Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | SELECT BANCORP, INC. | |
Entity Current Reporting Status | Yes | |
Trading Symbol | SLCT | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,055,692 | |
Entity Central Index Key | 0001263762 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | [1] |
ASSETS | |||
Cash and due from banks | $ 20,030 | $ 19,110 | |
Interest-earning deposits in other banks | 35,544 | 50,920 | |
Federal funds sold | 11,673 | 9,047 | |
Investment securities available for sale, at fair value | 64,738 | 72,367 | |
Loans held for sale | 1,606 | 928 | |
Loans | 1,039,514 | 1,029,975 | |
Allowance for loan losses | (10,586) | (8,324) | |
NET LOANS | 1,028,928 | 1,021,651 | |
Accrued interest receivable | 3,839 | 4,189 | |
Stock in Federal Home Loan Bank of Atlanta ("FHLB"), at cost | 3,059 | 3,045 | |
Other non-marketable securities | 718 | 719 | |
Foreclosed real estate | 3,737 | 3,533 | |
Premises and equipment, net | 17,868 | 17,791 | |
Right of use lease asset | 8,414 | 8,596 | |
Bank owned life insurance | 29,950 | 29,789 | |
Goodwill | 24,579 | 24,579 | |
Core deposit intangible ("CDI") | 1,431 | 1,610 | |
Other assets | 7,380 | 7,202 | |
TOTAL ASSETS | 1,263,494 | 1,275,076 | |
Deposits: | |||
Demand | 250,031 | 240,305 | |
Savings | 41,815 | 43,128 | |
Money market and NOW | 306,051 | 280,145 | |
Time | 384,754 | 429,260 | |
TOTAL DEPOSITS | 982,651 | 992,838 | |
Short-term debt | 20,000 | 0 | |
Long-term debt | 37,372 | 57,372 | |
Lease liability | 8,669 | 8,813 | |
Accrued interest payable | 536 | 578 | |
Accrued expenses and other liabilities | 2,181 | 2,700 | |
TOTAL LIABILITIES | 1,051,409 | 1,062,301 | |
Shareholders' Equity: | |||
Preferred stock, no par value, 5,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2020 and December 31, 2019 | |||
Common stock, $1.00 par value, 50,000,000 shares authorized; 18,055,692 and 18,330,058 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 18,056 | 18,330 | |
Additional paid-in capital | 138,788 | 140,870 | |
Retained earnings | 53,779 | 52,675 | |
Common stock issued to deferred compensation trust, at cost; 317,756 and 319,753 shares outstanding at March 31, 2020 and December 31, 2019, respectively | (2,791) | (2,815) | |
Directors' Deferred Compensation Plan Rabbi Trust | 2,791 | 2,815 | |
Accumulated other comprehensive income | 1,462 | 900 | |
TOTAL SHAREHOLDERS' EQUITY | 212,085 | 212,775 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,263,494 | $ 1,275,076 | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,055,692 | 18,330,058 |
Common stock, shares outstanding | 18,055,692 | 18,330,058 |
Deferred Comp Plan | ||
Common stock, shares outstanding | 317,756 | 319,753 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME | ||
Loans | $ 13,589 | $ 13,042 |
Federal funds sold and interest-earning deposits in other banks | 168 | 543 |
Investments | 421 | 465 |
TOTAL INTEREST INCOME | 14,178 | 14,050 |
INTEREST EXPENSE | ||
Money market, NOW and savings deposits | 348 | 356 |
Time deposits | 1,931 | 1,753 |
Short-term debt | 87 | 26 |
Long-term debt | 352 | 458 |
TOTAL INTEREST EXPENSE | 2,718 | 2,593 |
NET INTEREST INCOME | 11,460 | 11,457 |
PROVISION FOR LOAN LOSSES | 2,273 | 112 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,187 | 11,345 |
NON-INTEREST INCOME | ||
Fees on the sale of mortgages | 293 | 157 |
Service charges on deposit accounts | 338 | 266 |
Other fees and income | 813 | 774 |
TOTAL NON-INTEREST INCOME | 1,444 | 1,197 |
NON-INTEREST EXPENSE | ||
Personnel | 5,632 | 4,971 |
Occupancy and equipment | 931 | 727 |
Deposit insurance | (12) | 105 |
Professional fees | 372 | 382 |
CDI amortization | 179 | 219 |
Merger/acquisition related expenses | 39 | 0 |
Information systems | 1,038 | 789 |
Foreclosure-related expenses | 5 | 30 |
Other | 1,063 | 1,081 |
TOTAL NON-INTEREST EXPENSE | 9,247 | 8,304 |
INCOME BEFORE INCOME TAX | 1,384 | 4,238 |
INCOME TAXES | 280 | 931 |
NET INCOME | $ 1,104 | $ 3,307 |
NET INCOME PER COMMON SHARE | ||
Basic | $ 0.06 | $ 0.17 |
Diluted | $ 0.06 | $ 0.17 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 18,255,351 | 19,315,686 |
Diluted | 18,287,064 | 19,365,354 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,104 | $ 3,307 |
Other comprehensive income : | ||
Unrealized gain on investment securities available for sale | 731 | 467 |
Tax effect | (169) | (107) |
Unrealized gain (loss) on investment securities available for sale, net | 562 | 360 |
Total comprehensive income | $ 1,666 | $ 3,667 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional paid-in Capital | Retained Earnings | Deferred Comp Plan | Common Stock Issued to Deferred Compensation Trust | Accumulated Other Comprehensive Income (loss) | Total | |
Balance at Dec. 31, 2018 | $ 0 | $ 19,312,000 | $ 150,718,000 | $ 39,640,000 | $ 2,615,000 | $ (2,615,000) | $ (59,000) | $ 209,611,000 | |
Balance (in shares) at Dec. 31, 2018 | 0 | 19,311,505 | |||||||
Net income | $ 0 | $ 0 | 0 | 3,307,000 | 0 | 0 | 0 | 3,307,000 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | 360,000 | 360,000 | |
Stock option exercises | 0 | $ 14,000 | 100,000 | 0 | 0 | 0 | 0 | 114,000 | |
Stock option exercises (in shares) | 14,980 | ||||||||
Stock-based compensation | 0 | $ 0 | 59,000 | 0 | 0 | 0 | 0 | 59,000 | |
Directors' equity incentive plan, net | 0 | 0 | 0 | 0 | (37,000) | 37,000 | 0 | 0 | |
Balance at Mar. 31, 2019 | 0 | $ 19,326,000 | 150,877,000 | 42,947,000 | 2,652,000 | (2,652,000) | 301,000 | 213,451,000 | |
Balance (in shares) at Mar. 31, 2019 | 19,326,485 | ||||||||
Balance at Dec. 31, 2019 | 0 | $ 18,330,000 | 140,870,000 | 52,675,000 | 2,815,000 | (2,815,000) | 900,000 | 212,775,000 | [1] |
Balance (in shares) at Dec. 31, 2019 | 18,330,058 | ||||||||
Net income | 0 | $ 0 | 0 | 1,104,000 | 0 | 0 | 0 | 1,104,000 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | 562,000 | 562,000 | |
Stock repurchases | 0 | $ (275,000) | (2,193,000) | 0 | 0 | 0 | 0 | (2,468,000) | |
Stock repurchases ( in shares) | (275,366) | ||||||||
Stock option exercises | 0 | $ 1,000 | 6,000 | 0 | 0 | 0 | 0 | 7,000 | |
Stock-based compensation | 0 | 0 | 105,000 | 0 | 0 | 0 | 0 | 105,000 | |
Directors' equity incentive plan, net | 0 | 0 | 0 | 0 | (24,000) | 24,000 | 0 | 0 | |
Balance at Mar. 31, 2020 | $ 0 | $ 18,056,000 | $ 138,788,000 | $ 53,779,000 | $ 2,791,000 | $ (2,791,000) | $ 1,462,000 | $ 212,085,000 | |
Balance (in shares) at Mar. 31, 2020 | 18,055,692 | ||||||||
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,104 | $ 3,307 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 2,273 | 112 |
Depreciation and amortization of premises and equipment | 422 | 622 |
Amortization and accretion of investment securities | 171 | 142 |
Amortization of right of use lease asset | 308 | 0 |
Amortization of deferred loan fees and costs | (243) | (217) |
Amortization of core deposit intangible | 179 | 219 |
Stock-based compensation | 105 | 59 |
Accretion on acquired loans | (105) | (200) |
Increase in cash surrender value of bank-owned life insurance | (161) | (165) |
Proceeds from loans held for sale | 10,865 | 6,667 |
Originations of loans held for sale | (11,250) | (6,284) |
Gain on sales of loans held for sale | (293) | (157) |
Net loss on sale and write-downs of foreclosed real estate | 0 | 3 |
Amortization of deposit premium | (7) | 0 |
Change in assets and liabilities: | ||
Net change in accrued interest receivable | 350 | (231) |
Net change in other assets | (346) | (2,016) |
Net change in accrued expenses and other liabilities | (561) | 481 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,811 | 2,342 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of FHLB stock | (14) | (59) |
Redemption of non-marketable security | 1 | 24 |
Purchase of investment securities available for sale | 0 | (37,948) |
Maturities of investment securities available for sale | 3,500 | 0 |
Mortgage-backed securities pay-downs | 4,688 | 3,079 |
Net change in loans outstanding | (9,406) | (5,641) |
Proceeds from sale of foreclosed real estate | 0 | 65 |
Net purchases of premises and equipment | (499) | (417) |
NET CASH (USED IN) INVESTING ACTIVITIES | (1,730) | (40,897) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | (10,180) | (29,461) |
Repurchase stock | (2,468) | 0 |
Repayments of lease liability | (270) | (171) |
Proceeds from stock option exercises | 7 | 114 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (12,911) | (29,518) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (11,830) | (68,073) |
CASH AND CASH EQUIVALENTS, BEGINNING | 79,077 | 139,362 |
CASH AND CASH EQUIVALENTS, ENDING | 67,247 | 71,289 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 2,760 | 2,741 |
Taxes | 0 | 0 |
Non-cash transactions: | ||
Unrealized gains (losses) on investment securities available for sale, net of tax | 562 | 360 |
Transfers from loans to foreclosed real estate | $ 204 | $ 26 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE A - BASIS OF PRESENTATION Select Bancorp, Inc. (the “Company”) is a bank holding company whose principal business activity consists of ownership of Select Bank & Trust Company (referred to as the “Bank”). In 2004, the Company formed New Century Statutory Trust I, which issued trust preferred securities to provide additional capital for general corporate purposes, including the current and future expansion of the Company. New Century Statutory Trust I is not a consolidated subsidiary of the Company. On July 25, 2014, the Company changed its name from New Century Bancorp, Inc. to Select Bancorp, Inc. following its acquisition by merger of Select Bancorp, Inc., Greenville, North Carolina (which we refer to herein as “Legacy Select”). The Company is subject to the rules and regulations of the Board of Governors of the Federal Reserve System and the North Carolina Commissioner of Banks. The Bank was originally incorporated as New Century Bank on May 19, 2000 and began banking operations on May 24, 2000. On July 25, 2014, the Company acquired Select Bank & Trust Company, Greenville, North Carolina, and changed the Bank’s legal name to Select Bank & Trust Company. On December 15, 2017, the Company acquired Premara Financial, Inc. (“Premara”) and its subsidiary Carolina Premier Bank (“Carolina Premier”) through the merger of Premara with and into the Company, followed immediately by the merger of Carolina Premier with and into the Bank. The Bank continues as the only banking subsidiary of the Company with its headquarters and operations center located in Dunn, North Carolina. The Bank is engaged in general commercial and retail banking in central and eastern North Carolina, as well as in Charlotte, North Carolina, northwest South Carolina, and the Virginia Beach -Norfolk-Newport News, VA-NC, metropolitan statistical area. The Bank is subject to the supervision and regulation of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. All significant inter-company transactions and balances have been eliminated in consolidation. In management’s opinion, the financial information, which is unaudited, reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the three months ended March 31, 2020 and 2019, in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the amounts of income and expense during the reporting period. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. The organization and business of the Company, accounting policies followed by the Company and other relevant information are contained in the notes to the financial statements filed as part of the Company’s 2019 Annual Report on Form 10‑K, filed with the Securities and Exchange Commission (“SEC”) on March 11, 2020. This quarterly report should be read in conjunction with the Annual Report. Certain reclassifications of the information in prior periods were made to conform to the March 31, 2020 presentation. Such reclassifications had no effect on shareholders’ equity or net income as previously reported. COVID-19 . The Company has evaluated for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q were issued. On March 11, 2020, the World Health Organization declared the outbreak of the disease caused by a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The outbreak of COVID-19 could adversely impact a broad range of industries in which the Company’s customers operate and impair their ability to fulfill their financial obligations to the Company. Several programs are available to businesses impacted by COVID-19 such as loans available through the Payroll Protection Program, deferrals on loan payments on existing loans and a reduced interest rate program available to financial institutions through the Federal Reserve Bank. On March 3, 2020, the Federal Open Market Committee reduced the target federal funds rate by 50 basis points to 1.00% to 1.25%. This rate was further reduced to a target range of 0% to 0.25% on March 16, 2020. These reductions in interest rates and other effects of the COVID-19 outbreak may adversely affect the Company’s financial condition and results of operations. As a result of the spread of COVID-19, economic uncertainties have arisen which are likely to negatively impact net interest income and noninterest income. Other financial impact could occur though such potential impact is unknown at this time. |
PER SHARE RESULTS
PER SHARE RESULTS | 3 Months Ended |
Mar. 31, 2020 | |
PER SHARE RESULTS | |
