Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 20, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | NEW PEOPLES BANKSHARES INC | |
Entity Central Index Key | 0001163389 | |
Document Type | 10-Q | |
Entity File Number | 000-33411 | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | VA | |
Entity Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,922,086 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans including fees | $ 7,271 | $ 7,290 | $ 21,483 | $ 21,361 |
Federal funds sold | 1 | 1 | 5 | |
Interest-earning deposits with banks | 16 | 170 | 191 | 643 |
Investments | 245 | 334 | 814 | 1,066 |
Dividends on equity securities (restricted) | 34 | 38 | 108 | 118 |
Total Interest and Dividend Income | 7,566 | 7,833 | 22,597 | 23,193 |
INTEREST EXPENSE | ||||
Deposits | 1,024 | 1,275 | 3,417 | 3,795 |
Borrowed funds | 128 | 211 | 484 | 675 |
Total Interest Expense | 1,152 | 1,486 | 3,901 | 4,470 |
NET INTEREST INCOME | 6,414 | 6,347 | 18,696 | 18,723 |
PROVISION FOR LOAN LOSSES | 450 | 1,020 | 2,000 | 1,290 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,964 | 5,327 | 16,696 | 17,433 |
NONINTEREST INCOME | ||||
Service charges and fees | 859 | 924 | 2,238 | 2,597 |
Card processing and interchange | 892 | 800 | 2,480 | 2,276 |
Insurance and investment fees | 206 | 158 | 447 | 481 |
Net gain on sales of available-for-sale securities | 4 | |||
Other noninterest income | 159 | 973 | 744 | 1,247 |
Total Noninterest Income | 2,116 | 2,855 | 5,913 | 6,601 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 2,981 | 3,544 | 10,300 | 11,020 |
Occupancy and equipment expense | 1,132 | 1,128 | 3,395 | 3,407 |
Data processing and telecommunications | 604 | 615 | 1,881 | 1,913 |
Other operating expenses | 1,565 | 1,792 | 5,149 | 5,650 |
Total Noninterest Expenses | 6,282 | 7,079 | 20,725 | 21,990 |
INCOME BEFORE INCOME TAXES | 1,798 | 1,103 | 1,884 | 2,044 |
INCOME TAX EXPENSE | 374 | 227 | 385 | 417 |
NET INCOME | $ 1,424 | $ 876 | $ 1,499 | $ 1,627 |
Income Per Share | ||||
Basic and diluted (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.06 | $ 0.07 |
Average Weighted Shares of Common Stock | ||||
Basic and diluted (in shares) | 23,922,086 | 23,922,086 | 23,922,086 | 23,922,086 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
NET INCOME | $ 1,424 | $ 876 | $ 1,499 | $ 1,627 |
Investment securities activity | ||||
Unrealized gains arising during the period | 28 | 191 | 1,039 | 1,682 |
Reclassification adjustment for net gains included in net income | (4) | |||
Other comprehensive gain on investment securities | 28 | 191 | 1,035 | 1,682 |
Related tax expense | (6) | (40) | (217) | (353) |
TOTAL OTHER COMPREHENSIVE INCOME | 22 | 151 | 818 | 1,329 |
TOTAL COMPREHENSIVE INCOME | $ 1,446 | $ 1,027 | $ 2,317 | $ 2,956 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 16,002 | $ 13,998 |
Interest-bearing deposits with banks | 61,636 | 35,897 |
Federal funds sold | 270 | 252 |
Total Cash and Cash Equivalents | 77,908 | 50,147 |
Investment securities available-for-sale | 44,109 | 50,649 |
Loans held for sale | 337 | 2 |
Loans receivable | 585,122 | 562,544 |
Allowance for loan losses | (6,987) | (5,368) |
Net loans | 578,135 | 557,176 |
Bank premises and equipment, net | 22,580 | 22,242 |
Other real estate owned | 3,237 | 3,393 |
Accrued interest receivable | 2,781 | 2,115 |
Deferred taxes, net | 3,974 | 4,576 |
Right-of-use assets - operating leases | 5,537 | 5,835 |
Other assets | 10,527 | 10,238 |
Total Assets | 749,125 | 706,373 |
Deposits: | ||
Noninterest bearing | 215,371 | 170,782 |
Interest-bearing | 446,301 | 450,695 |
Total Deposits | 661,672 | 621,477 |
Borrowed funds | 21,496 | 21,496 |
Lease liabilities - operating leases | 5,537 | 5,835 |
Accrued interest payable | 491 | 694 |
Accrued expenses and other liabilities | 3,010 | 2,269 |
Total Liabilities | 692,206 | 651,771 |
STOCKHOLDERS' EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,922,086 shares issued and outstanding at September 30, 2020 and December 31, 2019 | 47,844 | 47,844 |
Additional paid-in-capital | 14,570 | 14,570 |
Retained deficit | (6,370) | (7,869) |
Accumulated other comprehensive income | 875 | 57 |
Total Stockholders' Equity | 56,919 | 54,602 |
Total Liabilities and Stockholders' Equity | $ 749,125 | $ 706,373 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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 Income (Loss) [Member] | Total |
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 406 | 406 | |||
Other comprehensive loss, net of tax | 370 | 370 | |||
Balance at ending at Mar. 31, 2019 | $ 47,844 | 14,570 | (9,522) | (866) | 52,026 |
Balance at ending (in shares) at Mar. 31, 2019 | 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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,627 | ||||
Other comprehensive loss, net of tax | 1,329 | ||||
Balance at ending at Sep. 30, 2019 | $ 47,844 | 14,570 | (8,301) | 93 | 54,206 |
Balance at ending (in shares) at Sep. 30, 2019 | 23,922 | ||||
Balance at beginning at Mar. 31, 2019 | $ 47,844 | 14,570 | (9,522) | (866) | 52,026 |
Balance at beginning (in shares) at Mar. 31, 2019 | 23,922 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 345 | 345 | |||
Other comprehensive loss, net of tax | 808 | 808 | |||
Balance at ending at Jun. 30, 2019 | $ 47,844 | 14,570 | (9,177) | (58) | 53,179 |
Balance at ending (in shares) at Jun. 30, 2019 | 23,922 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 876 | 876 | |||
Other comprehensive loss, net of tax | 151 | 151 | |||
Balance at ending at Sep. 30, 2019 | $ 47,844 | 14,570 | (8,301) | 93 | 54,206 |
Balance at ending (in shares) at Sep. 30, 2019 | 23,922 | ||||
Balance at beginning at Dec. 31, 2019 | $ 47,844 | 14,570 | (7,869) | 57 | $ 54,602 |
Balance at beginning (in shares) at Dec. 31, 2019 | 23,922 | 23,922,086 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 46 | $ 46 | |||
Other comprehensive loss, net of tax | 603 | 603 | |||
Balance at ending at Mar. 31, 2020 | $ 47,844 | 14,570 | (7,823) | 660 | 55,251 |
Balance at ending (in shares) at Mar. 31, 2020 | 23,922 | ||||
Balance at beginning at Dec. 31, 2019 | $ 47,844 | 14,570 | (7,869) | 57 | $ 54,602 |
Balance at beginning (in shares) at Dec. 31, 2019 | 23,922 | 23,922,086 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,499 | ||||
Other comprehensive loss, net of tax | 818 | ||||
Balance at ending at Sep. 30, 2020 | $ 47,844 | 14,570 | (6,370) | 875 | $ 56,919 |
Balance at ending (in shares) at Sep. 30, 2020 | 23,922 | 23,922,086 | |||
Balance at beginning at Mar. 31, 2020 | $ 47,844 | 14,570 | (7,823) | 660 | $ 55,251 |
Balance at beginning (in shares) at Mar. 31, 2020 | 23,922 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 29 | 29 | |||
Other comprehensive loss, net of tax | 193 | 193 | |||
Balance at ending at Jun. 30, 2020 | $ 47,844 | 14,570 | (7,794) | 853 | 55,473 |
Balance at ending (in shares) at Jun. 30, 2020 | 23,922 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,424 | 1,424 | |||
Other comprehensive loss, net of tax | 22 | 22 | |||
Balance at ending at Sep. 30, 2020 | $ 47,844 | $ 14,570 | $ (6,370) | $ 875 | $ 56,919 |
Balance at ending (in shares) at Sep. 30, 2020 | 23,922 | 23,922,086 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,499 | $ 1,627 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,634 | 1,757 |
Provision for loan losses | 2,000 | 1,290 |
Income on bank owned life insurance | (61) | (54) |
Net gain on sale of securities available-for-sale | (4) | |
Gain on sale of mortgage loans | (144) | (78) |
Loss (gain) on sale or disposal of premises and equipment | 19 | (807) |
Loss on sale of repossessed assets | 2 | |
(Gain) loss on sale of other real estate owned | (52) | 55 |
Loans originated for sale | (10,307) | (4,216) |
Proceeds from sales of loans originated for sale | 10,116 | 8,082 |
Adjustment of carrying value of other real estate owned | 132 | 214 |
Adjustment of carrying value of repossessed assets | 33 | |
Amortization/accretion of bond premiums/discounts | 318 | 410 |
Deferred tax expense (benefit) | 385 | 418 |
Net change in: | ||
Accrued interest receivable | (666) | (243) |
Other assets | (314) | (278) |
Accrued interest payable | (203) | 100 |
Accrued expenses and other liabilities | 741 | 769 |
Net Cash Provided by Operating Activities | 5,128 | 9,046 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in loans | (23,445) | (16,006) |
Purchase of securities available-for-sale | (2,045) | (790) |
Proceeds from sale of investment securities available-for-sale | 1,025 | |
Proceeds from repayments and maturities of securities available-for-sale | 8,281 | 7,991 |
Net purchase of equity securities (restricted) | (22) | (14) |
Payments for the purchase of premises and equipment | (1,992) | (1,429) |
Proceeds from sale of premises and equipment | 1 | 559 |
Proceeds from sales of repossessed assets | 73 | |
Proceeds from insurance claims on other real estate owned | 19 | |
Proceeds from sales of other real estate owned | 562 | 1,155 |
Net Cash Used in Investing Activities | (17,562) | (8,515) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in short term borrowings | (5,630) | |
Net change in noninterest bearing deposits | 44,589 | 11,673 |
Net change in interest bearing deposits | (4,394) | 13,938 |
Net Cash Provided by Financing Activities | 40,195 | 19,981 |
Net increase in cash and cash equivalents | 27,761 | 20,512 |
Cash and Cash Equivalents, Beginning of the Period | 50,147 | 28,173 |
Cash and Cash Equivalents, End of the Period | 77,908 | 48,685 |
Supplemental Disclosure of Cash Paid During the Period for: | ||
Interest | 4,104 | 4,370 |
Taxes | ||
Supplemental Disclosure of Non-cash Transactions: | ||
Transfer of loans to Loans Held for Sale | 4,359 | |
Right-of-use asset established in exchange for new operating lease liability | 1,232 | |
Loan to finance sale of premises | 752 | |
Other real estate acquired in settlement of foreclosed loans | 914 | 492 |
Loans made to finance sale of other real estate owned | 428 | 647 |
Change in unrealized gains on securities available for sale | $ 1,035 | $ 1,682 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS Nature of Operations – |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2020 and December 31, 2019, and the results of operations for the three month and nine month periods ended September 30, 2020 and 2019. 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, 2019. 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 consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc. (Hereinafter, collectively referred to as the Company, we, us or our). All significant intercompany balances and transactions have been eliminated. In accordance with Accounting Standards Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are not included in the consolidated financial statements. Certain reclassifications have been made to prior period financial statements to allow them to be presented on a comparable basis with the current period. Previously reported net income and stockholders’ equity were not affected by these reclassifications. The preparation of financial statements in conformity with GAAP 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. |
INCOME PER SHARE
INCOME PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Income Per Share | |
