Village Bank and Trust Financial (VBFC) 10-Q 13 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	Village Bank & Trust Financial Corp.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Central Index Key	0001290476
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	VBFC
Title of 12(b) Security	Common Stock, par value $4.00 per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		1,466,216
Entity Emerging Growth Company	false
Entity Small Business	true

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 19,605	$ 19,967
Federal funds sold	18,482	0
Total cash and cash equivalents	38,087	19,967
Investment securities available for sale	36,305	46,937
Restricted stock, at cost	2,482	2,035
Loans held for sale, at fair value	27,525	12,722
Loans
Outstandings	600,089	429,295
Allowance for loan losses	(4,050)	(3,186)
Deferred fees and costs, net	(3,606)	764
Total loans, net	592,433	426,873
Other real estate owned, net of valuation allowance	336	526
Assets held for sale, at fair value		514
Premises and equipment, net	11,711	12,036
Bank owned life insurance	7,756	7,612
Accrued interest receivable	4,880	2,597
Other assets	5,849	8,494
Total Assets	727,364	540,313
Deposits
Noninterest bearing demand	217,204	131,228
Interest bearing	356,648	311,980
Total deposits	573,852	443,208
Federal Home Loan Bank advances	39,000	29,000
Long-term debt - trust preferred securities	8,764	8,764
Subordinated debt, net	5,620	5,595
Other borrowings	45,120	5,317
Accrued interest payable	231	221
Other liabilities	5,902	5,294
Total liabilities	678,489	497,399
Shareholders' equity
Common stock, $4 par value, 10,000,000 shares authorized; 1,466,240 shares issued and outstanding at September 30, 2020 and 1,453,009 shares issued and outstanding at December 31, 2019	5,790	5,779
Additional paid-in capital	54,431	54,285
Accumulated deficit	(11,790)	(17,292)
Stock in directors rabbi trust	(771)	(856)
Directors deferred fees obligation	771	856
Accumulated other comprehensive income	444	142
Total shareholders' equity	48,875	42,914
Total liabilities and shareholders' equity	$ 727,364	$ 540,313

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 4	$ 4
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	1,466,240	1,453,009
Common stock, shares outstanding (in shares)	1,466,240	1,453,009

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income
Loans	$ 6,307	$ 5,594	$ 17,622	$ 16,515
Investment securities	230	284	740	848
Federal funds sold	3	132	55	227
Total interest income	6,540	6,010	18,417	17,590
Interest expense
Deposits	728	1,041	2,502	2,831
Borrowed funds	341	357	1,073	1,129
Total interest expense	1,069	1,398	3,575	3,960
Net interest income	5,471	4,612	14,842	13,630
Provision for loan losses	250	0	950	0
Net interest income after provision for loan losses	5,221	4,612	13,892	13,630
Noninterest income
Service charges and fees	535	557	1,502	1,556
Mortgage banking income, net	2,859	1,784	6,517	3,767
Gain on sale of asset held for sale	1	0	1	0
Gain on sale of investment securities	0	0	12	101
Gain on sale of Small Business Administration loans	0	18	86	246
Other	86	107	238	262
Total noninterest income	3,481	2,466	8,356	5,932
Noninterest expense
Salaries and benefits	3,644	2,841	9,278	9,478
Occupancy	326	338	965	1,010
Equipment	225	208	640	644
Supplies	50	73	141	156
Professional and outside services	835	735	2,276	2,298
Advertising and marketing	90	82	261	204
Foreclosed assets, net	4	6	(152)	13
FDIC insurance premium	47	0	167	158
Other operating expense	534	605	1,588	1,609
Total noninterest expense	5,755	4,888	15,164	15,570
Income before income tax expense	2,947	2,190	7,084	3,992
Income tax expense	678	463	1,582	819
Net income	$ 2,269	$ 1,727	$ 5,502	$ 3,173
Earnings per share, basic	$ 1.55	$ 1.19	$ 3.78	$ 2.20
Earnings per share, diluted	$ 1.55	$ 1.19	$ 3.78	$ 2.20

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 2,269	$ 1,727	$ 5,502	$ 3,173
Other comprehensive income (loss)
Unrealized holding gains (losses) arising during the period	(52)	109	386	1,124
Tax effect	(11)	23	81	236
Net change in unrealized holding gains (losses) on securities available for sale, net of tax	(41)	86	305	888
Reclassification adjustment
Reclassification adjustment for gains realized in income	0	0	(12)	(101)
Tax effect	0	0	3	21
Reclassification for gains included in net income, net of tax	0	0	(9)	(80)
Minimum pension adjustment	3	3	9	9
Tax effect	1	1	3	3
Minimum pension adjustment, net of tax	2	2	6	6
Total other comprehensive income (loss)	(39)	88	302	814
Total comprehensive income	$ 2,230	$ 1,815	$ 5,804	$ 3,987

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Common Stock Warrant [Member]	Stock in Directors Rabbi Trust [Member]	Directors Deferred Fees Obligation [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Dec. 31, 2018	$ 5,707	$ 53,212	$ (21,769)	$ 732	$ (883)	$ 883	$ (749)	$ 37,133
Restricted stock redemption					27	(27)
Vesting of restricted stock	72	(72)
Stock based compensation		396						396
Expiration of common stock warrant		732		(732)
Net income			3,173					3,173
Other comprehensive income (loss)							814	814
Balance at Sep. 30, 2019	5,779	54,268	(18,596)		(856)	856	65	41,516
Balance at Jun. 30, 2019	5,779	54,246	(20,323)		(856)	856	(23)	39,679
Stock based compensation		22						22
Net income			1,727					1,727
Other comprehensive income (loss)							88	88
Balance at Sep. 30, 2019	5,779	54,268	(18,596)		(856)	856	65	41,516
Balance at Dec. 31, 2019	5,779	54,285	(17,292)	0	(856)	856	142	42,914
Vesting of restricted stock	11	(11)	0	0	85	(85)	0	0
Stock based compensation	0	157	0	0	0	0	0	157
Net income	0	0	5,502	0	0	0	0	5,502
Other comprehensive income (loss)	0	0	0	0	0	0	302	302
Balance at Sep. 30, 2020	5,790	54,431	(11,790)	0	(771)	771	444	48,875
Balance at Jun. 30, 2020	5,779	54,414	(14,059)	0	(771)	771	483	46,617
Vesting of restricted stock	11	(11)
Stock based compensation	0	28	0	0	0	0	0	28
Net income	0	0	2,269	0	0	0	0	2,269
Other comprehensive income (loss)	0	0	0	0	0	0	(39)	(39)
Balance at Sep. 30, 2020	$ 5,790	$ 54,431	$ (11,790)	$ 0	$ (771)	$ 771	$ 444	$ 48,875

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities
Net income	$ 5,502	$ 3,173
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	442	491
Amortization of debt issuance costs	25	24
Deferred income taxes	905	819
Provision for loan losses	950	0
Write-down of other real estate owned	16	0
Gain on sale of investment securities	12	101
Gain on sales of loans held for sale	(6,517)	(4,605)
Gain on sale of assets held for sale	(1)	0
Gain on sale of other real estate owned	(175)	0
Stock compensation expense	157	396
Proceeds from sale of mortgage loans	247,205	149,905
Origination of mortgage loans held for sale	(255,491)	(153,675)
Amortization of premiums and accretion of discounts on securities, net	159	137
Increase in bank owned life insurance	(144)	(126)
Net change in:
Interest receivable	(2,283)	32
Other assets	1,669	(945)
Interest payable	10	2
Other liabilities	608	2,262
Net cash used in operating activities	(6,975)	(2,211)
Cash Flows from Investing Activities
Purchases of available for sale securities	(3,387)	(10,875)
Proceeds from the sale of available for sale securities	7,936	6,491
Proceeds from the sale of assets held for sale	515	0
Proceeds from maturities, calls and paydowns of available for sale securities	6,309	3,593
Net increase in loans	(166,510)	(8,308)
Proceeds from sale of other real estate owned	349	0
Purchases of premises and equipment, net	(117)	(133)
Purchase of restricted stock	(447)	(34)
Net cash used in investing activities	(155,352)	(9,266)
Cash Flows from Financing Activities
Net increase in deposits	130,644	38,392
Net increase in Federal Home Loan Bank advances	10,000	0
Net increase in other borrowings	39,803	0
Net cash provided by financing activities	180,447	38,392
Net increase in cash and cash equivalents	18,120	26,915
Cash and cash equivalents, beginning of period	19,967	19,543
Cash and cash equivalents, end of period	38,087	46,458
Supplemental Disclosure of Cash Flow Information
Cash payments for interest	3,565	3,958
Supplemental Schedule of Non-Cash Activities
Unrealized gains on securities available for sale	373	1,023
Right of use assets obtained in exchange for new operating lease liabilities	0	1,405
Minimum pension adjustment	$ 9	$ 9

Principles of presentation

Principles of presentation	9 Months Ended
	Sep. 30, 2020
Principles of presentation
Principles of presentation	Note 1 – Principles of presentation Village Bank and Trust Financial Corp. (the “Company”) is the holding company of Village Bank (the “Bank”). The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s subsidiary, Village Bank Mortgage Corporation. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements of the Company have been prepared on the accrual basis in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, all adjustments that are, in the opinion of management, necessary for a fair presentation have been included. The results of operations for the three and nine month periods ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020. The unaudited interim financial statements should be read in conjunction with the audited financial statements and notes to financial statements that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”).

Use of estimates

Use of estimates	9 Months Ended
	Sep. 30, 2020
Use of estimates
Use of estimates	Note 2 – Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheets and statements of income for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision including impaired loans and troubled debt restructurings (“TDRs”).

Earnings per common share

Earnings per common share	9 Months Ended
	Sep. 30, 2020
Earnings per common share
Earnings per common share	Note 3 – Earnings per common share The following table presents the basic and diluted earnings per common share computation (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net income - basic and diluted $ 2,269 $ 1,727 $ 5,502 $ 3,173 Denominator Weighted average shares outstanding - basic 1,462 1,451 1,456 1,442 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted $ 1,462 $ 1,451 $ 1,456 $ 1,442 Earnings per share - basic $ 1.55 $ 1.19 $ 3.78 $ 2.20 Earnings per share - diluted $ 1.55 $ 1.19 $ 3.78 $ 2.20 Applicable guidance requires that outstanding, unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock. At September 30, 2020 the vesting of 6,573 of the unvested restricted units included in Note 10 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of September 30, 2020, it was indeterminable whether these unvested restricted units would vest and as such the underlying shares were excluded from common shares issued and outstanding at such date and were not included in the computation of earnings per share for such period. As a result of the Company's largest shareholder's ownership exceeding 50% during the second quarter of 2019, all non-vested restricted stock awards and units outstanding at that time vested during that period. Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. Stock options for 629 and 593 shares were not included in computing diluted earnings per share for the three and nine months ended September 30, 2020, respectively, and stock options for 550 and 563 shares were not included in computing diluted earnings per share for the three and nine months ended September 30, 2019, respectively, because their effects were anti-dilutive. Additionally, the impact of the warrant to acquire shares of the Company’s common stock in connection with the Company’s participation in the Troubled Asset Relief Program is not included for the period ended September 30, 2019, as the warrant expired on May 1, 2019.

