Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | NEW PEOPLES BANKSHARES INC | |
Entity Central Index Key | 0001163389 | |
Document Type | 10-Q | |
Trading Symbol | NWPP | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,922,086 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
INTEREST AND DIVIDEND INCOME | ||
Loans including fees | $ 6,940 | $ 6,458 |
Federal funds sold | 2 | |
Interest-earning deposits with banks | 243 | 65 |
Investments | 368 | 408 |
Dividends on equity securities (restricted) | 38 | 35 |
Total Interest and Dividend Income | 7,591 | 6,966 |
INTEREST EXPENSE | ||
Deposits | 1,260 | 696 |
Borrowed funds | 236 | 192 |
Total Interest Expense | 1,496 | 888 |
NET INTEREST INCOME | 6,095 | 6,078 |
PROVISION FOR LOAN LOSSES | 135 | 63 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,960 | 6,015 |
NONINTEREST INCOME | ||
Service charges and fees | 841 | 867 |
Card processing and interchange | 679 | 655 |
Insurance and investment fees | 161 | 74 |
Other noninterest income | 96 | 154 |
Total Noninterest Income | 1,777 | 1,750 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 3,646 | 3,644 |
Occupancy and equipment expense | 1,149 | 1,292 |
Data processing and telecommunications | 655 | 604 |
Other operating expenses | 1,778 | 2,099 |
Total Noninterest Expenses | 7,228 | 7,639 |
INCOME BEFORE INCOME TAXES | 509 | 126 |
INCOME TAX EXPENSE | 103 | 46 |
NET INCOME | $ 406 | $ 80 |
Income Per Share | ||
Basic (in dollars per share) | $ 0.02 | $ 0 |
Fully Diluted (in dollars per share) | $ 0.02 | $ 0 |
Weighted Average Shares of Common Stock | ||
Basic (in shares) | 23,922,086 | 23,922,086 |
Fully Diluted (in shares) | 23,922,086 | 23,922,086 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements Of Comprehensive Income Loss | ||
NET INCOME | $ 406 | $ 80 |
Investment Securities Activity | ||
Unrealized gains (losses) arising during the period | 467 | (1,041) |
Tax related to unrealized (gains) losses | (97) | 220 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 370 | (821) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 776 | $ (741) |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 11,829 | $ 12,245 |
Interest-bearing deposits with banks | 52,051 | 15,664 |
Federal funds sold | 240 | 264 |
Total Cash and Cash Equivalents | 64,120 | 28,173 |
Investment securities available-for-sale | 58,001 | 59,407 |
Loans receivable | 553,585 | 547,096 |
Allowance for loan losses | (5,467) | (5,336) |
Net Loans | 548,118 | 541,760 |
Bank premises and equipment, net | 24,059 | 24,195 |
Other real estate owned | 4,855 | 5,937 |
Accrued interest receivable | 2,107 | 1,934 |
Deferred taxes, net | 5,274 | 5,476 |
Right-of-use assets - operating leases | 4,863 | 4,942 |
Other assets | 10,471 | 10,318 |
Total Assets | 721,868 | 682,142 |
Deposits: | ||
Noninterest bearing | 177,544 | 164,298 |
Interest bearing | 460,865 | 431,694 |
Total Deposits | 638,409 | 595,992 |
Borrowed funds | 23,496 | 27,126 |
Lease liabilities - operating leases | 4,863 | 4,942 |
Accrued interest payable | 708 | 587 |
Accrued expenses and other liabilities | 2,366 | 2,245 |
Total Liabilities | 669,842 | 630,892 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 47,844 | 47,844 |
Additional paid-in-capital | 14,570 | 14,570 |
Retained deficit | (9,522) | (9,928) |
Accumulated other comprehensive loss | (866) | (1,236) |
Total Stockholders' Equity | 52,026 | 51,250 |
Total Liabilities and Stockholders' Equity | $ 721,868 | $ 682,142 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 80 | 80 | |||
Other comprehensive loss, net of tax | (821) | (821) | |||
Balance at end at Mar. 31, 2018 | $ 47,844 | 14,570 | (10,767) | (1,415) | 50,232 |
Balance at end (in shares) at Mar. 31, 2018 | 23,922 | ||||
Balance at beginning at Dec. 31, 2018 | $ 47,844 | 14,570 | (9,928) | (1,236) | $ 51,250 |
Balance at beginning (in shares) at Dec. 31, 2018 | 23,922 | 23,922,086 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 406 | $ 406 | |||
Other comprehensive loss, net of tax | 370 | 370 | |||
Balance at end at Mar. 31, 2019 | $ 47,844 | $ 14,570 | $ (9,522) | $ (866) | $ 52,026 |
Balance at end (in shares) at Mar. 31, 2019 | 23,922 | 23,922,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 406 | $ 80 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 609 | 645 |
Provision for loan losses | 135 | 63 |
Income on bank owned life insurance | (15) | (13) |
Gain on sale of premises and equipment | (5) | |
(Gain) loss on sale of other real estate owned | (8) | 96 |
Adjustment of carrying value of other real estate owned | 113 | 69 |
Amortization/accretion of bond premiums/discounts | 144 | 169 |
Deferred tax expense (benefit) | 105 | 46 |
Net change in: | ||
Accrued interest receivable | (173) | 3 |
Other assets | (124) | 495 |
Accrued interest payable | 121 | 29 |
Accrued expenses and other liabilities | 121 | (1,444) |
Net Cash Provided by Operating Activities | 1,434 | 233 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in loans | (6,391) | (4,668) |
Purchase of securities available-for-sale | (790) | |
Proceeds from sales and maturities of securities available-for-sale | 2,519 | 2,845 |
Net purchase of equity securities (restricted) | (14) | (29) |
Payments for the purchase of premises and equipment | (474) | (917) |
Proceeds from sale of premises and equipment | 1 | 5 |
Proceeds from insurance claims on other real estate owned | 19 | |
Proceeds from sales of other real estate owned | 856 | 739 |
Net Cash Used In Investing Activities | (4,274) | (2,025) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayments of long term debt | (300) | |
Net change in short term borrowings | (3,630) | |
Net change in non-interest bearing deposits | 13,246 | 8,610 |
Net change in interest bearing deposits | 29,171 | (1,207) |
Net Cash Provided by Financing Activities | 38,787 | 7,103 |
Net increase in cash and cash equivalents | 35,947 | 5,311 |
Cash and Cash Equivalents, Beginning of Period | 28,173 | 32,705 |
Cash and Cash Equivalents, End of Period | 64,120 | 38,016 |
Supplemental Disclosure of Cash Paid During the Period for: | ||
Interest | 1,375 | 859 |
Taxes | (28) | |
Supplemental Disclosure of Non Cash Transactions: | ||
Other real estate acquired in settlement of foreclosed loans | 1,023 | |
Loans made to finance sale of other real estate owned | 94 | 267 |
Change in unrealized gains (losses) on securities available-for-sale | $ 467 | $ (1,041) |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2019 | |
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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, and the results of operations for the three-month periods ended March 31, 2019 and 2018. 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, 2018. 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 | 3 Months Ended |
Mar. 31, 2019 | |
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. There were no anti-dilutive potential common shares for the three months ended March 31, 2019 and 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended March 31, 2019 2018 Net income $ 406 $ 80 Weighted average shares outstanding 23,922,086 23,922,086 Dilutive shares - - Weighted average dilutive shares outstanding 23,922,086 23,922,086 Basic and diluted income per share $ 0.02 $ 0.00 |
CAPITAL
CAPITAL | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, 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 March 31, 2019: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,611 14.43% $ 39,146 8.0% $ 48,932 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 29,359 6.0% 39,146 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 65,144 9.21% 28,280 4.0% 35,351 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 22,019 4.5% 31,806 6.5% December 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,002 14.39% $ 38,912 8.0% $ 48,640 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 29,184 6.0% 38,912 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,666 9.59% 26,960 4.0% 33,700 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 21,888 4.5% 31,616 6.5% As of March 31, 2019, 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 U.S. Government Agencies $ 18,591 $ 36 $ (319) $ 18,308 Taxable municipals 4,419 4 (76) 4,347 Corporate bonds 5,419 59 (45) 5,433 Mortgage backed securities 30,669 21 (777) 29,913 Total Securities AFS $ 59,098 $ 120 $ (1,217) $ 58,001 December 31, 2018 U.S. Government Agencies $ 19,755 $ 26 $ (392) $ 19,389 Taxable municipals 4,428 - (115) 4,313 Corporate bonds 5,422 47 (149) 5,320 Mortgage backed securities 31,366 11 (992) 30,385 Total Securities AFS $ 60,971 $ 84 $ (1,648) $ 59,407 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 March 31, 2019 and December 31, 2018. 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 March 31, 2019 U.S. Government Agencies $ 1,350 $ (11) $ 14,346 $ (308) $ 15,696 $ (319) Taxable municipals - - 3,329 (76) 3,329 (76) Corporate bonds - - 1,482 (45) 1,482 (45) Mtg. backed securities 7 - 28,179 (777) 28,186 (777) Total Securities AFS $ 1,357 $ (11) $ 47,336 $ (1,206) $ 48,693 $ (1,217) December 31, 2018 U.S. Government Agencies $ 5,013 $ (68) $ 11,585 $ (324) $ 16,599 $ (392) Taxable municipals - - 4,049 (115) 4,049 (115) Corporate bonds 1,713 (43) 1,423 (106) 3,136 (149) Mtg. backed securities 165 (2) 29,245 (990) 29,410 (992) Total Securities AFS $ 6,891 $ (113) $ 46,302 $ (1,535) $ 53,194 $ (1,648) At March 31, 2019, there were 153 securities in a loss position. 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 $7.7 million and $8.0 million at March 31, 2019 and December 31, 2018, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. There were no sales of investment securities during the three month periods ended March 31, 2019 and 2018. The amortized cost and fair value of investment securities at March 31, 2019, 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 $ 7 $ 7 0.79% Due after one year through five years 4,922 4,874 2.56% Due after five years through ten years 13,505 13,357 3.40% Due after ten years 40,664 39,763 2.53% Total $ 59,098 $ 58,001 2.73% 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 $2.6 million and $2.5 million as of March 31, 2019 and December 31, 2018, respectively. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
