 3 — — — 3 Unallocated 256 — — 321 577 Total $ 6,196 $ (1,434 ) $ 329 $ 189 $ 5,280 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2018 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 46 $ 1,337 $ 1,383 $ 3,198 $ 136,186 $ 139,384 Construction and land development - 171 171 140 29,263 29,403 Residential 1-4 family 114 2,095 2,209 3,474 245,664 249,138 Multifamily - 91 91 79 13,382 13,461 Farmland 131 151 282 2,116 19,540 21,656 Total real estate loans 291 3,845 4,136 9,007 444,035 453,042 Commercial 15 365 380 123 49,822 49,945 Agriculture - 33 33 - 4,895 4,895 Consumer installment loans 1 150 151 7 23,464 23,471 All other loans - 3 3 - 616 616 Unallocated - 577 577 - - - Total $ 307 $ 4,973 $ 5,280 $ 9,137 $ 522,832 $ 531,969 |
Schedule of allocation of portion of allowance | The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2017 Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (179 ) $ 193 $ 350 $ 1,989 Construction and land development 346 (1 ) — (154 ) 191 Residential 1-4 family 2,376 (714 ) 48 690 2,400 Multifamily 241 — — (135 ) 106 Farmland 428 (49 ) 361 (325 ) 415 Total real estate loans 5,016 (943 ) 602 426 5,101 Commercial 163 (11 ) 153 355 660 Agriculture 31 (4 ) 5 (12 ) 20 Consumer installment loans 123 (147 ) 19 161 156 All other loans — — — 3 3 Unallocated 739 — — (483 ) 256 Total $ 6,072 $ (1,105 ) $ 779 $ 450 $ 6,196 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2017 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 499 $ 1,490 $ 1,989 $ 5,149 $ 122,539 $ 127,688 Construction and land development - 191 191 424 29,339 29,763 Residential 1-4 family 91 2,309 2,400 4,007 245,152 249,159 Multifamily - 106 106 281 15,200 15,481 Farmland 243 172 415 1,642 21,356 22,998 Total real estate loans 833 4,268 5,101 11,503 433,586 445,089 Commercial 413 247 660 1,117 40,228 41,345 Agriculture - 20 20 12 3,482 3,494 Consumer installment loans - 156 156 8 22,403 22,411 All other loans - 3 3 - 669 669 Unallocated - 256 256 - - - Total $ 1,246 $ 4,950 $ 6,196 $ 12,640 $ 500,368 $ 513,008 |
TROUBLED DEBT RESTRUCTURING (Ta
TROUBLED DEBT RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Troubled Debt Restructurings | |
Schedule of loans modified as troubled debt restructurings | The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2018 and 2017. For the nine months ended For the nine months ended Troubled Debt Restructurings # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — — — — Commercial — — — 1 443 443 Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 443 $ 443 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of other real estate | The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2018 and the year ended December 31, 2017: (Dollars are in thousands) September 30, December 31, 2017 Balance, beginning of period $ 6,859 $ 10,655 Additions 1,636 3,087 Transfers from premises and equipment — 125 Proceeds from sales (1,046 ) (4,742 ) Proceeds from insurance claims — (12 ) Loans made to finance sales (467 ) (1,477 ) Adjustment of carrying value (421 ) (758 ) Deferred gain from sales — 45 Losses from sales (96 ) (64 ) Balance, end of period $ 6,465 $ 6,859 |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value | Assets measured at fair value on a recurring basis are as follows. There were no liabilities measured at fair value on a recurring basis. (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2018 Available-for-sale investments U.S. Government Agencies $ — $ 20,188 $ — Taxable municipals — 4,211 — Corporate bonds — 5,346 — Mortgage backed securities — 30,646 — Total $ — $ 60,391 $ — December 31, 2017 Available-for-sale investments U.S. Government Agencies $ — $ 23,844 $ — Taxable municipals — 4,397 — Corporate bonds — 5,579 — Mortgage backed securities — 37,268 — Total $ — $ 71,088 $ — Assets measured at fair value on a non-recurring basis are as follows (for purpose of this table the impaired loans are shown net of the related allowance). There were no liabilities measured at fair value on a non-recurring basis. (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2018 Other real estate owned — — $ 6,465 Impaired loans — — 8,830 Total — — $ 15,295 December 31, 2017 Other real estate owned — — $ 6,859 Impaired loans — — 11,394 Total — — $ 18,253 |
Schedule of significant unobservable inputs in level 3 assets | For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 8,830 $ Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 6,465 $ Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% |