Investment securities available

Investment securities available for sale	9 Months Ended
	Sep. 30, 2020
Investment securities available for sale
Investment securities available for sale	Note 4 – Investment securities available for sale The amortized cost and fair value of investment securities available for sale as of September 30, 2020 and December 31, 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020 U.S. Government agency obligations $ 10,354 $ 125 $ — $ 10,479 Mortgage-backed securities 17,338 670 (28) 17,980 Subordinated debt 8,003 29 (186) 7,846 $ 35,695 $ 824 $ (214) $ 36,305 December 31, 2019 U.S. Government agency obligations $ 14,797 $ 57 $ (9) $ 14,845 Mortgage-backed securities 25,124 204 (26) 25,302 Subordinated debt 6,779 91 (80) 6,790 $ 46,700 $ 352 $ (115) $ 46,937 At September 30, 2020 and December 31, 2019, the Company had no investment securities pledged to secure borrowings from the Federal Home Loan Bank of Atlanta ("FHLB"). Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Gross realized gains $ — $ — $ 39 $ 101 Gross realized losses — — (27) — $ — $ — $ 12 $ 101 The Company sold approximately $7,900,000 and $6,500,000 in the nine months ended September 30,2020 and 2019, respectively, of investment securities available for sale at a net gain of $12,000 in 2020 and $101,000 in 2019. The sales of these securities, which had fixed interest rates, allowed the Company to decrease its exposure to upward movement in interest rates that would result in unrealized losses being recognized in shareholders’ equity. Investment securities available for sale that have an unrealized loss position at September 30, 2020 and December 31, 2019 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020 Mortgage-backed securities 2,073 (28) — — 2,073 (28) Subordinated debt 5,166 (81) 901 (105) 6,067 (186) $ 7,239 $ (109) $ 901 $ (105) $ 8,140 $ (214) December 31, 2019 U.S. Government agency obligations $ 2,001 $ (1) $ 5,368 $ (8) $ 7,369 $ (9) Mortgage-backed securities 2,747 (26) — — 2,747 (26) Subordinated debt 759 (6) (74) 1,699 (80) $ 5,507 $ (33) $ $ (82) $ 11,815 $ (115) As of September 30, 2020, there were eleven investments available for sale totaling $7,239,000 that were in a continuous loss position for less than twelve months and had an unrealized loss of $109,000. There were two investments available for sale totaling $901,000 that had been in a continuous loss position for more than 12 months and had an unrealized loss of $105,000. All of the unrealized losses are attributable to movements in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other than temporarily impaired at September 30, 2020. The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 8,213 $ 8,277 One to five years 359 365 Five to ten years 9,925 9,822 More than ten years 17,198 17,841 Total $ 35,695 $ 36,305