LOANS | NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 153,461 $ 140,862 Construction and land development 27,466 35,119 Residential 1-4 family 250,175 249,946 Multifamily 13,362 13,496 Farmland 22,394 22,114 Total real estate loans 466,858 461,537 Commercial 57,563 55,157 Agriculture 5,099 5,266 Consumer installment loans 23,485 24,538 All other loans 580 598 Total loans $ 553,585 $ 547,096 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 1,121 $ 784 Construction and land development 158 157 Residential 1-4 family 3,780 3,626 Multifamily 72 76 Farmland 2,101 1,637 Total real estate loans 7,232 6,300 Commercial 2,756 61 Agriculture - 1 Consumer installment loans 3 7 Total loans receivable on nonaccrual status $ 9,991 $ 6,369 Total interest income not recognized on nonaccrual loans for the three months ended March 31, 2019 and 2018 was $133 thousand and $180 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2019 and December 31, 2018: As of March 31, 2019 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,830 $ 1,884 $ - Construction and land development 103 372 - Residential 1-4 family 2,846 3,139 - Multifamily 72 114 - Farmland 1,671 1,858 - Commercial 2,672 2,687 - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 805 927 41 Construction and land development - - - Residential 1-4 family 345 362 89 Multifamily - - - Farmland 325 348 111 Commercial 70 77 13 Agriculture - - - Consumer installment loans 6 6 - All other loans - - - Total $ 10,745 $ 11,774 $ 254 As of December 31, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,887 $ 1,941 $ - Construction and land development 114 379 - Residential 1-4 family 2,880 3,168 - Multifamily 75 117 - Farmland 1,693 1,880 - Commercial - - - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 435 539 40 Construction and land development - - - Residential 1-4 family 431 454 132 Multifamily - - - Farmland 345 358 132 Commercial 109 109 13 Agriculture - - - Consumer installment loans 7 7 1 All other loans - - - Total $ 7,976 $ 8,952 $ 318 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Three Months Ended March 31, 2019 March 31, 2018 (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 $ 1,858 22 $ 2,737 $ 28 Construction and land development 109 - 295 - Residential 1-4 family 2,864 39 3,365 42 Multifamily 74 1 247 4 Farmland 1,682 7 1,215 12 Commercial 1,336 11 321 - Agriculture - - 8 - Consumer installment loans - - 4 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 620 - 2,275 16 Construction and land development - - - - Residential 1-4 family 388 3 390 4 Multifamily - - - - Farmland 335 - 373 - Commercial 90 - 475 - Agriculture - - - - Consumer installment loans 7 - 4 - All other loans - - - - Total $ 9,363 $ 83 $ 11,709 $ 106 An age analysis of past due loans receivable is below. At March 31, 2019 and December 31, 2018, there were no loans over 90 days past due that were accruing. As of March 31, 2019 (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 $ 1,231 $ - $ 92 $ 1,323 $ 152,138 $ 153,461 Construction and land development 27 - 43 70 27,396 27,466 Residential 1-4 family 2,909 481 467 3,857 246,318 250,175 Multifamily 271 - - 271 13,091 13,362 Farmland 106 - 1,526 1,632 20,762 22,394 Total real estate loans 4,544 481 2,218 7,513 459,705 466,858 Commercial 2,972 66 30 3,068 54,495 57,563 Agriculture 15 - - 15 5,084 5,099 Consumer installment Loans 81 2 - 83 23,402 23,485 All other loans - - - - 580 580 Total loans $ 7,612 $ 549 $ 2,158 $ 10,319 $ 543,266 $ 553,585 As of December 31, 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 $ 80 $ 31 $ 137 $ 248 $ 140,614 $ 140,862 Construction and land development 70 - 27 97 35,022 35,119 Residential 1-4 family 3,468 564 525 4,557 245,389 249,946 Multifamily - 273 - 273 13,223 13,496 Farmland 316 - 1090 1406 20,708 22,114 Total real estate loans 3,934 868 1,779 6,581 454,956 461,537 Commercial 68 - 61 129 55,028 55,157 Agriculture 22 - - 22 5,244 5,266 Consumer installment Loans 74 15 - 89 24,449 24,538 All other loans - - - - 598 598 Total loans $ 4,098 $ 883 $ 1,840 $ 6,821 $ 540,275 $ 547,096 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 Loans classified Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of March 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 150,594 $ 1,746 $ 1,121 $ 153,461 Construction and land development 26,991 316 159 27,466 Residential 1-4 family 244,666 1,202 4,307 250,175 Multifamily 13,290 - 72 13,362 Farmland 18,369 2,058 1,967 22,394 Total real estate loans 453,910 5,322 7,626 466,858 Commercial 51,819 2,988 2,756 57,563 Agriculture 5,094 5 - 5,099 Consumer installment loans 23,480 - 5 23,485 All other loans 580 - - 580 Total $ 534,883 $ 8,315 $ 10,387 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 137,146 $ 2,890 $ 826 $ 140,862 Construction and land development 34,231 718 170 35,119 Residential 1-4 family 243,950 1,523 4,473 249,946 Multifamily 13,357 63 76 13,496 Farmland 18,126 2,331 1,657 22,114 Total real estate loans 446,810 7,525 7,202 461,537 Commercial 52,156 2,940 61 55,157 Agriculture 5,255 10 1 5,266 Consumer installment loans 24,493 35 10 24,538 All other loans 598 - - 598 Total $ 529,312 $ 10,510 $ 7,274 $ 547,096 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2019 | |
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 quarter ended March 31, 2019. 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 March 31, 2019 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,386 $ - $ - $ (22) $ 1,364 Construction and land development 202 - - (44) 158 Residential 1-4 family 2,437 (45) 30 (131) 2,291 Multifamily 89 - - 3 92 Farmland 287 - 5 (15) 277 Total real estate loans 4,401 (45) 35 (209) 4,182 Commercial 448 (39) 44 90 543 Agriculture 37 - 1 (1) 37 Consumer installment loans 172 (28) 28 (7) 165 All other loans 3 - - (1) 2 Unallocated 275 - - 263 538 Total $ 5,336 $ (112) $ 108 $ 135 $ 5,467 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2019 (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 $ 41 $ 1,323 $ 1,364 $ 2,635 $ 150,826 $ 153,461 Construction and land development - 158 158 103 27,363 27,466 Residential 1-4 family 89 2,202 2,291 3,191 246,984 250,175 Multifamily - 92 92 72 13,290 13,362 Farmland 111 166 277 1,996 20,398 22,394 Total real estate loans 241 3,941 4,182 7,997 458,861 466,858 Commercial 13 530 543 2,742 54,821 57,563 Agriculture - 37 37 - 5,099 5,099 Consumer installment loans - 165 165 6 23,479 23,485 All other loans - 2 2 - 580 580 Unallocated - 538 538 - - - Total $ 254 $ 5,213 $ 5,467 $ 10,745 $ 542,840 $ 553,585 The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 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 December 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334) $ 73 $ (342) $ 1,389 Construction and land development 191 (96) 11 96 202 Residential 1-4 family 2,400 (290) 73 254 2,437 Multifamily 106 - - (17) 89 Farmland 415 (58) 72 (142) 287 Total real estate loans 5,101 (778) 229 (151 4,401 Commercial 660 (617) 84 321 448 Agriculture 20 - 1 16 37 Consumer installment loans 156 (75) 44 47 172 All other loans 3 - - - 3 Unallocated 256 - - 19 275 Total $ 6,196 $ (1,470) $ 358 $ 252 $ 5,336 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 40 $ 1,346 $ 1,386 $ 2,322 $ 138,540 $ 140,862 Construction and land development - 202 202 114 35,005 35,119 Residential 1-4 family 132 2,205 2,437 3,311 246,635 249,946 Multifamily - 89 89 75 13,421 13,496 Farmland 132 155 287 2,038 20,076 22,114 Total real estate loans 304 4,097 4,401 7,860 453,677 461,537 Commercial 13 435 448 109 55,048 55,157 Agriculture - 37 37 - 5,266 5,266 Consumer installment loans 1 171 172 7 24,531 24,538 All other loans - 3 3 - 598 598 Unallocated - 275 275 - - - Total $ 318 $ 5,018 $ 5,336 $ 7,976 $ 539,120 $ 547,096 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 | 3 Months Ended |
Mar. 31, 2019 | |
Troubled Debt Restructurings | |
TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At March 31, 2019 there were $5.3 million in loans that are classified as troubled debt restructurings compared to $5.4 million at December 31, 2018. The following table presents information related to loans modified as troubled debt restructurings during the three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019 For the three months ended March 31, 2018 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 Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - - - - Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - - $ - $ - During the three months ended March 31, 2019, the Company did not modify any loans that were considered to be troubled debt restructurings. During the three months ended March 31, 2018, the Company did not modify any loans that were considered to be troubled debt restructurings. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. No loans previously modified as troubled debt restructurings defaulted during the three months ended March 31, 2019. No loans previously modified as troubled debt restructurings defaulted during the three months ended March 31, 2018. 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 write down the carrying value of the loan. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and the year ended December 31, 2018: (Dollars are in thousands) March 31, 2019 December 31, 2018 Balance, beginning of period $ 5,937 $ 6,859 Additions - 1,719 Proceeds from sales (856) (1,405) Proceeds from insurance claims (19) - Loans made to finance sales (94) (569) Adjustment of carrying value (121) (542) Deferred gain from sales - 10 Losses (gains) from sales 8 (135) Balance, end of period $ 4,855 $ 5,937 |
FAIR VALUES
FAIR VALUES | 3 Months Ended |
Mar. 31, 2019 | |
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) March 31, 2019 Available-for-sale investments U.S. Government Agencies $ - $ 18,308 $ - Taxable municipals - 4,347 - Corporate bonds - 5,433 - Mortgage backed securities - 29,913 - Total $ - $ 58,001 $ - December 31, 2018 Available-for-sale investments U.S. Government Agencies $ - $ 19,389 $ - Taxable municipals - 4,313 - Corporate bonds - 5,320 - Mortgage backed securities - 30,385 - Total $ - $ 59,407 $ - Loans - The Company does not record loans at fair value on a recurring basis. Real estate serves as collateral on a substantial majority of the Company’s loans. When a loan is considered impaired a specific reserve may be established. Loans which are deemed to be impaired and require a reserve are primarily valued on a non-recurring basis at the fair values of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which management evaluates and determines whether or not the fair value of the collateral is further impaired below the appraised value and there is no observable market price, or whether or not an appraised value does not include estimated costs of disposition. The Company records impaired loans as nonrecurring Level 3 assets. 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) March 31, 2019 Other real estate owned $ - $ - $ 4,855 Impaired loans - - 10,491 Total $ - $ - $ 15,346 December 31, 2018 Other real estate owned $ - $ - $ 5,937 Impaired loans - - 7,658 Total $ - $ - $ 13,595 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of March 31, 2019, 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 March 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans 10,491 $ 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 $ 4,855 $ 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 carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows: 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) March 31, 2019 Financial Instruments – Assets Net Loans $ 548,118 $ 538,874 $ - $ 528,383 $ 10,491 Financial Instruments – Liabilities Time Deposits 264,889 264,764 - 264,764 - FHLB Advances 7,000 7,159 - 7,159 - Trust Preferred Securities 16,496 14,603 - 14,603 - December 31, 2018 Financial Instruments – Assets Net Loans $ 541,760 $ 534,425 $ - $ 526,767 $ 7,658 Financial Instruments – Liabilities Time Deposits 258,850 258,671 - 258,671 - FHLB Advances 7,000 7,215 - 7,215 - Trust Preferred Securities 16,496 14,425 - 14,425 - Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. 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 and are excluded from the table above. The methods utilized to estimate the fair value of financial instruments at December 31, 2017 did not necessarily represent an exit price. In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at December 31, 2018 represent an approximation of exit price; however, an actual exit price may differ. |
SALE AND LEASEBACK TRANSACTIONS
SALE AND LEASEBACK TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
SALE AND LEASEBACK TRANSACTIONS | NOTE 11 SALE AND LEASEBACK TRANSACTIONS: In anticipation of certain sale and leaseback transactions, the Company adopted ASU No. 2016-02 Leases (Topic 842) in 2017. 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 the fifteen year incremental borrowing rate as of May 31, 2017. The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At March 31, 2019, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2019 $ 331 2020 440 2021 416 2022 436 2023 450 Thereafter 3,965 Total lease payments 6,038 Less imputed interest 1,175 Total $ 4,863 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 12 REVENUE FROM CONTRACTS WITH CUSTOMERS All of our revenue from contracts with customers as defined in ASC 606 is recognized within Non-interest income. The following table presents Non-interest income by revenue stream for the three months ended March 31, 2019 and 2018. For the three months ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees $ 841 $ 867 Card Processing and interchange income 679 655 Insurance and investment fees 161 74 Other noninterest income 96 154 Total Noninterest Income $ 1,777 $ 1,750 |
NONINTEREST EXPENSES
NONINTEREST EXPENSES | 3 Months Ended |
Mar. 31, 2019 | |
Noninterest Expenses | |
NONINTEREST EXPENSES | NOTE 13 NONINTEREST EXPENSES: Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended March 31, (Dollars are in thousands) 2019 2018 Advertising $ 66 $ 147 ATM network expense 444 392 Legal and professional fees 282 367 Loan related expenses 121 200 Printing and supplies 39 136 FDIC insurance premiums 108 96 Other real estate owned, net 193 247 Other 525 514 Total noninterest expenses $ 1,778 $ 2,099 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14 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 | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 15 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 March 31, 2019. 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 As part of this evaluation, during 2018 the Company performed a preliminary test to measure the impact of a provider’s beta model against our legacy historic loss model Other providers are currently being vetted and it is planned that a new model will be tested in parallel to the existing model using data from the second and third quarters. 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 considered a PBE and has adopted these amendments as such. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s 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. These amendments did not have a material effect on the Company’s financial statements. As discussed in Note 17, 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. In October 2018, the FASB amended the Derivatives and Hedging Topic of the Accounting Standards Codification to expand the list of U.S. benchmark interest rates permitted in the application of hedge accounting. The amendments were effective for the Company for fiscal years beginning after December 15, 2018. Early adoption was permitted. These amendments did not have a material effect on the Company’s financial statements. In October 2018, the FASB amended the Consolidation topic of the Accounting Standards Codification for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years . In November 2018, the FASB amended the Collaborative Arrangements Topic of the Accounting Standards Codification to clarify the interaction between the guidance for certain collaborative arrangements and the new revenue recognition financial accounting and reporting standard. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In November 2018, the FASB issued guidance to amend the Financial Instruments—Credit Losses topic of the Accounting Standards Codification. The guidance aligns the implementation date of the topic for annual financial statements of nonpublic companies with the implementation date for their interim financial statements. The guidance also clarifies that receivables arising from operating leases are not within the scope of the topic, but rather, should be accounted for in accordance with the leases topic. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019 . In December 2018, the FASB issued guidance providing narrow-scope improvements for lessors, that provides relief in the accounting for sales, use and similar taxes, the accounting for other costs paid by a lessee that may benefit a lessor, and variable payments when contracts have lease and non-lease components. The amendments were effective for the Company for reporting periods beginning after December 15, 2018. Early adoption was permitted. These amendments did not have a material effect on the Company’s financial statements. In March 2019, as part of the FASB’s ongoing annual improvements project, it amended the Leases Topic of the Accounting Standards Codification to clarify the Codification more generally and/or to correct unintended application of guidance. The amendments relate to determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, presentation on the statement of cash flows – sales-type and direct financing leases, and transition disclosures related to the Accounting Changes and Error Corrections Topic. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In April 2019, as part of the FASB’s ongoing annual improvements project, it amended various Topics of the Accounting Standards Codification related to financial instruments to clarify the Codification more generally and/or to correct unintended application of guidance. The amendments relate to Recognition and Measurement of Financial Assets and Financial Liabilities, Measurement of Credit Losses on Financial Instruments, and Targeted Improvements to Accounting for Hedging Activities. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. 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) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, and the results of operations for the three-month periods ended March 31, 2019 and 2018. 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, 2018. 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) | 3 Months Ended |
Mar. 31, 2019 | |
Income Per Share | |
Schedule of anti-dilutive income per common share | There were no anti-dilutive potential common shares for the three months ended March 31, 2019 and 2018. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended March 31, 2019 2018 Net income $ 406 $ 80 Weighted average shares outstanding 23,922,086 23,922,086 Dilutive shares - - Weighted average dilutive shares outstanding 23,922,086 23,922,086 Basic and diluted income per share $ 0.02 $ 0.00 |
CAPITAL (Tables)
CAPITAL (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,611 14.43% $ 39,146 8.0% $ 48,932 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 29,359 6.0% 39,146 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 65,144 9.21% 28,280 4.0% 35,351 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,144 13.31% 22,019 4.5% 31,806 6.5% December 31, 2018: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 70,002 14.39% $ 38,912 8.0% $ 48,640 10.0% Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 29,184 6.0% 38,912 8.0% Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 64,666 9.59% 26,960 4.0% 33,700 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 64,666 13.29% 21,888 4.5% 31,616 6.5% |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 U.S. Government Agencies $ 18,591 $ 36 $ (319) $ 18,308 Taxable municipals 4,419 4 (76) 4,347 Corporate bonds 5,419 59 (45) 5,433 Mortgage backed securities 30,669 21 (777) 29,913 Total Securities AFS $ 59,098 $ 120 $ (1,217) $ 58,001 December 31, 2018 U.S. Government Agencies $ 19,755 $ 26 $ (392) $ 19,389 Taxable municipals 4,428 - (115) 4,313 Corporate bonds 5,422 47 (149) 5,320 Mortgage backed securities 31,366 11 (992) 30,385 Total Securities AFS $ 60,971 $ 84 $ (1,648) $ 59,407 |
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 March 31, 2019 and December 31, 2018. 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 March 31, 2019 U.S. Government Agencies $ 1,350 $ (11) $ 14,346 $ (308) $ 15,696 $ (319) Taxable municipals - - 3,329 (76) 3,329 (76) Corporate bonds - - 1,482 (45) 1,482 (45) Mtg. backed securities 7 - 28,179 (777) 28,186 (777) Total Securities AFS $ 1,357 $ (11) $ 47,336 $ (1,206) $ 48,693 $ (1,217) December 31, 2018 U.S. Government Agencies $ 5,013 $ (68) $ 11,585 $ (324) $ 16,599 $ (392) Taxable municipals - - 4,049 (115) 4,049 (115) Corporate bonds 1,713 (43) 1,423 (106) 3,136 (149) Mtg. backed securities 165 (2) 29,245 (990) 29,410 (992) Total Securities AFS $ 6,891 $ (113) $ 46,302 $ (1,535) $ 53,194 $ (1,648) |
Schedule of amortized cost and fair value of investment securities' contractual maturity | The amortized cost and fair value of investment securities at March 31, 2019, 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 $ 7 $ 7 0.79% Due after one year through five years 4,922 4,874 2.56% Due after five years through ten years 13,505 13,357 3.40% Due after ten years 40,664 39,763 2.53% Total $ 59,098 $ 58,001 2.73% |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of loans receivable outstanding | Loans receivable outstanding are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 153,461 $ 140,862 Construction and land development 27,466 35,119 Residential 1-4 family 250,175 249,946 Multifamily 13,362 13,496 Farmland 22,394 22,114 Total real estate loans 466,858 461,537 Commercial 57,563 55,157 Agriculture 5,099 5,266 Consumer installment loans 23,485 24,538 All other loans 580 598 Total loans $ 553,585 $ 547,096 |
Summary of loans receivable on nonaccrual status | Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) March 31, 2019 December 31, 2018 Real estate secured: Commercial $ 1,121 $ 784 Construction and land development 158 157 Residential 1-4 family 3,780 3,626 Multifamily 72 76 Farmland 2,101 1,637 Total real estate loans 7,232 6,300 Commercial 2,756 61 Agriculture - 1 Consumer installment loans 3 7 Total loans receivable on nonaccrual status $ 9,991 $ 6,369 |
Summary of impaired loans | The following table presents information concerning the Company’s investment in loans considered impaired as of March 31, 2019 and December 31, 2018: As of March 31, 2019 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,830 $ 1,884 $ - Construction and land development 103 372 - Residential 1-4 family 2,846 3,139 - Multifamily 72 114 - Farmland 1,671 1,858 - Commercial 2,672 2,687 - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 805 927 41 Construction and land development - - - Residential 1-4 family 345 362 89 Multifamily - - - Farmland 325 348 111 Commercial 70 77 13 Agriculture - - - Consumer installment loans 6 6 - All other loans - - - Total $ 10,745 $ 11,774 $ 254 As of December 31, 2018 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 1,887 $ 1,941 $ - Construction and land development 114 379 - Residential 1-4 family 2,880 3,168 - Multifamily 75 117 - Farmland 1,693 1,880 - Commercial - - - Agriculture - - - Consumer installment loans - - - All other loans - - - With an allowance recorded: Real estate secured: Commercial 435 539 40 Construction and land development - - - Residential 1-4 family 431 454 132 Multifamily - - - Farmland 345 358 132 Commercial 109 109 13 Agriculture - - - Consumer installment loans 7 7 1 All other loans - - - Total $ 7,976 $ 8,952 $ 318 |
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: Three Months Ended March 31, 2019 March 31, 2018 (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 $ 1,858 22 $ 2,737 $ 28 Construction and land development 109 - 295 - Residential 1-4 family 2,864 39 3,365 42 Multifamily 74 1 247 4 Farmland 1,682 7 1,215 12 Commercial 1,336 11 321 - Agriculture - - 8 - Consumer installment loans - - 4 - All other loans - - - - With an allowance recorded: Real estate secured: Commercial 620 - 2,275 16 Construction and land development - - - - Residential 1-4 family 388 3 390 4 Multifamily - - - - Farmland 335 - 373 - Commercial 90 - 475 - Agriculture - - - - Consumer installment loans 7 - 4 - All other loans - - - - Total $ 9,363 $ 83 $ 11,709 $ 106 |
Summary of age analysis of past due loans receivable | An age analysis of past due loans receivable is below. At March 31, 2019 and December 31, 2018, there were no loans over 90 days past due that were accruing. As of March 31, 2019 (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 $ 1,231 $ - $ 92 $ 1,323 $ 152,138 $ 153,461 Construction and land development 27 - 43 70 27,396 27,466 Residential 1-4 family 2,909 481 467 3,857 246,318 250,175 Multifamily 271 - - 271 13,091 13,362 Farmland 106 - 1,526 1,632 20,762 22,394 Total real estate loans 4,544 481 2,218 7,513 459,705 466,858 Commercial 2,972 66 30 3,068 54,495 57,563 Agriculture 15 - - 15 5,084 5,099 Consumer installment Loans 81 2 - 83 23,402 23,485 All other loans - - - - 580 580 Total loans $ 7,612 $ 549 $ 2,158 $ 10,319 $ 543,266 $ 553,585 As of December 31, 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 $ 80 $ 31 $ 137 $ 248 $ 140,614 $ 140,862 Construction and land development 70 - 27 97 35,022 35,119 Residential 1-4 family 3,468 564 525 4,557 245,389 249,946 Multifamily - 273 - 273 13,223 13,496 Farmland 316 - 1090 1406 20,708 22,114 Total real estate loans 3,934 868 1,779 6,581 454,956 461,537 Commercial 68 - 61 129 55,028 55,157 Agriculture 22 - - 22 5,244 5,266 Consumer installment Loans 74 15 - 89 24,449 24,538 All other loans - - - - 598 598 Total loans $ 4,098 $ 883 $ 1,840 $ 6,821 $ 540,275 $ 547,096 |