INCOME PER SHARE | NOTE 3 INCOME PER SHARE Basic income 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. For the three-month and nine-month periods ended September 30, 2020 and 2019, there were no potential common shares. Basic and diluted net income per common share calculations follows: (Dollars in Thousands, Except For the three months For the nine months 2020 2019 2020 2019 Net income $ 1,424 $ 876 $ 1,499 $ 1,627 Weighted average shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Weighted average dilutive shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Basic and diluted income per share $ 0.06 $ 0.04 $ 0.06 $ 0.07 |
CAPITAL
CAPITAL | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Total Capital [Abstract] | |
CAPITAL | NOTE 4 CAPITAL Capital Requirements and Ratios The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve’s Small Bank Holding Company Policy Statement issued in February 2015 and, therefore, is not obligated to report consolidated regulatory capital. 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 amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and Common Equity Tier 1 capital to risk-weighted assets. As of September 30, 2020, the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2020 and December 31, 2019, respectively. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020: Total Capital to Risk Weighted Assets 74,191 15.73 % $ 37,725 8.0 % $ 47,156 10.0 % Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 28,294 6.0 % 37,725 8.0 % Tier 1 Capital to Average Assets 68,283 9.11 % 29,979 4.0 % 37,473 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 21,220 4.5 % 30,652 6.5 % December 31, 2019: Total Capital to Risk Weighted Assets 72,109 14.83 % $ 38,910 8.0 % $ 48,637 10.0 % Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 29,182 6.0 % 38,910 8.0 % Tier 1 Capital to Average Assets 66,741 9.43 % 28,313 4.0 % 35,391 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 21,887 4.5 % 31,614 6.5 % Accordingly, as of September 30, 2020 and December 31, 2019, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since such dates that management believes have changed the Bank’s category. The Bank is also subject to the rules implementing the Basel III capital framework and certain related provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The final rules require the Bank to comply with the following minimum capital ratios: (i) a Common Equity Tier 1 capital to risk-weighted assets ratio of at least 4.5%, plus a 2.5% capital conservation buffer (effectively resulting in a minimum Common Equity Tier 1 capital to risk-weighted assets ratio of 7.0%), (ii) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%), (iii) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%), and (iv) a leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average assets. The phase-in of the capital conservation buffer requirement began on January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a Common Equity Tier 1 capital to risk-weighted assets ratio above the minimum but below the conservation buffer face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. All ratios shown in the table above exceed the minimum requirements. The Bank’s capital conservation buffer as of September 30, 2020 was 7.73%. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Investment securities activity | |
INVESTMENT SECURITIES | NOTE 5 INVESTMENT SECURITIES The amortized cost and estimated fair value of available-for-sale (AFS) securities as of September 30, 2020 and December 31, 2019 is as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2020 U.S. Government Agencies $ 14,468 $ 375 $ (62 ) $ 14,781 Taxable municipals 4,363 204 — 4,567 Corporate bonds 5,396 189 (27 ) 5,558 Mortgage backed securities 18,775 436 (8 ) 19,203 Total Securities AFS $ 43,002 $ 1,204 $ (97 ) $ 44,109 December 31, 2019 U.S. Government Agencies $ 15,703 $ 57 $ (127 ) $ 15,633 Taxable municipals 4,389 54 (1 ) 4,442 Corporate bonds 5,408 115 — 5,523 Mortgage backed securities 25,077 111 (137 ) 25,051 Total Securities AFS $ 50,577 $ 337 $ (265 ) $ 50,649 The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized September 30, 2020 U.S. Government Agencies $ 1,503 $ (2 ) $ 4,162 $ (60 ) $ 5,665 $ (62 ) Taxable municipals — — — — — — Corporate bonds 1,223 (27 ) — — 1,223 (27 ) Mortgage backed securities 1,647 (5 ) 261 (3 ) 1,908 (8 ) Total Securities AFS $ 4,373 $ (34 ) $ 4,423 $ (63 ) $ 8,796 $ (97 ) December 31, 2019 U.S. Government Agencies $ 6,788 $ (46 ) $ 4,516 $ (81 ) $ 11,304 $ (127 ) Taxable municipals 1,049 (1 ) — — 1,049 (1 ) Mortgage backed securities 1,586 (4 ) 12,002 (133 ) 13,588 (137 ) Total Securities AFS $ 9,423 $ (51 ) $ 16,518 $ (214 ) $ 25,941 $ (265 ) At September 30, 2020, there were 39 securities in a loss position, of which 26 have been in a loss position for twelve months or more. 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 $7.0 million and $6.9 million at September 30, 2020 and December 31, 2019, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. The following table summarizes sales of AFS debt securities for the nine months ended September 30, (Dollars are in thousands) 2020 2019 Proceeds $ 1,025 $ — Gains 7 — Losses (3 ) — Tax benefit (1 ) — The amortized cost and fair value of investment securities at September 30, 2020, 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. (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ — $ — — Due after one year through five years 5,080 5,263 2.53 % Due after five years through ten years 10,817 11,027 3.29 % Due after ten years 27,104 27,819 2.27 % Total $ 43,001 $ 44,109 2.35 % The Bank, as a member of the Federal Reserve Bank of Richmond (the Reserve Bank) and the Federal Home Loan Bank (the FHLB) of Atlanta, 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 $2.58 million and $2.56 million at September 30, 2020 and December 31, 2019, respectively. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
LOANS | NOTE 6 LOANS There were $337 thousand of loans held for sale at September 30, 2020 and $2 thousand at December 31, 2019, which represents mortgage loans originated for sale. These originations and sales are executed on a best efforts basis. Loans receivable outstanding as of September 30, 2020 and December 31, 2019 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 174,898 $ 170,436 Construction and land development 26,054 31,130 Residential 1-4 family 226,267 242,922 Multifamily 14,979 13,638 Farmland 19,111 20,790 Total real estate loans 461,309 478,916 Commercial 96,107 53,994 Agriculture 4,572 4,797 Consumer installment loans 21,313 23,127 All other loans 1,821 1,710 Total loans $ 585,122 $ 562,544 Included in commercial loans are 665 loans originated under the Paycheck Protection Program totaling $43,546,000 at September 30, 2020 and none at December 31, 2019. Loans receivable on nonaccrual status as of September 30, 2020 and December 31, 209 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 1,761 $ 1,601 Construction and land development 59 45 Residential 1-4 family 3,172 2,544 Farmland 205 531 Total real estate loans 5,197 4,721 Commercial 118 390 Consumer installment loans and other loans 28 45 Total loans receivable on nonaccrual status $ 5,343 $ 5,156 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2020 and September 30, 2019 was $418 thousand and $544 thousand, respectively. The following tables present information concerning the Company’s investment in loans considered impaired as of September 30, 2020 and December 31, 2019: As of September 30, 2020 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 984 $ 1,011 $ — Construction and land development 104 381 — Residential 1-4 family 2,254 2,407 — Multifamily — — — Farmland 408 577 — Commercial — — — Agriculture — — — Consumer installment loans 6 6 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 605 672 285 Construction and land development — — — Residential 1-4 family 229 249 49 Multifamily — — — Farmland 210 222 4 Commercial 33 41 8 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 4,833 $ 5,566 $ 346 As of December 31, 2019 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,416 $ 2,478 $ — Construction and land development 70 346 — Residential 1-4 family 1,263 1,460 — Multifamily — — — Farmland 778 970 — Commercial 128 178 — Agriculture — 1 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 363 379 70 Construction and land development — — — Residential 1-4 family 55 60 44 Multifamily — — — Farmland 216 228 9 Commercial 286 886 200 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 5,575 $ 6,986 $ 323 The following tables present information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 2,004 $ 1 $ 1,918 $ 76 Construction and land development 87 12 96 3 Residential 1-4 family 1,819 49 2,114 47 Multifamily — — 37 1 Farmland 590 51 1,235 29 Commercial 74 1 691 11 Agriculture — — — — Consumer installment loans 3 — 3 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 493 — 496 1 Construction and land development — — — — Residential 1-4 family 104 3 364 — Multifamily — — — — Farmland 213 7 223 6 Commercial 160 1 563 — Agriculture — — — — Consumer installment loans — — 3 — All other loans — — — — Total $ 5,547 $ 125 $ 7,743 $ 174 Three Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 1,673 $ — $ 1,978 $ 34 Construction and land development 107 8 84 3 Residential 1-4 family 2,334 36 1,365 8 Multifamily — — — — Farmland 419 41 788 16 Commercial 33 — 45 — Agriculture — — — — Consumer installment loans 7 — 6 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 553 — 372 — Construction and land development — — — — Residential 1-4 family 154 3 340 — Multifamily — — — — Farmland 211 5 111 — Commercial 34 1 1,036 1 Agriculture — — — — Consumer installment loans — — — — All other loans — — — — Total $ 5,525 $ 94 $ 6,125 $ 62 An age analysis of past due loans receivable as of September 30, 2020 and December 31, 2019 is below. At September 30, 2020 and December 31, 2019, no loans over 90 days past due were accruing. As of September 30, 2020 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial 681 $ — 61 742 174,156 $ 174,898 Construction and land development 25 — — 25 26,029 26,054 Residential 1-4 family 3,516 422 930 4,868 221,399 226,267 Multifamily — — — — 14,979 14,979 Farmland 75 — 103 178 18,933 19,111 Total real estate loans 4,297 422 1,094 5,813 455,496 461,309 Commercial 153 — 10 163 95,944 96,107 Agriculture 211 — 11 222 4,350 4,572 Consumer installment loans 142 18 3 163 21,150 21,313 All other loans — — — — 1,821 1,821 Total loans 4,803 $ 440 1,118 6,361 578,761 $ 585,122 As of December 31, 2019 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 502 $ 125 $ 262 $ 889 $ 169,547 $ 170,436 Construction and land development 50 18 18 86 31,044 31,130 Residential 1-4 family 3,700 1,096 710 5,506 237,416 242,922 Multifamily 262 — — 262 13,376 13,638 Farmland 111 47 152 310 20,480 20,790 Total real estate loans 4,625 1,286 1,142 7,053 471,863 478,916 Commercial 406 — 323 729 53,265 53,994 Agriculture 244 — 21 265 4,532 4,797 Consumer installment loans 98 24 23 145 22,982 23,127 All other loans — — — — 1,710 1,710 Total loans $ 5,373 $ 1,310 $ 1,509 $ 8,192 $ 554,352 $ 562,544 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 categories of loans receivable as of September 30, 2020 and December 31, 2019 were as follows: As of September 30, 2020 (Dollars are in thousands) Pass Special Substandard Doubtful Total Real estate secured: Commercial $ 168,111 $ 5,026 $ 1,761 $ — $ 174,898 Construction and land development 25,752 243 59 — 26,054 Residential 1-4 family 221,385 1,742 3,140 — 226,267 Multifamily 14,744 235 — — 14,979 Farmland 17,626 1,280 205 — 19,111 Total real estate loans 447,618 8,526 5,165 — 461,309 Commercial 93,331 2,708 68 — 96,107 Agriculture 4,561 — 11 — 4,572 Consumer installment loans 21,289 7 17 — 21,313 All other loans 1,821 — — — 1,821 Total $ 568,620 $ 11,241 $ 5,261 $ — $ 585,122 As of December 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 165,570 $ 3,265 $ 1,601 $ — $ 170,436 Construction and land development 30,747 360 23 — 31,130 Residential 1-4 family 239,210 1,207 2,505 — 242,922 Multifamily 13,638 — — — 13,638 Farmland 18,779 1,480 531 — 20,790 Total real estate loans 467,944 6,312 4,660 — 478,916 Commercial 51,086 2,504 118 286 53,994 Agriculture 4,753 4 40 — 4,797 Consumer installment loans 23,087 12 28 — 23,127 All other loans 1,710 — — — 1,710 Total $ 548,580 $ 8,832 $ 4,846 $ 286 $ 562,544 Included in Commercial loans under the “Pass” classification are loans extended under the Paycheck Protection Program totaling $43,5 million at September 30, 2020 and $0 at December 31, 2019. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 7 ALLOWANCE FOR LOAN LOSSES In determining the amount of our allowance for loan losses, we evaluate the risk characteristics and credit quality of our loan portfolio, and assess current economic conditions, diversification of the portfolio, collateral adequacy, past loss experience and the level of nonperforming loans. 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. As a result of the COVID-19 pandemic, and the resulting economic impact, the company provided forbearance, largely in the form of payment deferrals, on $117.4 million in loans to borrowers during the first nine months of 2020. Factors have been incorporated into the allowance determination to consider the effects of credit deterioration due to the economic impact resulting from the pandemic, such as increased unemployment and decreased gross domestic production. The following table presents activity in the allowance for loan losses for the nine- and three-month periods ending September 30, 2020 and 2019, respectively. Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of September 30, 2020 and December 31, 2019, respectively. Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2020 Beginning balance $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Charge-offs (65) - (66) - (42) (326) (15) (59) - (573) Recoveries 56 - 31 - 33 34 1 37 - 192 Provision 874 32 361 44 20 627 31 13 (2) 2,000 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Three months ended September 30, 2020 Beginning balance $ 2,054 $ 169 $ 2,039 $ 145 $ 121 $ 1,817 $ 49 $ 181 $ - $ 6,575 Charge-offs (43) - (66) - - - - (15) - (124) Recoveries 54 - 14 - - 3 - 15 - 86 Provision 48 21 75 3 (1) 304 (5) 5 - 450 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Allowance for loan losses at September 30, 2020 Individually evaluated for impairment $ 285 $ - $ 49 $ - $ 4 $ 8 $ - $ - $ - $ 346 Collectively evaluated for impairment 1,828 190 2,013 148 116 2,116 44 186 - 6,641 $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Loans at September 30, 2020 Individually evaluated for impairment $ 1,589 $ 104 $ 2,483 $ - $ 618 $ 33 $ - $ 6 $ - $ 4,833 Collectively evaluated for impairment 173,309 25,950 223,784 14,979 18,493 96,074 4,572 23,128 - 580,289 $ 174,898 $ 26,054 $ 226,267 $ 14,979 $ 19,111 $ 96,107 $ 4,572 $ 23,134 $ - $ 585,122 Allowance for loan losses at December 31, 2019 Individually evaluated for impairment $ 70 $ - $ 44 $ - $ 9 $ 200 $ - $ - $ - $ 323 Collectively evaluated for impairment 1,178 158 1,692 104 100 1,589 27 195 2 5,045 $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Loans at December 31, 2019 Individually evaluated for impairment $ 2,779 $ 70 $ 1,318 $ - $ 994 $ 414 $ - $ - $ - $ 5,575 Collectively evaluated for impairment 167,657 31,060 241,604 13,638 19,796 53,580 4,797 24,837 - 556,969 $ 170,436 $ 31,130 $ 242,922 $ 13,638 $ 20,790 $ 53,994 $ 4,797 $ 24,837 $ - $ 562,544 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2019 Beginning balance $ 1,386 $ 202 $ 2,437 $ 89 $ 287 $ 448 $ 37 $ 175 $ 275 $ 5,336 Charge-offs - - (171) - (33) (1,563) (9) (73) - (1,849) Recoveries 16 34 168 30 8 59 1 57 - 373 Provision (143) (70) (566) (17) (135) 2,480 (5) 18 (272) 1,290 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 Three months ended September 30, 2019 Beginning balance $ 1,225 $ 146 $ 1,967 $ 87 $ 118 $ 1,383 $ 35 $ 162 $ 65 $ 5,188 Charge-offs - - (42) - - (1,026) (9) (30) - (1,107) Recoveries 14 - 11 - - 14 - 10 - 49 Provision 20 20 (68) 15 9 1,053 (2) 35 (62) 1,020 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 During the second quarter of 2019, $4.4 million of non-performing or under-performing real estate loans were sold resulting in $57 thousand of charge-offs and $113 thousand of recoveries. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. |
TROUBLED DEBT RESTRUCTURINGS
TROUBLED DEBT RESTRUCTURINGS | 9 Months Ended |
Sep. 30, 2020 | |
Troubled Debt Restructurings | |
TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS There were $4.5 million in loans that were classified as troubled debt restructurings at September 30, 2020 and $4.3 million at December 31, 2019. All loans considered to be troubled debt restructurings are individually evaluated for impairment as part of the allowance for loan losses calculation. The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2020 and 2019. For the nine months ended For the nine months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial 3 $ 190 $ 190 — $ — $ — Construction and land — — — — — — Residential 1-4 family 27 1,236 1,236 — — — Multifamily — — — — — — Farmland — — — 1 281 281 Total real estate loans 30 1,426 1,426 1 281 281 Commercial — — — Agriculture — — — — — — Consumer installment loans 2 7 7 — — — All other loans — — — — — — Total 32 $ 1,433 $ 1,433 1 $ 281 $ 281 For the three months ended For the three months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family 1 32 32 — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans 1 32 32 — — — Commercial — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 32 $ 32 — $ — $ — During the three months ended September 30, 2020, one loan with a balance of $32 thousand, modified due to bankruptcy, was considered to be a troubled debt restructuring. During the first nine months of 2020, 32 modified loans totaling $1.4 million were considered to be troubled debt restructurings. During the three months ended September 30, 2019, no modified loans were considered to be troubled debt restructurings. During the first nine months of 2019, one loan was modified for which the modification was considered to be a troubled debt restructure. This loan is secured by farmland and the modification is related to a court-ordered payment plan. During the three months ended September 30, 2020, no loans previously modified as troubled debt restructurings defaulted. During the nine months ended September 30, 2020, one loan previously modified as a troubled debt restructuring, with a balance of $31 thousand, defaulted. One loan previously modified as a troubled debt restructuring, with a balance of $663 thousand, which defaulted during the first three months of 2020, has been paid off. No loans modified as troubled debt restructurings defaulted during the three or nine months ended September 30, 2019. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determining 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 | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 9 OTHER REAL ESTATE OWNED The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2020 and the year ended December 31, 2019: (Dollars are in thousands) September 30, December 31, 2019 Balance, beginning of period $ 3,393 $ 5,937 Additions 914 811 Transfers from premises and equipment — 683 Proceeds from sales (562 ) (1,322 ) Proceeds from insurance claims — (19 ) Loans made to finance sales (428 ) (2,360 ) Adjustment of carrying value (132 ) (214 ) Gains (losses) from sales 52 (123 ) Balance, end of period $ 3,237 $ 3,393 |
FAIR VALUES
FAIR VALUES | 9 Months Ended |
Sep. 30, 2020 | |
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 defined as 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 establish 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: Significant 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: Significant 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 Loans - Foreclosed Assets – Assets and liabilities measured at fair value were as follows as of September 30, 2020 (for purpose of this table the impaired loans are shown net of the related allowance): September 30, 2020 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 14,781 $ — Taxable municipals — 4,567 — Corporate bonds — 5,558 — Mortgage backed securities — 19,203 — (On a non-recurring basis) — — 3,237 Impaired loans — — 4,487 Total $ — $ 44,109 $ 7,724 Assets and liabilities measured at fair value are as follows as of December 31, 2019 (for purpose of this table the impaired loans are shown net of the related allowance): December 31, 2019 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 15,633 $ — Taxable municipals — 4,442 — Corporate bonds — 5,523 — Mortgage backed securities — 25,051 — (On a non-recurring basis) — — 3,393 Impaired loans 5,252 Total $ — $ 50,649 $ 8,645 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2020 Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 4,487 $ 5,252 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 $ 3,237 $ 3,393 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 as of September 30, 2020 and December 31, 2019 are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2020 Financial Instruments – Assets Net Loans $ 578,135 $ 575,103 $ — $ 570,270 $ 4,487 Financial Instruments – Liabilities Time Deposits 249,733 252,846 — 252,846 — FHLB Advances 5,000 4,971 — 4,971 — December 31, 2019 Financial Instruments – Assets Net Loans $ 557,176 $ 550,495 $ — $ 545,243 $ 5,252 Financial Instruments – Liabilities Time Deposits 257,406 259,325 — 259,325 — FHLB Advances 5,000 5,054 — 5,054 — 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, 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 values 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. In accordance with our adoption of Accounting Standards Update (ASU) 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at September 30, 2020 and December 31, 2019, represent an approximation of exit price; however, an actual exit price may differ. |
LEASING ACTIVITIES