Loans and allowance for loan lo

Loans and allowance for loan losses	9 Months Ended
	Sep. 30, 2020
Loans and allowance for loan losses
Loans and allowance for loan losses	$2 million 6 23,102 184 Total 1,526 $ 185,137 $ 6,584 Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $57,423,000 and $49,736,000 as of September 30, 2020 and December 31, 2019, respectively. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): September 30, December 31, 2020 2019 Commercial real estate Owner occupied $ 307 $ 497 307 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 949 842 Second deed of trust 473 63 1,722 1,205 Commercial and industrial loans (except those secured by real estate) 197 166 Total loans $ 2,226 $ 1,868 The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: · Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; · Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention; · Risk rated 6 loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; and · Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans September 30, 2020 Construction and land development Residential $ 7,723 $ — $ — $ — $ 7,723 Commercial 25,226 99 289 — 25,614 32,949 99 289 — 33,337 Commercial real estate Owner occupied 85,290 9,535 2,642 — 97,467 Non-owner occupied 116,157 226 480 — 116,863 Multifamily 10,155 — — — 10,155 Farmland 378 — — — 378 211,980 9,761 3,122 — 224,863 Consumer real estate Home equity lines 17,546 1,461 300 — 19,307 Secured by 1-4 family residential First deed of trust 52,878 874 1,318 — 55,070 Second deed of trust 10,310 893 186 — 11,389 80,734 3,228 1,804 — 85,766 Commercial and industrial loans (except those secured by real estate) 221,207 799 463 — 222,469 Guaranteed student loans 30,656 — — — 30,656 Consumer and other 2,955 43 — — 2,998 Total loans $ 580,481 $ 13,930 $ 5,678 $ — $ 600,089 Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans December 31, 2019 Construction and land development Residential $ 7,887 $ — $ — $ — $ 7,887 Commercial 23,758 — 305 — 24,063 31,645 — 305 — 31,950 Commercial real estate Owner occupied 90,146 8,072 135 — 98,353 Non-owner occupied 115,781 230 497 — 116,508 Multifamily 13,186 146 — — 13,332 Farmland 71 85 — — 156 219,184 8,533 632 — 228,349 Consumer real estate Home equity lines 20,486 723 300 — 21,509 Secured by 1-4 family residential First deed of trust 53,200 1,660 996 — 55,856 Second deed of trust 10,130 167 114 — 10,411 83,816 2,550 1,410 — 87,776 Commercial and industrial loans (except those secured by real estate) 41,837 2,891 346 — 45,074 Guaranteed student loans 33,525 — — — 33,525 Consumer and other 2,621 — — — 2,621 Total loans $ 412,628 $ 13,974 $ 2,693 $ — $ 429,295 The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing September 30, 2020 Construction and land development Residential $ — $ — $ — $ — $ 7,723 $ 7,723 $ — Commercial — — — — 25,614 25,614 — — — — — 33,337 33,337 — Commercial real estate Owner occupied — — — — 97,467 97,467 — Non-owner occupied — — — — 116,863 116,863 — Multifamily — — — — 10,155 10,155 — Farmland — — — — 378 378 — — — — — 224,863 224,863 — Consumer real estate Home equity lines 193 — — 193 19,114 19,307 — Secured by 1-4 family residential First deed of trust — 135 — 135 54,935 55,070 — Second deed of trust 57 — — 57 11,332 11,389 — 250 135 — 385 85,381 85,766 — Commercial and industrial loans (except those secured by real estate) — — — — 222,469 222,469 — Guaranteed student loans 1,200 661 1,674 3,535 27,121 30,656 1,674 Consumer and other — — — — 2,998 2,998 — Total loans $ 1,450 $ 796 $ 1,674 $ 3,920 $ 596,169 $ 600,089 $ 1,674 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2019 Construction and land development Residential $ — $ — $ — $ — $ 7,887 $ 7,887 $ — Commercial — — — — 24,063 24,063 — — — — — 31,950 31,950 — Commercial real estate Owner occupied 701 — — 701 97,652 98,353 — Non-owner occupied — — — — 116,508 116,508 — Multifamily — — — — 13,332 13,332 — Farmland — — — — 156 156 — 701 — — 701 227,648 228,349 — Consumer real estate Home equity lines 52 — — 52 21,457 21,509 — Secured by 1-4 family residential First deed of trust 290 — — 290 55,566 55,856 — Second deed of trust 133 — — 133 10,278 10,411 — 475 — — 475 87,301 87,776 — Commercial and industrial loans (except those secured by real estate) 773 — — 773 44,301 45,074 — Guaranteed student loans 1,694 1,309 2,567 5,570 27,955 33,525 2,567 Consumer and other 4 — — 4 2,617 2,621 — Total loans $ 3,647 $ 1,309 $ 2,567 $ 7,523 $ 421,772 $ 429,295 $ 2,567 Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be impaired. Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Construction and land development Commercial $ 289 $ 289 $ — $ 337 $ 337 $ — 289 289 — 337 337 — Commercial real estate Owner occupied 3,121 3,136 — 2,089 2,104 — Non-owner occupied 1,691 1,691 — 2,304 2,304 — 4,812 4,827 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential First deed of trust 2,096 2,118 — 1,752 1,774 — Second deed of trust 714 922 — 752 960 — 3,110 3,340 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 148 148 — 211 373 — 8,359 8,604 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,125 1,125 3 1,414 1,414 15 1,125 1,125 3 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 75 75 8 78 78 9 Second deed of trust 103 103 77 — — — 178 178 85 78 78 9 Commercial and industrial loans (except those secured by real estate) 169 331 16 135 334 135 1,472 1,634 104 1,627 1,826 159 Total Construction and land development Commercial 289 289 — 337 337 — 289 289 — 337 337 — Commercial real estate Owner occupied 4,246 4,261 3 3,503 3,518 15 Non-owner occupied 1,691 1,691 — 2,304 2,304 — 5,937 5,952 3 5,807 5,822 15 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 2,171 2,193 8 1,830 1,852 9 Second deed of trust 817 1,025 77 752 960 — 3,288 3,518 85 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 317 479 16 346 707 135 $ 9,831 $ 10,238 $ 104 $ 9,372 $ 9,978 $ 159 The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months For the Nine Months Ended September 30, 2020 Ended September 30, 2020 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Commercial $ 294 $ — $ 305 $ — 294 — 305 — Commercial real estate Owner occupied 3,325 — 3,016 68 Non-owner occupied 1,976 — 2,058 37 5,301 — 5,074 105 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential First deed of trust 2,113 — 2,023 33 Second deed of trust 836 — 796 24 3,249 — 3,119 65 Commercial and industrial loans (except those secured by real estate) 155 — 168 — 8,999 — 8,666 170 With an allowance recorded Commercial real estate Owner occupied 843 14 985 14 843 14 985 14 Consumer real estate Secured by 1-4 family residential First deed of trust 76 — 77 2 Second deed of trust 103 — 45 — 179 — 122 2 Commercial and industrial loans (except those secured by real estate) 56 — 163 6 Consumer and other 116 — — — 1,194 14 1,270 22 Total Construction and land development Commercial 294 — 305 — 294 — 305 — Commercial real estate Owner occupied 4,168 14 4,001 82 Non-owner occupied 1,976 — 2,058 37 6,144 14 6,059 119 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential, First deed of trust 2,189 — 2,100 35 Second deed of trust 939 — 841 24 3,428 — 3,241 67 Commercial and industrial loans (except those secured by real estate) 211 — 331 6 Consumer and other 116 — — — $ 10,193 $ 14 $ 9,936 $ 192 Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance September 30, 2020 Commercial real estate Owner occupied $ 3,731 $ 3,424 $ 307 $ 4 Non-owner occupied 1,691 1,691 — — 5,422 5,115 307 4 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,613 901 712 8 Second deeds of trust 630 568 62 — 2,243 1,469 774 8 Commercial and industrial loans (except those secured by real estate) 197 — 197 16 $ 7,862 $ 6,584 $ 1,278 $ 28 Number of loans 37 26 11 3 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2019 Commercial real estate Owner occupied $ 3,502 $ 3,502 $ — $ 15 Non-owner occupied 2,304 1,807 497 — 5,806 5,309 497 15 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,641 881 760 9 Second deeds of trust 752 689 63 — 2,393 1,570 823 9 Commercial and industrial loans (except those secured by real estate) 211 180 31 — $ 8,410 $ 7,059 $ 1,351 $ 24 Number of loans 38 29 9 3 The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Owner occupied 1 $ 311 $ 311 — $ — $ — Non-owner occupied — — — 1 515 515 1 $ 311 $ 311 1 $ 515 $ 515 There were no TDR’s identified during the three months ended September 30, 2020 and 2019. There were no defaults on TDRs that were modified as TDRs during the prior twelve month period ended September 30, 2020 and 2019. Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2019 Construction and land development Residential $ 31 $ 16 $ — $ — $ 47 Commercial 159 2 — — 161 190 18 — — 208 Commercial real estate Owner occupied 659 4 — — 663 Non-owner occupied 747 27 — — 774 Multifamily 85 5 — — 90 Farmland 2 — — — 2 1,493 36 — — 1,529 Consumer real estate Home equity lines 233 (13) — — 220 Secured by 1-4 family residential First deed of trust 367 (1) — 3 369 Second deed of trust 60 (47) — 55 68 660 (61) — 58 657 Commercial and industrial loans (except those secured by real estate) 385 (19) — 6 372 Student loans 109 21 (23) — 107 Consumer and other 34 (9) (7) 20 38 Unallocated 176 14 — — 190 $ 3,047 $ — $ (30) $ 84 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2019 Construction and land development Residential $ 42 $ (2) $ — $ 7 $ 47 Commercial 220 (61) — 2 161 262 (63) — 9 208 Commercial real estate Owner occupied 673 (10) — — 663 Non-owner occupied 673 101 — — 774 Multifamily 87 3 — — 90 Farmland 2 — — — 2 1,435 94 — — 1,529 Consumer real estate Home equity lines 244 (36) — 12 220 Secured by 1-4 family residential First deed of trust 385 (24) — 8 369 Second deed of trust 51 (48) — 65 68 680 (108) — 85 657 Commercial and industrial loans (except those secured by real estate) 308 41 (15) 38 372 Student loans 121 63 (77) — 107 Consumer and other 34 (6) (13) 23 38 Unallocated 211 (21) — — 190 $ 3,051 $ — $ (105) $ 155 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2019 Construction and land development Residential $ 42 $ (1) $ — $ 7 $ 48 Commercial 220 (85) — 2 137 262 (86) — 9 185 Commercial real estate Owner occupied 673 (2) — — 671 Non-owner occupied 673 158 — — 831 Multifamily 87 (2) — — 85 Farmland 2 — — — 2 1,435 154 — — 1,589 Consumer real estate Home equity lines 244 50 (35) 12 271 Secured by 1-4 family residential First deed of trust 385 (56) — 14 343 Second deed of trust 51 (56) — 69 64 680 (62) (35) 95 678 Commercial and industrial loans (except those secured by real estate) 308 239 (64) 89 572 Student loans 121 80 (93) — 108 Consumer and other 34 (3) (26) 25 30 Unallocated 211 (187) — — 24 $ 3,051 $ 135 $ (218) $ 218 $ 3,186 The amount of the loan loss provision (recovery) is determined by an evaluation of the level of loans outstanding, the level of nonperforming loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. The level of the allowance reflects changes in the size of the portfolio or in any of its components as well as management’s continuing evaluation of industry concentrations, specific credit risk, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgement, should be charged off. While management utilizes its best judgement and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company recorded a provision for loan losses of $950,000 for the nine month period ended September 30, 2020. The provision for loan losses was driven primarily by an increase in the qualitative factors as a result of the continued economic uncertainty surrounding COVID-19. The increase in the qualitative factors due to COVID-19 were a result of deterioration in local economic factors such as the higher levels of unemployment and the increased credit risk due to loan payment deferrals under the CARES Act. The Company believes the current level of allowance for loan loss reserves are adequate to cover anticipated losses. However, the full economic impact of the COVID-19 pandemic is currently unknown and the Company will continue to monitor our loan portfolio for loss indicators which may have the potential for further provisions for loan losses through 2020 and beyond. The Company recorded a provision for loan losses of $135,000 for the year ended December 31, 2019 because of an increase in the specific reserves associated with a relationship evaluated individually for impairment. The Company did not record a provision for loan losses for the nine month period ended September 30, 2019 because of minimal net charge-offs, no significant changes in qualitative factors and stable asset quality. The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and the variability related to the factors used in calculation of the allowance. The allowance for loan losses included an unallocated portion of approximately $273,000, $24,000, and $190,000 at September 30, 2020, December 31, 2019, and September 30, 2019, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2020 Construction and land development Residential $ 204 $ — $ 204 $ 7,723 $ — $ 7,723 Commercial 318 — 318 25,614 289 25,325 522 — 522 33,337 289 33,048 Commercial real estate Owner occupied 1,022 3 1,019 97,467 4,246 93,221 Non-owner occupied 1,373 — 1,373 116,863 1,691 115,172 Multifamily 48 — 48 10,155 — 10,155 Farmland 2 — 2 378 — 378 2,445 3 2,442 224,863 5,937 218,926 Consumer real estate Home equity lines 10 — 10 19,307 300 19,007 Secured by 1-4 family residential First deed of trust 160 8 152 55,070 2,171 52,899 Second deed of trust 157 77 80 11,389 817 10,572 327 85 242 85,766 3,288 82,478 Commercial and industrial loans (except those secured by real estate) 348 16 332 222,469 317 222,152 Student loans 97 — 97 30,656 — 30,656 Consumer and other 311 — 311 2,998 — 2,998 $ 4,050 $ 104 $ 3,946 $ 600,089 $ 9,831 $ 590,258 Year Ended December 31, 2019 Construction and land development Residential $ 48 $ — $ 48 $ 7,887 $ — $ 7,887 Commercial 137 — 137 24,063 337 23,726 185 — 185 31,950 337 31,613 Commercial real estate Owner occupied 671 15 656 98,353 3,503 94,850 Non-owner occupied 831 — 831 116,508 2,304 114,204 Multifamily 85 — 85 13,332 — 13,332 Farmland 2 — 2 156 — 156 1,589 15 1,574 228,349 5,807 222,542 Consumer real estate Home equity lines 271 — 271 21,509 300 21,209 Secured by 1-4 family residential First deed of trust 343 9 334 55,856 1,830 54,026 Second deed of trust 64 — 64 10,411 752 9,659 678 9 669 87,776 2,882 84,894 Commercial and industrial loans (except those secured by real estate) 572 135 437 45,074 346 44,728 Student loans 108 — 108 33,525 — 33,525 Consumer and other 54 — 54 2,621 — 2,621 $ 3,186 $ 159 $ 3,027 $ 429,295 $ 9,372 $ 419,923" id="sjs-B4">Note 5 – Loans and allowance for loan losses Loans classified by type as of September 30, 2020 and December 31, 2019 are as follows (dollars in thousands): September 30, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 7,723 1.29 % $ 7,887 1.84 % Commercial 25,614 4.27 % 24,063 5.60 % 33,337 5.56 % 31,950 7.44 % Commercial real estate Owner occupied 97,467 16.24 % 98,353 22.91 % Non-owner occupied 116,863 19.47 % 116,508 27.14 % Multifamily 10,155 1.69 % 13,332 3.10 % Farmland 378 0.06 % 156 0.04 % 224,863 37.46 % 228,349 53.19 % Consumer real estate Home equity lines 19,307 3.22 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 55,070 9.18 % 55,856 13.01 % Second deed of trust 11,389 1.90 % 10,411 2.43 % 85,766 14.30 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 222,469 37.07 % 45,074 10.50 % Guaranteed student loans 30,656 5.11 % 33,525 7.81 % Consumer and other 2,998 0.50 % 2,621 0.61 % Total loans 600,089 100.0 % 429,295 100.0 % Deferred fees and costs, net (3,606) 764 Less: allowance for loan losses (4,050) (3,186) $ 592,433 $ 426,873 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the Department of Education (“DOE”). The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs. The Bank had originated $185,137,000 in loans through the Small Business Administration’s ("SBA") Paycheck Protection Program ("PPP") as of September 30, 2020, which have provided essential funds to approximately 1,500 businesses and nonprofits and protected more than 20,000 jobs in our community. The processing fees earned on the PPP loans will help to support the Bank's loan deferral program and potential credit losses associated with the COVID-19 pandemic. Below is a breakdown of PPP loans by loan size including SBA fees expected to be earned as of September 30, 2020 (dollars in thousands): Loan Size # of Loans $ of Loans $ SBA Fee < $350,000 1,426 $ 94,240 $ 4,547 $350,000 - $2 million 94 67,795 1,853 > $2 million 6 23,102 184 Total 1,526 $ 185,137 $ 6,584 Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $57,423,000 and $49,736,000 as of September 30, 2020 and December 31, 2019, respectively. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): September 30, December 31, 2020 2019 Commercial real estate Owner occupied $ 307 $ 497 307 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 949 842 Second deed of trust 473 63 1,722 1,205 Commercial and industrial loans (except those secured by real estate) 197 166 Total loans $ 2,226 $ 1,868 The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: · Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; · Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention; · Risk rated 6 loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; and · Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans September 30, 2020 Construction and land development Residential $ 7,723 $ — $ — $ — $ 7,723 Commercial 25,226 99 289 — 25,614 32,949 99 289 — 33,337 Commercial real estate Owner occupied 85,290 9,535 2,642 — 97,467 Non-owner occupied 116,157 226 480 — 116,863 Multifamily 10,155 — — — 10,155 Farmland 378 — — — 378 211,980 9,761 3,122 — 224,863 Consumer real estate Home equity lines 17,546 1,461 300 — 19,307 Secured by 1-4 family residential First deed of trust 52,878 874 1,318 — 55,070 Second deed of trust 10,310 893 186 — 11,389 80,734 3,228 1,804 — 85,766 Commercial and industrial loans (except those secured by real estate) 221,207 799 463 — 222,469 Guaranteed student loans 30,656 — — — 30,656 Consumer and other 2,955 43 — — 2,998 Total loans $ 580,481 $ 13,930 $ 5,678 $ — $ 600,089 Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans December 31, 2019 Construction and land development Residential $ 7,887 $ — $ — $ — $ 7,887 Commercial 23,758 — 305 — 24,063 31,645 — 305 — 31,950 Commercial real estate Owner occupied 90,146 8,072 135 — 98,353 Non-owner occupied 115,781 230 497 — 116,508 Multifamily 13,186 146 — — 13,332 Farmland 71 85 — — 156 219,184 8,533 632 — 228,349 Consumer real estate Home equity lines 20,486 723 300 — 21,509 Secured by 1-4 family residential First deed of trust 53,200 1,660 996 — 55,856 Second deed of trust 10,130 167 114 — 10,411 83,816 2,550 1,410 — 87,776 Commercial and industrial loans (except those secured by real estate) 41,837 2,891 346 — 45,074 Guaranteed student loans 33,525 — — — 33,525 Consumer and other 2,621 — — — 2,621 Total loans $ 412,628 $ 13,974 $ 2,693 $ — $ 429,295 The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing September 30, 2020 Construction and land development Residential $ — $ — $ — $ — $ 7,723 $ 7,723 $ — Commercial — — — — 25,614 25,614 — — — — — 33,337 33,337 — Commercial real estate Owner occupied — — — — 97,467 97,467 — Non-owner occupied — — — — 116,863 116,863 — Multifamily — — — — 10,155 10,155 — Farmland — — — — 378 378 — — — — — 224,863 224,863 — Consumer real estate Home equity lines 193 — — 193 19,114 19,307 — Secured by 1-4 family residential First deed of trust — 135 — 135 54,935 55,070 — Second deed of trust 57 — — 57 11,332 11,389 — 250 135 — 385 85,381 85,766 — Commercial and industrial loans (except those secured by real estate) — — — — 222,469 222,469 — Guaranteed student loans 1,200 661 1,674 3,535 27,121 30,656 1,674 Consumer and other — — — — 2,998 2,998 — Total loans $ 1,450 $ 796 $ 1,674 $ 3,920 $ 596,169 $ 600,089 $ 1,674 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2019 Construction and land development Residential $ — $ — $ — $ — $ 7,887 $ 7,887 $ — Commercial — — — — 24,063 24,063 — — — — — 31,950 31,950 — Commercial real estate Owner occupied 701 — — 701 97,652 98,353 — Non-owner occupied — — — — 116,508 116,508 — Multifamily — — — — 13,332 13,332 — Farmland — — — — 156 156 — 701 — — 701 227,648 228,349 — Consumer real estate Home equity lines 52 — — 52 21,457 21,509 — Secured by 1-4 family residential First deed of trust 290 — — 290 55,566 55,856 — Second deed of trust 133 — — 133 10,278 10,411 — 475 — — 475 87,301 87,776 — Commercial and industrial loans (except those secured by real estate) 773 — — 773 44,301 45,074 — Guaranteed student loans 1,694 1,309 2,567 5,570 27,955 33,525 2,567 Consumer and other 4 — — 4 2,617 2,621 — Total loans $ 3,647 $ 1,309 $ 2,567 $ 7,523 $ 421,772 $ 429,295 $ 2,567 Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be impaired. Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Construction and land development Commercial $ 289 $ 289 $ — $ 337 $ 337 $ — 289 289 — 337 337 — Commercial real estate Owner occupied 3,121 3,136 — 2,089 2,104 — Non-owner occupied 1,691 1,691 — 2,304 2,304 — 4,812 4,827 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential First deed of trust 2,096 2,118 — 1,752 1,774 — Second deed of trust 714 922 — 752 960 — 3,110 3,340 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 148 148 — 211 373 — 8,359 8,604 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,125 1,125 3 1,414 1,414 15 1,125 1,125 3 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 75 75 8 78 78 9 Second deed of trust 103 103 77 — — — 178 178 85 78 78 9 Commercial and industrial loans (except those secured by real estate) 169 331 16 135 334 135 1,472 1,634 104 1,627 1,826 159 Total Construction and land development Commercial 289 289 — 337 337 — 289 289 — 337 337 — Commercial real estate Owner occupied 4,246 4,261 3 3,503 3,518 15 Non-owner occupied 1,691 1,691 — 2,304 2,304 — 5,937 5,952 3 5,807 5,822 15 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 2,171 2,193 8 1,830 1,852 9 Second deed of trust 817 1,025 77 752 960 — 3,288 3,518 85 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 317 479 16 346 707 135 $ 9,831 $ 10,238 $ 104 $ 9,372 $ 9,978 $ 159 The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months For the Nine Months Ended September 30, 2020 Ended September 30, 2020 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Commercial $ 294 $ — $ 305 $ — 294 — 305 — Commercial real estate Owner occupied 3,325 — 3,016 68 Non-owner occupied 1,976 — 2,058 37 5,301 — 5,074 105 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential First deed of trust 2,113 — 2,023 33 Second deed of trust 836 — 796 24 3,249 — 3,119 65 Commercial and industrial loans (except those secured by real estate) 155 — 168 — 8,999 — 8,666 170 With an allowance recorded Commercial real estate Owner occupied 843 14 985 14 843 14 985 14 Consumer real estate Secured by 1-4 family residential First deed of trust 76 — 77 2 Second deed of trust 103 — 45 — 179 — 122 2 Commercial and industrial loans (except those secured by real estate) 56 — 163 6 Consumer and other 116 — — — 1,194 14 1,270 22 Total Construction and land development Commercial 294 — 305 — 294 — 305 — Commercial real estate Owner occupied 4,168 14 4,001 82 Non-owner occupied 1,976 — 2,058 37 6,144 14 6,059 119 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential, First deed of trust 2,189 — 2,100 35 Second deed of trust 939 — 841 24 3,428 — 3,241 67 Commercial and industrial loans (except those secured by real estate) 211 — 331 6 Consumer and other 116 — — — $ 10,193 $ 14 $ 9,936 $ 192 Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance September 30, 2020 Commercial real estate Owner occupied $ 3,731 $ 3,424 $ 307 $ 4 Non-owner occupied 1,691 1,691 — — 5,422 5,115 307 4 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,613 901 712 8 Second deeds of trust 630 568 62 — 2,243 1,469 774 8 Commercial and industrial loans (except those secured by real estate) 197 — 197 16 $ 7,862 $ 6,584 $ 1,278 $ 28 Number of loans 37 26 11 3 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2019 Commercial real estate Owner occupied $ 3,502 $ 3,502 $ — $ 15 Non-owner occupied 2,304 1,807 497 — 5,806 5,309 497 15 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,641 881 760 9 Second deeds of trust 752 689 63 — 2,393 1,570 823 9 Commercial and industrial loans (except those secured by real estate) 211 180 31 — $ 8,410 $ 7,059 $ 1,351 $ 24 Number of loans 38 29 9 3 The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Owner occupied 1 $ 311 $ 311 — $ — $ — Non-owner occupied — — — 1 515 515 1 $ 311 $ 311 1 $ 515 $ 515 There were no TDR’s identified during the three months ended September 30, 2020 and 2019. There were no defaults on TDRs that were modified as TDRs during the prior twelve month period ended September 30, 2020 and 2019. Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2019 Construction and land development Residential $ 31 $ 16 $ — $ — $ 47 Commercial 159 2 — — 161 190 18 — — 208 Commercial real estate Owner occupied 659 4 — — 663 Non-owner occupied 747 27 — — 774 Multifamily 85 5 — — 90 Farmland 2 — — — 2 1,493 36 — — 1,529 Consumer real estate Home equity lines 233 (13) — — 220 Secured by 1-4 family residential First deed of trust 367 (1) — 3 369 Second deed of trust 60 (47) — 55 68 660 (61) — 58 657 Commercial and industrial loans (except those secured by real estate) 385 (19) — 6 372 Student loans 109 21 (23) — 107 Consumer and other 34 (9) (7) 20 38 Unallocated 176 14 — — 190 $ 3,047 $ — $ (30) $ 84 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2019 Construction and land development Residential $ 42 $ (2) $ — $ 7 $ 47 Commercial 220 (61) — 2 161 262 (63) — 9 208 Commercial real estate Owner occupied 673 (10) — — 663 Non-owner occupied 673 101 — — 774 Multifamily 87 3 — — 90 Farmland 2 — — — 2 1,435 94 — — 1,529 Consumer real estate Home equity lines 244 (36) — 12 220 Secured by 1-4 family residential First deed of trust 385 (24) — 8 369 Second deed of trust 51 (48) — 65 68 680 (108) — 85 657 Commercial and industrial loans (except those secured by real estate) 308 41 (15) 38 372 Student loans 121 63 (77) — 107 Consumer and other 34 (6) (13) 23 38 Unallocated 211 (21) — — 190 $ 3,051 $ — $ (105) $ 155 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2019 Construction and land development Residential $ 42 $ (1) $ — $ 7 $ 48 Commercial 220 (85) — 2 137 262 (86) — 9 185 Commercial real estate Owner occupied 673 (2) — — 671 Non-owner occupied 673 158 — — 831 Multifamily 87 (2) — — 85 Farmland 2 — — — 2 1,435 154 — — 1,589 Consumer real estate Home equity lines 244 50 (35) 12 271 Secured by 1-4 family residential First deed of trust 385 (56) — 14 343 Second deed of trust 51 (56) — 69 64 680 (62) (35) 95 678 Commercial and industrial loans (except those secured by real estate) 308 239 (64) 89 572 Student loans 121 80 (93) — 108 Consumer and other 34 (3) (26) 25 30 Unallocated 211 (187) — — 24 $ 3,051 $ 135 $ (218) $ 218 $ 3,186 The amount of the loan loss provision (recovery) is determined by an evaluation of the level of loans outstanding, the level of nonperforming loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. The level of the allowance reflects changes in the size of the portfolio or in any of its components as well as management’s continuing evaluation of industry concentrations, specific credit risk, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgement, should be charged off. While management utilizes its best judgement and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company recorded a provision for loan losses of $950,000 for the nine month period ended September 30, 2020. The provision for loan losses was driven primarily by an increase in the qualitative factors as a result of the continued economic uncertainty surrounding COVID-19. The increase in the qualitative factors due to COVID-19 were a result of deterioration in local economic factors such as the higher levels of unemployment and the increased credit risk due to loan payment deferrals under the CARES Act. The Company believes the current level of allowance for loan loss reserves are adequate to cover anticipated losses. However, the full economic impact of the COVID-19 pandemic is currently unknown and the Company will continue to monitor our loan portfolio for loss indicators which may have the potential for further provisions for loan losses through 2020 and beyond. The Company recorded a provision for loan losses of $135,000 for the year ended December 31, 2019 because of an increase in the specific reserves associated with a relationship evaluated individually for impairment. The Company did not record a provision for loan losses for the nine month period ended September 30, 2019 because of minimal net charge-offs, no significant changes in qualitative factors and stable asset quality. The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and the variability related to the factors used in calculation of the allowance. The allowance for loan losses included an unallocated portion of approximately $273,000, $24,000, and $190,000 at September 30, 2020, December 31, 2019, and September 30, 2019, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2020 Construction and land development Residential $ 204 $ — $ 204 $ 7,723 $ — $ 7,723 Commercial 318 — 318 25,614 289 25,325 522 — 522 33,337 289 33,048 Commercial real estate Owner occupied 1,022 3 1,019 97,467 4,246 93,221 Non-owner occupied 1,373 — 1,373 116,863 1,691 115,172 Multifamily 48 — 48 10,155 — 10,155 Farmland 2 — 2 378 — 378 2,445 3 2,442 224,863 5,937 218,926 Consumer real estate Home equity lines 10 — 10 19,307 300 19,007 Secured by 1-4 family residential First deed of trust 160 8 152 55,070 2,171 52,899 Second deed of trust 157 77 80 11,389 817 10,572 327 85 242 85,766 3,288 82,478 Commercial and industrial loans (except those secured by real estate) 348 16 332 222,469 317 222,152 Student loans 97 — 97 30,656 — 30,656 Consumer and other 311 — 311 2,998 — 2,998 $ 4,050 $ 104 $ 3,946 $ 600,089 $ 9,831 $ 590,258 Year Ended December 31, 2019 Construction and land development Residential $ 48 $ — $ 48 $ 7,887 $ — $ 7,887 Commercial 137 — 137 24,063 337 23,726 185 — 185 31,950 337 31,613 Commercial real estate Owner occupied 671 15 656 98,353 3,503 94,850 Non-owner occupied 831 — 831 116,508 2,304 114,204 Multifamily 85 — 85 13,332 — 13,332 Farmland 2 — 2 156 — 156 1,589 15 1,574 228,349 5,807 222,542 Consumer real estate Home equity lines 271 — 271 21,509 300 21,209 Secured by 1-4 family residential First deed of trust 343 9 334 55,856 1,830 54,026 Second deed of trust 64 — 64 10,411 752 9,659 678 9 669 87,776 2,882 84,894 Commercial and industrial loans (except those secured by real estate) 572 135 437 45,074 346 44,728 Student loans 108 — 108 33,525 — 33,525 Consumer and other 54 — 54 2,621 — 2,621 $ 3,186 $ 159 $ 3,027 $ 429,295 $ 9,372 $ 419,923