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 March 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 150,594 $ 1,746 $ 1,121 $ 153,461 Construction and land development 26,991 316 159 27,466 Residential 1-4 family 244,666 1,202 4,307 250,175 Multifamily 13,290 - 72 13,362 Farmland 18,369 2,058 1,967 22,394 Total real estate loans 453,910 5,322 7,626 466,858 Commercial 51,819 2,988 2,756 57,563 Agriculture 5,094 5 - 5,099 Consumer installment loans 23,480 - 5 23,485 All other loans 580 - - 580 Total $ 534,883 $ 8,315 $ 10,387 $ 553,585 As of December 31, 2018 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 137,146 $ 2,890 $ 826 $ 140,862 Construction and land development 34,231 718 170 35,119 Residential 1-4 family 243,950 1,523 4,473 249,946 Multifamily 13,357 63 76 13,496 Farmland 18,126 2,331 1,657 22,114 Total real estate loans 446,810 7,525 7,202 461,537 Commercial 52,156 2,940 61 55,157 Agriculture 5,255 10 1 5,266 Consumer installment loans 24,493 35 10 24,538 All other loans 598 - - 598 Total $ 529,312 $ 10,510 $ 7,274 $ 547,096 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 quarter ended March 31, 2019. 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 March 31, 2019 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,386 $ - $ - $ (22) $ 1,364 Construction and land development 202 - - (44) 158 Residential 1-4 family 2,437 (45) 30 (131) 2,291 Multifamily 89 - - 3 92 Farmland 287 - 5 (15) 277 Total real estate loans 4,401 (45) 35 (209) 4,182 Commercial 448 (39) 44 90 543 Agriculture 37 - 1 (1) 37 Consumer installment loans 172 (28) 28 (7) 165 All other loans 3 - - (1) 2 Unallocated 275 - - 263 538 Total $ 5,336 $ (112) $ 108 $ 135 $ 5,467 Allowance for Loan Losses Recorded Investment in Loans As of March 31, 2019 (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 $ 41 $ 1,323 $ 1,364 $ 2,635 $ 150,826 $ 153,461 Construction and land development - 158 158 103 27,363 27,466 Residential 1-4 family 89 2,202 2,291 3,191 246,984 250,175 Multifamily - 92 92 72 13,290 13,362 Farmland 111 166 277 1,996 20,398 22,394 Total real estate loans 241 3,941 4,182 7,997 458,861 466,858 Commercial 13 530 543 2,742 54,821 57,563 Agriculture - 37 37 - 5,099 5,099 Consumer installment loans - 165 165 6 23,479 23,485 All other loans - 2 2 - 580 580 Unallocated - 538 538 - - - Total $ 254 $ 5,213 $ 5,467 $ 10,745 $ 542,840 $ 553,585 |
Schedule of allocation of portion of allowance | The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 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 December 31, 2018 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,989 $ (334) $ 73 $ (342) $ 1,389 Construction and land development 191 (96) 11 96 202 Residential 1-4 family 2,400 (290) 73 254 2,437 Multifamily 106 - - (17) 89 Farmland 415 (58) 72 (142) 287 Total real estate loans 5,101 (778) 229 (151 4,401 Commercial 660 (617) 84 321 448 Agriculture 20 - 1 16 37 Consumer installment loans 156 (75) 44 47 172 All other loans 3 - - - 3 Unallocated 256 - - 19 275 Total $ 6,196 $ (1,470) $ 358 $ 252 $ 5,336 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 40 $ 1,346 $ 1,386 $ 2,322 $ 138,540 $ 140,862 Construction and land development - 202 202 114 35,005 35,119 Residential 1-4 family 132 2,205 2,437 3,311 246,635 249,946 Multifamily - 89 89 75 13,421 13,496 Farmland 132 155 287 2,038 20,076 22,114 Total real estate loans 304 4,097 4,401 7,860 453,677 461,537 Commercial 13 435 448 109 55,048 55,157 Agriculture - 37 37 - 5,266 5,266 Consumer installment loans 1 171 172 7 24,531 24,538 All other loans - 3 3 - 598 598 Unallocated - 275 275 - - - Total $ 318 $ 5,018 $ 5,336 $ 7,976 $ 539,120 $ 547,096 |
TROUBLED DEBT RESTRUCTURING (Ta
TROUBLED DEBT RESTRUCTURING (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and 2018. For the three months ended March 31, 2019 For the three months ended March 31, 2018 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 Development - - - - - - Residential 1-4 family - - - - - - Multifamily - - - - - - Farmland - - - - - - Total real estate loans - - - - - - Commercial - - - - - - Agriculture - - - - - - Consumer installment loans - - - - - - All other loans - - - - - - Total - $ - $ - - $ - $ - |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of other real estate | The following table summarizes the activity in other real estate owned for the three months ended March 31, 2019 and the year ended December 31, 2018: (Dollars are in thousands) March 31, 2019 December 31, 2018 Balance, beginning of period $ 5,937 $ 6,859 Additions - 1,719 Proceeds from sales (856) (1,405) Proceeds from insurance claims (19) - Loans made to finance sales (94) (569) Adjustment of carrying value (121) (542) Deferred gain from sales - 10 Losses (gains) from sales 8 (135) Balance, end of period $ 4,855 $ 5,937 |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) March 31, 2019 Available-for-sale investments U.S. Government Agencies $ - $ 18,308 $ - Taxable municipals - 4,347 - Corporate bonds - 5,433 - Mortgage backed securities - 29,913 - Total $ - $ 58,001 $ - December 31, 2018 Available-for-sale investments U.S. Government Agencies $ - $ 19,389 $ - Taxable municipals - 4,313 - Corporate bonds - 5,320 - Mortgage backed securities - 30,385 - Total $ - $ 59,407 $ - 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) March 31, 2019 Other real estate owned $ - $ - $ 4,855 Impaired loans - - 10,491 Total $ - $ - $ 15,346 December 31, 2018 Other real estate owned $ - $ - $ 5,937 Impaired loans - - 7,658 Total $ - $ - $ 13,595 |
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, 2019, 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 March 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans 10,491 $ 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 $ 4,855 $ 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 carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows: 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) March 31, 2019 Financial Instruments – Assets Net Loans $ 548,118 $ 538,874 $ - $ 528,383 $ 10,491 Financial Instruments – Liabilities Time Deposits 264,889 264,764 - 264,764 - FHLB Advances 7,000 7,159 - 7,159 - Trust Preferred Securities 16,496 14,603 - 14,603 - December 31, 2018 Financial Instruments – Assets Net Loans $ 541,760 $ 534,425 $ - $ 526,767 $ 7,658 Financial Instruments – Liabilities Time Deposits 258,850 258,671 - 258,671 - FHLB Advances 7,000 7,215 - 7,215 - Trust Preferred Securities 16,496 14,425 - 14,425 - |
SALE AND LEASEBACK TRANSACTIO_2
SALE AND LEASEBACK TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of future minimum rental commitments under the non-cancellable operating leases | The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At March 31, 2019, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2019 $ 331 2020 440 2021 416 2022 436 2023 450 Thereafter 3,965 Total lease payments 6,038 Less imputed interest 1,175 Total $ 4,863 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from contracts with customers | All of our revenue from contracts with customers as defined in ASC 606 is recognized within Non-interest income. The following table presents Non-interest income by revenue stream for the three months ended March 31, 2019 and 2018. For the three months ended March 31, (Dollars in thousands) 2019 2018 Service charges and fees $ 841 $ 867 Card Processing and interchange income 679 655 Insurance and investment fees 161 74 Other noninterest income 96 154 Total Noninterest Income $ 1,777 $ 1,750 |
NONINTEREST EXPENSES (Tables)
NONINTEREST EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noninterest Expenses | |
Schedule of operating expenses | Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended March 31, (Dollars are in thousands) 2019 2018 Advertising $ 66 $ 147 ATM network expense 444 392 Legal and professional fees 282 367 Loan related expenses 121 200 Printing and supplies 39 136 FDIC insurance premiums 108 96 Other real estate owned, net 193 247 Other 525 514 Total noninterest expenses $ 1,778 $ 2,099 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Per Share | ||
Net income | $ 406 | $ 80 |
Weighted average shares outstanding Dilutive shares | 23,922,086 | 23,922,086 |
Weighted average dilutive shares outstanding | 23,922,086 | 23,922,086 |
Basic and diluted income per share | $ 0.02 | $ 0 |
CAPITAL (Details)
CAPITAL (Details) - Bank - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 70,611 | $ 70,002 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 14.43% | 14.39% |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 39,146 | $ 38,912 |
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 | $ 48,932 | $ 48,640 |
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 | $ 65,144 | $ 64,666 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 13.31% | 13.29% |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 29,359 | $ 29,184 |
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 | $ 39,146 | $ 38,912 |
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 | $ 65,144 | $ 64,666 |