Estimated fair value of financial instruments | The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2018 and December 31, 2017. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2018 Financial Instruments – Assets Net Loans $ 526,689 $ 514,232 $ — $ 505,402 $ 8,830 Financial Instruments – Liabilities Time Deposits 258,926 258,512 — 258,512 — FHLB Advances 7,000 7,296 — 7,296 — Trust Preferred Securities 16,496 16,496 — 16,496 — December 31, 2017 Financial Instruments – Assets Net Loans $ 506,812 $ 506,608 $ — $ 495,214 $ 11,394 Financial Instruments – Liabilities Time Deposits 272,330 272,352 — 272,352 — FHLB Advances 7,558 7,794 — 7,794 — Trust Preferred Securities 16,496 16,496 — 16,496 — |
NONINTEREST EXPENSES (Tables)
NONINTEREST EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Noninterest Expenses | |
NONINTEREST EXPENSES | Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2018 2017 2018 2017 Advertising $ 340 $ 316 $ 79 $ 110 ATM network expense 1,272 1,232 430 401 Legal and professional fees 1,057 926 284 301 Loan related expenses 480 500 150 167 Printing and supplies 248 88 46 34 FDIC insurance premiums 279 298 98 86 Other real estate owned, net 772 1,280 411 227 Other 1,840 1,545 501 502 Total noninterest expenses $ 6,288 $ 6,185 $ 1,999 $ 1,828 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Net income | $ 208 | $ 484 | $ 239 | $ 3,176 |
Weighted average shares outstanding | 23,922,086 | 23,355,580 | 23,922,086 | 23,355,611 |
Weighted average dilutive shares outstanding | 23,922,086 | 23,355,580 | 23,922,086 | 23,355,611 |
Basic and diluted income per share | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.14 |
CAPITAL (Details)
CAPITAL (Details) - Bank - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 69,080 | $ 68,787 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 14.57% | 15.30% |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 37,928 | $ 35,970 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 47,411 | $ 44,962 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital Risk Weighted Assets, Actual, Amount | $ 63,800 | $ 63,160 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 13.46% | 14.05% |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 28,446 | $ 26,977 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio | 6.00% | 6.00% |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 37,928 | $ 35,970 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 Capital to Average Assets, Actual, Amount | $ 63,800 | $ 63,160 |
Tier 1 Capital to Average Assets, Actual, Ratio | 9.39% | 9.56% |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 27,170 | $ 26,422 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 33,962 | $ 33,028 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount | $ 63,800 | $ 63,160 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 13.46% | 14.05% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 21,335 | $ 20,233 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 30,817 | $ 29,225 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | $ 62,797 | $ 71,839 |
Gross Unrealized Gains | 61 | 259 |
Gross Unrealized Losses | (2,467) | (1,010) |
Approximate Fair Value | 60,391 | 71,088 |
US Government Agencies [Member] | ||
Amortized Cost | 20,792 | 23,986 |
Gross Unrealized Gains | 3 | 79 |
Gross Unrealized Losses | (607) | (221) |
Approximate Fair Value | 20,188 | 23,844 |
Taxable Municipals [Member] | ||
Amortized Cost | 4,438 | 4,466 |
Gross Unrealized Gains | 9 | |
Gross Unrealized Losses | (227) | (78) |
Approximate Fair Value | 4,211 | 4,397 |
Corporate Bonds [Member] | ||
Amortized Cost | 5,426 | 5,437 |
Gross Unrealized Gains | 57 | 168 |
Gross Unrealized Losses | (137) | (26) |
Approximate Fair Value | 5,346 | 5,579 |
Mortgage Backed Securities [Member] | ||
Amortized Cost | 32,141 | 37,950 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | (1,496) | (685) |
Approximate Fair Value | $ 30,646 | $ 37,268 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Less than 12 Months | $ 18,611 | $ 26,470 |
Unrealized Losses, Less than 12 Months | (620) | (284) |
Fair Value, 12 Months or More | 36,971 | 29,456 |
Unrealized Losses, 12 Months or More | (1,847) | (726) |
Fair Value, Total | 55,582 | 55,926 |
Unrealized Losses, Total | (2,467) | (1,010) |
US Government Agencies [Member] | ||