LEASING ACTIVITIES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASING ACTIVITIES | NOTE 11 LEASING ACTIVITIES The Company adopted ASU 2016-02 (Topic 842) effective May 31, 2017, as the Bank entered into sale leaseback transactions for four branch office sites. In September 2019, the Bank entered into a sale leaseback transaction, with a non-affiliated third party, for its branch office located in Lebanon, Virginia for a total purchase price of $1.34 million. Net proceeds, after sales expenses of $42 thousand totaled $1.30 million and a gain of $803 thousand was recorded. The Bank provided financing to the purchaser, in the amount of $752 thousand, for a term of 5 years. In connection with this sale, the Bank entered into a lease agreement with the purchaser with an initial term of 15 years, with five 5-year renewal options. As of September 30, 2020, the Bank leases five branch offices and a loan production office. The lease agreements have maturity dates ranging from November 2020 to September 2034. It is assumed that there are currently no circumstances in which the leases would be terminated prior to expiration. The weighted average remaining life of the lease terms at September 30, 2020 was 12.13 years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate that corresponded to the lease term for each transaction. This methodology is expected to be used for any other subsequent lease agreements. The weighted average discount rate for the leases at September 30, 2020 was 3.16%. For the nine months ended September 30, 2020 and 2019, operating lease expenses were $429 thousand and $361 thousand, respectively. The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. At September 30, 2020, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2020 $ 132 2021 511 2022 530 2023 544 2024 546 Thereafter 4,528 Total lease payments 6,791 Less imputed interest 1,254 Total $ 5,537 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 12 REVENUE FROM CONTRACTS WITH CUSTOMERS All 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 and nine months ended September 30, 2020 and 2019. For the three months ended For the nine months ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees $ 859 $ 924 $ 2,238 $ 2,597 Card Processing and interchange income 892 800 2,480 2,276 Gain on sale of securities available-for-sale (1) — — 4 — Insurance and investment fees 206 158 447 481 Other noninterest income 159 973 744 1,247 Total Noninterest Income $ 2,116 $ 2,855 $ 5,913 $ 6,601 (1) Not within the scope of ASU 2014-09 |
NONINTEREST EXPENSES
NONINTEREST EXPENSES | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, For the nine months ended September 30, (Dollars are in thousands) 2020 2019 2020 2019 Advertising $ 42 $ 82 $ 166 $ 233 ATM network expense 357 488 1,113 1,389 Legal and professional fees 112 244 602 727 Consulting fees 82 77 443 296 Loan related expenses 88 194 275 484 Printing and supplies 38 39 105 116 FDIC insurance premiums 103 (3 ) 297 210 Other real estate owned expenses, net 59 99 255 525 Other operating expenses 684 572 1,893 1,670 Total other operating expenses $ 1,565 $ 1,792 $ 5,149 $ 5,650 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
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. No subsequent events have occurred since September 30, 2020. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 15 RECENT ACCOUNTING DEVELOPMENTS The following is a summary of recent authoritative announcements: In June 2016, per ASU No. 2016-13, ‘Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,’ the Financial Accounting Standards Board (the FASB) issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. Subsequently, per ASU No. 2019-10, implementation for the Company is delayed until reporting periods beginning after December 15, 2022. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In May 2019, the FASB issued targeted transition relief for entities, which irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the amendments to the transition guidance for ASU 2016-13 will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Subsequently, per ASU No. 2019-10, implementation for the Company is delayed until reporting periods beginning after December 15, 2021. The Company is currently in the process of evaluating the impact of adoption of this guidance on its financial statements. In November, 2019, the FASB released ASU 2019-10, ‘Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),’ in which the FASB shared a new philosophy to extend and simplify how effective dates for certain major Updates would be staggered between larger public companies (bucket one) and all other entities (bucket two). A major Update would first be effective for bucket-one entities. For bucket-two entities, including the Company, it is anticipated that the FASB will consider requiring an effective date staggered at least two years after bucket one for major Updates. Generally, it is expected that early application would continue to be allowed for all entities. The Company is considered a bucket-two entity due to its eligibility to be a smaller reporting company, per the Securities and Exchange Commission (the SEC). This Update applies to ASU 2016-13, as discussed above, ASU 2017-12, which does not apply to the Company, and ASU 2016-02, which the Company has already early-adopted. In December, 2019, the FASB released ASU 2019-12, ‘Income Taxes (Topic 740),’ which simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, improve consistent application, and simplify GAAP for other areas of Topic 740. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company does not expect these amendments to have a material effect on its financial statements. In January, 2020, the FASB released ASU 2020-01, ‘Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815),’ which clarify certain interactions between the guidance to account for certain equity securities under Topic 321, 323 and 815, and improve current GAAP by reducing diversity in practice and increasing comparability of accounting. The amendments in this Update are effective for the Company for fiscal years beginning after December 31, 2021, 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 March 2020, the FASB released ASU 2020-03, ‘Codification Improvements to Financial Instruments,’ as part of its ongoing project for improving the Codification or correcting its unintended application. This particular Update is being issued to increase stakeholder awareness of these amendments. These amendments affect Fair Value Option Disclosures, Applicability of Portfolio Exception in Topic 820 to Nonfinancial Items, Disclosures for Depository and Lending Institutions, Cross-Reference to Line-of-Credit or Revolving-Debt Arrangements Guidance in Subtopic 470-50, Cross-Reference to Net Asset Value Practical Expedient in Subtopic 820-10, Interaction of Topic 842 and Topic 326, and Interaction of Topic 326 and Subtopic 860-20. The amendments in this update are effective immediately. The Company does not expect these amendments to have a material effect on its financial statements. In March, 2020, the FASB released ASU 2020-04, ‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting,’ which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform. The amendments in this Update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in the Update are effective for the Company as of March 12, 2020 through December 31, 2022. The Company is currently in the process of evaluating the impact of adoption of this guidance on its financial statements. In August 2020, the FASB released ASU 2020-06, ‘Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,’ which reduces the number of accounting models for convertible debt instruments and convertible preferred stock. The Board concluded that eliminating certain accounting models simplifies the accounting for convertible instruments, reduces complexity for preparers and practitioners, and improves the decision usefulness and relevance of the information provided to financial statement users. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In October, 2020, the FASB released ASU 2020-08, ‘Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs,’ which amends ASU 2017-08 and clarifies that an entity should reevaluate whether a callable debt security that has multiple call dates is within the scope of paragraph 310-20-35-33 for each reporting period. These amendments are part of the FASB’s ongoing project for improving the Codification or correcting its unintended application. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is not permitted. The Company does not expect this amendment 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | These consolidated financial statements conform to U. S. generally accepted accounting principles (GAAP) and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company’s financial position at September 30, 2020 and December 31, 2019, and the results of operations for the three month and nine month periods ended September 30, 2020 and 2019. 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, 2019. 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 consolidated financial statements include New Peoples, the Bank, NPB Insurance Services, Inc., and NPB Web Services, Inc. (Hereinafter, collectively referred to as the Company, we, us or our). All significant intercompany balances and transactions have been eliminated. In accordance with Accounting Standards Codification (ASC) 942, Financial Services – Depository and Lending, NPB Capital Trust I and 2 are not included in the consolidated financial statements. The preparation of financial statements in conformity with GAAP 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. |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Per Share | |
Schedule of basic and diluted net loss per common share calculations | Basic and diluted net income per common share calculations follows: (Dollars in Thousands, Except For the three months For the nine months 2020 2019 2020 2019 Net income $ 1,424 $ 876 $ 1,499 $ 1,627 Weighted average shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Weighted average dilutive shares outstanding 23,922,086 23,922,086 23,922,086 23,922,086 Basic and diluted income per share $ 0.06 $ 0.04 $ 0.06 $ 0.07 |
CAPITAL (Tables)
CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Total Capital [Abstract] | |
Schedule of capital requirements | The Bank’s actual capital amounts and ratios are presented in the following table as of September 30, 2020 and December 31, 2019, respectively. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2020: Total Capital to Risk Weighted Assets 74,191 15.73 % $ 37,725 8.0 % $ 47,156 10.0 % Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 28,294 6.0 % 37,725 8.0 % Tier 1 Capital to Average Assets 68,283 9.11 % 29,979 4.0 % 37,473 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 68,283 14.48 % 21,220 4.5 % 30,652 6.5 % December 31, 2019: Total Capital to Risk Weighted Assets 72,109 14.83 % $ 38,910 8.0 % $ 48,637 10.0 % Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 29,182 6.0 % 38,910 8.0 % Tier 1 Capital to Average Assets 66,741 9.43 % 28,313 4.0 % 35,391 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets 66,741 13.72 % 21,887 4.5 % 31,614 6.5 % |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment securities activity | |
Schedule of securities amortized cost and estimated fair value | The amortized cost and estimated fair value of available-for-sale (AFS) securities as of September 30, 2020 and December 31, 2019 is as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2020 U.S. Government Agencies $ 14,468 $ 375 $ (62 ) $ 14,781 Taxable municipals 4,363 204 — 4,567 Corporate bonds 5,396 189 (27 ) 5,558 Mortgage backed securities 18,775 436 (8 ) 19,203 Total Securities AFS $ 43,002 $ 1,204 $ (97 ) $ 44,109 December 31, 2019 U.S. Government Agencies $ 15,703 $ 57 $ (127 ) $ 15,633 Taxable municipals 4,389 54 (1 ) 4,442 Corporate bonds 5,408 115 — 5,523 Mortgage backed securities 25,077 111 (137 ) 25,051 Total Securities AFS $ 50,577 $ 337 $ (265 ) $ 50,649 |
Schedule of fair value and gross unrealized losses on investment securities | The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and December 31, 2019. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized September 30, 2020 U.S. Government Agencies $ 1,503 $ (2 ) $ 4,162 $ (60 ) $ 5,665 $ (62 ) Taxable municipals — — — — — — Corporate bonds 1,223 (27 ) — — 1,223 (27 ) Mortgage backed securities 1,647 (5 ) 261 (3 ) 1,908 (8 ) Total Securities AFS $ 4,373 $ (34 ) $ 4,423 $ (63 ) $ 8,796 $ (97 ) December 31, 2019 U.S. Government Agencies $ 6,788 $ (46 ) $ 4,516 $ (81 ) $ 11,304 $ (127 ) Taxable municipals 1,049 (1 ) — — 1,049 (1 ) Mortgage backed securities 1,586 (4 ) 12,002 (133 ) 13,588 (137 ) Total Securities AFS $ 9,423 $ (51 ) $ 16,518 $ (214 ) $ 25,941 $ (265 ) |