Deposits

Deposits	9 Months Ended
	Sep. 30, 2020
Deposits
Deposits	Note 6 – Deposits Deposits as of September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): September 30, 2020 December 31, 2019 Amount % Amount % Demand accounts $ 217,204 37.9 % $ 131,228 29.6 % Interest checking accounts 59,711 10.4 % 48,427 10.9 % Money market accounts 147,467 25.7 % 99,955 22.6 % Savings accounts 33,733 5.9 % 26,396 6.0 % Time deposits of $250,000 and over 16,315 2.8 % 22,327 5.0 % Other time deposits 99,422 17.3 % 114,875 25.9 % Total $ 573,852 100.0 % $ 443,208 100.0 %

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2020
Borrowings
Borrowings	Note 7 – Borrowings The Company uses both short-term and long-term borrowings to supplement deposits when they are available at a lower overall cost to the Company or they can be invested at a positive rate of return. As a member of the Federal Home Loan Bank of Atlanta, the Bank is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. The Company held $2,141,000 in FHLB stock at September 30, 2020 and $1,694,000 at December 31, 2019, which is held at cost. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of commercial, 1‑4 family residential loans and investment securities. The Company had FHLB advances of $39,000,000 and $29,000,000 at September 30, 2020 and December 31, 2019, respectively, maturing through 2023. The Company uses federal funds purchased and repurchase agreements for short-term borrowing needs. Securities sold under agreements to repurchase are classified as borrowings and generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The carrying value of these short term borrowing agreements was $5,317,000 at December 31, 2019. There were no borrowings against the lines at September 30, 2020. We also have access to the Paycheck Protection Program Liquidity Facility ("PPPLF") of the Board of Governors of the Federal Reserve System (the "Federal Reserve"), from which applications for borrowings can be made. The Federal Reserve requires that PPP loans be pledged to secure any advances from the PPPLF. The Company currently has $45,120,000 in borrowings against the PPPLF and an unused borrowing capacity of $140,017,000 based on unpledged PPP loans available to secure any future borrowings. The Company has access to this facility until December 31, 2020 at which time the Federal Reserve will no longer take requests for borrowings. The Company’s unused lines of credit for future borrowings total approximately $48.4 million at September 30, 2020, which consists of $5.6 million available from the FHLB, $10 million on revolving bank line of credit, $7.8 million under secured federal funds agreements with third party financial institutions, and $25 million in repurchase lines of credit with third party financial institutions. Additional loans and securities are available that can be pledged as collateral for future borrowings from the Federal Reserve Bank of Richmond or the FHLB above the current lendable collateral value.

Trust preferred securities

Trust preferred securities	9 Months Ended
	Sep. 30, 2020
Trust preferred securities
Trust preferred securities	Note 8 – Trust preferred securities During the first quarter of 2005, Southern Community Financial Capital Trust I, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On February 24, 2005, $5.2 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest (three-month LIBOR plus 2.15%) which adjusts, and is payable, quarterly. The interest rate at September 30, 2020 was 2.39%. The securities were redeemable at par beginning on March 15, 2010 and each quarter after such date until the securities mature on March 15, 2035. No amounts have been redeemed at September 30, 2020 and there are no plans to do so. The principal asset of the Trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. During the third quarter of 2007, Village Financial Statutory Trust II, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On September 20, 2007, $3.6 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have LIBOR-indexed floating rate of interest (three-month LIBOR plus 1.4%) which adjusts, and is also payable, quarterly. The interest rate at September 30, 2020 was 1.64%. The securities may be redeemed at par at any time commencing in December 2012 until the securities mature in 2037. No amounts have been redeemed at September 30, 2020 and there are no plans to do so. The principal asset of the Trust is $3.6 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. The Trust Preferred Capital Notes may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. The portion of the Trust Preferred Capital Notes not considered as Tier 1 capital may be included in Tier 2 capital. The obligations of the Company with respect to the issuance of the Trust Preferred Capital Notes constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the Trust Preferred Capital Notes. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Trust Preferred Capital Notes and require a deferral of common dividends. The Company is current on these interest payments.

Subordinated Debt

Subordinated Debt	9 Months Ended
	Sep. 30, 2020
Subordinated Debt
Subordinated Debt	Note 9 – Subordinated Debt On March 21, 2018, the Company issued $5,700,000 of fixed-to-floating rate subordinated notes due March 31, 2028 in a private placement. The Company received $5,539,000 in net proceeds after deducting issuance costs. The subordinated notes accrue interest at a fixed rate of 6.50% for the first five years until March 31, 2023; thereafter, the subordinated notes will accrue interest at an annual floating rate equal to three-month LIBOR plus a spread of 3.73% until maturity or early redemption. The Company may redeem the subordinated notes in whole or in part, on or after March 31, 2023. The subordinated notes are unsecured and subordinated in right of payment to all of the Company’s existing and future senior indebtedness, whether secured or unsecured, including claims of depositors and general creditors, and rank equally in right of payment with any unsecured, subordinated indebtedness that the Company may incur in the future. The carrying value of the notes totaled $5,620,000 and $5,595,000 at September 30, 2020 and December 31, 2019, respectively.

Stock incentive plan

Stock incentive plan	9 Months Ended
	Sep. 30, 2020
Stock incentive plan
Stock incentive plan	Note 10 – Stock incentive plan In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award rather than disclosed in the financial statements. The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Nine Months Ended September 30, 2020 2019 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734 During the third quarter of 2020, we granted certain officers 12,744 time-based restricted shares of common stock with a weighted average fair market value of $29.11 per share on the date of grant. These restricted stock awards vest ratably over a three-year period provided the officer is employed with the Company on the applicable vesting date. During the third quarter of 2020, we granted certain officers 4,004 target performance-based restricted stock units with a weighted average fair value of $29.00 on the date of grant. These performance awards have a two-year performance period beginning on January 2, 2021. The performance targets are based on return on tangible common equity and the adversely classified items ratio over the performance period with possible payouts ranging from 0% to 150% of the target awards. During the first quarter of 2020, we granted certain officers 750 time-based restricted shares of common stock with a weighted average fair market value of $42.99 per share on the date of grant. These restricted stock awards vest ratably over a three-year period provided the officer is employed with the Company on the applicable vesting date. During the third quarter of 2019, we granted certain officers 4,155 target performance-based restricted stock units with a weighted average fair value of $33.82 on the date of grant. These performance awards have a two-year performance period beginning on January 2, 2020. The performance targets are based on return on tangible common equity and the adversely classified items ratio over the performance period with possible payouts ranging from 0% to 150% of the target awards. During the third quarter of 2019, we granted certain officers 8,155 time-based restricted shares of common stock with a weighted average fair value of $33.82 on the date of grant. These restricted stock awards vest ratably over three years. During the second quarter of 2019, the Company's largest shareholder's ownership exceeded 50% of the Company's outstanding common stock, which triggered change in control provisions included in the Company's stock incentive plans. The award agreements provided for the acceleration of the vesting of restricted stock and restricted stock units in the event of a change in control, with the restricted stock units vesting at the maximum potential value of the awards. Prior to vesting, shares of restricted stock and restricted stock units are subject to forfeiture to us without consideration upon termination of employment under certain circumstances. The total number of shares underlying non-vested restricted stock and restricted stock units was 24,736 and 12,110 at September 30, 2020 and 2019, respectively. The fair value of the stock is based on the grant date of the award and the expense is recognized over the vesting period. Unamortized stock-based compensation related to non-vested share-based compensation arrangements granted under the stock incentive plan as of September 30, 2020 and 2019 was $271,600 and $387,256, respectively. As of September 30, 2020, the time based unrecognized compensation expense of $511,401 is expected to be recognized over a weighted average period of 2.52 years. For the periods ended September 30, 2020 and 2019, there were forfeitures of restricted stock and restricted stock units of 1,094 and 8,074, respectively. The 246 shares included in the below table as other represent the incremental increase in restricted sock units that vested during the nine months ended September 30, 2020 and were based on those restricted stock units vesting at the maximum potential value as opposed to the targeted potential value of the award that was assumed as of December 31, 2019. A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2020 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 369,300 Granted 17,498 29.68 524,940 Vested (4,224) 33.82 (126,720) Forfeited (1,094) 33.82 (32,820) Other 246 33.82 7,380 September 30, 2020 24,736 $ 30.90 $ 742,080 Stock-based compensation expense was approximately $157,000 and $396,000 for the nine months ended September 30, 2020 and 2019, respectively.