Fair Value, Less than 12 Months | 8,959 | 7,840 |
Unrealized Losses, Less than 12 Months | (162) | (69) |
Fair Value, 12 Months or More | 9,406 | 7,189 |
Unrealized Losses, 12 Months or More | (445) | (152) |
Fair Value, Total | 18,365 | 15,029 |
Unrealized Losses, Total | (607) | (221) |
Taxable Municipals [Member] | ||
Fair Value, Less than 12 Months | 2,706 | 2,403 |
Unrealized Losses, Less than 12 Months | (148) | (44) |
Fair Value, 12 Months or More | 1,505 | 767 |
Unrealized Losses, 12 Months or More | (79) | (34) |
Fair Value, Total | 4,211 | 3,170 |
Unrealized Losses, Total | (227) | (78) |
Corporate Bonds [Member] | ||
Fair Value, Less than 12 Months | 2,393 | 1,507 |
Unrealized Losses, Less than 12 Months | (137) | (26) |
Fair Value, 12 Months or More | ||
Unrealized Losses, 12 Months or More | ||
Fair Value, Total | 2,393 | 1,507 |
Unrealized Losses, Total | (137) | (26) |
Mortgage Backed Securities [Member] | ||
Fair Value, Less than 12 Months | 4,553 | 14,720 |
Unrealized Losses, Less than 12 Months | (173) | (145) |
Fair Value, 12 Months or More | 26,060 | 21,500 |
Unrealized Losses, 12 Months or More | (1,323) | (540) |
Fair Value, Total | 30,613 | 36,220 |
Unrealized Losses, Total | $ (1,496) | $ (685) |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment Securities Activity | ||||
Gross gains realized | $ 30 | $ 30 | ||
Gross losses realized | (30) | (30) | ||
Net realized gains |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investment Securities Activity | ||
Due in one year or less, Amortized Cost | $ 32 | |
Due after one year through five years, Amortized Cost | 4,656 | |
Due after five years through ten years, Amortized Cost | 14,955 | |
Due after ten years, Amortized Cost | 43,154 | |
Amortized Cost, Total | 62,797 | $ 71,839 |
Due in one year or less, Fair Value | 33 | |
Due after one year through five years, Fair Value | 4,560 | |
Due after five years through ten years, Fair Value | 14,499 | |
Due after ten years, Fair Value | 41,299 | |
Approximate Fair Value | $ 60,391 | $ 71,088 |
Due in one year or less, Weighted Average Yield | 0.00% | |
Due after one year through five years, Weighted Average Yield | 2.53% | |
Due after five years through ten years, Weighted Average Yield | 3.20% | |
Due after ten years, Weighted Average Yield | 2.40% | |
Weighted Average Yield, Total | 2.60% |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total loans and leases | $ 531,969 | $ 513,008 |
Real Estate [Member] | ||
Total loans and leases | 453,042 | 445,089 |
Commercial [Member] | ||
Total loans and leases | 49,945 | 41,345 |
Commercial [Member] | Real Estate [Member] | ||
Total loans and leases | 139,384 | 127,688 |
Construction and Land Development | Real Estate [Member] | ||
Total loans and leases | 29,403 | 29,763 |
Residential 1-4 Family | Real Estate [Member] | ||
Total loans and leases | 249,138 | 249,159 |
Multifamily | Real Estate [Member] | ||
Total loans and leases | 13,461 | 15,481 |
Farmland | Real Estate [Member] | ||
Total loans and leases | 21,656 | 22,998 |
Agriculture | ||
Total loans and leases | 4,895 | 3,494 |
Consumer Installment Loans | ||
Total loans and leases | 23,471 | 22,411 |
Commercial Real Estate [Member] | ||
Total loans and leases | 49,945 | 41,345 |
Other Loans | ||
Total loans and leases | $ 616 | $ 669 |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total loans receivable on nonaccrual status | $ 6,599 | $ 7,564 |
Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 6,504 | 6,448 |
Farmland | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 1,665 | 800 |
Commercial [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 970 | 2,035 |
Construction and Land Development | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 186 | 470 |
Residential 1-4 Family | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 3,604 | 2,991 |
Multifamily | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 79 | 152 |
Consumer Installment Loans | ||
Total loans receivable on nonaccrual status | 34 | 48 |
Commercial Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 61 | 1,065 |
Agriculture | ||
Total loans receivable on nonaccrual status | $ 3 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Recorded Investment | $ 9,137 | $ 12,640 |
Unpaid Principal Balance | 10,174 | 13,926 |
Related Allowance | 307 | 1,246 |
Impaired Financing Receivables With No Related Allowance [Member] | Commercial Real Estate [Member] | ||