Schedule of debt securities | The following table summarizes sales of AFS debt securities for the nine months ended September 30, (Dollars are in thousands) 2020 2019 Proceeds $ 1,025 $ — Gains 7 — Losses (3 ) — Tax benefit (1 ) — |
Schedule of amortized cost and fair value of investment securities contractual maturity | 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. (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ — $ — — Due after one year through five years 5,080 5,263 2.53 % Due after five years through ten years 10,817 11,027 3.29 % Due after ten years 27,105 27,819 2.27 % Total $ 43,002 $ 44,109 2.35 % |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of loans receivable outstanding | Loans receivable outstanding as of September 30, 2020 and December 31, 2019 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 174,898 $ 170,436 Construction and land development 26,054 31,130 Residential 1-4 family 226,267 242,922 Multifamily 14,979 13,638 Farmland 19,111 20,790 Total real estate loans 461,309 478,916 Commercial 96,107 53,994 Agriculture 4,572 4,797 Consumer installment loans 21,313 23,127 All other loans 1,821 1,710 Total loans $ 585,122 $ 562,544 |
Summary of loans receivable on nonaccrual status | Loans receivable on nonaccrual status as of September 30, 2020 and December 31, 209 are summarized as follows: (Dollars are in thousands) September 30, December 31, 2019 Real estate secured: Commercial $ 1,761 $ 1,601 Construction and land development 59 45 Residential 1-4 family 3,172 2,544 Farmland 205 531 Total real estate loans 5,197 4,721 Commercial 118 390 Consumer installment loans and other loans 28 45 Total loans receivable on nonaccrual status $ 5,343 $ 5,156 |
Summary of impaired loans | The following tables present information concerning the Company’s investment in loans considered impaired as of September 30, 2020 and December 31, 2019: As of September 30, 2020 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 984 $ 1,011 $ — Construction and land development 104 381 — Residential 1-4 family 2,254 2,407 — Multifamily — — — Farmland 408 577 — Commercial — — — Agriculture — — — Consumer installment loans 6 6 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 605 672 285 Construction and land development — — — Residential 1-4 family 229 249 49 Multifamily — — — Farmland 210 222 4 Commercial 33 41 8 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 4,833 $ 5,566 $ 346 As of December 31, 2019 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 2,416 $ 2,478 $ — Construction and land development 70 346 — Residential 1-4 family 1,263 1,460 — Multifamily — — — Farmland 778 970 — Commercial 128 178 — Agriculture — 1 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 363 379 70 Construction and land development — — — Residential 1-4 family 55 60 44 Multifamily — — — Farmland 216 228 9 Commercial 286 886 200 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 5,575 $ 6,986 $ 323 The following tables present information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 2,004 $ 1 $ 1,918 $ 76 Construction and land development 87 12 96 3 Residential 1-4 family 1,819 49 2,114 47 Multifamily — — 37 1 Farmland 590 51 1,235 29 Commercial 74 1 691 11 Agriculture — — — — Consumer installment loans 3 — 3 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 493 — 496 1 Construction and land development — — — — Residential 1-4 family 104 3 364 — Multifamily — — — — Farmland 213 7 223 6 Commercial 160 1 563 — Agriculture — — — — Consumer installment loans — — 3 — All other loans — — — — Total $ 5,547 $ 125 $ 7,743 $ 174 Three Months Ended September 30, 2020 September 30, 2019 (Dollars are in thousands) Average Interest Average Interest Real estate secured: Commercial $ 1,673 $ — $ 1,978 $ 34 Construction and land development 107 8 84 3 Residential 1-4 family 2,334 36 1,365 8 Multifamily — — — — Farmland 419 41 788 16 Commercial 33 — 45 — Agriculture — — — — Consumer installment loans 7 — 6 — All other loans — — — — With an allowance recorded: Real estate secured: Commercial 553 — 372 — Construction and land development — — — — Residential 1-4 family 154 3 340 — Multifamily — — — — Farmland 211 5 111 — Commercial 34 1 1,036 1 Agriculture — — — — Consumer installment loans — — — — All other loans — — — — Total $ 5,525 $ 94 $ 6,125 $ 62 |
Summary of age analysis of past due loans receivable | An age analysis of past due loans receivable as of September 30, 2020 and December 31, 2019 is below. At September 30, 2020 and December 31, 2019, no loans over 90 days past due were accruing. As of September 30, 2020 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial 681 $ — 61 742 174,156 $ 174,898 Construction and land development 25 — — 25 26,029 26,054 Residential 1-4 family 3,516 422 930 4,868 221,399 226,267 Multifamily — — — — 14,979 14,979 Farmland 75 — 103 178 18,933 19,111 Total real estate loans 4,297 422 1,094 5,813 455,496 461,309 Commercial 153 — 10 163 95,944 96,107 Agriculture 211 — 11 222 4,350 4,572 Consumer installment loans 142 18 3 163 21,150 21,313 All other loans — — — — 1,821 1,821 Total loans 4,803 $ 440 1,118 6,361 578,761 $ 585,122 As of December 31, 2019 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 502 $ 125 $ 262 $ 889 $ 169,547 $ 170,436 Construction and land development 50 18 18 86 31,044 31,130 Residential 1-4 family 3,700 1,096 710 5,506 237,416 242,922 Multifamily 262 — — 262 13,376 13,638 Farmland 111 47 152 310 20,480 20,790 Total real estate loans 4,625 1,286 1,142 7,053 471,863 478,916 Commercial 406 — 323 729 53,265 53,994 Agriculture 244 — 21 265 4,532 4,797 Consumer installment loans 98 24 23 145 22,982 23,127 All other loans — — — — 1,710 1,710 Total loans $ 5,373 $ 1,310 $ 1,509 $ 8,192 $ 554,352 $ 562,544 |
Summary of risk category of loans receivable | Based on the most recent analysis performed, the risk categories of loans receivable as of September 30, 2020 and December 31, 2019 were as follows: As of September 30, 2020 (Dollars are in thousands) Pass Special Substandard Doubtful Total Real estate secured: Commercial $ 168,111 $ 5,026 $ 1,761 $ — $ 174,898 Construction and land development 25,752 243 59 — 26,054 Residential 1-4 family 221,385 1,742 3,140 — 226,267 Multifamily 14,744 235 — — 14,979 Farmland 17,626 1,280 205 — 19,111 Total real estate loans 447,618 8,526 5,165 — 461,309 Commercial 93,331 2,708 68 — 96,107 Agriculture 4,561 — 11 — 4,572 Consumer installment loans 21,289 7 17 — 21,313 All other loans 1,821 — — — 1,821 Total $ 568,620 $ 11,241 $ 5,261 $ — $ 585,122 As of December 31, 2019 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 165,570 $ 3,265 $ 1,601 $ — $ 170,436 Construction and land development 30,747 360 23 — 31,130 Residential 1-4 family 239,210 1,207 2,505 — 242,922 Multifamily 13,638 — — — 13,638 Farmland 18,779 1,480 531 — 20,790 Total real estate loans 467,944 6,312 4,660 — 478,916 Commercial 51,086 2,504 118 286 53,994 Agriculture 4,753 4 40 — 4,797 Consumer installment loans 23,087 12 28 — 23,127 All other loans 1,710 — — — 1,710 Total $ 548,580 $ 8,832 $ 4,846 $ 286 $ 562,544 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of activity in the allowance for loan losses | Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of September 30, 2020 and December 31, 2019, respectively. Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2020 Beginning balance $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Charge-offs (65) - (66) - (42) (326) (15) (59) - (573) Recoveries 56 - 31 - 33 34 1 37 - 192 Provision 874 32 361 44 20 627 31 13 (2) 2,000 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Three months ended September 30, 2020 Beginning balance $ 2,054 $ 169 $ 2,039 $ 145 $ 121 $ 1,817 $ 49 $ 181 $ - $ 6,575 Charge-offs (43) - (66) - - - - (15) - (124) Recoveries 54 - 14 - - 3 - 15 - 86 Provision 48 21 75 3 (1) 304 (5) 5 - 450 Ending balance $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Allowance for loan losses at September 30, 2020 Individually evaluated for impairment $ 285 $ - $ 49 $ - $ 4 $ 8 $ - $ - $ - $ 346 Collectively evaluated for impairment 1,828 190 2,013 148 116 2,116 44 186 - 6,641 $ 2,113 $ 190 $ 2,062 $ 148 $ 120 $ 2,124 $ 44 $ 186 $ - $ 6,987 Loans at September 30, 2020 Individually evaluated for impairment $ 1,589 $ 104 $ 2,483 $ - $ 618 $ 33 $ - $ 6 $ - $ 4,833 Collectively evaluated for impairment 173,309 25,950 223,784 14,979 18,493 96,074 4,572 23,128 - 580,289 $ 174,898 $ 26,054 $ 226,267 $ 14,979 $ 19,111 $ 96,107 $ 4,572 $ 23,134 $ - $ 585,122 Allowance for loan losses at December 31, 2019 Individually evaluated for impairment $ 70 $ - $ 44 $ - $ 9 $ 200 $ - $ - $ - $ 323 Collectively evaluated for impairment 1,178 158 1,692 104 100 1,589 27 195 2 5,045 $ 1,248 $ 158 $ 1,736 $ 104 $ 109 $ 1,789 $ 27 $ 195 $ 2 $ 5,368 Loans at December 31, 2019 Individually evaluated for impairment $ 2,779 $ 70 $ 1,318 $ - $ 994 $ 414 $ - $ - $ - $ 5,575 Collectively evaluated for impairment 167,657 31,060 241,604 13,638 19,796 53,580 4,797 24,837 - 556,969 $ 170,436 $ 31,130 $ 242,922 $ 13,638 $ 20,790 $ 53,994 $ 4,797 $ 24,837 $ - $ 562,544 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Nine months ended September 30, 2019 Beginning balance $ 1,386 $ 202 $ 2,437 $ 89 $ 287 $ 448 $ 37 $ 175 $ 275 $ 5,336 Charge-offs - - (171) - (33) (1,563) (9) (73) - (1,849) Recoveries 16 34 168 30 8 59 1 57 - 373 Provision (143) (70) (566) (17) (135) 2,480 (5) 18 (272) 1,290 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 Three months ended September 30, 2019 Beginning balance $ 1,225 $ 146 $ 1,967 $ 87 $ 118 $ 1,383 $ 35 $ 162 $ 65 $ 5,188 Charge-offs - - (42) - - (1,026) (9) (30) - (1,107) Recoveries 14 - 11 - - 14 - 10 - 49 Provision 20 20 (68) 15 9 1,053 (2) 35 (62) 1,020 Ending balance $ 1,259 $ 166 $ 1,868 $ 102 $ 127 $ 1,424 $ 24 $ 177 $ 3 $ 5,150 |
TROUBLED DEBT RESTRUCTURINGS (T
TROUBLED DEBT RESTRUCTURINGS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Troubled Debt Restructurings Tables Abstract | |
Schedule of loans modified as troubled debt restructurings | The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2020 and 2019. For the nine months ended For the nine months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial 3 $ 190 $ 190 — $ — $ — Construction and land — — — — — — Residential 1-4 family 27 1,236 1,236 — — — Multifamily — — — — — — Farmland — — — 1 281 281 Total real estate loans 30 1,426 1,426 1 281 281 Commercial — — — Agriculture — — — — — — Consumer installment loans 2 7 7 — — — All other loans — — — — — — Total 32 $ 1,433 $ 1,433 1 $ 281 $ 281 For the three months ended For the three months ended Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land — — — — — — Residential 1-4 family 1 32 32 — — — Multifamily — — — — — — Farmland — — — — — — Total real estate loans 1 32 32 — — — Commercial — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 32 $ 32 — $ — $ — |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of other real estate owned | The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2020 and the year ended December 31, 2019: (Dollars are in thousands) September 30, December 31, 2019 Balance, beginning of period $ 3,393 $ 5,937 Additions 914 811 Transfers from premises and equipment — 683 Proceeds from sales (562 ) (1,322 ) Proceeds from insurance claims — (19 ) Loans made to finance sales (428 ) (2,360 ) Adjustment of carrying value (132 ) (214 ) Gains (losses) from sales 52 (123 ) Balance, end of period $ 3,237 $ 3,393 |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of summary of assets and liabilities measured at fair value | Assets and liabilities measured at fair value were as follows as of September 30, 2020 (for purpose of this table the impaired loans are shown net of the related allowance): September 30, 2020 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 14,781 $ — Taxable municipals — 4,567 — Corporate bonds — 5,558 — Mortgage backed securities — 19,203 — (On a non-recurring basis) — — 3,237 Impaired loans — — 4,487 Total $ — $ 44,109 $ 7,724 Assets and liabilities measured at fair value are as follows as of December 31, 2019 (for purpose of this table the impaired loans are shown net of the related allowance): December 31, 2019 (Dollars are in thousands) Quoted market price in active markets Significant other observable inputs Significant unobservable inputs (On a recurring basis) U.S. Government Agencies $ — $ 15,633 $ — Taxable municipals — 4,442 — Corporate bonds — 5,523 — Mortgage backed securities — 25,051 — (On a non-recurring basis) — — 3,393 Impaired loans 5,252 Total $ — $ 50,649 $ 8,645 |