Tier 1 Capital to Average Assets, Actual, Ratio | 9.21% | 9.59% |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 28,280 | $ 26,960 |
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 | $ 35,351 | $ 33,700 |
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 | $ 65,144 | $ 64,666 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 13.31% | 13.29% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 22,019 | $ 21,888 |
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 | $ 31,806 | $ 31,616 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | $ 59,098 | $ 60,971 |
Gross Unrealized Gains | 120 | 84 |
Gross Unrealized Losses | (1,217) | (1,648) |
Approximate Fair Value | 58,001 | 59,407 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 18,591 | 19,755 |
Gross Unrealized Gains | 36 | 26 |
Gross Unrealized Losses | (319) | (392) |
Approximate Fair Value | 18,308 | 19,389 |
Taxable Municipals [Member] | ||
Amortized Cost | 4,419 | 4,428 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (76) | (115) |
Approximate Fair Value | 4,347 | 4,313 |
Corporate Bonds [Member] | ||
Amortized Cost | 5,419 | 5,422 |
Gross Unrealized Gains | 59 | 47 |
Gross Unrealized Losses | (45) | (149) |
Approximate Fair Value | 5,433 | 5,320 |
Mortgage Backed Securities [Member] | ||
Amortized Cost | 30,669 | 31,366 |
Gross Unrealized Gains | 21 | 11 |
Gross Unrealized Losses | (777) | (992) |
Approximate Fair Value | $ 29,913 | $ 30,385 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Less than 12 Months | $ 1,357 | $ 6,891 |
Unrealized Losses, Less than 12 Months | (11) | (113) |
Fair Value, 12 Months or More | 47,336 | 46,302 |
Unrealized Losses, 12 Months or More | (1,206) | (1,535) |
Fair Value, Total | 48,693 | 53,194 |
Unrealized Losses, Total | (1,217) | (1,648) |
U.S. Government Agencies [Member] | ||
Fair Value, Less than 12 Months | 1,350 | 5,013 |
Unrealized Losses, Less than 12 Months | (11) | (68) |
Fair Value, 12 Months or More | 14,346 | 11,585 |
Unrealized Losses, 12 Months or More | (308) | (324) |
Fair Value, Total | 15,696 | 16,599 |
Unrealized Losses, Total | (319) | (392) |
Taxable Municipals [Member] | ||
Fair Value, Less than 12 Months | ||
Unrealized Losses, Less than 12 Months | ||
Fair Value, 12 Months or More | 3,329 | 4,049 |
Unrealized Losses, 12 Months or More | (76) | (115) |
Fair Value, Total | 3,329 | 4,049 |
Unrealized Losses, Total | (76) | (115) |
Corporate Bonds [Member] | ||
Fair Value, Less than 12 Months | 1,713 | |
Unrealized Losses, Less than 12 Months | (43) | |
Fair Value, 12 Months or More | 1,482 | 1,423 |
Unrealized Losses, 12 Months or More | (45) | (106) |
Fair Value, Total | 1,482 | 3,136 |
Unrealized Losses, Total | (45) | (149) |
Mortgage Backed Securities [Member] | ||
Fair Value, Less than 12 Months | 7 | 165 |
Unrealized Losses, Less than 12 Months | (2) | |
Fair Value, 12 Months or More | 28,179 | 29,245 |
Unrealized Losses, 12 Months or More | (777) | (990) |
Fair Value, Total | 28,186 | 29,410 |
Unrealized Losses, Total | $ (777) | $ (992) |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investment Securities Activity | ||
Due in one year or less, Amortized Cost | $ 7 | |
Due after one year through five years, Amortized Cost | 4,922 | |
Due after five years through ten years, Amortized Cost | 13,505 | |
Due after ten years, Amortized Cost | 40,664 | |
Amortized Cost, Total | 59,098 | $ 60,971 |
Due in one year or less, Fair Value | 7 | |
Due after one year through five years, Fair Value | 4,874 | |
Due after five years through ten years, Fair Value | 13,357 | |
Due after ten years, Fair Value | 39,763 | |
Approximate Fair Value | $ 58,001 | $ 59,407 |
Due in one year or less, Weighted Average Yield | 0.79% | |
Due after one year through five years, Weighted Average Yield | 2.56% | |
Due after five years through ten years, Weighted Average Yield | 3.40% | |
Due after ten years, Weighted Average Yield | 2.53% | |
Weighted Average Yield, Total | 2.73% |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total loans and leases | $ 553,585 | $ 547,096 |
Real Estate [Member] | ||
Total loans and leases | 466,858 | 461,537 |
Unallocated | ||
Total loans and leases | ||
Other Loans [Member] | ||
Total loans and leases | 580 | 598 |
Commercial [Member] | ||
Total loans and leases | 55,157 | |
Commercial [Member] | Real Estate [Member] | ||
Total loans and leases | 153,461 | 140,862 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Total loans and leases | 27,466 | 35,119 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total loans and leases | 250,175 | 249,946 |
Multifamily [Member] | Real Estate [Member] | ||
Total loans and leases | 13,362 | 13,496 |
Farmland [Member] | Real Estate [Member] | ||
Total loans and leases | 22,394 | 22,114 |
Commercial Real Estate [Member] | ||
Total loans and leases | 57,563 | 55,157 |
Agriculture [Member] | ||
Total loans and leases | 5,099 | 5,266 |
Consumer Installment Loans [Member] | ||
Total loans and leases | $ 23,485 | $ 24,538 |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total loans receivable on nonaccrual status | $ 9,991 | $ 6,369 |
Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 7,232 | 6,300 |
Consumer Installment Loans [Member] | ||
Total loans receivable on nonaccrual status | 3 | 7 |
Commercial [Member] | ||
Total loans receivable on nonaccrual status | 2,756 | 61 |
Commercial [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 1,121 | 784 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 158 | 157 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 3,780 | 3,626 |
Multifamily [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 72 | 76 |
Farmland [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 2,101 | 1,637 |
Agriculture [Member] | ||
Total loans receivable on nonaccrual status | $ 1 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Average Recorded Investment | $ 9,363 | $ 11,709 | |
Interest Income Recognized | 83 | 106 | |
Recorded Investment | 10,745 | $ 7,976 | |
Unpaid Principal Balance | 11,774 | 8,952 | |
Related Allowance | 254 | 318 | |
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | 7 | 4 | |
Interest Income Recognized | |||
Recorded Investment | 6 | 7 | |
Unpaid Principal Balance | 6 | 7 | |
Related Allowance | 1 | ||
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 4 | ||
Interest Income Recognized | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | 90 | 475 | |
Interest Income Recognized | |||
Recorded Investment | 70 | 109 | |
Unpaid Principal Balance | 77 | 109 | |
Related Allowance | 13 | 13 | |
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 1,336 | 321 | |
Interest Income Recognized | 11 | ||
Recorded Investment | 2,672 | ||
Unpaid Principal Balance | 2,687 | ||
Related Allowance | |||
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 8 | ||
Interest Income Recognized | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | 620 | 2,275 | |
Interest Income Recognized | 16 | ||
Recorded Investment | 805 | 435 | |
Unpaid Principal Balance | 927 | 539 | |
Related Allowance | 41 | 40 | |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 1,858 | 2,737 | |
Interest Income Recognized | 22 | 28 | |
Recorded Investment | 1,830 | 1,887 | |
Unpaid Principal Balance | 1,884 | 1,941 | |
Related Allowance | |||
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 109 | 295 | |
Interest Income Recognized | |||
Recorded Investment | 103 | 114 | |
Unpaid Principal Balance | 372 | 379 | |
Related Allowance | |||
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | 388 | 390 | |
Interest Income Recognized | 3 | 4 | |
Recorded Investment | 345 | 431 | |
Unpaid Principal Balance | 362 | 454 | |
Related Allowance | 89 | 132 | |
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 2,864 | 3,365 | |
Interest Income Recognized | 39 | 42 | |
Recorded Investment | 2,846 | 2,880 | |
Unpaid Principal Balance | 3,139 | 3,168 | |
Related Allowance | |||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 74 | 247 | |
Interest Income Recognized | 1 | 4 | |
Recorded Investment | 72 | 75 | |
Unpaid Principal Balance | 114 | 117 | |
Related Allowance | |||
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | |||
Average Recorded Investment | 335 | 373 | |
Interest Income Recognized | |||
Recorded Investment | 325 | 345 | |
Unpaid Principal Balance | 348 | 358 | |
Related Allowance | 111 | 132 | |
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | |||
Average Recorded Investment | 1,682 | 1,215 | |
Interest Income Recognized | 7 | $ 12 | |
Recorded Investment | 1,671 | 1,693 | |
Unpaid Principal Balance | 1,858 | $ 1,880 | |
Related Allowance |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans 30-59 Days Past Due | $ 7,612 | $ 4,098 |
Loans 60-89 Days Past Due | 549 | 883 |
Loans 90 or More Days Past Due | 2,158 | 1,840 |
Total Past Due Loans | 10,319 | 6,821 |
Current Loans | 543,266 | 540,275 |
Total loans and leases | 553,585 | 547,096 |
Real Estate [Member] | ||
Loans 30-59 Days Past Due | 4,544 | 3,934 |
Loans 60-89 Days Past Due | 481 | 868 |
Loans 90 or More Days Past Due | 2,218 | 1,779 |