Recorded Investment | 14 | 628 |
Unpaid Principal Balance | 14 | 628 |
Impaired Financing Receivables With No Related Allowance [Member] | Commercial Real Estate [Member] | Real Estate [Member] | ||
Recorded Investment | 2,656 | 2,646 |
Unpaid Principal Balance | 2,762 | 2,719 |
Impaired Financing Receivables With No Related Allowance [Member] | Construction and Land Development | Real Estate [Member] | ||
Recorded Investment | 140 | 424 |
Unpaid Principal Balance | 409 | 680 |
Impaired Financing Receivables With No Related Allowance [Member] | Residential 1-4 Family | Real Estate [Member] | ||
Recorded Investment | 3,043 | 3,586 |
Unpaid Principal Balance | 3,327 | 3,885 |
Impaired Financing Receivables With No Related Allowance [Member] | Multifamily | Real Estate [Member] | ||
Recorded Investment | 79 | 281 |
Unpaid Principal Balance | 120 | 321 |
Impaired Financing Receivables With No Related Allowance [Member] | Farmland | Real Estate [Member] | ||
Recorded Investment | 1,770 | 1,264 |
Unpaid Principal Balance | 1,954 | 1,664 |
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans | ||
Recorded Investment | 8 | |
Unpaid Principal Balance | 8 | |
Impaired Financing Receivables With No Related Allowance [Member] | Agriculture | ||
Recorded Investment | 12 | |
Unpaid Principal Balance | 12 | |
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | Real Estate [Member] | ||
Recorded Investment | 542 | 2,503 |
Unpaid Principal Balance | 661 | 2,622 |
Related Allowance | 46 | 499 |
Impaired Financing Receivables With Related Allowance [Member] | Residential 1-4 Family | Real Estate [Member] | ||
Recorded Investment | 431 | 421 |
Unpaid Principal Balance | 453 | 437 |
Related Allowance | 114 | 91 |
Impaired Financing Receivables With Related Allowance [Member] | Farmland | Real Estate [Member] | ||
Recorded Investment | 346 | 378 |
Unpaid Principal Balance | 358 | 378 |
Related Allowance | 131 | 243 |
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans | ||
Recorded Investment | 7 | |
Unpaid Principal Balance | 7 | |
Related Allowance | 1 | |
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | ||
Recorded Investment | 109 | 489 |
Unpaid Principal Balance | 109 | 572 |
Related Allowance | 15 | $ 413 |
Impaired Financing Receivables With Related Allowance [Member] | Other Loans | ||
Related Allowance |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | $ 9,266 | $ 12,963 | $ 10,487 | $ 13,460 |
Interest Income Recognized | 109 | 202 | 322 | 485 |
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 10 | 166 | ||
Interest Income Recognized | 1 | |||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 110 | 497 | 293 | 282 |
Interest Income Recognized | 8 | 2 | 24 | |
Impaired Financing Receivables With Related Allowance [Member] | Agriculture | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 1 | 18 | 4 | 19 |
Interest Income Recognized | 1 | |||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 2 | |||
Interest Income Recognized | ||||
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 7 | 6 | 2 | |
Interest Income Recognized | 1 | |||
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 9 | 2 | 13 | |
Interest Income Recognized | ||||
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 209 | 222 | ||
Interest Income Recognized | ||||
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 145 | 220 | 2 | |
Interest Income Recognized | 1 | 1 | ||
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 393 | 567 | 391 | 634 |
Interest Income Recognized | 6 | 5 | 13 | 14 |
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 3,093 | 3,833 | 3,229 | 3,827 |
Interest Income Recognized | 50 | 50 | 137 | 152 |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 1,321 | 660 | ||
Interest Income Recognized | 16 | 48 | ||
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 80 | 287 | 163 | |
Interest Income Recognized | 1 | 4 | 5 | |
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 357 | 756 | 365 | 673 |
Interest Income Recognized | 10 | 26 | ||
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 1,816 | 1,193 | 1,515 | 2,538 |
Interest Income Recognized | 9 | 26 | 51 | 52 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Impaired loans with valuation allowance: | ||||
Average Recorded Investment | 544 | 1,516 | 1,409 | 1,208 |
Interest Income Recognized | 74 | 16 | 80 | |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Impaired loans without a valuation allowance: | ||||