PER SHARE RESULTS | NOTE B - PER SHARE RESULTS Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At March 31, 2020 and 2019 there were 219,120 and 168,120 anti-dilutive stock options outstanding, respectively. Three Months Ended March 31, 2020 2019 Weighted average shares used for basic net income per share 18,255,351 19,315,686 Effect of dilutive stock options 31,713 49,668 Weighted average shares used for diluted net income per share 18,287,064 19,365,354 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE C - RECENT ACCOUNTING PRONOUNCEMENTS The following summarizes recent accounting pronouncements and their expected impact on the Company: In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, including loans and available-for-sale debt securities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. On October 16, 2019, the FASB voted to delay implementation of CECL until January 2023 for certain companies, including smaller reporting companies (as defined by the SEC). The Company currently qualifies as a smaller reporting company and is still assessing the impact that this new guidance will have on its consolidated financial statements. In August 2018, the FASB amended ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements . The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The adoption of these amendments did not have a material effect on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test. The Company adopted this ASU during the first quarter of 2020 with no impact to the consolidated financial position as a result of the adoption. In March 2020, the FASB issued Accounting Standards Update ("ASU") 2020-04 - Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides for temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The provisions of this ASU are elective and applicable to all entities that have contracts, hedging relationships and other transactions, subject to certain criteria, that reference LIBOR or another reference rate to be discontinued because of reference rate reform. There are practical expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedge accounting relationships affected by reference rate reform in order to facilitate a smoother transition to new reference rates. For contracts meeting certain criteria, a change in the contract's reference interest rate would be accounted for as a continuation of that contract rather than the creation of a new contract. This provision applies to loans, debt, leases, and other arrangements. An entity will also be permitted to preserve its hedge accounting when updating its hedging strategies in response to reference rate reform. The guidance will only apply to contracts or hedge accounting relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE D - FAIR VALUE MEASUREMENTS Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. Fair value estimates are made at a specific moment 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 active market readily exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: · Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. · Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis. Investment Securities Available-for-Sale (“AFS”) Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. government agencies, mortgage-backed securities issued by government sponsored entities, and municipal bonds. There have been no changes in valuation techniques for the three months ended March 31, 2020. Valuation techniques are consistent with techniques used in prior periods. The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2020 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies–GSE's $ 9,272 $ — $ 9,272 $ — Mortgage-backed securities–GSE's 44,482 — 44,482 — Corporate bonds 2,214 — 2,214 — Municipal bonds 8,770 — 8,770 — Total investment for sale $ 64,738 $ — $ 64,738 $ — Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies–GSE’s $ 9,996 $ — $ 9,996 $ — Mortgage-backed securities–GSE’s 47,743 — 47,743 — Corporate bonds 2,299 — 2,299 — Municipal bonds 12,329 — 12,329 — Total investment for sale $ 72,367 $ — $ 72,367 $ — The following is a description of valuation methodologies used for assets recorded at fair value on a non-recurring basis. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve in the allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, “Receivables”. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, or liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2020 and December 31, 2019, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. Impaired loans where a specific reserve is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as non-recurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as non-recurring Level 3. The significant unobservable input used in the fair value measurement of the Company’s impaired loans is the discount applied to appraised values to account for expected liquidation and selling costs. At March 31, 2020, the discounts used are weighted between 3% and 50%. There were no transfers between levels from the prior reporting periods, and there have been no changes in valuation techniques for the three months ended March 31, 2020. Foreclosed Real Estate Foreclosed real estate are properties recorded at the balance of the loan or an estimated fair value of the real estate collateral less estimated selling costs, whichever is less. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. Therefore, foreclosed real estate is classified within Level 3 of the hierarchy. The significant unobservable input used in the fair value measurement of the Company’s foreclosed real estate is the discount applied to appraised values to account for expected liquidation and selling costs. At March 31, 2020, the discounts used ranged between 6% and 10%. There have been no changes in valuation techniques for the three months ended March 31, 2020. Loans held for sale The Company originates fixed and variable rate residential mortgage loans on a service-release basis in the secondary market. Loans closed but not yet settled with an investor are carried in our loans held for sale portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with our customers. Therefore, these loans present very little market risk. The Company usually delivers to, and receives funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of income. The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2020 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 7,201 $ — $ — $ 7,201 Foreclosed real estate 3,737 — — 3,727 Total $ 10,938 $ — $ — $ 10,938 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 5,941 $ — $ — $ 5,941 Foreclosed real estate 3,533 — — 3,533 Total $ 9,474 $ — $ — $ 9,474 The following table presents the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019: March 31, 2020 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 ( dollars in thousands) Financial assets: Cash and due from banks $ 20,030 $ 20,030 $ 20,030 $ — $ — Interest-earning deposits in other banks 35,544 35,544 35,544 — — Federal funds sold 11,673 11,673 11,673 — — Investment securities available for sale 64,738 64,738 — 64,738 — Loans held for sale 1,606 1,606 — 1,606 — Loans, net 1,028,928 1,009,919 — — 1,009,919 Accrued interest receivable 3,839 3,839 — 3,839 — Stock in FHLB 3,059 3,059 — — 3,059 Other non-marketable securities 718 718 — — 718 Financial liabilities: Deposits $ 982,651 $ 985,248 $ — $ 985,248 $ — Short-term debt 20,000 20,000 — 20,000 — Long-term debt 37,372 35,291 — 35,291 — Accrued interest payable 536 536 — 536 — December 31, 2019 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 19,110 $ 19,110 $ 19,110 $ — $ — Interest-earning deposits in other banks 50,920 50,920 50,920 — — Federal funds sold 9,047 9,047 9,047 — — Investment securities available for sale 72,367 72,367 — 72,367 — Loans held for sale 928 928 — 928 — Loans, net 1,021,651 1,016,239 — — 1,016,239 Accrued interest receivable 4,189 4,189 — 4,189 — Stock in the FHLB 3,045 3,045 — — 3,045 Other non-marketable securities 719 719 — — 719 Financial liabilities: Deposits $ 992,838 $ 995,056 $ — $ 995,056 $ — Long-term debt 57,372 55,429 — 55,429 — Accrued interest payable 578 578 — 578 — |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE E - INVESTMENT SECURITIES The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow: March 31, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies – GSE’s $ 9,038 $ 236 $ (2) $ 9,272 Mortgage-backed securities – GSE’s 42,987 1,506 (11) 44,482 Corporate bonds 2,193 21 — 2,214 Municipal bonds 8,621 149 — 8,770 $ 62,839 $ 1,912 $ (13) $ 64,738 As of March 31, 2020, accumulated other comprehensive income included net unrealized gains totaling $1.9 million. Deferred tax assets resulting from these net unrealized losses totaled $437,000. The amortized cost and fair value of “AFS” investments, with gross unrealized gains and losses, follow: December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies – GSE's $ 9,839 $ 159 $ (2) $ 9,996 Mortgage-backed securities – GSE's 46,926 830 (13) 47,743 Corporate bonds 2,282 17 — 2,299 Municipal bonds 12,152 177 — 12,329 $ 71,199 $ 1,183 $ (15) $ 72,367 As of December 31, 2019, accumulated other comprehensive income included net unrealized gains totaling $1.2 million. Deferred tax liabilities resulting from these net unrealized gains totaled $269,000. The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: March 31, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 9,208 $ 13 $ (6) $ 9,215 After 1 year but within 5 years 34,108 1,299 (6) 35,401 After 5 years but within 10 years 6,457 129 (1) 6,585 After 10 years 13,066 471 — 13,537 $ 62,839 $ 1,912 $ (13) $ 64,738 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 8,901 $ 19 $ (6) $ 8,914 After 1 year but within 5 years 40,954 695 (7) 41,642 After 5 years but within 10 years 4,568 94 (1) 4,661 After 10 years 16,776 375 (1) 17,150 $ 71,199 $ 1,183 $ (15) $ 72,367 Securities with a carrying value of $21.6 million and $18.4 million at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public monies on deposit as required by law, customer repurchase agreements, and access to the Federal Reserve Discount Window. None of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations. The Company has the intent and ability to hold these securities to recovery. No other than temporary impairments were identified for these investments having unrealized losses for the periods ended March 31, 2020 and December 31, 2019. The Company has not incurred any losses related to securities sales in the first three months of 2020 or during the year ended December 31, 2019. The following tables show the gross unrealized losses and fair value of the Company’s investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019. March 31, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies – GSEs $ — $ — $ 565 $ (2) $ 565 $ (2) Mortgage-backed securities – GSEs 1,591 (6) 1,997 (5) 3,588 (11) Municipal bonds — — — — — — Total temporarily impaired securities $ 1,591 $ (6) $ 2,562 $ (7) $ 4,153 $ (13) At March 31, 2020, the Company had three securities with an unrealized loss for more than twelve months of $7,000 which consisted of two U.S. government agencies-GSEs and one mortgage-backed GSE bond. Two mortgage-backed GSEs had unrealized losses for less than twelve months totaling $6,000 at March 31, 2020. All unrealized losses are attributable to the general trend of interest rates. December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies – GSE’s $ 872 $ — $ 621 $ (2) $ 1,493 $ (2) Mortgage-backed securities – GSE’s 2,672 (3) 3,774 (10) 6,446 (13) Corporate bonds — — — — — — Municipal bonds — — — — — — Total temporarily impaired securities $ 3,544 $ (3) $ 4,395 $ (12) $ 7,939 $ (15) At December 31, 2019, the Company had two mortgage-backed GSE’s and one U.S Government agency – GSE with an unrealized loss for twelve or more consecutive months totaling $12,000. The Company had three securities with a loss for twelve months or less at December 31, 2019. One U.S. government agency GSE and two mortgage-backed GSE’s had unrealized losses for less than twelve months totaling $3,000 at December 31, 2019. All unrealized losses are attributable to the general trend of interest rates. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2020 | |
LOANS | |