Total Past Due Loans | 7,513 | 6,581 |
Current Loans | 459,705 | 454,956 |
Total loans and leases | 466,858 | 461,537 |
Unallocated | ||
Total loans and leases | ||
Commercial [Member] | ||
Loans 30-59 Days Past Due | 2,972 | 68 |
Loans 60-89 Days Past Due | 66 | |
Loans 90 or More Days Past Due | 30 | 61 |
Total Past Due Loans | 3,068 | 129 |
Current Loans | 54,495 | 55,028 |
Total loans and leases | 55,157 | |
Commercial [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 1,231 | 80 |
Loans 60-89 Days Past Due | 31 | |
Loans 90 or More Days Past Due | 92 | 137 |
Total Past Due Loans | 1,323 | 248 |
Current Loans | 152,138 | 140,614 |
Total loans and leases | 153,461 | 140,862 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 27 | 70 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 43 | 27 |
Total Past Due Loans | 70 | 97 |
Current Loans | 27,396 | 35,022 |
Total loans and leases | 27,466 | 35,119 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 2,909 | 3,468 |
Loans 60-89 Days Past Due | 481 | 564 |
Loans 90 or More Days Past Due | 467 | 525 |
Total Past Due Loans | 3,857 | 4,557 |
Current Loans | 246,318 | 245,389 |
Total loans and leases | 250,175 | 249,946 |
Multifamily [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 271 | |
Loans 60-89 Days Past Due | 273 | |
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 271 | 273 |
Current Loans | 13,091 | 13,223 |
Total loans and leases | 13,362 | 13,496 |
Farmland [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 106 | 316 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 1,526 | 1,090 |
Total Past Due Loans | 1,632 | 1,406 |
Current Loans | 20,762 | 20,708 |
Total loans and leases | 22,394 | 22,114 |
Agriculture [Member] | ||
Loans 30-59 Days Past Due | 15 | 22 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 15 | 22 |
Current Loans | 5,084 | 5,244 |
Total loans and leases | 5,099 | 5,266 |
Consumer Installment Loans [Member] | ||
Loans 30-59 Days Past Due | 81 | 74 |
Loans 60-89 Days Past Due | 2 | 15 |
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 83 | 89 |
Current Loans | 23,402 | 24,449 |
Total loans and leases | 23,485 | 24,538 |
Other Loans [Member] | ||
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 | 580 | 598 |
Total loans and leases | 580 | 598 |
Commercial Real Estate [Member] | ||
Total loans and leases | $ 57,563 | $ 55,157 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total loans and leases | $ 553,585 | $ 547,096 |
Real Estate [Member] | ||
Total loans and leases | 466,858 | 461,537 |
Substandard [Member] | ||
Total loans and leases | 10,387 | 7,274 |
Special Mention [Member] | ||
Total loans and leases | 8,315 | 10,510 |
Pass [Member] | ||
Total loans and leases | 534,883 | 529,312 |
Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 7,626 | 7,202 |
Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 5,322 | 7,525 |
Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 453,910 | 446,810 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Total loans and leases | 2,756 | 61 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Total loans and leases | 2,988 | 2,940 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Total loans and leases | 51,819 | 52,156 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 1,121 | 826 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 1,746 | 2,890 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 150,594 | 137,146 |
Commercial [Member] | ||
Total loans and leases | 55,157 | |
Commercial [Member] | Real Estate [Member] | ||
Total loans and leases | 153,461 | 140,862 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Total loans and leases | 27,466 | 35,119 |
Construction and Land Development [Member] | Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 159 | 170 |
Construction and Land Development [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 316 | 718 |
Construction and Land Development [Member] | Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 26,991 | 34,231 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total loans and leases | 250,175 | 249,946 |
Residential 1-4 Family [Member] | Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 4,307 | 4,473 |
Residential 1-4 Family [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 1,202 | 1,523 |
Residential 1-4 Family [Member] | Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 244,666 | 243,950 |
Multifamily [Member] | Real Estate [Member] | ||
Total loans and leases | 13,362 | 13,496 |
Multifamily [Member] | Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 72 | 76 |
Multifamily [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 63 | |
Multifamily [Member] | Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 13,290 | 13,357 |
Farmland [Member] | Real Estate [Member] | ||
Total loans and leases | 22,394 | 22,114 |
Farmland [Member] | Real Estate [Member] | Substandard [Member] | ||
Total loans and leases | 1,967 | 1,657 |
Farmland [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total loans and leases | 2,058 | 2,331 |
Farmland [Member] | Real Estate [Member] | Pass [Member] | ||
Total loans and leases | 18,369 | 18,126 |
Commercial Real Estate [Member] | ||
Total loans and leases | 57,563 | 55,157 |
Agriculture [Member] | ||
Total loans and leases | 5,099 | 5,266 |
Agriculture [Member] | Substandard [Member] | ||
Total loans and leases | 1 | |
Agriculture [Member] | Special Mention [Member] | ||
Total loans and leases | 5 | 10 |
Agriculture [Member] | Pass [Member] | ||
Total loans and leases | 5,094 | 5,255 |
Consumer Installment Loans [Member] | ||
Total loans and leases | 23,485 | 24,538 |
Consumer Installment Loans [Member] | Substandard [Member] | ||
Total loans and leases | 5 | 10 |
Consumer Installment Loans [Member] | Special Mention [Member] | ||
Total loans and leases | 35 | |
Consumer Installment Loans [Member] | Pass [Member] | ||
Total loans and leases | 23,480 | 24,493 |
Other Loans [Member] | ||
Total loans and leases | 580 | 598 |
Other Loans [Member] | Substandard [Member] | ||
Total loans and leases | ||
Other Loans [Member] | Special Mention [Member] | ||
Total loans and leases | ||
Other Loans [Member] | Pass [Member] | ||
Total loans and leases | 580 | 598 |
Unallocated | ||
Total loans and leases |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Balance, beginning of year | $ 5,336 | ||
Charge Offs | (112) | $ (1,470) | |
Recoveries | 108 | 358 | |
Provision for loan losses | 135 | $ 63 | 252 |
Balance, End of period | 5,467 | 5,336 | |
Commercial Real Estate [Member] | |||
Balance, beginning of year | 448 | ||
Charge Offs | (39) | (617) | |
Recoveries | 44 | 84 | |
Provision for loan losses | 90 | 321 | |
Balance, End of period | 543 | 448 | |
Agriculture [Member] | |||
Balance, beginning of year | 37 | ||
Charge Offs | |||
Recoveries | 1 | 1 | |
Provision for loan losses | (1) | 16 | |
Balance, End of period | 37 | 37 | |
Consumer Installment Loans [Member] | |||
Balance, beginning of year | 172 | ||
Charge Offs | (28) | (75) | |
Recoveries | 28 | 44 | |
Provision for loan losses | (7) | 47 | |
Balance, End of period | 165 | 172 | |
Other Loans [Member] | |||
Balance, beginning of year | 3 | ||
Charge Offs | |||
Recoveries | |||
Provision for loan losses | (1) | ||
Balance, End of period | 2 | 3 | |
Unallocated | |||
Balance, beginning of year | 275 | ||
Charge Offs | |||
Recoveries | |||
Provision for loan losses | 263 | 19 | |
Balance, End of period | 538 | 275 | |
Real Estate [Member] | |||
Balance, beginning of year | 4,401 | 5,101 | 5,101 |
Charge Offs | (45) | (778) | |
Recoveries | 35 | 229 | |
Provision for loan losses | (209) | (151) | |
Balance, End of period | 4,182 | 4,401 | |
Real Estate [Member] | Commercial Real Estate [Member] | |||
Balance, beginning of year | 1,386 | 1,989 | 1,989 |
Charge Offs | (334) | ||
Recoveries | 73 | ||
Provision for loan losses | (22) | (342) | |
Balance, End of period | 1,364 | 1,386 | |
Real Estate [Member] | Construction and Land Development [Member] | |||
Balance, beginning of year | 202 | 191 | 191 |
Charge Offs | (96) | ||
Recoveries | 11 | ||
Provision for loan losses | (44) | 96 | |
Balance, End of period | 158 | 202 | |
Real Estate [Member] | Residential 1-4 Family [Member] | |||
Balance, beginning of year | 2,437 | 2,400 | 2,400 |
Charge Offs | (45) | (290) | |
Recoveries | 30 | 73 | |
Provision for loan losses | (131) | 254 | |
Balance, End of period | 2,291 | 2,437 | |
Real Estate [Member] | Multifamily [Member] | |||
Balance, beginning of year | 89 | 106 | 106 |
Charge Offs | |||
Recoveries | |||
Provision for loan losses | 3 | (17) | |
Balance, End of period | 92 | 89 | |
Real Estate [Member] | Farmland [Member] | |||
Balance, beginning of year | 287 | $ 415 | 415 |
Charge Offs | (58) | ||
Recoveries | 5 | 72 | |
Provision for loan losses | (15) | (142) | |
Balance, End of period | $ 277 | $ 287 |
ALLOWANCE FOR LOAN LOSSES (De_2
ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 254 | $ 318 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 5,213 | 5,018 |