Average Recorded Investment | 2,710 | 2,757 | 2,724 | 2,976 |
Interest Income Recognized | $ 41 | $ 9 | $ 95 | $ 73 |
LOANS_ (Details 4)
LOANS: (Details 4) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans 30-59 Days Past Due | $ 2,340 | $ 4,725 |
Loans 60-89 Days Past Due | 1,448 | 3,149 |
Loans 90 or More Days Past Due | 1,688 | 2,095 |
Total Past Due Loans | 5,476 | 9,969 |
Current Loans | 526,493 | 503,039 |
Total loans and leases | 531,969 | 513,008 |
Real Estate [Member] | ||
Loans 30-59 Days Past Due | 2,255 | 4,482 |
Loans 60-89 Days Past Due | 1,446 | 3,109 |
Loans 90 or More Days Past Due | 1,612 | 1,464 |
Total Past Due Loans | 5,313 | 9,055 |
Current Loans | 447,729 | 436,034 |
Total loans and leases | 453,042 | 445,089 |
Commercial [Member] | ||
Total loans and leases | 49,945 | 41,345 |
Commercial [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 190 | |
Loans 60-89 Days Past Due | 176 | 2,396 |
Loans 90 or More Days Past Due | 578 | 453 |
Total Past Due Loans | 754 | 3,039 |
Current Loans | 138,630 | 124,649 |
Total loans and leases | 139,384 | 127,688 |
Residential 1-4 Family | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 2,201 | 3,789 |
Loans 60-89 Days Past Due | 461 | 378 |
Loans 90 or More Days Past Due | 711 | 969 |
Total Past Due Loans | 3,373 | 5,136 |
Current Loans | 245,765 | 244,023 |
Total loans and leases | 249,138 | 249,159 |
Multifamily | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 125 | |
Loans 60-89 Days Past Due | 89 | |
Total Past Due Loans | 214 | |
Current Loans | 13,461 | 15,267 |
Total loans and leases | 13,461 | 15,481 |
Farmland | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 40 | 309 |
Loans 60-89 Days Past Due | 809 | |
Loans 90 or More Days Past Due | 281 | |
Total Past Due Loans | 1,130 | 309 |
Current Loans | 20,526 | 22,689 |
Total loans and leases | 21,656 | 22,998 |
Commercial Real Estate [Member] | ||
Loans 30-59 Days Past Due | 65 | 103 |
Loans 60-89 Days Past Due | 25 | |
Loans 90 or More Days Past Due | 61 | 603 |
Total Past Due Loans | 126 | 731 |
Current Loans | 49,819 | 40,614 |
Total loans and leases | 49,945 | 41,345 |
Agriculture | ||
Loans 30-59 Days Past Due | 38 | |
Loans 90 or More Days Past Due | 7 | |
Total Past Due Loans | 7 | 38 |
Current Loans | 4,888 | 3,456 |
Total loans and leases | 4,895 | 3,494 |
Consumer Installment Loans | ||
Loans 30-59 Days Past Due | 20 | 102 |
Loans 60-89 Days Past Due | 2 | 15 |
Loans 90 or More Days Past Due | 8 | 28 |
Total Past Due Loans | 30 | 145 |
Current Loans | 23,441 | 22,266 |
Total loans and leases | 23,471 | 22,411 |
Other Loans | ||
Current Loans | 616 | 669 |
Total loans and leases | 616 | 669 |
Construction and Land Development | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 14 | 69 |
Loans 60-89 Days Past Due | 246 | |
Loans 90 or More Days Past Due | 42 | 42 |
Total Past Due Loans | 56 | 357 |
Current Loans | 29,347 | 29,406 |
Total loans and leases | $ 29,403 | $ 29,763 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Total | $ 531,969 | $ 513,008 |
Pass | ||
Total | 514,124 | 489,049 |
Special Mention | ||
Total | 9,342 | 12,076 |
Substandard | ||
Total | 8,503 | 11,883 |
Real Estate [Member] | Pass | ||
Total | 438,051 | 424,582 |
Real Estate [Member] | Special Mention | ||
Total | 6,631 | 9,744 |
Real Estate [Member] | Substandard | ||
Total | 8,360 | 10,763 |
Real Estate [Member] | ||
Total | 453,042 | 445,089 |
Agriculture | ||
Total | 4,895 | 3,494 |
Agriculture | Pass | ||
Total | 4,875 | 3,468 |
Agriculture | Special Mention | ||
Total | 6 | 23 |
Agriculture | Substandard | ||
Total | 14 | 3 |
Commercial Portfolio Segment [Member] | Pass | ||
Total | 47,179 | 37,973 |
Commercial Portfolio Segment [Member] | Special Mention | ||
Total | 2,705 | 2,307 |
Commercial Portfolio Segment [Member] | Substandard | ||
Total | 61 | 1,065 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass | ||
Total | 135,856 | 120,104 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention | ||
Total | 1,918 | 3,228 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard | ||
Total | 1,610 | 4,356 |
Farmland | Real Estate [Member] | Pass | ||
Total | 17,626 | 19,273 |
Farmland | Real Estate [Member] | Special Mention | ||
Total | 2,300 | 2,445 |
Farmland | Real Estate [Member] | Substandard | ||
Total | 1,730 | 1,280 |
Farmland | Real Estate [Member] | ||