LOANS | NOTE F - LOANS Following is a summary of the composition of the Company’s loan portfolio at March 31, 2020 and December 31, 2019: March 31, December 31, Total Loans: 2020 2019 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 153,923 14.81 % $ 151,697 14.73 % Commercial real estate 464,326 44.67 % 459,115 44.58 % Multi-family residential 70,731 6.80 % 69,124 6.71 % Construction 228,646 21.99 % 221,878 21.55 % Home equity lines of credit (“HELOC”) 43,816 4.22 % 44,514 4.32 % Total real estate loans 961,442 92.49 % 946,328 91.89 % Other loans: Commercial and industrial 72,227 6.95 % 75,748 7.35 % Loans to individuals 7,767 0.75 % 9,779 0.95 % Overdrafts 242 0.02 % 234 0.02 % Total other loans 80,236 7.72 % 85,761 8.32 % Gross loans 1,041,678 1,032,089 Less deferred loan origination fees, net (2,164) (0.21) % (2,114) (0.21) % Total loans 1,039,514 100.00 % 1,029,975 100.00 % Allowance for loan losses (10,586) (8,324) Total loans, net $ 1,028,928 $ 1,021,651 For Purchased Credit Impaired, or PCI loans, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of March 31, 2020 and December 31, 2019 were: (dollars in thousands) March 31, 2020 December 31, 2019 Contractually required payments $ 18,983 $ 20,598 Nonaccretable difference 1,574 1,694 Cash flows expected to be collected 17,409 18,904 Accretable yield 2,986 3,191 Carrying value $ 14,423 $ 15,713 Loans are primarily secured by real estate located in eastern and central North Carolina and northwestern South Carolina. Real estate loans can be affected by the condition of the local real estate market and by local economic conditions. At March 31, 2020, the Company had pre-approved but unused lines of credit for customers totaling $174.2 million. In management’s opinion, these commitments, and undisbursed proceeds on loans reflected above, represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity. A floating lien of $108.6 million of loans was pledged to the FHLB to secure borrowings at March 31, 2020. The following tables present an age analysis of past due loans, segregated by class of loans as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 58 $ 977 $ 46 $ 3,746 $ 4,827 $ 67,400 $ 72,227 Construction — — — 177 177 228,469 228,646 Multi-family residential — — — — — 70,731 70,731 Commercial real estate 2,321 5 323 1,766 4,415 459,911 464,326 Loans to individuals & overdrafts 4 — — 148 152 7,857 8,009 1-to-4 family residential 883 34 813 922 2,652 151,271 153,923 HELOC 170 — — 442 612 43,204 43,816 Deferred loan (fees) cost, net — — — — — — (2,164) $ 3,436 $ 1,016 $ 1,182 $ 7,201 $ 12,835 $ 1,028,843 $ 1,039,514 December 31, 2019 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Total loans Commercial and industrial $ 1,108 $ 34 $ 46 $ 2,824 $ 4,012 $ 71,736 $ 75,748 Construction — — — 181 181 221,697 221,878 Multi-family residential — — — — — 69,124 69,124 Commercial real estate 393 82 321 1,832 2,628 456,487 459,115 Loans to individuals & overdrafts 5 — — 155 160 9,853 10,013 1-to-4 family residential 859 810 864 505 3,038 148,659 151,697 HELOC 168 — — 444 612 43,902 44,514 Deferred loan (fees) cost, net — — — — — — (2,114) $ 2,533 $ 926 $ 1,231 $ 5,941 $ 10,631 $ 1,021,458 $ 1,029,975 Impaired Loans The following tables present information on loans that were considered to be impaired as of March 31, 2020 and December 31, 2019: Three months ended As of March 31, 2020 March 31, 2020 Contractual Interest Income Unpaid Related Average Recognized on Recorded Principal Allowance Recorded Impaired Investment Balance for Loan Losses Investment Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,688 $ 4,181 $ — $ 3,684 $ 44 Construction 436 535 — 438 5 Commercial real estate 4,925 5,744 — 5,504 65 Multi-family residential — — — 269 11 Loans to individuals 255 270 — 99 — HELOC 750 953 — 734 12 1-to-4 family residential 360 1,792 — 1,735 12 Subtotal: 9,414 13,475 — 12,463 149 With an allowance recorded: Commercial and industrial 1,128 1,133 601 1,037 — Commercial real estate 140 140 96 70 — HELOC — — — — — 1-to-4 family residential 71 70 5 71 10 Subtotal: 1,339 1,343 702 1,178 10 Totals: Commercial 9,317 11,733 697 10,832 114 Consumer 255 270 — 269 11 Residential 1,181 2,815 5 2,540 34 Grand Total: $ 10,753 $ 14,818 $ 702 $ 13,641 $ 159 Impaired loans at March 31, 2020 were approximately $10.8 million and were composed of $7.2 million in non-accrual loans and $3.6 million in loans that were still accruing interest. Recorded investment represents the current principal balance of the loan. Approximately $1.3 million in impaired loans had specific allowances provided for them while the remaining $9.4 million had no specific allowances recorded at March 31, 2020. Of the $9.4 million with no allowance recorded, $373,000 of those loans have had partial charge-offs recorded. Three months ended As of December 31, 2019 March 31, 2019 Contractual Interest Income Unpaid Related Average Recognized on Recorded Principal Allowance Recorded Impaired Investment Balance for Loan Losses Investment Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,796 $ 4,051 $ — $ 3,853 $ 4 Construction 440 537 — 552 5 Commercial real estate 5,585 6,750 — 5,843 66 Multi-family residential 197 197 — 213 3 Loans to individuals & overdrafts 284 293 — 109 — HELOC 543 678 — 957 15 1-to-4 family residential 395 1,816 — 990 16 Subtotal: 10,240 14,322 — 12,517 109 With an allowance recorded: Commercial and industrial 731 1,056 403 232 6 Construction — — — — — HELOC 160 222 — — — 1-to-4 family residential 81 94 10 134 7 Subtotal: 972 1,307 413 366 13 Totals: Commercial 9,749 12,591 403 10,693 84 Consumer 284 293 — 109 — Residential 1,179 2,810 10 2,081 38 Grand Total: $ 11,212 $ 15,694 $ 413 $ 12,883 $ 122 Impaired loans at December 31, 2019 were approximately $11.2 million and included $5.9 million in non-accrual loans and $6.2 million in loans still in accruing status. Recorded investment represents the current principal balance for the loan. Approximately $972,000 of the $11.2 million in impaired loans at December 31, 2019 had specific allowances aggregating $413,000 while the remaining $10.2 million had no specific allowances recorded. Of the $10.2 million with no allowance recorded, partial charge-offs through December 31, 2019 amounted to $4.1 million. Loans are placed on non-accrual status when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. Troubled Debt Restructurings The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the first quarter of 2020 and 2019: Three months ended March 31, 2020 Three months ended March 31, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of loans Investment Investment of loans Investment Investment (dollars in thousands) Extended payment terms: Commercial and industrial 5 $ 2,455 $ 2,360 4 $ 1,365 $ 1,275 Commercial real estate — — — 3 1,283 1,015 1-to-4 family residential 2 209 184 2 432 409 Construction 1 259 259 — — — HELOC 1 50 50 — — — Loans to individuals — — — 1 1 1 Total 9 $ 2,973 $ 2,853 10 $ 3,081 $ 2,700 The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default during that period together with concessions made by loan class during the twelve month periods ended March 31, 2020 and 2019: Twelve months ended Twelve months ended March 31, 2020 March 31, 2019 Number Recorded Number Recorded of loans investment of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 3 $ 2,209 8 $ 1,591 Construction — — 1 34 Commercial real estate — — 3 697 Loans to Individuals — — 1 1 1-to-4 family residential — — 4 128 Total 3 $ 2,209 17 $ 2,451 At March 31, 2020, the Bank had forty-three loans with an aggregate balance of $9.3 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-eight loans with a balance totaling $3.6 million were still accruing as of March 31, 2020. The remaining TDRs with balances totaling $5.7 million as of March 31, 2020 were in non-accrual status. In response to the impact of COVID - 19 payment deferrals were granted on 290 loans totaling $167.3 million through May 5, 2020. At March 31, 2019, the Bank had thirty-nine loans with an aggregate balance of $7.7 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-two loans with a balance totaling $5.2 million were still accruing as of March 31, 2019. The remaining TDRs with balances totaling $2.5 million as of March 31, 2019 were in non-accrual status. The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of March 31, 2020 and December 31, 2019, respectively: Total loans: March 31, 2020 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 2,517 $ — $ 534 $ — Very good 244 107 1,566 — Good 5,554 8,445 59,285 6,422 Acceptable 19,928 17,821 257,167 37,544 Acceptable with care 37,540 201,837 139,746 26,765 Special mention 742 259 1,479 — Substandard 5,702 177 4,549 — Doubtful — — — — Loss — — — — $ 72,227 $ 228,646 $ 464,326 $ 70,731 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 150,325 $ 42,703 Special mention 1,133 292 Substandard 2,465 821 $ 153,923 $ 43,816 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,735 Special mention 274 $ 8,009 Total Loans: December 31, 2019 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 4,014 $ — $ 337 $ — Very good 349 110 1,245 — Good 5,976 8,674 62,643 4,839 Acceptable 19,197 16,249 255,751 41,113 Acceptable with care 40,579 196,228 133,190 23,172 Special mention 242 436 1,490 — Substandard 5,391 181 4,459 — Doubtful — — — — Loss — — — — $ 75,748 $ 221,878 $ 459,115 $ 69,124 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 147,958 $ 43,585 Special mention 1,246 76 Substandard 2,493 853 $ 151,697 $ 44,514 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 9,727 Special mention 286 $ 10,013 Determining the fair value of PCI loans at acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of cash flows expected to be collected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP, there was no carry-over of previously established allowance for credit losses from the acquired company. The following table documents changes to the amount of the accretable yield on PCI loans for the three months ended March 31, 2020 and 2019: 2020 2019 (dollars in thousands) Accretable yield, beginning of period $ 3,191 $ 3,593 Accretion (280) (288) Reclassification from (to) nonaccretable difference 32 117 Other changes, net 43 299 Accretable yield, end of period $ 2,986 $ 3,721 The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month periods ended March 31, 2020 and March 31, 2019, respectively (dollars in thousands): Three months ended March 31, 2020 Commercial 1-to- 4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 1,127 $ 1,731 $ 2,837 $ 1,437 $ 329 $ 175 $ 419 $ 8,055 Provision for (recovery of) loan losses 717 394 720 267 69 (20) 127 2,274 Loans charged-off (11) — — — — (16) — (27) Recoveries 1 — 1 10 — 4 — 16 Balance, end of period $ 1,834 $ 2,125 $ 3,558 $ 1,714 $ 398 $ 143 $ 546 $ 10,318 PCI Loans Balance, beginning of period $ 178 $ 6 $ 14 $ 56 $ — $ — $ 15 $ 269 Provision for (recovery of) loan losses 21 1 — (13) — — (10) (1) Loans charged-off — — — — — — — — Recoveries — — — — — — — — Balance, end of period $ 199 $ 7 $ 14 $ 43 $ — $ — $ 5 $ 268 Total Loans Balance, beginning of period $ 1,305 $ 1,737 $ 2,851 $ 1,493 $ 329 $ 175 $ 434 $ 8,324 Provision for (recovery of) loan losses 738 395 720 254 69 (20) 117 2,273 Loans charged-off (11) — — — — (16) — (27) Recoveries 1 — 1 10 — 4 — 16 Balance, end of period $ 2,033 $ 2,132 $ 3,572 $ 1,757 $ 398 $ 143 $ 551 $ 10,586 Ending Balance: individually evaluated for impairment $ 601 $ — $ 96 $ 5 $ — $ — $ — $ 702 Ending Balance: collectively evaluated for impairment $ 1,432 $ 2,132 $ 3,476 $ 1,752 $ 398 $ 143 $ 551 $ 9,884 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 67,312 $ 227,538 $ 453,592 $ 147,444 $ 43,017 $ 7,754 $ 69,845 $ 1,016,502 Ending Balance: collectively evaluated for impairment PCI loans $ 1,099 $ 672 $ 5,669 $ 6,048 $ 49 $ — $ 886 $ 14,423 Ending Balance: individually evaluated for impairment $ 3,816 $ 436 $ 5,065 $ 431 $ 750 $ 255 $ — $ 10,753 Ending Balance $ 72,227 $ 228,646 $ 464,326 $ 153,923 $ 43,816 $ 8,009 $ 70,731 $ 1,041,678 Three months ended March 31, 2019 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 762 $ 1,385 $ 3,024 $ 1,663 $ 555 $ 206 $ 471 $ 8,066 Provision for (recovery of) loan losses 214 186 356 (461) (80) (15) (63) 137 Loans charged-off (251) — — — (49) (19) — (319) Recoveries 5 1 15 9 13 5 — 48 Balance, end of period $ 730 $ 1,572 $ 3,395 $ 1,211 $ 439 $ 177 $ 408 $ 7,932 PCI Loans Balance, beginning of period $ 214 $ — $ 385 $ 4 $ — $ — $ — $ 603 Provision for (recovery of) loan losses (168) 23 (152) 242 2 — 28 (25) Loans charged-off — — — — — — — — Recoveries — — — — — — — — Balance, end of period $ 46 $ 23 $ 233 $ 246 $ 2 $ — $ 28 $ 578 Total Loans Balance, beginning of period $ 976 $ 1,385 $ 3,409 $ 1,667 $ 555 $ 206 $ 471 $ 8,669 Provision for (recovery of) loan losses 46 209 204 (219) (78) (15) (35) 112 Loans charged-off (251) — — — (49) (19) — (319) Recoveries 5 1 15 9 13 5 — 48 Balance, end of period $ 776 $ 1,595 $ 3,628 $ 1,457 $ 441 $ 177 $ 436 $ 8,510 Ending Balance: individually evaluated for impairment $ 75 $ — $ — $ 7 $ — $ — $ — $ 82 Ending Balance: collectively evaluated for impairment $ 701 $ 1,595 $ 3,628 $ 1,450 $ 441 $ 177 $ 436 $ 8,428 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 75,481 $ 179,872 $ 444,893 $ 148,073 $ 47,853 $ 11,313 $ 56,092 $ 963,577 Ending Balance: collectively evaluated for impairment PCI loans $ 1,481 $ 747 $ 7,587 $ 8,011 $ 50 $ — $ 927 $ 18,803 Ending Balance: individually evaluated for impairment $ 2,767 $ 543 $ 6,008 $ 648 $ 857 $ 117 $ 211 $ 11,151 Ending Balance $ 79,729 $ 181,162 $ 458,488 $ 156,732 $ 48,760 $ 11,430 $ 57,230 $ 993,531 |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2020 | |
LOANS HELD FOR SALE | |
LOANS HELD FOR SALE | NOTE G – LOANS HELD FOR SALE The Company originates fixed and variable rate residential mortgage loans on a service release basis in the secondary market. Loans closed but not yet settled with an investor are carried in loans held for sale portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with customers. Therefore, these loans present very little market risk. The Company usually delivers to, and receive funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of operations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE H – REVENUE RECOGNITION The table below presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2020 and 2019. Three Months Three Months Ended Ended March 31, March 31, 2020 2019 (dollars in thousands) Service Charges on Deposit Accounts $ 338 $ 266 Other 507 502 Noninterest Income (in-scope of Topic 606) 845 768 Noninterest Income (out-of-scope of Topic 606) 599 429 Total Non-interest Income $ 1,444 $ 1,197 The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2020 and December 31, 2019, the Company did not have any significant contract balances. The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2020 | |
OTHER REAL ESTATE OWNED | |
OTHER REAL ESTATE OWNED | NOTE I – OTHER REAL ESTATE OWNED The following table explains changes in other real estate owned, or OREO, during the three months ended March 31, 2020 and the year ended December 31, 2019: Three Months Twelve Months Ended Ended March 31, December 31, 2020 2019 (dollars in thousands) Beginning balance January 1 $ 3,533 $ 1,088 Sales — (120) Write-downs — (49) Transfers 204 2,614 Ending balance $ 3,737 $ 3,533 At March 31, 2020 and December 31, 2019, the Company had $3.7 million and $3.5 million, respectively, of foreclosed residential real estate property in OREO. The Company had two loans with a recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure in the aggregate amount of $428,000 at March 31, 2020. At December 31, 2019, the Company had 3 loans with recorded investment in the amount of $114,000 in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