Allowance for Loan Losses, Total | 5,467 | 5,336 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 10,745 | 7,976 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 542,840 | 539,120 |
Recorded Investment in Loans, Total | 553,585 | 547,096 |
Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 241 | 304 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 3,941 | 4,097 |
Allowance for Loan Losses, Total | 4,182 | 4,401 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 7,997 | 7,860 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 458,861 | 453,677 |
Recorded Investment in Loans, Total | 466,858 | 461,537 |
Commercial [Member] | ||
Recorded Investment in Loans, Total | 55,157 | |
Commercial [Member] | Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 41 | 40 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,323 | 1,346 |
Allowance for Loan Losses, Total | 1,364 | 1,386 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 2,635 | 2,322 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 150,826 | 138,540 |
Recorded Investment in Loans, Total | 153,461 | 140,862 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 158 | 202 |
Allowance for Loan Losses, Total | 158 | 202 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 103 | 114 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 27,363 | 35,005 |
Recorded Investment in Loans, Total | 27,466 | 35,119 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 89 | 132 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2,202 | 2,205 |
Allowance for Loan Losses, Total | 2,291 | 2,437 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 3,191 | 3,311 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 246,984 | 246,635 |
Recorded Investment in Loans, Total | 250,175 | 249,946 |
Multifamily [Member] | Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 92 | 89 |
Allowance for Loan Losses, Total | 92 | 89 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 72 | 75 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 13,290 | 13,421 |
Recorded Investment in Loans, Total | 13,362 | 13,496 |
Farmland [Member] | Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 111 | 132 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 166 | 155 |
Allowance for Loan Losses, Total | 277 | 287 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 1,996 | 2,038 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 20,398 | 20,076 |
Recorded Investment in Loans, Total | 22,394 | 22,114 |
Commercial Real Estate [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 13 | 13 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 530 | 435 |
Allowance for Loan Losses, Total | 543 | 448 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 2,742 | 109 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 54,821 | 55,048 |
Recorded Investment in Loans, Total | 57,563 | 55,157 |
Agriculture [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 37 | 37 |
Allowance for Loan Losses, Total | 37 | 37 |
Recorded Investment in Loans, Individually Evaluated for Impairment | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 5,099 | 5,266 |
Recorded Investment in Loans, Total | 5,099 | 5,266 |
Consumer Installment Loans [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | 1 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 165 | 171 |
Allowance for Loan Losses, Total | 165 | 172 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 6 | 7 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 23,479 | 24,531 |
Recorded Investment in Loans, Total | 23,485 | 24,538 |
Other Loans [Member] | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2 | 3 |
Allowance for Loan Losses, Total | 2 | 3 |
Recorded Investment in Loans, Individually Evaluated for Impairment | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 580 | 598 |
Recorded Investment in Loans, Total | 580 | 598 |
Unallocated | ||
Allowance for Loan Losses, Individually Evaluated for Impairment | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 538 | 275 |
Allowance for Loan Losses, Total | 538 | 275 |
Recorded Investment in Loans, Individually Evaluated for Impairment | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | ||
Recorded Investment in Loans, Total |
TROUBLED DEBT RESTRUCTURINGS (D
TROUBLED DEBT RESTRUCTURINGS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Real Estate [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Farmland [Member] | Real Estate [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Construction and Land Development [Member] | Real Estate [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Commercial Real Estate [Member] | Real Estate [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Commercial [Member] | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment |
TROUBLED DEBT RESTRUCTURINGS _2
TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Notes to Financial Statements | ||
Total TDRs | $ 5,300 | $ 5,400 |
Period loan is considered to be in default, days | 90 days |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Real Estate [Abstract] | ||
Balance, beginning of period | $ 5,937 | $ 6,859 |
Additions | 1,719 | |
Proceeds from sales | (856) | (1,405) |
Proceeds from insurance claims | (19) | |
Loans made to finance sales | (94) | (569) |
Adjustment of carrying value | (121) | (542) |
Deferred gain from sales | 10 | |
Losses (gains) from sales | 8 | (135) |
Balance, end of period | $ 4,855 | $ 5,937 |
FAIR VALUES (Details)
FAIR VALUES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired Loans | $ 58,001 | $ 59,407 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | ||
Available for sale investments | 19,389 | 19,389 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Taxable Municipals | ||
Available for sale investments | 4,313 | 4,313 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds | ||
Available for sale investments | 5,320 | 5,320 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities [Member] | ||
Available for sale investments | 30,385 | 30,385 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Agriculture [Member] | ||
Impaired Loans | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate [Member] | ||
Impaired Loans | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Real Estate [Member] | Real Estate [Member] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Farmland [Member] | Real Estate [Member] | ||
Impaired Loans | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Multifamily [Member] | Real Estate [Member] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential 1-4 Family [Member] | Real Estate [Member] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction and Land Development [Member] | Real Estate [Member] | ||
Impaired Loans | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer Installment Loans [Member] | ||
Impaired Loans |
FAIR VALUES (Details 1)
FAIR VALUES (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Impaired Loans | |
Fair Value | $ 10,491 |
Valuation Technique | Appraised Value/Discounted Cash Flows/Market Value of Note |
Significant Unobservable Inputs | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |
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 | $ 4,855 |
Valuation Technique | Appraised Value/Comparable Sales/Other Estimates from Independent Sources |
Significant Unobservable Inputs | Discounts to reflect current market conditions and estimated costs to sell |
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 | 18.00% |
FAIR VALUES (Details 2)
FAIR VALUES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Net Loans | $ 548,118 | $ 541,760 |
Reported Value Measurement [Member] | ||
Net Loans | 548,118 | 541,760 |
Time deposits | 264,889 | 258,850 |
FHLB advances | 7,000 | 7,000 |
Estimate of Fair Value Measurement [Member] | ||
Net Loans | 538,874 | 534,425 |
Time deposits | 264,764 | 258,671 |
FHLB advances | 7,159 | 7,215 |
Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 528,383 | 526,767 |
Time deposits | 264,764 | 258,671 |
FHLB advances | 7,159 | 7,215 |
Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | $ 10,491 | $ 7,658 |
SALE AND LEASEBACK TRANSACTIO_3
SALE AND LEASEBACK TRANSACTIONS (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leasing Activities Details Abstract | |
2019 | $ 331 |
2020 | 440 |
2021 | 416 |
2022 | 436 |
2023 | 450 |
Thereafter | 3,965 |
Total lease payments | 6,038 |
Less imputed interest | 1,175 |
Total | $ 4,863 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Service charges and fees | $ 841 | $ 867 |
Card Processing and interchange income | 679 | 655 |
Insurance and investment fees | 161 | 74 |
Other noninterest income | 96 | 154 |
Total Noninterest Income | $ 1,777 | $ 1,750 |
NONINTEREST EXPENSES (Details)
NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Noninterest Expenses Details | ||
Advertising | $ 66 | $ 147 |
ATM network expense | 444 | 392 |
Legal and professional fees | 282 | 367 |
Loan related expenses | 121 | 200 |
Printing and supplies | 39 | 136 |
FDIC insurance premiums | 108 | 96 |
Other real estate owned, net | 193 | 247 |
Other | 525 | 514 |
Total noninterest expenses | $ 1,778 | $ 2,099 |