Total | 21,656 | 22,998 |
Multifamily | Real Estate [Member] | Pass | ||
Total | 13,261 | 13,695 |
Multifamily | Real Estate [Member] | Special Mention | ||
Total | 67 | 1,445 |
Multifamily | Real Estate [Member] | Substandard | ||
Total | 133 | 341 |
Multifamily | Real Estate [Member] | ||
Total | 13,461 | 15,481 |
Residential 1-4 Family | Real Estate [Member] | Pass | ||
Total | 242,853 | 243,048 |
Residential 1-4 Family | Real Estate [Member] | Special Mention | ||
Total | 1,603 | 1,810 |
Residential 1-4 Family | Real Estate [Member] | Substandard | ||
Total | 4,682 | 4,301 |
Residential 1-4 Family | Real Estate [Member] | ||
Total | 249,138 | 249,159 |
Construction and Land Development | Real Estate [Member] | Pass | ||
Total | 28,455 | 28,462 |
Construction and Land Development | Real Estate [Member] | Special Mention | ||
Total | 743 | 816 |
Construction and Land Development | Real Estate [Member] | Substandard | ||
Total | 205 | 485 |
Construction and Land Development | Real Estate [Member] | ||
Total | 29,403 | 29,763 |
Consumer Installment Loans | ||
Total | 23,471 | 22,411 |
Consumer Installment Loans | Pass | ||
Total | 23,403 | 22,357 |
Consumer Installment Loans | Special Mention | ||
Total | 2 | |
Consumer Installment Loans | Substandard | ||
Total | 68 | 52 |
Commercial [Member] | ||
Total | 49,945 | 41,345 |
Commercial [Member] | Real Estate [Member] | ||
Total | 139,384 | 127,688 |
Other Loans | ||
Total | 616 | 669 |
Other Loans | Pass | ||
Total | 669 | |
Commercial Real Estate [Member] | ||
Total | $ 49,945 | $ 41,345 |
ALLOWANCE FOR LOAN LOSSES_ (Det
ALLOWANCE FOR LOAN LOSSES: (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Balance, beginning of year | $ 6,196 | $ 6,072 | $ 6,072 |
Charge Offs | (1,434) | (1,105) | |
Recoveries | 329 | 779 | |
Provision for loan losses | 189 | 450 | |
Balance, End of period | 5,280 | 6,196 | |
Commercial Real Estate [Member] | |||
Balance, beginning of year | 660 | 163 | 163 |
Charge Offs | (617) | (11) | |
Recoveries | 77 | 153 | |
Provision for loan losses | 260 | 355 | |
Balance, End of period | 380 | 660 | |
Unallocated | |||
Balance, beginning of year | 256 | 739 | 739 |
Charge Offs | |||
Provision for loan losses | 321 | (483) | |
Balance, End of period | 577 | 256 | |
Agriculture | |||
Balance, beginning of year | 20 | 31 | 31 |
Charge Offs | (4) | ||
Recoveries | 1 | 5 | |
Provision for loan losses | 12 | (12) | |
Balance, End of period | 33 | 20 | |
Consumer Installment Loans | |||
Balance, beginning of year | 156 | 123 | 123 |
Charge Offs | (59) | (147) | |
Recoveries | 38 | 19 | |
Provision for loan losses | 16 | 161 | |
Balance, End of period | 151 | 156 | |
Other Loans | |||
Balance, beginning of year | 3 | ||
Charge Offs | |||
Provision for loan losses | 3 | ||
Balance, End of period | 3 | 3 | |
Real Estate [Member] | |||
Balance, beginning of year | 5,101 | 5,016 | 5,016 |
Charge Offs | (758) | (943) | |
Recoveries | 213 | 602 | |
Provision for loan losses | (420) | 426 | |
Balance, End of period | 4,136 | 5,101 | |
Real Estate [Member] | Commercial Real Estate [Member] | |||
Balance, beginning of year | 1,989 | 163 | 163 |
Charge Offs | (334) | (179) | |
Recoveries | 73 | 193 | |
Provision for loan losses | (345) | 350 | |
Balance, End of period | 1,383 | 1,989 | |
Real Estate [Member] | Construction and Land Development | |||
Balance, beginning of year | 191 | 346 | 346 |
Charge Offs | (96) | (1) | |
Recoveries | 12 | ||
Provision for loan losses | 64 | (154) | |
Balance, End of period | 171 | 191 | |
Real Estate [Member] | Residential 1-4 Family | |||
Balance, beginning of year | 2,400 | 2,376 | 2,376 |
Charge Offs | (270) | (714) | |
Recoveries | 62 | 48 | |
Provision for loan losses | 17 | 690 | |
Balance, End of period | 2,209 | 2,400 | |
Real Estate [Member] | Multifamily | |||
Balance, beginning of year | 106 | 241 | 241 |
Charge Offs | |||
Provision for loan losses | (15) | (135) | |
Balance, End of period | 91 | 106 | |
Real Estate [Member] | Farmland | |||
Balance, beginning of year | 415 | $ 428 | 428 |
Charge Offs | (58) | (49) | |
Recoveries | 66 | 361 | |
Provision for loan losses | (141) | (325) | |
Balance, End of period | $ 282 | $ 415 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 307 | $ 1,246 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,973 | 4,950 | |