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 September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2020 Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 4,487 $ 5,252 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 $ 3,237 $ 3,393 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% |
Schedule of 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 as of September 30, 2020 and December 31, 2019 are as follows: Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs September 30, 2020 Financial Instruments – Assets Net Loans $ 578,135 $ 575,103 $ — $ 570,270 $ 4,487 Financial Instruments – Liabilities Time Deposits 249,733 252,846 — 252,846 — FHLB Advances 5,000 4,971 — 4,971 — December 31, 2019 Financial Instruments – Assets Net Loans $ 557,176 $ 550,495 $ — $ 545,243 $ 5,252 Financial Instruments – Liabilities Time Deposits 257,406 259,325 — 259,325 — FHLB Advances 5,000 5,054 — 5,054 — |
LEASING ACTIVITIES (Tables)
LEASING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of future minimum rental commitments under the non-cancellable operating leases | At September 30, 2020, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): 2020 $ 132 2021 511 2022 530 2023 544 2024 546 Thereafter 4,528 Total lease payments 6,791 Less imputed interest 1,254 Total $ 5,537 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from contracts with customers | The following table presents Non-interest income by revenue stream for the three and nine months ended September 30, 2020 and 2019. For the three months ended For the nine months ended September 30, September 30, (Dollars in thousands) 2020 2019 2020 2019 Service charges and fees $ 859 $ 924 $ 2,238 $ 2,597 Card Processing and interchange income 892 800 2,480 2,276 Gain on sale of securities available-for-sale (1) — — 4 — Insurance and investment fees 206 158 447 481 Other noninterest income 159 973 744 1,247 Total Noninterest Income $ 2,116 $ 2,855 $ 5,913 $ 6,601 (1) Not within the scope of ASU 2014-09 |
NON-INTEREST EXPENSES (Tables)
NON-INTEREST EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noninterest Expenses | |
Schedule of noninterest expenses | Other operating expenses, included as part of noninterest expenses, consisted of the following for the periods presented: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2020 2019 2020 2019 Advertising $ 42 $ 82 $ 166 $ 233 ATM network expense 357 488 1,113 1,389 Legal and professional fees 112 244 602 727 Consulting fees 82 77 443 296 Loan related expenses 88 194 275 484 Printing and supplies 38 39 105 116 FDIC insurance premiums 103 (3 ) 297 210 Other real estate owned expenses, net 59 99 255 525 Other operating expenses 684 572 1,893 1,670 Total other operating expenses $ 1,565 $ 1,792 $ 5,149 $ 5,650 |
INCOME PER SHARE (Details)
INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Per Share | ||||||||
Net income | $ 1,424 | $ 29 | $ 46 | $ 876 | $ 345 | $ 406 | $ 1,499 | $ 1,627 |
Weighted average shares outstanding (in shares) | 23,922,086 | 23,922,086 | 23,922,086 | 23,922,086 | ||||
Weighted average dilutive shares outstanding (in shares) | 23,922,086 | 23,922,086 | 23,922,086 | 23,922,086 | ||||
Basic and diluted income per share (in shares) | $ 0.06 | $ 0.04 | $ 0.06 | $ 0.07 |
CAPITAL (Details)
CAPITAL (Details) - Bank $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 74,191 | $ 72,109 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 0.1573 | 0.1483 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 37,725 | $ 38,910 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 0.0800 | 0.080 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 47,156 | $ 48,637 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.100 |
Tier 1 Capital Risk Weighted Assets, Actual, Amount | $ 68,283 | $ 66,741 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 0.1448 | 0.1372 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 28,294 | $ 29,182 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio | 0.0600 | 0.060 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 37,725 | $ 38,910 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.080 |
Tier 1 Capital to Average Assets, Actual, Amount | $ 68,283 | $ 66,741 |
Tier 1 Capital to Average Assets, Actual, Ratio | 0.0911 | 0.0943 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 29,979 | $ 28,313 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio | 0.0400 | 0.040 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 37,473 | $ 35,391 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.050 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount | $ 68,283 | $ 66,741 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 14.48% | 13.72% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 21,220 | $ 21,887 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 30,652 | $ 31,614 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | $ 43,002 | $ 50,577 |
Gross Unrealized Gains | 1,204 | 337 |
Gross Unrealized Losses | (97) | (265) |
Approximate Fair Value | 44,109 | 50,649 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 14,468 | 15,703 |
Gross Unrealized Gains | 375 | 57 |
Gross Unrealized Losses | (62) | (127) |
Approximate Fair Value | 14,781 | 15,633 |
Taxable Municipals [Member] | ||
Amortized Cost | 4,363 | 4,389 |
Gross Unrealized Gains | 204 | 54 |
Gross Unrealized Losses | (1) | |
Approximate Fair Value | 4,567 | 4,442 |
Corporate Bonds [Member] | ||
Amortized Cost | 5,396 | 5,408 |
Gross Unrealized Gains | 189 | 115 |
Gross Unrealized Losses | (27) | |
Approximate Fair Value | 5,558 | 5,523 |
Mortgage Backed Securities [Member] | ||
Amortized Cost | 18,775 | 25,077 |
Gross Unrealized Gains | 436 | 111 |
Gross Unrealized Losses | (8) | (137) |
Approximate Fair Value | $ 19,203 | $ 25,051 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Less than 12 Months | $ 4,373 | $ 9,423 |
Unrealized Losses, Less than 12 Months | (34) | (51) |
Fair Value, 12 Months or More | 4,423 | 16,518 |
Unrealized Losses, 12 Months or More | (63) | (214) |
Fair Value, Total | 8,796 | 25,941 |
Unrealized Losses, Total | (97) | (265) |
U.S. Government Agencies [Member] | ||
Fair Value, Less than 12 Months | 1,503 | 6,788 |
Unrealized Losses, Less than 12 Months | (2) | (46) |
Fair Value, 12 Months or More | 4,162 | 4,516 |
Unrealized Losses, 12 Months or More | (60) | (81) |
Fair Value, Total | 5,665 | 11,304 |
Unrealized Losses, Total | (62) | (127) |
Taxable Municipals [Member] | ||
Fair Value, Less than 12 Months | 1,049 | |
Unrealized Losses, Less than 12 Months | (1) | |
Fair Value, 12 Months or More | ||
Unrealized Losses, 12 Months or More | ||
Fair Value, Total | 1,049 | |
Unrealized Losses, Total | (1) | |
Corporate Bonds [Member] | ||
Fair Value, Less than 12 Months | 1,223 | |
Unrealized Losses, Less than 12 Months | (27) | |
Fair Value, 12 Months or More | ||
Unrealized Losses, 12 Months or More | ||
Fair Value, Total | 1,223 | |
Unrealized Losses, Total | (27) | |
Mortgage Backed Securities [Member] | ||
Fair Value, Less than 12 Months | 1,647 | 1,586 |
Unrealized Losses, Less than 12 Months | (5) | (4) |
Fair Value, 12 Months or More | 261 | 12,002 |
Unrealized Losses, 12 Months or More | (3) | (133) |
Fair Value, Total | 1,908 | 13,588 |
Unrealized Losses, Total | $ (8) | $ (137) |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Investment securities activity | ||
Proceeds | $ 1,025 | |
Gains | 7 | |
Losses | (3) | |
Tax benefit | $ (1) |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investment securities activity | ||
Due in one year or less, amortized cost | ||
Due after one year through five years, amortized cost | 5,080 | |
Due after five years through ten years, amortized cost | 10,817 | |
Due after ten years, amortized cost | 27,105 | |
Amortized cost, total | 43,002 | $ 50,577 |
Due in one year or less, fair value | ||
Due after one year through five years, fair value | 5,263 | |
Due after five years through ten years, fair value | 11,027 | |
Due after ten years, fair value | 27,819 | |
Approximate fair value | $ 44,109 | $ 50,649 |
Due in one year or less, weighted average yield | ||
Due after one year through five years, weighted average yield | 2.53% | |
Due after five years through ten years, weighted average yield | 3.29% | |
Due after ten years, weighted average yield | 2.27% | |
Weighted average yield, total | 2.35% |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total loans and leases | $ 585,122 | $ 562,544 |
Real Estate [Member] | ||
Total loans and leases | 461,309 | 478,916 |
Commercial [Member] | ||
Total loans and leases | 96,107 | 53,994 |
Commercial [Member] | Real Estate [Member] | ||
Total loans and leases | 174,898 | 170,436 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Total loans and leases | 26,054 | 31,130 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total loans and leases | 226,267 | 242,922 |
Multifamily [Member] | Real Estate [Member] | ||
Total loans and leases | 14,979 | 13,638 |
Farmland [Member] | Real Estate [Member] | ||
Total loans and leases | 19,111 | 20,790 |
Agriculture [Member] | ||
Total loans and leases | 4,572 | 4,797 |
Consumer Installment Loans [Member] | ||
Total loans and leases | 21,313 | 23,127 |
Other Loans [Member] | ||
Total loans and leases | $ 1,821 | $ 1,710 |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total loans receivable on nonaccrual status | $ 5,343 | $ 5,156 |
Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 5,197 | 4,721 |
Commercial [Member] | ||
Total loans receivable on nonaccrual status | 118 | 390 |
Commercial [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 1,761 | 1,601 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 59 | 45 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 3,172 | 2,544 |
Farmland [Member] | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 205 | 531 |
Consumer Installment Loans [Member] | ||
Total loans receivable on nonaccrual status | $ 28 | $ 45 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Recorded Investment | $ 4,833 | $ 5,575 |
Unpaid Principal Balance | 5,566 | 6,986 |
Related Allowance | 346 | 323 |
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | 1 | |
Related Allowance | ||
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 6 | |
Unpaid Principal Balance | 6 | |
Related Allowance | ||