LEASES | NOTE J – LEASES The Company has operating leases for branches and certain equipment. The Company’s leases have remaining lease terms of 1 year to 15 years which may include options to extend the leases for up to 5 years per option period. The Company has some leases that are month to month or expire within 1 year that are not included below. At March 31, 2020, the Company did not have any leases that had not yet commenced for which we had created a right-of-use asset and a lease liability. For the operating leases the Company has elected the practical expedient of not separating lease components from non-lease components and instead to account for each separate lease component and the non-lease components associated with that lease as a single lease component. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the lease agreements include periodic rate adjustments for inflation. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 25 years. The exercise of lease renewal options is at our sole discretion. When it is reasonably certain that the Company will exercise the option to renew or extend the lease term, that option is included in determining the value of the ROU and lease liability. The components of lease expense were as follows: Three Months Three Months Ended March 31, Ended March 31, 2020 2019 (dollars in thousands) Operating lease cost $ 308 $ 261 Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 308 $ 261 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,414 9,013 The following table presents the remaining weighted average lease terms and discount rates as of March 31, 2020 and 2019 : March 31, 2020 March 31, 2019 Weighted Average Remaining Lease Term Operating Leases 6.7 years years Weighted Average Discount Rate Operating Leases 6.0 % 6.0 % Maturities of lease liabilities were as follows: (In thousands) Operating Year Ending December 31, Leases 2020 (excluding the three months ended March 31, 2020) $ 442 2021 649 2022 722 2023 702 2024 675 Thereafter 5,479 Total lease payments $ 8,669 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE K – SUBSEQUENT EVENTS The Company has evaluated for subsequent events through the date and time the financial statements were issued and has determined there are two reportable subsequent events. On April 17, 2020 the Company's wholly owned subsidiary Select Bank & Trust acquired three branches located in western North Carolina from First Citizens Bank with carrying values of approximately $107 million in loans, $2 million in fixed assets and $185 million in deposits. In addition, approximately 1,100 of Select Bank & Trust's customers participated in the Paycheck Protection Program (PPP) under the CARES Act in which approximately $91 million of PPP loans were approved by the Small Business Administration which is intended to provide economic relief to small businesses adversely impacted by COVID - 19 as of May 5, 2020. |
PER SHARE RESULTS (Tables)
PER SHARE RESULTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
PER SHARE RESULTS | |
Schedule of earnings per share basic and diluted | Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At March 31, 2020 and 2019 there were 219,120 and 168,120 anti-dilutive stock options outstanding, respectively. Three Months Ended March 31, 2020 2019 Weighted average shares used for basic net income per share 18,255,351 19,315,686 Effect of dilutive stock options 31,713 49,668 Weighted average shares used for diluted net income per share 18,287,064 19,365,354 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value on a recurring basis | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2020 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies–GSE's $ 9,272 $ — $ 9,272 $ — Mortgage-backed securities–GSE's 44,482 — 44,482 — Corporate bonds 2,214 — 2,214 — Municipal bonds 8,770 — 8,770 — Total investment for sale $ 64,738 $ — $ 64,738 $ — Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies–GSE’s $ 9,996 $ — $ 9,996 $ — Mortgage-backed securities–GSE’s 47,743 — 47,743 — Corporate bonds 2,299 — 2,299 — Municipal bonds 12,329 — 12,329 — Total investment for sale $ 72,367 $ — $ 72,367 $ — |
Schedule of fair value on a non-recurring basis | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019 (in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2020 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 7,201 $ — $ — $ 7,201 Foreclosed real estate 3,737 — — 3,727 Total $ 10,938 $ — $ — $ 10,938 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 5,941 $ — $ — $ 5,941 Foreclosed real estate 3,533 — — 3,533 Total $ 9,474 $ — $ — $ 9,474 |
Schedule of carrying and fair values | The following table presents the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019: March 31, 2020 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 ( dollars in thousands) Financial assets: Cash and due from banks $ 20,030 $ 20,030 $ 20,030 $ — $ — Interest-earning deposits in other banks 35,544 35,544 35,544 — — Federal funds sold 11,673 11,673 11,673 — — Investment securities available for sale 64,738 64,738 — 64,738 — Loans held for sale 1,606 1,606 — 1,606 — Loans, net 1,028,928 1,009,919 — — 1,009,919 Accrued interest receivable 3,839 3,839 — 3,839 — Stock in FHLB 3,059 3,059 — — 3,059 Other non-marketable securities 718 718 — — 718 Financial liabilities: Deposits $ 982,651 $ 985,248 $ — $ 985,248 $ — Short-term debt 20,000 20,000 — 20,000 — Long-term debt 37,372 35,291 — 35,291 — Accrued interest payable 536 536 — 536 — December 31, 2019 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 19,110 $ 19,110 $ 19,110 $ — $ — Interest-earning deposits in other banks 50,920 50,920 50,920 — — Federal funds sold 9,047 9,047 9,047 — — Investment securities available for sale 72,367 72,367 — 72,367 — Loans held for sale 928 928 — 928 — Loans, net 1,021,651 1,016,239 — — 1,016,239 Accrued interest receivable 4,189 4,189 — 4,189 — Stock in the FHLB 3,045 3,045 — — 3,045 Other non-marketable securities 719 719 — — 719 Financial liabilities: Deposits $ 992,838 $ 995,056 $ — $ 995,056 $ — Long-term debt 57,372 55,429 — 55,429 — Accrued interest payable 578 578 — 578 — |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and fair value of AFS investments | The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow: March 31, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies – GSE’s $ 9,038 $ 236 $ (2) $ 9,272 Mortgage-backed securities – GSE’s 42,987 1,506 (11) 44,482 Corporate bonds 2,193 21 — 2,214 Municipal bonds 8,621 149 — 8,770 $ 62,839 $ 1,912 $ (13) $ 64,738 The amortized cost and fair value of “AFS” investments, with gross unrealized gains and losses, follow: December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies – GSE's $ 9,839 $ 159 $ (2) $ 9,996 Mortgage-backed securities – GSE's 46,926 830 (13) 47,743 Corporate bonds 2,282 17 — 2,299 Municipal bonds 12,152 177 — 12,329 $ 71,199 $ 1,183 $ (15) $ 72,367 |
Schedule of unrealized loss on investments | The following tables show the gross unrealized losses and fair value of the Company’s investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019. March 31, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies – GSEs $ — $ — $ 565 $ (2) $ 565 $ (2) Mortgage-backed securities – GSEs 1,591 (6) 1,997 (5) 3,588 (11) Municipal bonds — — — — — — Total temporarily impaired securities $ 1,591 $ (6) $ 2,562 $ (7) $ 4,153 $ (13) December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies – GSE’s $ 872 $ — $ 621 $ (2) $ 1,493 $ (2) Mortgage-backed securities – GSE’s 2,672 (3) 3,774 (10) 6,446 (13) Corporate bonds — — — — — — Municipal bonds — — — — — — Total temporarily impaired securities $ 3,544 $ (3) $ 4,395 $ (12) $ 7,939 $ (15) |
Schedule of Investments Classified By Contractual Maturity Date | The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: March 31, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 9,208 $ 13 $ (6) $ 9,215 After 1 year but within 5 years 34,108 1,299 (6) 35,401 After 5 years but within 10 years 6,457 129 (1) 6,585 After 10 years 13,066 471 — 13,537 $ 62,839 $ 1,912 $ (13) $ 64,738 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 8,901 $ 19 $ (6) $ 8,914 After 1 year but within 5 years 40,954 695 (7) 41,642 After 5 years but within 10 years 4,568 94 (1) 4,661 After 10 years 16,776 375 (1) 17,150 $ 71,199 $ 1,183 $ (15) $ 72,367 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LOANS | |
Schedule of the composition of the loan portfolio | Following is a summary of the composition of the Company’s loan portfolio at March 31, 2020 and December 31, 2019: March 31, December 31, Total Loans: 2020 2019 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 153,923 14.81 % $ 151,697 14.73 % Commercial real estate 464,326 44.67 % 459,115 44.58 % Multi-family residential 70,731 6.80 % 69,124 6.71 % Construction 228,646 21.99 % 221,878 21.55 % Home equity lines of credit (“HELOC”) 43,816 4.22 % 44,514 4.32 % Total real estate loans 961,442 92.49 % 946,328 91.89 % Other loans: Commercial and industrial 72,227 6.95 % 75,748 7.35 % Loans to individuals 7,767 0.75 % 9,779 0.95 % Overdrafts 242 0.02 % 234 0.02 % Total other loans 80,236 7.72 % 85,761 8.32 % Gross loans 1,041,678 1,032,089 Less deferred loan origination fees, net (2,164) (0.21) % (2,114) (0.21) % Total loans 1,039,514 100.00 % 1,029,975 100.00 % Allowance for loan losses (10,586) (8,324) Total loans, net $ 1,028,928 $ 1,021,651 |
Schedule of Purchased Credit Impaired, or PCI, the contractually required payments including principal and interest, cash flows expected to be collected | For Purchased Credit Impaired, or PCI loans, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of March 31, 2020 and December 31, 2019 were: (dollars in thousands) March 31, 2020 December 31, 2019 Contractually required payments $ 18,983 $ 20,598 Nonaccretable difference 1,574 1,694 Cash flows expected to be collected 17,409 18,904 Accretable yield 2,986 3,191 Carrying value $ 14,423 $ 15,713 |
Schedule of age analysis of past due loans, segregated by class of loans | The following tables present an age analysis of past due loans, segregated by class of loans as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 58 $ 977 $ 46 $ 3,746 $ 4,827 $ 67,400 $ 72,227 Construction — — — 177 177 228,469 228,646 Multi-family residential — — — — — 70,731 70,731 Commercial real estate 2,321 5 323 1,766 4,415 459,911 464,326 Loans to individuals & overdrafts 4 — — 148 152 7,857 8,009 1-to-4 family residential 883 34 813 922 2,652 151,271 153,923 HELOC 170 — — 442 612 43,204 43,816 Deferred loan (fees) cost, net — — — — — — (2,164) $ 3,436 $ 1,016 $ 1,182 $ 7,201 $ 12,835 $ 1,028,843 $ 1,039,514 December 31, 2019 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Total loans Commercial and industrial $ 1,108 $ 34 $ 46 $ 2,824 $ 4,012 $ 71,736 $ 75,748 Construction — — — 181 181 221,697 221,878 Multi-family residential — — — — — 69,124 69,124 Commercial real estate 393 82 321 1,832 2,628 456,487 459,115 Loans to individuals & overdrafts 5 — — 155 160 9,853 10,013 1-to-4 family residential 859 810 864 505 3,038 148,659 151,697 HELOC 168 — — 444 612 43,902 44,514 Deferred loan (fees) cost, net — — — — — — (2,114) $ 2,533 $ 926 $ 1,231 $ 5,941 $ 10,631 $ 1,021,458 $ 1,029,975 |
Schedule of information on loans that were considered to be impaired | The following tables present information on loans that were considered to be impaired as of March 31, 2020 and December 31, 2019: Three months ended As of March 31, 2020 March 31, 2020 Contractual Interest Income Unpaid Related Average Recognized on Recorded Principal Allowance Recorded Impaired Investment Balance for Loan Losses Investment Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,688 $ 4,181 $ — $ 3,684 $ 44 Construction 436 535 — 438 5 Commercial real estate 4,925 5,744 — 5,504 65 Multi-family residential — — — 269 11 Loans to individuals 255 270 — 99 — HELOC 750 953 — 734 12 1-to-4 family residential 360 1,792 — 1,735 12 Subtotal: 9,414 13,475 — 12,463 149 With an allowance recorded: Commercial and industrial 1,128 1,133 601 1,037 — Commercial real estate 140 140 96 70 — HELOC — — — — — 1-to-4 family residential 71 70 5 71 10 Subtotal: 1,339 1,343 702 1,178 10 Totals: Commercial 9,317 11,733 697 10,832 114 Consumer 255 270 — 269 11 Residential 1,181 2,815 5 2,540 34 Grand Total: $ 10,753 $ 14,818 $ 702 $ 13,641 $ 159 Three months ended As of December 31, 2019 March 31, 2019 Contractual Interest Income Unpaid Related Average Recognized on Recorded Principal Allowance Recorded Impaired Investment Balance for Loan Losses Investment Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,796 $ 4,051 $ — $ 3,853 $ 4 Construction 440 537 — 552 5 Commercial real estate 5,585 6,750 — 5,843 66 Multi-family residential 197 197 — 213 3 Loans to individuals & overdrafts 284 293 — 109 — HELOC 543 678 — 957 15 1-to-4 family residential 395 1,816 — 990 16 Subtotal: 10,240 14,322 — 12,517 109 With an allowance recorded: Commercial and industrial 731 1,056 403 232 6 Construction — — — — — HELOC 160 222 — — — 1-to-4 family residential 81 94 10 134 7 Subtotal: 972 1,307 413 366 13 Totals: Commercial 9,749 12,591 403 10,693 84 Consumer 284 293 — 109 — Residential 1,179 2,810 10 2,081 38 Grand Total: $ 11,212 $ 15,694 $ 413 $ 12,883 $ 122 |