Allowance for loan losses | 5,280 | 6,196 | $ 6,072 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 9,137 | 12,640 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 522,832 | 500,368 | |
Recorded Investment in Loans, Total | 531,969 | 513,008 | |
Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 291 | 833 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 3,845 | 4,268 | |
Allowance for loan losses | 4,136 | 5,101 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 9,007 | 11,503 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 444,035 | 433,586 | |
Recorded Investment in Loans, Total | 453,042 | 445,089 | |
Construction and Land Development | Real Estate [Member] | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 171 | 191 | |
Allowance for loan losses | 171 | 191 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 140 | 424 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 29,263 | 29,339 | |
Recorded Investment in Loans, Total | 29,403 | 29,763 | |
Residential 1-4 Family | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 114 | 91 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2,095 | 2,309 | |
Allowance for loan losses | 2,209 | 2,400 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 3,474 | 4,007 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 245,664 | 245,152 | |
Recorded Investment in Loans, Total | 249,138 | 249,159 | |
Multifamily | Real Estate [Member] | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 91 | 106 | |
Allowance for loan losses | 91 | 106 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 79 | 281 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 13,382 | 15,200 | |
Recorded Investment in Loans, Total | 13,461 | 15,481 | |
Commercial [Member] | |||
Recorded Investment in Loans, Total | 49,945 | 41,345 | |
Commercial [Member] | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 46 | 499 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,337 | 1,490 | |
Allowance for loan losses | 1,383 | 1,989 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 3,198 | 5,149 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 136,186 | 122,539 | |
Recorded Investment in Loans, Total | 139,384 | 127,688 | |
Commercial Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 15 | 413 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 365 | 247 | |
Allowance for loan losses | 380 | 660 | 163 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 123 | 1,117 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 49,822 | 40,228 | |
Recorded Investment in Loans, Total | 49,945 | 41,345 | |
Agriculture | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 33 | 20 | |
Allowance for loan losses | 33 | 20 | 31 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 12 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 4,895 | 3,482 | |
Recorded Investment in Loans, Total | 4,895 | 3,494 | |
Consumer Installment Loans | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 1 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 150 | 156 | |
Allowance for loan losses | 151 | 156 | 123 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 7 | 8 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 23,464 | 22,403 | |
Recorded Investment in Loans, Total | 23,471 | 22,411 | |
Other Loans | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 3 | 3 | |
Allowance for loan losses | 3 | 3 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 616 | 669 | |
Recorded Investment in Loans, Total | 616 | 669 | |
Unallocated | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 577 | 256 | |
Allowance for loan losses | 577 | 256 | $ 739 |
Farmland | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 131 | 243 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 151 | 172 | |
Allowance for loan losses | 282 | 415 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 2,116 | 1,642 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 19,540 | 21,356 | |
Recorded Investment in Loans, Total | $ 21,656 | $ 22,998 |
TROUBLED DEBT RESTRUCTURINGS (D
TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)loans | Sep. 30, 2017USD ($)loans | |
# of Loans | loans | 1 | |
Pre-Mod. Recorded Investment | $ 443 | $ 443 |
Post-Mod. Recorded Investment | $ 443 | 443 |
Commercial [Member] | ||
# of Loans | loans | 1 | |
Pre-Mod. Recorded Investment | $ 443 | 443 |
Post-Mod. Recorded Investment | $ 443 | $ 443 |
TROUBLED DEBT RESTRUCTURINGS _2