Commercial [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 33 | 286 |
Unpaid Principal Balance | 41 | 886 |
Related Allowance | 8 | 200 |
Commercial [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 128 | |
Unpaid Principal Balance | 178 | |
Related Allowance | ||
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 210 | 216 |
Unpaid Principal Balance | 222 | 228 |
Related Allowance | 4 | 9 |
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 408 | 778 |
Unpaid Principal Balance | 577 | 970 |
Related Allowance | ||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 229 | 55 |
Unpaid Principal Balance | 249 | 60 |
Related Allowance | 49 | 44 |
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 2,254 | 1,263 |
Unpaid Principal Balance | 2,407 | 1,460 |
Related Allowance | ||
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 104 | 70 |
Unpaid Principal Balance | 381 | 346 |
Related Allowance | ||
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 605 | 363 |
Unpaid Principal Balance | 672 | 379 |
Related Allowance | 285 | 70 |
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 984 | 2,416 |
Unpaid Principal Balance | 1,011 | 2,478 |
Related Allowance |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Average Recorded Investment | $ 5,525 | $ 6,125 | $ 5,547 | $ 7,743 |
Interest Income Recognized | 94 | 62 | 125 | 174 |
Commercial [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 33 | 45 | 74 | 691 |
Interest Income Recognized | 1 | 11 | ||
Commercial [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | 34 | 1,036 | 160 | 563 |
Interest Income Recognized | 1 | 1 | 1 | |
Agriculture [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Agriculture [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Consumer Installment Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 7 | 6 | 3 | 3 |
Interest Income Recognized | ||||
Consumer Installment Loans [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | 3 | |||
Interest Income Recognized | ||||
All Other Loans [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
All Other Loans [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 1,673 | 1,978 | 2,004 | 1,918 |
Interest Income Recognized | 34 | 1 | 76 | |
Commercial [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | 553 | 372 | 493 | 496 |
Interest Income Recognized | 1 | |||
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 107 | 84 | 87 | 96 |
Interest Income Recognized | 8 | 3 | 12 | 3 |
Construction and Land Development [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 2,334 | 1,365 | 1,819 | 2,114 |
Interest Income Recognized | 36 | 8 | 49 | 47 |
Residential 1-4 Family [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | 154 | 340 | 104 | 364 |
Interest Income Recognized | 3 | 3 | ||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 37 | |||
Interest Income Recognized | 1 | |||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||||
Average Recorded Investment | 419 | 788 | 590 | 1,235 |
Interest Income Recognized | 41 | 16 | 51 | 29 |
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||||
Average Recorded Investment | 211 | 111 | 213 | 223 |
Interest Income Recognized | $ 5 | $ 7 | $ 6 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans 30-59 Days Past Due | $ 4,803 | $ 5,373 |
Loans 60-89 Days Past Due | 440 | 1,310 |
Loans 90 or More Days Past Due | 1,118 | 1,509 |
Total Past Due Loans | 6,361 | 8,192 |
Current Loans | 578,761 | 554,352 |
Total loans and leases | 585,122 | 562,544 |
Real Estate [Member] | ||
Loans 30-59 Days Past Due | 4,297 | 4,625 |
Loans 60-89 Days Past Due | 422 | 1,286 |
Loans 90 or More Days Past Due | 1,094 | 1,142 |
Total Past Due Loans | 5,813 | 7,053 |
Current Loans | 455,496 | 471,863 |
Total loans and leases | 461,309 | 478,916 |
Commercial [Member] | ||
Loans 30-59 Days Past Due | 153 | 406 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 10 | 323 |
Total Past Due Loans | 163 | 729 |
Current Loans | 95,944 | 53,265 |
Total loans and leases | 96,107 | 53,994 |
Commercial [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 681 | 502 |
Loans 60-89 Days Past Due | 125 | |
Loans 90 or More Days Past Due | 61 | 262 |
Total Past Due Loans | 742 | 889 |
Current Loans | 174,156 | 169,547 |
Total loans and leases | 174,898 | 170,436 |
Construction and Land Development [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 25 | 50 |
Loans 60-89 Days Past Due | 18 | |
Loans 90 or More Days Past Due | 18 | |
Total Past Due Loans | 25 | 86 |
Current Loans | 26,029 | 31,044 |
Total loans and leases | 26,054 | 31,130 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 3,516 | 3,700 |
Loans 60-89 Days Past Due | 422 | 1,096 |
Loans 90 or More Days Past Due | 930 | 710 |
Total Past Due Loans | 4,868 | 5,506 |
Current Loans | 221,399 | 237,416 |
Total loans and leases | 226,267 | 242,922 |
Multifamily [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 262 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 262 | |
Current Loans | 14,979 | 13,376 |
Total loans and leases | 14,979 | 13,638 |
Farmland [Member] | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 75 | 111 |
Loans 60-89 Days Past Due | 47 | |
Loans 90 or More Days Past Due | 103 | 152 |
Total Past Due Loans | 178 | 310 |
Current Loans | 18,933 | 20,480 |
Total loans and leases | 19,111 | 20,790 |
Agriculture [Member] | ||
Loans 30-59 Days Past Due | 211 | 244 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 11 | 21 |
Total Past Due Loans | 222 | 265 |
Current Loans | 4,350 | 4,532 |
Total loans and leases | 4,572 | 4,797 |
Consumer Installment Loans [Member] | ||
Loans 30-59 Days Past Due | 142 | 98 |
Loans 60-89 Days Past Due | 18 | 24 |
Loans 90 or More Days Past Due | 3 | 23 |
Total Past Due Loans | 163 | 145 |
Current Loans | 21,150 | 22,982 |
Total loans and leases | 21,313 | 23,127 |
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 | 1,821 | 1,710 |
Total loans and leases | $ 1,821 | $ 1,710 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total | $ 585,122 | $ 562,544 |
Pass [Member] | ||
Total | 568,620 | 548,580 |
Special Mention [Member] | ||
Total | 11,241 | 8,832 |
Substandard [Member] | ||
Total | 5,261 | 4,846 |
Doubtful [Member] | ||
Total | 286 | |
Real Estate [Member] | ||
Total | 461,309 | 478,916 |
Real Estate [Member] | Pass [Member] | ||
Total | 447,618 | 467,944 |
Real Estate [Member] | Special Mention [Member] | ||
Total | 8,526 | 6,312 |
Real Estate [Member] | Substandard [Member] | ||
Total | 5,165 | 4,660 |
Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Commercial [Member] | ||
Total | 96,107 | 53,994 |
Commercial [Member] | Pass [Member] | ||
Total | 93,331 | 51,086 |
Commercial [Member] | Special Mention [Member] | ||
Total | 2,708 | 2,504 |
Commercial [Member] | Substandard [Member] | ||
Total | 68 | 118 |
Commercial [Member] | Doubtful [Member] | ||
Total | 286 | |
Commercial [Member] | Real Estate [Member] | ||
Total | 174,898 | 170,436 |
Commercial [Member] | Real Estate [Member] | Pass [Member] | ||
Total | 168,111 | 165,570 |
Commercial [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total | 5,026 | 3,265 |
Commercial [Member] | Real Estate [Member] | Substandard [Member] | ||
Total | 1,761 | 1,601 |
Commercial [Member] | Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Construction and Land Development [Member] | Real Estate [Member] | ||
Total | 26,054 | 31,130 |
Construction and Land Development [Member] | Real Estate [Member] | Pass [Member] | ||
Total | 25,752 | 30,747 |
Construction and Land Development [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total | 243 | 360 |
Construction and Land Development [Member] | Real Estate [Member] | Substandard [Member] | ||
Total | 59 | 23 |
Construction and Land Development [Member] | Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Residential 1-4 Family [Member] | Real Estate [Member] | ||
Total | 226,267 | 242,922 |
Residential 1-4 Family [Member] | Real Estate [Member] | Pass [Member] | ||
Total | 221,385 | 239,210 |
Residential 1-4 Family [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total | 1,742 | 1,207 |
Residential 1-4 Family [Member] | Real Estate [Member] | Substandard [Member] | ||
Total | 3,140 | 2,505 |
Residential 1-4 Family [Member] | Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Multifamily [Member] | Real Estate [Member] | ||
Total | 14,979 | 13,638 |
Multifamily [Member] | Real Estate [Member] | Pass [Member] | ||
Total | 14,744 | 13,638 |
Multifamily [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total | 235 | |
Multifamily [Member] | Real Estate [Member] | Substandard [Member] | ||
Total | ||
Multifamily [Member] | Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Farmland [Member] | Real Estate [Member] | ||
Total | 19,111 | 20,790 |
Farmland [Member] | Real Estate [Member] | Pass [Member] | ||
Total | 17,626 | 18,779 |
Farmland [Member] | Real Estate [Member] | Special Mention [Member] | ||
Total | 1,280 | 1,480 |
Farmland [Member] | Real Estate [Member] | Substandard [Member] | ||
Total | 205 | 531 |
Farmland [Member] | Real Estate [Member] | Doubtful [Member] | ||
Total | ||
Agriculture [Member] | ||
Total | 4,572 | 4,797 |
Agriculture [Member] | Pass [Member] | ||
Total | 4,561 | 4,753 |
Agriculture [Member] | Special Mention [Member] | ||
Total | 4 | |
Agriculture [Member] | Substandard [Member] | ||
Total | 11 | 40 |
Agriculture [Member] | Doubtful [Member] | ||
Total | ||
Consumer Installment Loans [Member] | ||
Total | 21,313 | 23,127 |
Consumer Installment Loans [Member] | Pass [Member] | ||
Total | 21,289 | 23,087 |
Consumer Installment Loans [Member] | Special Mention [Member] | ||
Total | 7 | 12 |
Consumer Installment Loans [Member] | Substandard [Member] | ||
Total | 17 | 28 |
Consumer Installment Loans [Member] | Doubtful [Member] | ||
Total | ||
Other Loans [Member] | ||
Total | 1,821 | 1,710 |
Other Loans [Member] | Pass [Member] | ||
Total | 1,821 | 1,710 |
Other Loans [Member] | Special Mention [Member] | ||
Total | ||
Other Loans [Member] | Substandard [Member] | ||
Total | ||
Other Loans [Member] | Doubtful [Member] | ||
Total |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance, beginning of year | $ 6,575 | $ 5,188 | $ 5,368 | $ 5,336 |
Charge Offs | (124) | (1,107) | (573) | (1,849) |
Recoveries | 86 | 49 | 192 | 373 |
Provision for loan losses | 450 | 1,020 | 2,000 | 1,290 |
Balance, End of period | 6,987 | 5,150 | 6,987 | 5,150 |
Commercial [Member] | ||||
Balance, beginning of year | 1,817 | 1,383 | 1,789 | 448 |
Charge Offs | (1,026) | (326) | (1,563) | |
Recoveries | 3 | 14 | 34 | 59 |
Provision for loan losses | 304 | 1,053 | 627 | 2,480 |
Balance, End of period | 2,124 | 1,424 | 2,124 | 1,424 |
Commercial [Member] | Real Estate [Member] | ||||
Balance, beginning of year | 2,054 | 1,225 | 1,248 | 1,386 |
Charge Offs | (43) | (65) | ||
Recoveries | 54 | 14 | 56 | 16 |
Provision for loan losses | 48 | 20 | 874 | (143) |
Balance, End of period | 2,113 | 1,259 | 2,113 | 1,259 |
Construction and Land Development [Member] | Real Estate [Member] | ||||
Balance, beginning of year | 169 | 146 | 158 | 202 |
Recoveries | 34 | |||
Provision for loan losses | 21 | 20 | 32 | (70) |
Balance, End of period | 190 | 166 | 190 | 166 |
Residential 1-4 Family [Member] | Real Estate [Member] | ||||
Balance, beginning of year | 2,039 | 1,967 | 1,736 | 2,437 |
Charge Offs | (66) | (42) | (66) | (171) |
Recoveries | 14 | 11 | 31 | 168 |
Provision for loan losses | 75 | (68) | 361 | (566) |
Balance, End of period | 2,062 | 1,868 | 2,062 | 1,868 |