Schedule of loans that were modified as troubled debt restructurings ("TDRs") with a breakdown of the types of concessions made by loan class | The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the first quarter of 2020 and 2019: Three months ended March 31, 2020 Three months ended March 31, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of loans Investment Investment of loans Investment Investment (dollars in thousands) Extended payment terms: Commercial and industrial 5 $ 2,455 $ 2,360 4 $ 1,365 $ 1,275 Commercial real estate — — — 3 1,283 1,015 1-to-4 family residential 2 209 184 2 432 409 Construction 1 259 259 — — — HELOC 1 50 50 — — — Loans to individuals — — — 1 1 1 Total 9 $ 2,973 $ 2,853 10 $ 3,081 $ 2,700 The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default during that period together with concessions made by loan class during the twelve month periods ended March 31, 2020 and 2019: Twelve months ended Twelve months ended March 31, 2020 March 31, 2019 Number Recorded Number Recorded of loans investment of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 3 $ 2,209 8 $ 1,591 Construction — — 1 34 Commercial real estate — — 3 697 Loans to Individuals — — 1 1 1-to-4 family residential — — 4 128 Total 3 $ 2,209 17 $ 2,451 |
Schedule of information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class | The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of March 31, 2020 and December 31, 2019, respectively: Total loans: March 31, 2020 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 2,517 $ — $ 534 $ — Very good 244 107 1,566 — Good 5,554 8,445 59,285 6,422 Acceptable 19,928 17,821 257,167 37,544 Acceptable with care 37,540 201,837 139,746 26,765 Special mention 742 259 1,479 — Substandard 5,702 177 4,549 — Doubtful — — — — Loss — — — — $ 72,227 $ 228,646 $ 464,326 $ 70,731 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 150,325 $ 42,703 Special mention 1,133 292 Substandard 2,465 821 $ 153,923 $ 43,816 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,735 Special mention 274 $ 8,009 Total Loans: December 31, 2019 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 4,014 $ — $ 337 $ — Very good 349 110 1,245 — Good 5,976 8,674 62,643 4,839 Acceptable 19,197 16,249 255,751 41,113 Acceptable with care 40,579 196,228 133,190 23,172 Special mention 242 436 1,490 — Substandard 5,391 181 4,459 — Doubtful — — — — Loss — — — — $ 75,748 $ 221,878 $ 459,115 $ 69,124 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 147,958 $ 43,585 Special mention 1,246 76 Substandard 2,493 853 $ 151,697 $ 44,514 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 9,727 Special mention 286 $ 10,013 |
Schedule of changes to the amount of the accretable yield on PCI loans | The following table documents changes to the amount of the accretable yield on PCI loans for the three months ended March 31, 2020 and 2019: 2020 2019 (dollars in thousands) Accretable yield, beginning of period $ 3,191 $ 3,593 Accretion (280) (288) Reclassification from (to) nonaccretable difference 32 117 Other changes, net 43 299 Accretable yield, end of period $ 2,986 $ 3,721 |
Schedule of allowance for loan losses by loan class | The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month periods ended March 31, 2020 and March 31, 2019, respectively (dollars in thousands): Three months ended March 31, 2020 Commercial 1-to- 4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 1,127 $ 1,731 $ 2,837 $ 1,437 $ 329 $ 175 $ 419 $ 8,055 Provision for (recovery of) loan losses 717 394 720 267 69 (20) 127 2,274 Loans charged-off (11) — — — — (16) — (27) Recoveries 1 — 1 10 — 4 — 16 Balance, end of period $ 1,834 $ 2,125 $ 3,558 $ 1,714 $ 398 $ 143 $ 546 $ 10,318 PCI Loans Balance, beginning of period $ 178 $ 6 $ 14 $ 56 $ — $ — $ 15 $ 269 Provision for (recovery of) loan losses 21 1 — (13) — — (10) (1) Loans charged-off — — — — — — — — Recoveries — — — — — — — — Balance, end of period $ 199 $ 7 $ 14 $ 43 $ — $ — $ 5 $ 268 Total Loans Balance, beginning of period $ 1,305 $ 1,737 $ 2,851 $ 1,493 $ 329 $ 175 $ 434 $ 8,324 Provision for (recovery of) loan losses 738 395 720 254 69 (20) 117 2,273 Loans charged-off (11) — — — — (16) — (27) Recoveries 1 — 1 10 — 4 — 16 Balance, end of period $ 2,033 $ 2,132 $ 3,572 $ 1,757 $ 398 $ 143 $ 551 $ 10,586 Ending Balance: individually evaluated for impairment $ 601 $ — $ 96 $ 5 $ — $ — $ — $ 702 Ending Balance: collectively evaluated for impairment $ 1,432 $ 2,132 $ 3,476 $ 1,752 $ 398 $ 143 $ 551 $ 9,884 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 67,312 $ 227,538 $ 453,592 $ 147,444 $ 43,017 $ 7,754 $ 69,845 $ 1,016,502 Ending Balance: collectively evaluated for impairment PCI loans $ 1,099 $ 672 $ 5,669 $ 6,048 $ 49 $ — $ 886 $ 14,423 Ending Balance: individually evaluated for impairment $ 3,816 $ 436 $ 5,065 $ 431 $ 750 $ 255 $ — $ 10,753 Ending Balance $ 72,227 $ 228,646 $ 464,326 $ 153,923 $ 43,816 $ 8,009 $ 70,731 $ 1,041,678 Three months ended March 31, 2019 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 762 $ 1,385 $ 3,024 $ 1,663 $ 555 $ 206 $ 471 $ 8,066 Provision for (recovery of) loan losses 214 186 356 (461) (80) (15) (63) 137 Loans charged-off (251) — — — (49) (19) — (319) Recoveries 5 1 15 9 13 5 — 48 Balance, end of period $ 730 $ 1,572 $ 3,395 $ 1,211 $ 439 $ 177 $ 408 $ 7,932 PCI Loans Balance, beginning of period $ 214 $ — $ 385 $ 4 $ — $ — $ — $ 603 Provision for (recovery of) loan losses (168) 23 (152) 242 2 — 28 (25) Loans charged-off — — — — — — — — Recoveries — — — — — — — — Balance, end of period $ 46 $ 23 $ 233 $ 246 $ 2 $ — $ 28 $ 578 Total Loans Balance, beginning of period $ 976 $ 1,385 $ 3,409 $ 1,667 $ 555 $ 206 $ 471 $ 8,669 Provision for (recovery of) loan losses 46 209 204 (219) (78) (15) (35) 112 Loans charged-off (251) — — — (49) (19) — (319) Recoveries 5 1 15 9 13 5 — 48 Balance, end of period $ 776 $ 1,595 $ 3,628 $ 1,457 $ 441 $ 177 $ 436 $ 8,510 Ending Balance: individually evaluated for impairment $ 75 $ — $ — $ 7 $ — $ — $ — $ 82 Ending Balance: collectively evaluated for impairment $ 701 $ 1,595 $ 3,628 $ 1,450 $ 441 $ 177 $ 436 $ 8,428 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 75,481 $ 179,872 $ 444,893 $ 148,073 $ 47,853 $ 11,313 $ 56,092 $ 963,577 Ending Balance: collectively evaluated for impairment PCI loans $ 1,481 $ 747 $ 7,587 $ 8,011 $ 50 $ — $ 927 $ 18,803 Ending Balance: individually evaluated for impairment $ 2,767 $ 543 $ 6,008 $ 648 $ 857 $ 117 $ 211 $ 11,151 Ending Balance $ 79,729 $ 181,162 $ 458,488 $ 156,732 $ 48,760 $ 11,430 $ 57,230 $ 993,531 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
REVENUE RECOGNITION | |
Schedule of noninterest income | The table below presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2020 and 2019. Three Months Three Months Ended Ended March 31, March 31, 2020 2019 (dollars in thousands) Service Charges on Deposit Accounts $ 338 $ 266 Other 507 502 Noninterest Income (in-scope of Topic 606) 845 768 Noninterest Income (out-of-scope of Topic 606) 599 429 Total Non-interest Income $ 1,444 $ 1,197 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
OTHER REAL ESTATE OWNED | |
Schedule Of Real Estate Owned Properties | The following table explains changes in other real estate owned, or OREO, during the three months ended March 31, 2020 and the year ended December 31, 2019: Three Months Twelve Months Ended Ended March 31, December 31, 2020 2019 (dollars in thousands) Beginning balance January 1 $ 3,533 $ 1,088 Sales — (120) Write-downs — (49) Transfers 204 2,614 Ending balance $ 3,737 $ 3,533 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Schedule of lease expense | The components of lease expense were as follows: Three Months Three Months Ended March 31, Ended March 31, 2020 2019 (dollars in thousands) Operating lease cost $ 308 $ 261 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases was as follows: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 308 $ 261 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8,414 9,013 |
Schedule of remaining weighted average lease terms and discount rates | The following table presents the remaining weighted average lease terms and discount rates as of March 31, 2020 and 2019 : March 31, 2020 March 31, 2019 Weighted Average Remaining Lease Term Operating Leases 6.7 years years Weighted Average Discount Rate Operating Leases 6.0 % 6.0 % |
Schedule of maturities of lease liabilities | Maturities of lease liabilities were as follows: (In thousands) Operating Year Ending December 31, Leases 2020 (excluding the three months ended March 31, 2020) $ 442 2021 649 2022 722 2023 702 2024 675 Thereafter 5,479 Total lease payments $ 8,669 |
PER SHARE RESULTS - Basic net i
PER SHARE RESULTS - Basic net income per share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
PER SHARE RESULTS | ||
Weighted average shares used for basic net income per share | 18,255,351 | 19,315,686 |
Effect of dilutive stock options | 31,713 | 49,668 |
Weighted average shares used for diluted net income per share | 18,287,064 | 19,365,354 |
PER SHARE RESULTS - Additional
PER SHARE RESULTS - Additional information (Details) - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
PER SHARE RESULTS | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 219,120 | 168,120 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value measurement on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total investment for sale | $ 64,738 | $ 72,367 |
U.S. government agencies - GSEs [Member] | ||
Total investment for sale | 9,272 | 9,996 |
Mortgage-backed securities - GSEs [Member] | ||
Total investment for sale | 44,482 | 47,743 |
Corporate bonds [Member] | ||
Total investment for sale | 2,214 | 2,299 |
Municipal bonds [Member] | ||
Total investment for sale | 8,770 | 12,329 |
Fair Value, Inputs, Level 1 [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | U.S. government agencies - GSEs [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities - GSEs [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate bonds [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal bonds [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Total investment for sale | 64,738 | 72,367 |
Fair Value, Inputs, Level 2 [Member] | U.S. government agencies - GSEs [Member] | ||
Total investment for sale | 9,272 | 9,996 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities - GSEs [Member] | ||
Total investment for sale | 44,482 | 47,743 |
Fair Value, Inputs, Level 2 [Member] | Corporate bonds [Member] | ||
Total investment for sale | 2,214 | 2,299 |
Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | ||
Total investment for sale | 8,770 | 12,329 |
Fair Value, Inputs, Level 3 [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | U.S. government agencies - GSEs [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities - GSEs [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate bonds [Member] | ||
Total investment for sale | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal bonds [Member] | ||
Total investment for sale | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value measurement on non-recurring basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total | $ 10,938 | $ 9,474 |
Impaired Loans [Member] | ||
Total | 7,201 | 5,941 |
Foreclosed Real Estate [Member] | ||
Total | 3,737 | 3,533 |
Fair Value, Inputs, Level 1 [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ||
Total | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Total | 10,938 | 9,474 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Total | 7,201 | 5,941 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Total | $ 3,727 | $ 3,533 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying values and estimated fair values (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financial assets: | |||
Cash and due from banks | $ 20,030 | $ 19,110 | [1] |
Interest-earning deposits in other banks | 35,544 | 50,920 | |
Federal funds sold | 11,673 | 9,047 | [1] |
Investment securities available for sale | 64,738 | 72,367 | |
Loans held for sale | 1,606 | 928 | [1] |
Loans, net | 1,028,928 | 1,021,651 | |
Accrued interest receivable | 3,839 | 4,189 | [1] |
Stock in FHLB | 3,059 | 3,045 | [1] |
Other non-marketable securities | 718 | 719 | |
Financial liabilities: | |||
Deposits | 982,651 | 992,838 | [1] |
Short-term debt | 20,000 | 0 | [1] |
Long-term debt | 37,372 | 57,372 | [1] |
Accrued interest payable | 536 | 578 | [1] |
Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and due from banks | 20,030 | 19,110 | |
Interest-earning deposits in other banks | 35,544 | 50,920 | |
Federal funds sold | 11,673 | 9,047 | |
Investment securities available for sale | 64,738 | 72,367 | |
Loans held for sale | 1,606 | 928 | |
Loans, net | 1,009,919 | 1,016,239 | |
Accrued interest receivable | 3,839 | 4,189 | |
Stock in FHLB | 3,059 | 3,045 | |
Other non-marketable securities | 718 | 719 | |
Financial liabilities: | |||
Deposits | 985,248 | 995,056 | |
Short-term debt | 20,000 | ||
Long-term debt | 35,291 | 55,429 | |
Accrued interest payable | 536 | 578 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 20,030 | 19,110 | |
Interest-earning deposits in other banks | 35,544 | 50,920 | |
Federal funds sold | 11,673 | 9,047 | |
Investment securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | ||
Long-term debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Investment securities available for sale | 64,738 | 72,367 | |
Loans held for sale | 1,606 | 928 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 3,839 | 4,189 | |
Stock in FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Financial liabilities: | |||
Deposits | 985,248 | 995,056 | |
Short-term debt | 20,000 | ||
Long-term debt | 35,291 | 55,429 | |
Accrued interest payable | 536 | 578 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Investment securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 1,009,919 | 1,016,239 | |
Accrued interest receivable | 0 | 0 | |