TROUBLED DEBT RESTRUCTURINGS (Details Narrative) | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Period loan is considered to be in default, days | 90 days |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Real Estate [Abstract] | ||
Balance, beginning of year | $ 6,859 | $ 10,655 |
Additions | 1,636 | 3,087 |
Transfers from premises and equipment | 125 | |
Proceeds from sales | (1,046) | (4,742) |
Proceeds from insurance claims | (12) | |
Loans made to finance sales | (467) | (1,477) |
Adjustment of carrying value | (421) | (758) |
Deferred gain from sales | 45 | |
Losses from sales | (96) | (64) |
Balance, end of year | $ 6,465 | $ 6,859 |
FAIR VALUES (Details)
FAIR VALUES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale investments | $ 71,088 | |
Nonrecurring Basis [Member] | ||
Total | $ 15,295 | 18,253 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale investments | 60,391 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Available for sale investments | 20,188 | 23,844 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals [Default Label] | ||
Available for sale investments | 4,211 | 4,397 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member] | ||
Available for sale investments | 5,346 | 5,579 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | ||
Available for sale investments | 30,646 | 37,268 |
Fair Value, Inputs, Level 3 [Member] | ||
Other real estate owned | 6,465 | 6,859 |
Impaired Loans | $ 8,830 | $ 11,394 |
FAIR VALUES (Details 1)
FAIR VALUES (Details 1) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Impaired Loans | |
Fair Value | $ 8,830 |
Valuation Technique | Appraised Value/Discounted Cash Flows/Market Value of Note</font></p>" id="sjs-B5"><p><font style="font: 10pt Times New Roman, Times, Serif">Appraised Value/Discounted Cash Flows/Market Value of Note</font></p> |
Significant Unobservable Inputs | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell</font></p>" id="sjs-B6"><p><font style="font: 10pt Times New Roman, Times, Serif">Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell</font></p> |
Impaired Loans | Minimum [Member] | |
General Range of Significant Unobservable Input Values | 0.00% |
Impaired Loans | Maximum [Member] | |
General Range of Significant Unobservable Input Values | 18.00% |
Other Real Estate Owned | |
Fair Value | $ 6,465 |
Valuation Technique | Appraised Value/Comparable Sales/Other Estimates from Independent Sources</font></p>" id="sjs-B13"><p><font style="font: 10pt Times New Roman, Times, Serif">Appraised Value/Comparable Sales/Other Estimates from Independent Sources</font></p> |
Significant Unobservable Inputs | Discounts to reflect current market conditions and estimated costs to sell</font></p>" id="sjs-B14"><p><font style="font: 10pt Times New Roman, Times, Serif">Discounts to reflect current market conditions and estimated costs to sell</font></p> |
Other Real Estate Owned | Minimum [Member] | |
General Range of Significant Unobservable Input Values | 0.00% |
Other Real Estate Owned | Maximum [Member] | |
General Range of Significant Unobservable Input Values | 0.18% |
FAIR VALUES (Details 2)
FAIR VALUES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Net Loans | $ 526,689 | $ 506,812 |
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | ||
Net Loans | 526,689 | 506,812 |
Time deposits | 258,926 | 272,330 |
FHLB advances | 7,000 | 7,558 |
Trust Preferred Securities | 16,496 | 16,496 |
Fair Value, Measurements, Recurring [Member] | ||
Net Loans | 514,232 | 506,608 |
Time deposits | 258,512 | 272,352 |
FHLB advances | 7,296 | 7,794 |
Trust Preferred Securities | 16,496 | 16,496 |
Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 505,402 | 495,214 |
Time deposits | 258,512 | 272,352 |
FHLB advances | 7,296 | 7,794 |
Trust Preferred Securities | 16,496 | 16,496 |
Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | $ 8,830 | $ 11,394 |
NONINTEREST EXPENSES (Details)
NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noninterest Expenses Details | ||||
Advertising | $ 340 | $ 316 | $ 79 | $ 110 |
ATM network expense | 1,272 | 1,232 | 430 | 401 |
Legal and professional fees | 1,057 | 926 | 284 | 301 |
Loan related expenses | 480 | 500 | 150 | 167 |
Printing and supplies | 248 | 88 | 46 | 34 |
FDIC insurance premiums | 279 | 298 | 98 | 86 |
Other real estate owned, net | 772 | 1,280 | 411 | 227 |
Other | 1,840 | 1,545 | 501 | 502 |
Total other operating expenses | $ 6,288 | $ 6,185 | $ 1,999 | $ 1,828 |