Fair value

Fair value	9 Months Ended
	Sep. 30, 2020
Fair Value
Fair Value	Note 11 – Fair value The Company determines the fair value of its financial instruments based on the requirements established in Accounting Standards Codification ("ASC") 820: Fair Value Measurements, which provides a framework for measuring fair value under GAAP and requires an entity to maximize the use of observable inputs when measuring fair value. ASC 820 defines fair value as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. ASC 820 establishes a hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair values hierarchy is as follows: Level 1 Inputs — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Inputs — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Inputs — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods to determine the fair value of each type of financial instrument: Securities : Fair values for securities available-for-sale are obtained from an independent pricing service. The prices are not adjusted. The independent pricing service uses industry-standard models to price U.S. Government agency obligations and mortgage backed securities that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Securities of obligations of state and political subdivisions are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. Substantially all assumptions used by the independent pricing service are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace (Levels 1 and 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3). Impaired loans : The fair values of impaired loans are measured for impairment using the fair value of the collateral for collateral-dependent loans on a nonrecurring basis. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than two years old, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal if deemed significant using observable market data. Likewise, values for inventory and account receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. Loans held for sale: During the first quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of loans held for sale in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company's loans held for sale is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Company conducts business. The Company's portfolio of loans held for sale is classified as Level 2. At December 31, 2019, these loans were carried at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors. Gains and losses on the sale of loans are recorded within mortgage banking income, net on the Consolidated Statements of Income. Derivative asset – IRLCs: Beginning with the first quarter of 2020, the Company recognizes IRLCs at fair value based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate lock commitments will close. All of the Company's IRLCs are classified as Level 2. The fair value of interest rate lock commitments was considered immaterial at December 31, 2019. Derivative asset/liability – forward sale commitments: During the first quarter of 2020, the Company elected to begin using fair value accounting for its forward sales commitments related to IRLCs and LHFS. Best efforts sale commitments are entered into for loans intended for sale in the secondary market at the time the borrower commitment is made. The best efforts commitments are valued using the committed price to the counter-party against the current market price of the interest rate lock commitment or mortgage loan held for sale. All of the Company’s forward sale commitments are classified as Level 2. Other Real Estate Owned ("OREO"): OREO assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Subsequently, OREO assets are carried at lower of cost or fair value less estimated costs to sell. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring 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 foreclosed asset as nonrecurring Level 3. Assets held for sale : Assets held for sale were transferred from premises and equipment at the lower of cost less accumulated depreciation or fair value at the date of transfer. The Company periodically evaluates the value of assets held for sale and records an impairment charge for any subsequent declines in fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the assets held for sale as nonrecurring 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 asset held for sale as nonrecurring Level 3. Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at September 30, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 10,479 $ — $ 10,479 $ — Mortgage-backed securities 17,980 — 17,980 — Subordinated debt 7,846 — 7,596 250 Loans held for sale 27,525 — 27,525 — IRLC (40) — (40) — Financial Liabilities - Recurring Forward sales commitment (64) — (64) — Financial Assets - Non-Recurring Impaired loans 1,368 — — 1,368 Other real estate owned 336 — — 336 Fair Value Measurement at December 31, 2019 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 14,845 $ — $ 14,845 $ — Mortgage-backed securities 25,302 — 25,302 — Subordinated debt 6,790 — 6,540 250 Financial Assets - Non-Recurring Impaired loans 1,468 — — 1,468 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526 The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured at fair value at September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,368 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (10)% Other real estate owned $ 336 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances December 31, 2019 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,468 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (10)% Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%-10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (15)% Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances FASB ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. In accordance with Accounting Standards Update ("ASU") 2016-01, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. September 30, December 31, 2020 2019 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 19,605 $ 19,605 $ 19,967 $ 19,967 Cash equivalents Level 2 18,482 18,482 — — Investment securities available for sale Level 2 36,055 36,055 46,687 46,687 Investment securities available for sale Level 3 250 250 250 250 Federal Home Loan Bank stock Level 2 2,141 2,141 1,694 1,694 Loans held for sale Level 2 27,525 27,525 12,722 12,722 Loans Level 3 598,721 599,223 427,827 429,254 Impaired loans Level 3 1,368 1,368 1,468 1,468 Assets held for sale Level 3 — — 514 514 Other real estate owned Level 3 336 336 526 526 Bank owned life insurance Level 3 7,756 7,756 7,612 7,612 Accrued interest receivable Level 2 4,880 4,880 2,597 2,597 Forward sales commitment Level 2 64 64 — — Financial liabilities Deposits Level 2 573,852 578,425 443,208 443,645 FHLB borrowings Level 2 39,000 39,447 29,000 29,285 Trust preferred securities Level 2 8,764 9,630 8,764 9,812 Other borrowings Level 2 50,740 50,740 10,912 10,912 Accrued interest payable Level 2 231 231 221 221 Interest rate lock commitments Level 2 40 40 — —

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2020
Segment Reporting
Segment Reporting	Note 12 – Segment Reporting The Company has two reportable segments: traditional commercial banking and mortgage banking. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income. The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the commercial banking segment’s cost of funds. Additionally, the mortgage banking segment leases premises from the commercial banking segment. These transactions are eliminated in the consolidation process. The following table presents segment information as of and for the three and nine months ended September 30, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2020 Revenues Interest income $ 6,430 $ 156 $ (46) $ 6,540 Gain on sale of loans — 3,585 — 3,585 Other revenues 666 346 (62) 950 Total revenues 7,096 4,087 (108) 11,075 Expenses Provision for loan losses 250 — — 250 Interest expense 1,069 46 (46) 1,069 Salaries and benefits 2,526 1,118 — 3,644 Commissions — 1,054 — 1,054 Other expenses 1,873 300 (62) 2,111 Total operating expenses 5,718 2,518 (108) 8,128 Income before income taxes 1,378 1,569 — 2,947 Income tax expense 349 329 — 678 Net income $ 1,029 $ 1,240 $ — $ 2,269 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2019 Revenues Interest income $ 5,879 $ 197 $ (66) $ 6,010 Gain on sale of loans — 2,200 — 2,200 Other revenues 725 250 (52) 923 Total revenues 6,604 2,647 (118) 9,133 Expenses Interest expense 1,398 66 (66) 1,398 Salaries and benefits 2,009 832 — 2,841 Commissions — 657 — 657 Other expenses 1,821 278 (52) 2,047 Total operating expenses 5,228 1,833 (118) 6,943 Income before income taxes 1,376 814 — 2,190 Income tax expense 292 171 463 Net income $ 1,084 $ 643 $ — $ 1,727 Total assets $ 561,453 $ 10,854 $ (12,378) $ 559,929 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2020 Revenues Interest income $ 18,107 $ 401 $ (91) $ 18,417 Gain on sale of loans — 8,014 — 8,014 Other revenues 1,970 820 (179) 2,611 Total revenues 20,077 9,235 (270) 29,042 Expenses Provision for loan losses 950 — — 950 Interest expense 3,575 91 (91) 3,575 Salaries and benefits 6,362 2,916 — 9,278 Commissions — 2,269 — 2,269 Other expenses 5,187 878 (179) 5,886 Total operating expenses 16,074 6,154 (270) 21,958 Income before income taxes 4,003 3,081 — 7,084 Income tax espense 935 647 — 1,582 Net income $ 3,068 $ 2,434 $ — $ 5,502 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2019 Revenues Interest income $ 17,296 $ 384 $ (90) $ 17,590 Gain on sale of loans — 4,605 — 4,605 Other revenues 2,296 562 (162) 2,696 Total revenues 19,592 5,551 (252) 24,891 Expenses Interest expense 3,960 90 (90) 3,960 Salaries and benefits 7,057 2,421 — 9,478 Commissions — 1,369 — 1,369 Other expenses 5,460 794 (162) 6,092 Total operating expenses 16,477 4,674 (252) 20,899 Income before income taxes 3,115 877 — 3,992 Income tax espense 633 186 — 819 Net income $ 2,482 $ 691 $ — $ 3,173 Total assets $ 561,453 $ 10,854 $ (12,378) $ 559,929