Stock in FHLB | 3,059 | 3,045 | |
Other non-marketable securities | 718 | 719 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | ||
Long-term debt | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional information (Details) | Mar. 31, 2020 |
Minimum [Member] | |
Percentage Of Discount From Impaired Loans | 3.00% |
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 6.00% |
Maximum [Member] | |
Percentage Of Discount From Impaired Loans | 50.00% |
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 10.00% |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized cost and fair value of AFS investments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Securities available for sale: | |||
Amortized cost | $ 62,839 | $ 71,199 | |
Gross unrealized gains | 1,912 | 1,183 | |
Gross unrealized losses | (13) | (15) | |
Fair value | 64,738 | 72,367 | [1] |
U.S. government agencies - GSEs [Member] | |||
Securities available for sale: | |||
Amortized cost | 9,038 | 9,839 | |
Gross unrealized gains | 236 | 159 | |
Gross unrealized losses | (2) | (2) | |
Fair value | 9,272 | 9,996 | |
Mortgage-backed securities - GSEs [Member] | |||
Securities available for sale: | |||
Amortized cost | 42,987 | 46,926 | |
Gross unrealized gains | 1,506 | 830 | |
Gross unrealized losses | (11) | (13) | |
Fair value | 44,482 | 47,743 | |
Corporate bonds [Member] | |||
Securities available for sale: | |||
Amortized cost | 2,193 | 2,282 | |
Gross unrealized gains | 21 | 17 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 2,214 | 2,299 | |
Municipal bonds [Member] | |||
Securities available for sale: | |||
Amortized cost | 8,621 | 12,152 | |
Gross unrealized gains | 149 | 177 | |
Gross unrealized losses | 0 | 0 | |
Fair value | $ 8,770 | $ 12,329 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Scheduled maturities of AFS securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | ||
INVESTMENT SECURITIES | |||
Amortized cost, Within 1 year | $ 9,208 | $ 8,901 | |
Gross unrealized gains, Within 1 year | 13 | 19 | |
Gross unrealized losses, Within 1 year | (6) | (6) | |
Fair value, Within 1 year | 9,215 | 8,914 | |
Amortized cost, After 1 year but within 5 years | 34,108 | 40,954 | |
Gross unrealized gains, After 1 year but within 5 years | 1,299 | 695 | |
Gross unrealized losses, After 1 year but within 5 years | (6) | (7) | |
Fair value, After 1 year but within 5 years | 35,401 | 41,642 | |
Amortized cost, After 5 years but within 10 years | 6,457 | 4,568 | |
Gross unrealized gains, After 5 years but within 10 years | 129 | 94 | |
Gross unrealized losses, After 5 years but within 10 years | (1) | (1) | |
Fair value, After 5 years but within 10 years | 6,585 | 4,661 | |
Amortized cost, After 10 years | 13,066 | 16,776 | |
Gross unrealized gains, After 10 years | 471 | 375 | |
Gross unrealized losses, After 10 years | 0 | (1) | |
Fair value, After 10 years | 13,537 | 17,150 | |
Amortized cost | 62,839 | 71,199 | |
Gross unrealized gains | 1,912 | 1,183 | |
Gross unrealized losses | (13) | (15) | |
Fair value | $ 64,738 | $ 72,367 | [1] |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investments gross unrealized losses and fair value (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Securities available for sale: | ||
Less Than 12 Months Unrealized losses | $ (3,000) | |
12 Months or More Unrealized losses | $ (7,000) | (12,000) |
U.S. government agencies - GSEs [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 0 | 872,000 |
Less Than 12 Months Unrealized losses | 0 | 0 |
12 Months or More Fair value | 565,000 | 621,000 |
12 Months or More Unrealized losses | (2,000) | (2,000) |
Total Fair value | 565,000 | 1,493,000 |
Total Unrealized losses | (2,000) | (2,000) |
Mortgage-backed securities - GSEs [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 1,591,000 | 2,672,000 |
Less Than 12 Months Unrealized losses | (6,000) | (3,000) |
12 Months or More Fair value | 1,997,000 | 3,774,000 |
12 Months or More Unrealized losses | (5,000) | (10,000) |
Total Fair value | 3,588,000 | 6,446,000 |
Total Unrealized losses | (11,000) | (13,000) |
Corporate bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Unrealized losses | 0 | |
Municipal bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 0 | |
Less Than 12 Months Unrealized losses | 0 | 0 |
12 Months or More Fair value | 0 | |
12 Months or More Unrealized losses | 0 | |
Total Fair value | 0 | |
Total Unrealized losses | 0 | |
Total temporarily impaired securities [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 1,591,000 | 3,544,000 |
Less Than 12 Months Unrealized losses | (6,000) | (3,000) |
12 Months or More Fair value | 2,562,000 | 4,395,000 |
12 Months or More Unrealized losses | (7,000) | (12,000) |
Total Fair value | 4,153,000 | 7,939,000 |
Total Unrealized losses | $ (13,000) | $ (15,000) |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)position | Dec. 31, 2019USD ($)position | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 1,900,000 | $ (1,200,000) |
Deferred Income Taxes and Other Assets | 269,000 | |
Deferred Income Taxes and Other Liabilities, Noncurrent | 437,000 | |
US Government Securities, at Carrying Value | 21,600,000 | 18,400,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 7,000 | 12,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 3,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | position | 3 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | position | 3 | |
U.S. government agencies - GSEs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,000 | $ 2,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | position | 2 | 1 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | position | 1 | |
Mortgage-backed securities - GSEs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 5,000 | $ 10,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 6,000 | $ 3,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | position | 1 | 2 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | position | 2 | 2 |
LOANS - Composition of the Comp
LOANS - Composition of the Company's loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 1,041,678 | $ 1,032,089 | $ 993,531 | |
Less deferred loan origination fees, net | (2,164) | (2,114) | ||
Total loans | 1,039,514 | 1,029,975 | [1] | |
Allowance for loan losses | (10,586) | (8,324) | [1] | |
Total loans, net | $ 1,028,928 | $ 1,021,651 | [1] | |
Less deferred loan origination fees, net | (0.21%) | (0.21%) | ||
Percent of total | 100.00% | 100.00% | ||
1-to-4 family residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 153,923 | 156,732 | ||
Total loans | $ 153,923 | $ 151,697 | ||
Percent of total | 14.81% | 14.73% | ||
Commercial real estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 464,326 | 458,488 | ||
Total loans | $ 464,326 | $ 459,115 | ||
Percent of total | 44.67% | 44.58% | ||
Multi-family residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 70,731 | 57,230 | ||
Total loans | $ 70,731 | $ 69,124 | ||
Percent of total | 6.80% | 6.71% | ||
Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 228,646 | 181,162 | ||
Total loans | $ 228,646 | $ 221,878 | ||
Percent of total | 21.99% | 21.55% | ||
Home equity lines of credit ("HELOC") [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 43,816 | $ 44,514 | ||
Percent of total | 4.22% | 4.32% | ||
HELOC [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 43,816 | 48,760 | ||
Total loans | 43,816 | $ 44,514 | ||
Total real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 961,442 | $ 946,328 | ||
Percent of total | 92.49% | 91.89% | ||
Commercial and industrial Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 72,227 | $ 79,729 | ||
Total loans | $ 72,227 | $ 75,748 | ||
Percent of total | 6.95% | 7.35% | ||
Loans to individuals [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 7,767 | $ 9,779 | ||
Percent of total | 0.75% | 0.95% | ||
Overdrafts [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 242 | $ 234 | ||
Percent of total | 0.02% | 0.02% | ||
Total other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 80,236 | $ 85,761 | ||
Percent of total | 7.72% | 8.32% | ||
[1] | Derived from audited consolidated financial statements. |
LOANS - Cash flows expected to
LOANS - Cash flows expected to be collected for PCI (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS | ||
Contractually required payments | $ 18,983 | $ 20,598 |
Nonaccretable difference | 1,574 | 1,694 |
Cash flows expected to be collected | 17,409 | 18,904 |
Accretable yield | 2,986 | 3,191 |
Carrying value | $ 14,423 | $ 15,713 |
LOANS - Age analysis of past du
LOANS - Age analysis of past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | $ 1,039,514 | $ 1,029,975 | [1] |
Deferred loan (fees) cost, net | (2,164) | (2,114) | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,436 | 2,533 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,016 | 926 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,182 | 1,231 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,835 | 10,631 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 1,028,843 | 1,021,458 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 1,039,514 | 1,029,975 | |
Deferred loan (fees) cost, net | (2,164) | (2,114) | |
Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 7,201 | 5,941 | |
Deferred loan (fees) cost, net | 0 | 0 | |
Commercial and industrial Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 72,227 | 75,748 | |
Commercial and industrial Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 58 | 1,108 | |
Commercial and industrial Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 977 | 34 | |
Commercial and industrial Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 46 | 46 | |
Commercial and industrial Other [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,827 | 4,012 | |
Commercial and industrial Other [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 67,400 | 71,736 | |
Commercial and industrial Other [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 72,227 | 75,748 | |
Commercial and industrial Other [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 3,746 | 2,824 | |
Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 228,646 | 221,878 | |
Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Construction [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 177 | 181 | |
Construction [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 228,469 | 221,697 | |
Construction [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 228,646 | 221,878 | |
Construction [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 177 | 181 | |
Multi-family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 70,731 | 69,124 | |
Multi-family residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Multi-family residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Multi-family residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Multi-family residential [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Multi-family residential [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 70,731 | 69,124 | |
Multi-family residential [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 70,731 | 69,124 | |
Multi-family residential [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 0 | 0 | |
Commercial real estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 464,326 | 459,115 | |
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,321 | 393 | |
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5 | 82 | |
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 323 | 321 | |
Commercial real estate [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,415 | 2,628 | |
Commercial real estate [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 459,911 | 456,487 | |
Commercial real estate [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 464,326 | 459,115 | |
Commercial real estate [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 1,766 | 1,832 | |
Loans to individuals & overdrafts [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 8,009 | 10,013 | |
Loans to individuals & overdrafts [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4 | 5 | |
Loans to individuals & overdrafts [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Loans to individuals & overdrafts [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Loans to individuals & overdrafts [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 152 | 160 | |
Loans to individuals & overdrafts [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 7,857 | 9,853 | |
Loans to individuals & overdrafts [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 8,009 | 10,013 | |
Loans to individuals & overdrafts [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 148 | 155 | |
1-to-4 family residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 153,923 | 151,697 | |
1-to-4 family residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 883 | 859 | |
1-to-4 family residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 34 | 810 | |
1-to-4 family residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 813 | 864 | |
1-to-4 family residential [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,652 | 3,038 | |
1-to-4 family residential [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 151,271 | 148,659 | |
1-to-4 family residential [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 153,923 | 151,697 | |
1-to-4 family residential [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | 922 | 505 | |
HELOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 43,816 | 44,514 | |
HELOC [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 170 | 168 | |
HELOC [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
HELOC [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