Multifamily [Member] | Real Estate [Member] | ||||
Balance, beginning of year | 145 | 87 | 104 | 89 |
Recoveries | 30 | |||
Provision for loan losses | 3 | 15 | 44 | (17) |
Balance, End of period | 148 | 102 | 148 | 102 |
Farmland [Member] | Real Estate [Member] | ||||
Balance, beginning of year | 121 | 118 | 109 | 287 |
Charge Offs | (42) | (33) | ||
Recoveries | 33 | 8 | ||
Provision for loan losses | (1) | 9 | 20 | (135) |
Balance, End of period | 120 | 127 | 120 | 127 |
Agriculture [Member] | ||||
Balance, beginning of year | 49 | 35 | 27 | 37 |
Charge Offs | (9) | (15) | (9) | |
Recoveries | 1 | 1 | ||
Provision for loan losses | (5) | (2) | 31 | (5) |
Balance, End of period | 44 | 24 | 44 | 24 |
Consumer Installment Loans [Member] | ||||
Balance, beginning of year | 181 | 162 | 195 | 175 |
Charge Offs | (15) | (30) | (59) | (73) |
Recoveries | 15 | 10 | 37 | 57 |
Provision for loan losses | 5 | 35 | 13 | 18 |
Balance, End of period | 186 | 177 | 186 | 177 |
Unallocated [Member] | ||||
Balance, beginning of year | 65 | 2 | 275 | |
Provision for loan losses | (62) | (2) | (272) | |
Balance, End of period | $ 3 | $ 3 |
ALLOWANCE FOR LOAN LOSSES (De_2
ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Allowance for loan losses, individually evaluated for impairment | $ 346 | $ 323 | ||||
Allowance for loan losses, collectively evaluated for impairment | 6,641 | 5,045 | ||||
Allowance for loan losses, total | 6,987 | $ 6,575 | 5,368 | $ 5,150 | $ 5,188 | $ 5,336 |
Recorded investment in loans, individually evaluated for impairment | 4,833 | 5,575 | ||||
Recorded investment in loans, collectively evaluated for impairment | 580,289 | 556,969 | ||||
Recorded investment in loans, total | 585,122 | 562,544 | ||||
Real Estate [Member] | ||||||
Recorded investment in loans, total | 461,309 | 478,916 | ||||
Commercial [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | 8 | 200 | ||||
Allowance for loan losses, collectively evaluated for impairment | 2,116 | 1,589 | ||||
Allowance for loan losses, total | 2,124 | 1,789 | ||||
Recorded investment in loans, individually evaluated for impairment | 33 | 414 | ||||
Recorded investment in loans, collectively evaluated for impairment | 96,074 | 53,580 | ||||
Recorded investment in loans, total | 96,107 | 53,994 | ||||
Commercial [Member] | Real Estate [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | 285 | 70 | ||||
Allowance for loan losses, collectively evaluated for impairment | 1,828 | 1,178 | ||||
Allowance for loan losses, total | 2,113 | 1,248 | ||||
Recorded investment in loans, individually evaluated for impairment | 1,589 | 2,779 | ||||
Recorded investment in loans, collectively evaluated for impairment | 173,309 | 167,657 | ||||
Recorded investment in loans, total | 174,898 | 170,436 | ||||
Construction and Land Development [Member] | Real Estate [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | ||||||
Allowance for loan losses, collectively evaluated for impairment | 190 | 158 | ||||
Allowance for loan losses, total | 190 | 158 | ||||
Recorded investment in loans, individually evaluated for impairment | 104 | 70 | ||||
Recorded investment in loans, collectively evaluated for impairment | 25,950 | 31,060 | ||||
Recorded investment in loans, total | 26,054 | 31,130 | ||||
Residential 1-4 Family [Member] | Real Estate [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | 49 | 44 | ||||
Allowance for loan losses, collectively evaluated for impairment | 2,013 | 1,692 | ||||
Allowance for loan losses, total | 2,062 | 1,736 | ||||
Recorded investment in loans, individually evaluated for impairment | 2,483 | 1,318 | ||||
Recorded investment in loans, collectively evaluated for impairment | 223,784 | 241,604 | ||||
Recorded investment in loans, total | 226,267 | 242,922 | ||||
Multifamily [Member] | Real Estate [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | ||||||
Allowance for loan losses, collectively evaluated for impairment | 148 | 104 | ||||
Allowance for loan losses, total | 148 | 104 | ||||
Recorded investment in loans, individually evaluated for impairment | ||||||
Recorded investment in loans, collectively evaluated for impairment | 14,979 | 13,638 | ||||
Recorded investment in loans, total | 14,979 | 13,638 | ||||
Farmland [Member] | Real Estate [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | 4 | 9 | ||||
Allowance for loan losses, collectively evaluated for impairment | 116 | 100 | ||||
Allowance for loan losses, total | 120 | 109 | ||||
Recorded investment in loans, individually evaluated for impairment | 618 | 994 | ||||
Recorded investment in loans, collectively evaluated for impairment | 18,493 | 19,796 | ||||
Recorded investment in loans, total | 19,111 | 20,790 | ||||
Agriculture [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | ||||||
Allowance for loan losses, collectively evaluated for impairment | 44 | 27 | ||||
Allowance for loan losses, total | 44 | 49 | 27 | 24 | 35 | 37 |
Recorded investment in loans, individually evaluated for impairment | ||||||
Recorded investment in loans, collectively evaluated for impairment | 4,572 | 4,797 | ||||
Recorded investment in loans, total | 4,572 | 4,797 | ||||
Consumer and All Other [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | ||||||
Allowance for loan losses, collectively evaluated for impairment | 186 | 195 | ||||
Allowance for loan losses, total | 186 | 195 | ||||
Recorded investment in loans, individually evaluated for impairment | 6 | |||||
Recorded investment in loans, collectively evaluated for impairment | 23,128 | 24,837 | ||||
Recorded investment in loans, total | 23,134 | 24,837 | ||||
Unallocated [Member] | ||||||
Allowance for loan losses, individually evaluated for impairment | ||||||
Allowance for loan losses, collectively evaluated for impairment | 2 | |||||
Allowance for loan losses, total | 2 | $ 3 | $ 65 | $ 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) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)Number | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Number | Sep. 30, 2019USD ($)Number | |
# of Loans | Number | 1 | 32 | 1 | |
Pre-Mod. Recorded Investment | $ 32 | $ 1,433 | $ 281 | |
Post-Mod. Recorded Investment | $ 32 | $ 1,433 | $ 281 | |
Real Estate [Member] | ||||
# of Loans | Number | 1 | 30 | 1 | |
Pre-Mod. Recorded Investment | $ 32 | $ 1,426 | $ 281 | |
Post-Mod. Recorded Investment | 32 | $ 1,426 | 281 | |
Commercial [Member] | Real Estate [Member] | ||||
# of Loans | Number | 3 | |||
Pre-Mod. Recorded Investment | $ 190 | |||
Post-Mod. Recorded Investment | 190 | |||
Construction and Land Development [Member] | Real Estate [Member] | ||||
Pre-Mod. Recorded Investment | ||||
Post-Mod. Recorded Investment | ||||
Residential 1-4 Family [Member] | Real Estate [Member] | ||||
# of Loans | Number | 1 | 27 | ||
Pre-Mod. Recorded Investment | $ 32 | $ 1,236 | ||
Post-Mod. Recorded Investment | 32 | 1,236 | ||
Multifamily [Member] | Real Estate [Member] | ||||
Pre-Mod. Recorded Investment | ||||
Post-Mod. Recorded Investment | ||||
Farmland [Member] | Real Estate [Member] | ||||
# of Loans | Number | 1 | |||
Pre-Mod. Recorded Investment | $ 281 | |||
Post-Mod. Recorded Investment | 281 | |||
Commercial [Member] | ||||
Pre-Mod. Recorded Investment | ||||
Post-Mod. Recorded Investment | ||||
Agriculture [Member] | ||||
Pre-Mod. Recorded Investment | ||||
Post-Mod. Recorded Investment | ||||
Consumer Installment Loans [Member] | ||||
# of Loans | Number | 2 | |||
Pre-Mod. Recorded Investment | $ 7 | |||
Post-Mod. Recorded Investment | 7 | |||
Other Loans [Member] | ||||
Pre-Mod. Recorded Investment | ||||
Post-Mod. Recorded Investment |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Real Estate [Abstract] | ||
Balance, beginning of year | $ 3,393 | $ 5,937 |
Additions | 914 | 811 |
Transfers from premises and equipment | 683 | |
Proceeds from sales | (562) | (1,322) |
Proceeds from insurance claims | (19) | |
Loans made to finance sales | (428) | (2,360) |
Adjustment of carrying value | (132) | (214) |
Gains (losses) from sales | 52 | (123) |
Balance, end of year | $ 3,237 | $ 3,393 |
FAIR VALUES (Details)
FAIR VALUES (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale investments | $ 44,109 | $ 50,649 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale investments | 7,724 | 8,645 |
Other real estate owned | 3,237 | 3,393 |
Impaired loans | 4,487 | 5,252 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. Government Agencies [Member] | ||
Available for sale investments | 14,781 | 15,633 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Taxable Municipals | ||
Available for sale investments | 4,567 | 4,442 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bonds | ||
Available for sale investments | 5,558 | 5,523 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities [Member] | ||
Available for sale investments | $ 19,203 | $ 25,051 |
FAIR VALUES (Details 1)
FAIR VALUES (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Impaired Loans | ||
Fair Value | $ 4,487 | $ 5,252 |
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 | |
Other Real Estate Owned | ||
Fair Value | $ 3,237 | $ 3,393 |
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 | |
Minimum [Member] | Impaired Loans | ||
General Range of Significant Unobservable Input Values | 0.00% | |
Minimum [Member] | Other Real Estate Owned | ||
General Range of Significant Unobservable Input Values | 0.00% | |
Maximum [Member] | Impaired Loans | ||
General Range of Significant Unobservable Input Values | 18.00% | |
Maximum [Member] | Other Real Estate Owned | ||
General Range of Significant Unobservable Input Values | 18.00% |
FAIR VALUES (Details 2)
FAIR VALUES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Net Loans | $ 578,135 | $ 557,176 |
Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 570,270 | 545,243 |
Time deposits | 252,846 | 259,325 |
FHLB advances | 4,971 | 5,054 |
Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | 4,487 | 5,252 |
Time deposits | ||
FHLB advances | ||
Reported Value Measurement [Member] | ||
Net Loans | 578,135 | 557,176 |
Time deposits | 249,733 | 257,406 |
FHLB advances | 5,000 | 5,000 |
Estimate of Fair Value Measurement [Member] | ||
Net Loans | 575,103 | 550,495 |
Time deposits | 252,846 | 259,325 |
FHLB advances | $ 4,971 | $ 5,054 |
LEASING ACTIVITIES (Details)
LEASING ACTIVITIES (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 132 |
2021 | 511 |
2022 | 530 |
2023 | 544 |
2024 | 546 |
Thereafter | 4,528 |
Total lease payments | 6,791 |
Less imputed interest | 1,254 |
Total | $ 5,537 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Service charges and fees | $ 859 | $ 924 | $ 2,238 | $ 2,597 |
Card Processing and interchange income | 892 | 800 | 2,480 | 2,276 |
Gain on sale and leaseback transactions | 4 | |||
Insurance and investment fees | 206 | 158 | 447 | 481 |
Other noninterest income | 159 | 973 | 744 | 1,247 |
Total Noninterest Income | $ 2,116 | $ 2,855 | $ 5,913 | $ 6,601 |
NONINTEREST EXPENSES (Details)
NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Noninterest Expenses | ||||
Advertising | $ 42 | $ 82 | $ 166 | $ 233 |
ATM network expense | 357 | 488 | 1,113 | 1,389 |
Legal and professional fees | 112 | 244 | 602 | 727 |
Consulting fees | 82 | 77 | 443 | 296 |
Loan related expenses | 88 | 194 | 275 | 484 |
Printing and supplies | 38 | 39 | 105 | 116 |
FDIC insurance premiums | 103 | (3) | 297 | 210 |
Other real estate owned expenses, net | 59 | 99 | 255 | 525 |
Other operating expenses | 684 | 572 | 1,893 | 1,670 |
Total | $ 1,565 | $ 1,792 | $ 5,149 | $ 5,650 |