Shareholders' Equity and Regula

Shareholders' Equity and Regulatory Matters	9 Months Ended
	Sep. 30, 2020
Shareholders' Equity and Regulatory Matters
Shareholders' Equity and Regulatory Matters	Note 13 – Shareholders’ Equity and Regulatory Matters Preferred Stock On May 1, 2009, as part of the Capital Purchase Program established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008, the Company sold (i) 14,738 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $4.00 per share, having a liquidation preference of $1,000 per share (the “preferred stock”) and (ii) a warrant (the “Warrant”) to purchase 499,029 shares of the Company’s common stock at an initial exercise price of $4.43 per share, subject to certain anti-dilution and other adjustments, to the Treasury for an aggregate purchase price of $14,738,000 in cash. During the first quarter of 2018, the Company used the proceeds from a subordinated note issuance to redeem the remaining 5,027 outstanding shares of preferred stock plus accrued dividends of $56,554. The Warrant expired on May 1, 2019. Accumulated Other Comprehensive Income The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes of $118,000 and $38,000 as of September 30, 2020 and December 31, 2019, respectively (in thousands): September 30, December 31, 2020 2019 Net unrealized gains on securities $ 482 $ 186 Net unrecognized losses on defined benefit plan (38) (44) Total accumulated other comprehensive income $ 444 $ 142 Regulatory Matters The Company meets the eligibility criteria of a small bank holding company in accordance with the Federal Reserve’s Small Bank Holding Company Policy Statement (the “SBHC Policy Statement”). On August 28, 2018, the Federal Reserve issued an interim final rule required by the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, which was signed into law on May 24, 2018 (the “EGRRCPA”), that expands the applicability of the SBHC Policy Statement to bank holding companies with total consolidated assets of less than $3 billion (up from the prior $1 billion threshold). Under the SBHC Policy Statement, qualifying bank holding companies, such as the Company, have additional flexibility in the amount of debt they can issue and are also exempt from the Basel III capital framework as outlined by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the "Basel III Capital Rules"). The SBHC Policy Statement does not apply to the Bank and the Bank must comply with the Basel III Capital Rules. The Bank is required to comply with the capital adequacy standards established by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), in the case of the Company, and the Federal Deposit Insurance Corporation (“FDIC”), in the case of the Bank. The Federal Reserve and the FDIC have adopted rules to implement the Basel III Capital Rules. The Basel III Capital Rules implement minimum capital ratios and establish risk weightings that are applied to many classes of assets held by community banks, including applying higher risk weightings to certain commercial real estate loans. The Basel III Capital Rules require banks to comply with the following minimum capital ratios: (1) a ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (effectively resulting in a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 7)%; (2) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5)%; (3) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5)%; and (4) a leverage ratio of 4%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures (computed as the average for each quarter of the month-end ratios for the quarter). The phase-in of the capital conservation buffer requirement began on January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking organizations with a ratio of common equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. As of September 30, 2020, the Bank exceeded the minimum ratios under the Basel III Capital Rules. The Bank must also comply with the capital requirements set forth in the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act of 1950. To be well capitalized under these regulations, a bank must have the following minimum capital ratios: (1) a common equity Tier 1 capital ratio of at least 6.5%; (2) a Tier 1 risk-based capital ratio of at least 8.0%; (3) a total risk-based capital ratio of at least 10.0%; and (4) a leverage ratio of at least 5.0%. As of September 30, 2020, the Bank exceeded the minimum ratios to be classified as well capitalized. On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or “CBLR”). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the “prompt corrective action” framework. In April 2020, as required by the Coronavirus Aid, Relief, and Economic Security Act, which was passed in response to the COVID-19 pandemic, federal bank regulators issued two interim final rules related to the CBLR framework. One interim final rule provides that, as of the second quarter of 2020, banking organizations with leverage ratios of 8% or greater (and that meet the other existing qualifying criteria) may elect to use the CBLR framework. It also establishes a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall below the 8% CBLR requirement, so long as the banking organization maintains a leverage ratio of 7% or greater. The second interim final rule provides a transition from the temporary 8% CBLR requirement to a 9% CBLR requirement. It establishes a minimum CBLR of 8% for the second through fourth quarters of 2020, 8.5% for 2021, and 9% thereafter, and maintains a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall no more than 100 basis points below the applicable CBLR requirement. The Bank elected not to opt into the CBLR framework as of September 30, 2020. The capital amounts and ratios at September 30, 2020 and December 31, 2019 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total capital (to risk-weighted assets) Village Bank $ 62,788 14.09 % $ 35,643 8.00 % $ 44,554 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 58,738 13.18 % 26,732 6.00 % 35,643 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 58,738 8.80 % 26,702 4.00 % 33,378 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 58,738 13.18 % 20,049 4.50 % 28,960 6.50 % December 31, 2019 Total capital (to risk-weighted assets) Village Bank $ 54,653 12.56 % $ 34,807 8.00 % $ 43,508 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 52,867 12.15 % 26,015 6.00 % 34,807 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 52,867 9.69 % 21,823 4.00 % 27,278 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 52,867 12.15 % 19,579 4.50 % 28,280 6.50 %

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and contingencies
Commitments and contingencies	Note 14 – Commitments and contingencies Off-balance-sheet risk – The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amounts recognized in the financial statements. The contract amounts of these instruments reflect the extent of involvement that the Company has in particular classes of instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, and to potential credit loss associated with letters of credit issued, is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans and other such on-balance sheet instruments. At September 30, 2020 and December 31, 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2020 2019 Undisbursed credit lines $ 104,490 $ 83,366 Commitments to extend or originate credit 51,496 15,722 Standby letters of credit 5,945 6,732 Total commitments to extend credit $ 161,931 $ 105,820 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Historically, many commitments expire without being drawn upon; therefore, the total commitment amounts shown in the above table are not necessarily indicative of future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include personal or income-producing commercial real estate, accounts receivable, inventory and equipment. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Concentrations of credit risk – Generally, the Company’s loans, commitments to extend credit, and standby letters of credit have been granted to customers in the Company’s market area. Although the Company is building a diversified loan portfolio, a substantial portion of its clients’ ability to honor contracts is reliant upon the economic stability of the Richmond, Virginia area, including the real estate markets in the area. The concentrations of credit by type of loan are set forth in Note 5. The distribution of commitments to extend credit approximates the distribution of loans outstanding.

Mortgage Banking and Derivative

Mortgage Banking and Derivatives	9 Months Ended
	Sep. 30, 2020
Mortgage Banking and Derivatives
Mortgage Banking and Derivatives	Note 15 – Mortgage Banking and Derivatives Loans held for sale. The Company, through the Bank’s mortgage banking subsidiary, the Mortgage Company, originates residential mortgage loans for sale in the secondary market. Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. During the first quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of loans held for sale (“LHFS”) in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for the identical instruments traded in the secondary mortgage loan markets in which the Company conducts business and totaled $27.5 million as of September 30, 2020, of which $27.6 million is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. These loans were previously carried as of December 31, 2019 at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors and totaled $12.7 million. Interest Rate Lock Commitments and Forward Sales Commitments. The Company, through the Mortgage Company, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (“IRLCs”). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. Upon entering into a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. The Company determines the fair value of IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate lock commitments will close. The fair value of these derivative instruments is reported in “Other Liabilities” in the Consolidated Balance Sheet at September 30, 2020, and totaled $40,000, with a notional amount of $53.3 million and total positions of 215. The fair value of IRLCs was considered immaterial at December 31, 2019. Changes in fair value are recorded as a component of mortgage banking income, net in the Consolidated Income Statement for the period ended September 30, 2020. The Company’s IRLCs are classified as Level 2. At September 30, 2020 and December 31, 2019, each IRLC and all LHFS were subject to a forward sales commitment on a best efforts basis. During the first quarter of 2020, the Company elected to begin using fair value accounting for its forward sales commitments related to IRLCs and LHFS under ASC 825-10-15-4(b). The fair value of forward sales commitments is reported in “Other Assets” in the Consolidated Balance Sheet at September 30, 2020, and totaled $64,000, with a notional amount of $80.8 million and total positions of 324. The fair value of the forward sales commitments was considered immaterial at December 31, 2019.

Recent accounting pronouncement

Recent accounting pronouncements	9 Months Ended
	Sep. 30, 2020
Recent accounting pronouncements
Recent accounting pronouncements	Note 16 – Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. While the Company is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, and evaluating its current IT systems. This guidance may result in material changes in the Company's accounting for credit losses on financial instruments. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement”. ASU 2018-13 modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. Certain disclosure requirements in Topic 820 were also removed or modified. ASU 2018-13 was effective for the Company on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin ("SAB") 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, "Financial Instruments - Credit Losses." It covers topics including (1) measuring current expected credit losses; (2) development governance, and documentation of systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-14 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, such as the Company, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-01 amends ASU 2016-01, which made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments in ASU 2020-01 clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, such as the Company, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company has a team to assess ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In March 2020 (Revised in April 2020), various regulatory agencies, including the Federal Reserve and the FDIC, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of September 30 2020, the Company had a total of $3,535,000 in loans past due greater than 30 days all of which were rehabilitated student loans which have a 98% guarantee by the DOE of principal and interest. For more financial data and other information about loan deferrals refer to section, “Response to COVID-19” under Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. This interagency guidance is expected to have an impact on the Company’s financial statements; however, this impact cannot be quantified at this time. In August 2020, the FASB issued ASU 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, including the Company, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is not permitted. All entities should apply ASU No. 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption of ASU 2020-08 to have a material impact on its consolidated financial statements.

Earnings per common share (Tabl

Earnings per common share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings per common share
Schedule of basic and diluted earnings per common share	The following table presents the basic and diluted earnings per common share computation (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net income - basic and diluted $ 2,269 $ 1,727 $ 5,502 $ 3,173 Denominator Weighted average shares outstanding - basic 1,462 1,451 1,456 1,442 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted $ 1,462 $ 1,451 $ 1,456 $ 1,442 Earnings per share - basic $ 1.55 $ 1.19 $ 3.78 $ 2.20 Earnings per share - diluted $ 1.55 $ 1.19 $ 3.78 $ 2.20

Investment securities availab_2

Investment securities available for sale (Tables)	9 Months Ended
	Sep. 30, 2020
Investment securities available for sale
Schedule of amortized cost and fair value of investment securities available for sale	The amortized cost and fair value of investment securities available for sale as of September 30, 2020 and December 31, 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2020 U.S. Government agency obligations $ 10,354 $ 125 $ — $ 10,479 Mortgage-backed securities 17,338 670 (28) 17,980 Subordinated debt 8,003 29 (186) 7,846 $ 35,695 $ 824 $ (214) $ 36,305 December 31, 2019 U.S. Government agency obligations $ 14,797 $ 57 $ (9) $ 14,845 Mortgage-backed securities 25,124 204 (26) 25,302 Subordinated debt 6,779 91 (80) 6,790 $ 46,700 $ 352 $ (115) $ 46,937
Schedule of gross realized gains and losses pertaining to available for sale securities	Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Gross realized gains $ — $ — $ 39 $ 101 Gross realized losses — — (27) — $ — $ — $ 12 $ 101
Schedule of investment securities available for sale	Investment securities available for sale that have an unrealized loss position at September 30, 2020 and December 31, 2019 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2020 Mortgage-backed securities 2,073 (28) — — 2,073 (28) Subordinated debt 5,166 (81) 901 (105) 6,067 (186) $ 7,239 $ (109) $ 901 $ (105) $ 8,140 $ (214) December 31, 2019 U.S. Government agency obligations $ 2,001 $ (1) $ 5,368 $ (8) $ 7,369 $ (9) Mortgage-backed securities 2,747 (26) — — 2,747 (26) Subordinated debt 759 (6) (74) 1,699 (80) $ 5,507 $ (33) $ $ (82) $ 11,815 $ (115)
Schedule of investment by contractual maturity	The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 8,213 $ 8,277 One to five years 359 365 Five to ten years 9,925 9,822 More than ten years 17,198 17,841 Total $ 35,695 $ 36,305