HELOC [Member] | Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 612 | 612 | |
HELOC [Member] | Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Current | 43,204 | 43,902 | |
HELOC [Member] | Total Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans | 43,816 | 44,514 | |
HELOC [Member] | Non Accrual Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-Accrual Loans | $ 442 | $ 444 | |
[1] | Derived from audited consolidated financial statements. |
LOANS - Information on loans, e
LOANS - Information on loans, excluding PCI loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | $ 9,414 | $ 10,240 | |
With no related allowance, Contractual Unpaid Principal Balance | 13,475 | 14,322 | |
With no related allowance, Average Recorded Investment | 12,463 | $ 12,517 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 149 | 109 | |
With an related allowance, Recorded Investment | 1,339 | 972 | |
With an related allowance, Contractual Unpaid Principal Balance | 1,343 | 1,307 | |
Related Allowance | 702 | 413 | |
With an related allowance, Average Recorded Investment | 1,178 | 366 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 10 | 13 | |
Recorded Investment Total | 10,753 | 11,212 | |
Contractual Unpaid Principal Balance Total | 14,818 | 15,694 | |
Average Recorded Investment Total | 13,641 | 12,883 | |
Interest Income Recognized on impaired Loans Total | 159 | 122 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 5 | 10 | |
Recorded Investment Total | 1,181 | 1,179 | |
Contractual Unpaid Principal Balance Total | 2,815 | 2,810 | |
Average Recorded Investment Total | 2,540 | 2,081 | |
Interest Income Recognized on impaired Loans Total | 34 | 38 | |
Commercial Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 697 | 403 | |
Recorded Investment Total | 9,317 | 9,749 | |
Contractual Unpaid Principal Balance Total | 11,733 | 12,591 | |
Average Recorded Investment Total | 10,832 | 10,693 | |
Interest Income Recognized on impaired Loans Total | 114 | 84 | |
Consumer Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Recorded Investment Total | 255 | 284 | |
Contractual Unpaid Principal Balance Total | 270 | 293 | |
Average Recorded Investment Total | 269 | 109 | |
Interest Income Recognized on impaired Loans Total | 11 | 0 | |
Commercial and industrial Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 2,688 | 2,796 | |
With no related allowance, Contractual Unpaid Principal Balance | 4,181 | 4,051 | |
With no related allowance, Average Recorded Investment | 3,684 | 3,853 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 44 | 4 | |
With an related allowance, Recorded Investment | 1,128 | 731 | |
With an related allowance, Contractual Unpaid Principal Balance | 1,133 | 1,056 | |
Related Allowance | 601 | 403 | |
With an related allowance, Average Recorded Investment | 1,037 | 232 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 6 | |
Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 436 | 440 | |
With no related allowance, Contractual Unpaid Principal Balance | 535 | 537 | |
With no related allowance, Average Recorded Investment | 438 | 552 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 5 | 5 | |
With an related allowance, Recorded Investment | 0 | ||
With an related allowance, Contractual Unpaid Principal Balance | 0 | ||
Related Allowance | 0 | ||
With an related allowance, Average Recorded Investment | 0 | ||
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | ||
Commercial real estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 4,925 | 5,585 | |
With no related allowance, Contractual Unpaid Principal Balance | 5,744 | 6,750 | |
With no related allowance, Average Recorded Investment | 5,504 | 5,843 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 65 | 66 | |
With an related allowance, Recorded Investment | 140 | ||
With an related allowance, Contractual Unpaid Principal Balance | 140 | ||
Related Allowance | 96 | ||
With an related allowance, Average Recorded Investment | 70 | ||
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | ||
Loans to individuals [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 255 | ||
With no related allowance, Contractual Unpaid Principal Balance | 270 | ||
With no related allowance, Average Recorded Investment | 99 | ||
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | ||
Loans to individuals & overdrafts [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 284 | ||
With no related allowance, Contractual Unpaid Principal Balance | 293 | ||
With no related allowance, Average Recorded Investment | 109 | ||
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | ||
Multi-family residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 0 | 197 | |
With no related allowance, Contractual Unpaid Principal Balance | 0 | 197 | |
With no related allowance, Average Recorded Investment | 269 | 213 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 11 | 3 | |
HELOC [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 750 | 543 | |
With no related allowance, Contractual Unpaid Principal Balance | 953 | 678 | |
With no related allowance, Average Recorded Investment | 734 | 957 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 12 | 15 | |
With an related allowance, Recorded Investment | 0 | 160 | |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 222 | |
Related Allowance | 0 | ||
With an related allowance, Average Recorded Investment | 0 | 0 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | |
1-to-4 family residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 360 | 395 | |
With no related allowance, Contractual Unpaid Principal Balance | 1,792 | 1,816 | |
With no related allowance, Average Recorded Investment | 1,735 | 990 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 12 | 16 | |
With an related allowance, Recorded Investment | 71 | 81 | |
With an related allowance, Contractual Unpaid Principal Balance | 70 | 94 | |
Related Allowance | 5 | $ 10 | |
With an related allowance, Average Recorded Investment | 71 | 134 | |
With an related allowance, Interest Income Recognized on Impaired Loans | $ 10 | $ 7 |
LOANS - Loans that were modifie
LOANS - Loans that were modified as troubled debt restructurings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 9 | 10 | 3 | 17 |
Pre-Modification Outstanding Recorded Investment | $ 2,973 | $ 3,081 | ||
Post-Modification Outstanding Recorded Investment | $ 2,853 | $ 2,700 | ||
Recorded investment | $ 2,209 | $ 2,451 | ||
1-to-4 family residential [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 2 | 2 | 0 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 209 | $ 432 | ||
Post-Modification Outstanding Recorded Investment | $ 184 | $ 409 | ||
Recorded investment | $ 128 | |||
Commercial real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 3 | 0 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 1,283 | |||
Post-Modification Outstanding Recorded Investment | $ 1,015 | |||
Recorded investment | $ 697 | |||
Construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 1 | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 259 | |||
Post-Modification Outstanding Recorded Investment | $ 259 | |||
Recorded investment | $ 34 | |||
Commercial and industrial Other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 5 | 4 | 3 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 2,455 | $ 1,365 | ||
Post-Modification Outstanding Recorded Investment | $ 2,360 | $ 1,275 | ||
Recorded investment | $ 2,209 | $ 1,591 | ||
HELOC [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 50 | |||
Post-Modification Outstanding Recorded Investment | $ 50 | |||
Loans to individuals [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | 1 | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1 | |||
Post-Modification Outstanding Recorded Investment | $ 1 | |||
Recorded investment | $ 1 |
LOANS - Risk ratings of the com
LOANS - Risk ratings of the commercial and consumer loan portfolios (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 1,039,514 | $ 1,029,975 | [1] |
Commercial and industrial Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 72,227 | 75,748 | |
Commercial and industrial Other [Member] | Superior [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,517 | 4,014 | |
Commercial and industrial Other [Member] | Very Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 244 | 349 | |
Commercial and industrial Other [Member] | Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,554 | 5,976 | |
Commercial and industrial Other [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 19,928 | 19,197 | |
Commercial and industrial Other [Member] | Acceptable With Care [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 37,540 | 40,579 | |
Commercial and industrial Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 742 | 242 | |
Commercial and industrial Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,702 | 5,391 | |
Commercial and industrial Other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial and industrial Other [Member] | Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 228,646 | 221,878 | |
Construction [Member] | Superior [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Construction [Member] | Very Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 107 | 110 | |
Construction [Member] | Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,445 | 8,674 | |
Construction [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,821 | 16,249 | |
Construction [Member] | Acceptable With Care [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 201,837 | 196,228 | |
Construction [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 259 | 436 | |
Construction [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 177 | 181 | |
Construction [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Construction [Member] | Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial real estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 464,326 | 459,115 | |
Commercial real estate [Member] | Superior [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 534 | 337 | |
Commercial real estate [Member] | Very Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,566 | 1,245 | |
Commercial real estate [Member] | Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 59,285 | 62,643 | |
Commercial real estate [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 257,167 | 255,751 | |
Commercial real estate [Member] | Acceptable With Care [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 139,746 | 133,190 | |
Commercial real estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,479 | 1,490 | |
Commercial real estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,549 | 4,459 | |
Commercial real estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial real estate [Member] | Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 70,731 | 69,124 | |
Multi-family residential [Member] | Superior [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | Very Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | Good [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 6,422 | 4,839 | |
Multi-family residential [Member] | Acceptable [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 37,544 | 41,113 | |
Multi-family residential [Member] | Acceptable With Care [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 26,765 | 23,172 | |
Multi-family residential [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Multi-family residential [Member] | Loss [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
1-to-4 family residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 153,923 | 151,697 | |
1-to-4 family residential [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 150,325 | 147,958 | |
1-to-4 family residential [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,133 | 1,246 | |
1-to-4 family residential [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,465 | 2,493 | |
HELOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 43,816 | 44,514 | |
HELOC [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 42,703 | 43,585 | |
HELOC [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 292 | 76 | |
HELOC [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 821 | 853 | |
Loans to individuals & overdrafts [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,009 | 10,013 | |
Loans to individuals & overdrafts [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,735 | 9,727 | |
Loans to individuals & overdrafts [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 274 | $ 286 | |
[1] | Derived from audited consolidated financial statements. |
LOANS - Accretable yield on PCI
LOANS - Accretable yield on PCI loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LOANS | ||
Accretable yield, beginning of period | $ 3,191 | $ 3,593 |
Accretion | (280) | (288) |
Reclassification from (to) nonaccretable difference | 32 | 117 |
Other changes, net | 43 | 299 |
Accretable yield, end of period | $ 2,986 | $ 3,721 |
LOANS - Allowance for loan loss
LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | [1] | $ 8,324 | ||
Provision for (recovery of) loan losses | 2,273 | $ 112 | ||
Allowance for loan losses, Balance, end of period | 10,586 | |||
Ending Balance: individually evaluated for impairment | 702 | 82 | ||
Ending Balance: collectively evaluated for impairment | 9,884 | 8,428 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 10,753 | 11,151 | ||
Ending balance | 1,041,678 | 993,531 | $ 1,032,089 | |
Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 8,055 | 8,066 | ||
Provision for (recovery of) loan losses | 2,274 | 137 | ||
Loans charged-off | (27) | (319) | ||
Recoveries | 16 | 48 | ||
Allowance for loan losses, Balance, end of period | 10,318 | 7,932 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 1,016,502 | 963,577 | ||
Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 269 | 603 | ||
Provision for (recovery of) loan losses | (1) | (25) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 268 | 578 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 14,423 | 18,803 | ||
Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 8,324 | 8,669 | ||
Provision for (recovery of) loan losses | 2,273 | 112 | ||
Loans charged-off | (27) | (319) | ||
Recoveries | 16 | 48 | ||
Allowance for loan losses, Balance, end of period | 10,586 | 8,510 | ||
Commercial and industrial Other [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 601 | 75 | ||
Ending Balance: collectively evaluated for impairment | 1,432 | 701 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 3,816 | 2,767 | ||
Ending balance | 72,227 | 79,729 | ||
Commercial and industrial Other [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,127 | 762 | ||
Provision for (recovery of) loan losses | 717 | 214 | ||
Loans charged-off | (11) | (251) | ||
Recoveries | 1 | 5 | ||
Allowance for loan losses, Balance, end of period | 1,834 | 730 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 67,312 | 75,481 | ||
Commercial and industrial Other [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 178 | 214 | ||
Provision for (recovery of) loan losses | 21 | (168) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 199 | 46 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 1,099 | 1,481 | ||
Commercial and industrial Other [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,305 | 976 | ||
Provision for (recovery of) loan losses | 738 | 46 | ||
Loans charged-off | (11) | (251) | ||
Recoveries | 1 | 5 | ||
Allowance for loan losses, Balance, end of period | 2,033 | 776 | ||
Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | ||
Ending Balance: collectively evaluated for impairment | 2,132 | 1,595 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 436 | 543 | ||
Ending balance | 228,646 | 181,162 | ||
Construction [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,731 | 1,385 | ||
Provision for (recovery of) loan losses | 394 | 186 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 1 | ||
Allowance for loan losses, Balance, end of period | 2,125 | 1,572 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 227,538 | 179,872 | ||
Construction [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 6 | 0 | ||
Provision for (recovery of) loan losses | 1 | 23 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 7 | 23 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 672 | 747 | ||
Construction [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,737 | 1,385 | ||
Provision for (recovery of) loan losses | 395 | 209 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 1 | ||
Allowance for loan losses, Balance, end of period | 2,132 | 1,595 | ||
Commercial real estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 96 | 0 | ||
Ending Balance: collectively evaluated for impairment | 3,476 | 3,628 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 5,065 | 6,008 | ||
Ending balance | 464,326 | 458,488 | ||
Commercial real estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 2,837 | 3,024 | ||
Provision for (recovery of) loan losses | 720 | 356 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 1 | 15 | ||
Allowance for loan losses, Balance, end of period | 3,558 | 3,395 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 453,592 | 444,893 | ||
Commercial real estate [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 14 | 385 | ||
Provision for (recovery of) loan losses | 0 | (152) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 14 | 233 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 5,669 | 7,587 | ||
Commercial real estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 2,851 | 3,409 | ||
Provision for (recovery of) loan losses | 720 | 204 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 1 | 15 | ||
Allowance for loan losses, Balance, end of period | 3,572 | 3,628 | ||
1-to-4 family residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 5 | 7 | ||
Ending Balance: collectively evaluated for impairment | 1,752 | 1,450 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 431 | 648 | ||
Ending balance | 153,923 | 156,732 | ||
1-to-4 family residential [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,437 | 1,663 | ||
Provision for (recovery of) loan losses | 267 | (461) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 10 | 9 | ||
Allowance for loan losses, Balance, end of period | 1,714 | 1,211 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 147,444 | 148,073 | ||
1-to-4 family residential [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 56 | 4 | ||
Provision for (recovery of) loan losses | (13) | 242 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 43 | 246 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 6,048 | 8,011 | ||
1-to-4 family residential [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 1,493 | 1,667 | ||
Provision for (recovery of) loan losses | 254 | (219) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 10 | 9 | ||
Allowance for loan losses, Balance, end of period | 1,757 | 1,457 | ||
HELOC [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | ||
Ending Balance: collectively evaluated for impairment | 398 | 441 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 750 | 857 | ||
Ending balance | 43,816 | 48,760 | ||
HELOC [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 329 | 555 | ||
Provision for (recovery of) loan losses | 69 | (80) | ||
Loans charged-off | 0 | (49) | ||
Recoveries | 0 | 13 | ||
Allowance for loan losses, Balance, end of period | 398 | 439 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 43,017 | 47,853 | ||
HELOC [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | ||
Provision for (recovery of) loan losses | 0 | 2 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 0 | 2 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 49 | 50 | ||
HELOC [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 329 | 555 | ||
Provision for (recovery of) loan losses | 69 | (78) | ||
Loans charged-off | 0 | (49) | ||
Recoveries | 0 | 13 | ||
Allowance for loan losses, Balance, end of period | 398 | 441 | ||
Loans to individuals & overdrafts [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | ||
Ending Balance: collectively evaluated for impairment | 143 | 177 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 255 | 117 | ||
Ending balance | 8,009 | 11,430 | ||
Loans to individuals & overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 175 | 206 | ||
Provision for (recovery of) loan losses | (20) | (15) | ||
Loans charged-off | (16) | (19) | ||
Recoveries | 4 | 5 | ||
Allowance for loan losses, Balance, end of period | 143 | 177 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 7,754 | 11,313 | ||
Loans to individuals & overdrafts [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | ||
Provision for (recovery of) loan losses | 0 | 0 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 0 | 0 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 0 | 0 | ||
Loans to individuals & overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 175 | 206 | ||
Provision for (recovery of) loan losses | (20) | (15) | ||
Loans charged-off | (16) | (19) | ||
Recoveries | 4 | 5 | ||
Allowance for loan losses, Balance, end of period | 143 | 177 | ||
Multi-family residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Ending Balance: individually evaluated for impairment | 0 | 0 | ||
Ending Balance: collectively evaluated for impairment | 551 | 436 | ||
Loans | ||||
Ending balance: individually evaluated for impairment | 0 | 211 | ||
Ending balance | 70,731 | 57,230 | ||
Multi-family residential [Member] | Excluding Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 419 | 471 | ||
Provision for (recovery of) loan losses | 127 | (63) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 546 | 408 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 69,845 | 56,092 | ||
Multi-family residential [Member] | Purchase Credit Impairment Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 15 | 0 | ||
Provision for (recovery of) loan losses | (10) | 28 | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | 5 | 28 | ||
Loans | ||||
Ending balance: collectively evaluated for impairment | 886 | 927 | ||
Multi-family residential [Member] | Total Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, Balance, beginning of period | 434 | 471 | ||
Provision for (recovery of) loan losses | 117 | (35) | ||
Loans charged-off | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Allowance for loan losses, Balance, end of period | $ 551 | $ 436 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS - Additional information
LOANS - Additional information (Details) | May 05, 2020USD ($)loan | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | $ 10,753,000 | $ 11,212,000 | ||
Impaired Loans Required for Specific Reserves | 1,300,000 | 972,000 | ||
With no related allowance, Recorded Investment | 9,414,000 | 10,240,000 | ||
Allowance for Loan and Lease Losses Write-offs, Net | 373,000 | 4,100,000 | ||
Aggregate Impaired Loans Required For Specific Reserves | 413,000 | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 108,600,000 | |||
Subsequent events | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Number of loans for which payment deferrals were granted | loan | 290 | |||
Value of loans for which payment deferrals were granted | $ 167,300,000 | |||
Nonaccrual Impaired Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 7,200,000 | 5,900,000 | ||
Accrual Impaired Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 3,600,000 | $ 6,200,000 | ||
Troubled Debt Restructurings [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 9,300,000 | $ 7,700,000 | ||
Troubled Debt Restructuring Accrual Status [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 3,600,000 | 5,200,000 | ||
Troubled Debt Restructuring Nonaccrual Status [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Impaired Financing Receivable, Recorded Investment | 5,700,000 | $ 2,500,000 | ||
Unused Lines of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 174,200,000 |
REVENUE RECOGNITION - Nonintere
REVENUE RECOGNITION - Noninterest income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total Non-interest Income | $ 1,444 | $ 1,197 |
Noninterest Income (in-scope of Topic 606) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Non-interest Income | 845 | 768 |
Noninterest Income (out-of-scope of Topic 606) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Non-interest Income | 599 | 429 |
Service Charges on Deposit Accounts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Non-interest Income | 338 | 266 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Non-interest Income | $ 507 | $ 502 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | |||
OTHER REAL ESTATE OWNED | ||||
Beginning balance January 1 | $ 3,533 | [1] | $ 1,088 | |
Sales | (120) | |||
Write-downs | (49) | |||
Transfers | 204 | 2,614 | ||
Ending balance | $ 3,737 | $ 3,533 | [1] | |
[1] | Derived from audited consolidated financial statements. |
OTHER REAL ESTATE OWNED - Addit
OTHER REAL ESTATE OWNED - Additional information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | ||
OTHER REAL ESTATE OWNED | ||||
Real Estate Acquired Through Foreclosure | $ 3,737,000 | $ 3,533,000 | [1] | $ 1,088,000 |
Mortgage Loans in Process of Foreclosure, Amount | $ 428,000 | $ 114,000 | ||
Mortgage Loans on Real Estate, Number of Loans | loan | 2 | 3 | ||
[1] | Derived from audited consolidated financial statements. |
LEASES - Lease expense (Details
LEASES - Lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LEASES | ||
Operating lease cost | $ 308 | $ 261 |
LEASES - Cash flow information
LEASES - Cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LEASES | ||
Operating cash flows from operating leases | $ 308 | $ 261 |
Operating leases | $ 8,414 | $ 9,013 |
LEASES - Weighted average lease
LEASES - Weighted average lease terms and discount rates (Details) | Mar. 31, 2020 | Mar. 31, 2019 |
LEASES | ||
Weighted Average Remaining Lease Term - Operating leases | 6 years 8 months 12 days | 7 years 3 months 18 days |
Weighted Average Discount Rate - Operating leases | 6.00% | 6.00% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
LEASES | |
2020 (excluding the three months ended March 31, 2020) | $ 442 |
2021 | 649 |
2022 | 722 |
2023 | 702 |
2024 | 675 |
Thereafter | 5,479 |
Total lease payments | $ 8,669 |
LEASES - Additional information
LEASES - Additional information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 15 years |
Lessee, Operating Lease, Options to Extend | 5 years |
Lessee, Operating Lease, Option to Expire | 1 year |
Lessee, Operating Lease, Renewal Term | 25 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | May 05, 2020USD ($)segmentcustomer | Apr. 17, 2020USD ($)item | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | [1] |
Subsequent Event [Line Items] | |||||
Loans | $ 1,039,514 | $ 1,029,975 | |||
Subsequent events | |||||
Subsequent Event [Line Items] | |||||
Number of reportable subsequent events | segment | 2 | ||||
Subsequent events | PPP loans | |||||
Subsequent Event [Line Items] | |||||
Number of customers participated | customer | 1,100 | ||||
Loans | $ 91,000 | ||||
Subsequent events | Branches located in western North Carolina | |||||
Subsequent Event [Line Items] | |||||
Number of branches acquired | item | 3 | ||||
Loans acquired | $ 107,000 | ||||
Fixed assets acquired | 2,000 | ||||
Deposits acquired | $ 185,000 | ||||
[1] | Derived from audited consolidated financial statements. |