Loans and allowance for loan _2

Loans and allowance for loan losses (Tables)	9 Months Ended
	Sep. 30, 2020
Loans and allowance for loan losses
Schedule of composition of loan portfolio (excluding mortgage loans held for sale)	Loans classified by type as of September 30, 2020 and December 31, 2019 are as follows (dollars in thousands): September 30, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 7,723 1.29 % $ 7,887 1.84 % Commercial 25,614 4.27 % 24,063 5.60 % 33,337 5.56 % 31,950 7.44 % Commercial real estate Owner occupied 97,467 16.24 % 98,353 22.91 % Non-owner occupied 116,863 19.47 % 116,508 27.14 % Multifamily 10,155 1.69 % 13,332 3.10 % Farmland 378 0.06 % 156 0.04 % 224,863 37.46 % 228,349 53.19 % Consumer real estate Home equity lines 19,307 3.22 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 55,070 9.18 % 55,856 13.01 % Second deed of trust 11,389 1.90 % 10,411 2.43 % 85,766 14.30 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 222,469 37.07 % 45,074 10.50 % Guaranteed student loans 30,656 5.11 % 33,525 7.81 % Consumer and other 2,998 0.50 % 2,621 0.61 % Total loans 600,089 100.0 % 429,295 100.0 % Deferred fees and costs, net (3,606) 764 Less: allowance for loan losses (4,050) (3,186) $ 592,433 $ 426,873
Schedule of PPP loans by loan size including SBA fees earned	Below is a breakdown of PPP loans by loan size including SBA fees expected to be earned as of September 30, 2020 (dollars in thousands): Loan Size # of Loans $ of Loans $ SBA Fee < $350,000 1,426 $ 94,240 $ 4,547 $350,000 - $2 million 94 67,795 1,853 > $2 million 6 23,102 184 Total 1,526 $ 185,137 $ 6,584
Schedule of information on nonaccrual loans	The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): September 30, December 31, 2020 2019 Commercial real estate Owner occupied $ 307 $ 497 307 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 949 842 Second deed of trust 473 63 1,722 1,205 Commercial and industrial loans (except those secured by real estate) 197 166 Total loans $ 2,226 $ 1,868
Schedule of information on the risk rating of loans	The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans September 30, 2020 Construction and land development Residential $ 7,723 $ — $ — $ — $ 7,723 Commercial 25,226 99 289 — 25,614 32,949 99 289 — 33,337 Commercial real estate Owner occupied 85,290 9,535 2,642 — 97,467 Non-owner occupied 116,157 226 480 — 116,863 Multifamily 10,155 — — — 10,155 Farmland 378 — — — 378 211,980 9,761 3,122 — 224,863 Consumer real estate Home equity lines 17,546 1,461 300 — 19,307 Secured by 1-4 family residential First deed of trust 52,878 874 1,318 — 55,070 Second deed of trust 10,310 893 186 — 11,389 80,734 3,228 1,804 — 85,766 Commercial and industrial loans (except those secured by real estate) 221,207 799 463 — 222,469 Guaranteed student loans 30,656 — — — 30,656 Consumer and other 2,955 43 — — 2,998 Total loans $ 580,481 $ 13,930 $ 5,678 $ — $ 600,089 Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans December 31, 2019 Construction and land development Residential $ 7,887 $ — $ — $ — $ 7,887 Commercial 23,758 — 305 — 24,063 31,645 — 305 — 31,950 Commercial real estate Owner occupied 90,146 8,072 135 — 98,353 Non-owner occupied 115,781 230 497 — 116,508 Multifamily 13,186 146 — — 13,332 Farmland 71 85 — — 156 219,184 8,533 632 — 228,349 Consumer real estate Home equity lines 20,486 723 300 — 21,509 Secured by 1-4 family residential First deed of trust 53,200 1,660 996 — 55,856 Second deed of trust 10,130 167 114 — 10,411 83,816 2,550 1,410 — 87,776 Commercial and industrial loans (except those secured by real estate) 41,837 2,891 346 — 45,074 Guaranteed student loans 33,525 — — — 33,525 Consumer and other 2,621 — — — 2,621 Total loans $ 412,628 $ 13,974 $ 2,693 $ — $ 429,295
Schedule of aging of recorded investment in past due loans and leases	The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing September 30, 2020 Construction and land development Residential $ — $ — $ — $ — $ 7,723 $ 7,723 $ — Commercial — — — — 25,614 25,614 — — — — — 33,337 33,337 — Commercial real estate Owner occupied — — — — 97,467 97,467 — Non-owner occupied — — — — 116,863 116,863 — Multifamily — — — — 10,155 10,155 — Farmland — — — — 378 378 — — — — — 224,863 224,863 — Consumer real estate Home equity lines 193 — — 193 19,114 19,307 — Secured by 1-4 family residential First deed of trust — 135 — 135 54,935 55,070 — Second deed of trust 57 — — 57 11,332 11,389 — 250 135 — 385 85,381 85,766 — Commercial and industrial loans (except those secured by real estate) — — — — 222,469 222,469 — Guaranteed student loans 1,200 661 1,674 3,535 27,121 30,656 1,674 Consumer and other — — — — 2,998 2,998 — Total loans $ 1,450 $ 796 $ 1,674 $ 3,920 $ 596,169 $ 600,089 $ 1,674 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2019 Construction and land development Residential $ — $ — $ — $ — $ 7,887 $ 7,887 $ — Commercial — — — — 24,063 24,063 — — — — — 31,950 31,950 — Commercial real estate Owner occupied 701 — — 701 97,652 98,353 — Non-owner occupied — — — — 116,508 116,508 — Multifamily — — — — 13,332 13,332 — Farmland — — — — 156 156 — 701 — — 701 227,648 228,349 — Consumer real estate Home equity lines 52 — — 52 21,457 21,509 — Secured by 1-4 family residential First deed of trust 290 — — 290 55,566 55,856 — Second deed of trust 133 — — 133 10,278 10,411 — 475 — — 475 87,301 87,776 — Commercial and industrial loans (except those secured by real estate) 773 — — 773 44,301 45,074 — Guaranteed student loans 1,694 1,309 2,567 5,570 27,955 33,525 2,567 Consumer and other 4 — — 4 2,617 2,621 — Total loans $ 3,647 $ 1,309 $ 2,567 $ 7,523 $ 421,772 $ 429,295 $ 2,567
Schedule of impaired loans	Impaired loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Construction and land development Commercial $ 289 $ 289 $ — $ 337 $ 337 $ — 289 289 — 337 337 — Commercial real estate Owner occupied 3,121 3,136 — 2,089 2,104 — Non-owner occupied 1,691 1,691 — 2,304 2,304 — 4,812 4,827 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential First deed of trust 2,096 2,118 — 1,752 1,774 — Second deed of trust 714 922 — 752 960 — 3,110 3,340 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 148 148 — 211 373 — 8,359 8,604 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,125 1,125 3 1,414 1,414 15 1,125 1,125 3 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 75 75 8 78 78 9 Second deed of trust 103 103 77 — — — 178 178 85 78 78 9 Commercial and industrial loans (except those secured by real estate) 169 331 16 135 334 135 1,472 1,634 104 1,627 1,826 159 Total Construction and land development Commercial 289 289 — 337 337 — 289 289 — 337 337 — Commercial real estate Owner occupied 4,246 4,261 3 3,503 3,518 15 Non-owner occupied 1,691 1,691 — 2,304 2,304 — 5,937 5,952 3 5,807 5,822 15 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 2,171 2,193 8 1,830 1,852 9 Second deed of trust 817 1,025 77 752 960 — 3,288 3,518 85 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 317 479 16 346 707 135 $ 9,831 $ 10,238 $ 104 $ 9,372 $ 9,978 $ 159
Schedule of average recorded investment in impaired loans	The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months For the Nine Months Ended September 30, 2020 Ended September 30, 2020 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Commercial $ 294 $ — $ 305 $ — 294 — 305 — Commercial real estate Owner occupied 3,325 — 3,016 68 Non-owner occupied 1,976 — 2,058 37 5,301 — 5,074 105 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential First deed of trust 2,113 — 2,023 33 Second deed of trust 836 — 796 24 3,249 — 3,119 65 Commercial and industrial loans (except those secured by real estate) 155 — 168 — 8,999 — 8,666 170 With an allowance recorded Commercial real estate Owner occupied 843 14 985 14 843 14 985 14 Consumer real estate Secured by 1-4 family residential First deed of trust 76 — 77 2 Second deed of trust 103 — 45 — 179 — 122 2 Commercial and industrial loans (except those secured by real estate) 56 — 163 6 Consumer and other 116 — — — 1,194 14 1,270 22 Total Construction and land development Commercial 294 — 305 — 294 — 305 — Commercial real estate Owner occupied 4,168 14 4,001 82 Non-owner occupied 1,976 — 2,058 37 6,144 14 6,059 119 Consumer real estate Home equity lines 300 — 300 8 Secured by 1-4 family residential, First deed of trust 2,189 — 2,100 35 Second deed of trust 939 — 841 24 3,428 — 3,241 67 Commercial and industrial loans (except those secured by real estate) 211 — 331 6 Consumer and other 116 — — — $ 10,193 $ 14 $ 9,936 $ 192
Schedule of troubled debt restructurings on financing receivables	The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance September 30, 2020 Commercial real estate Owner occupied $ 3,731 $ 3,424 $ 307 $ 4 Non-owner occupied 1,691 1,691 — — 5,422 5,115 307 4 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,613 901 712 8 Second deeds of trust 630 568 62 — 2,243 1,469 774 8 Commercial and industrial loans (except those secured by real estate) 197 — 197 16 $ 7,862 $ 6,584 $ 1,278 $ 28 Number of loans 37 26 11 3 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2019 Commercial real estate Owner occupied $ 3,502 $ 3,502 $ — $ 15 Non-owner occupied 2,304 1,807 497 — 5,806 5,309 497 15 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,641 881 760 9 Second deeds of trust 752 689 63 — 2,393 1,570 823 9 Commercial and industrial loans (except those secured by real estate) 211 180 31 — $ 8,410 $ 7,059 $ 1,351 $ 24 Number of loans 38 29 9 3
Schedule of troubled debt restructurings on financing receivables modification	The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Owner occupied 1 $ 311 $ 311 — $ — $ — Non-owner occupied — — — 1 515 515 1 $ 311 $ 311 1 $ 515 $ 515 There were no TDR’s identified during the three months ended September 30, 2020 and 2019.
Schedule of activity in the allowance for loan losses	Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2019 Construction and land development Residential $ 31 $ 16 $ — $ — $ 47 Commercial 159 2 — — 161 190 18 — — 208 Commercial real estate Owner occupied 659 4 — — 663 Non-owner occupied 747 27 — — 774 Multifamily 85 5 — — 90 Farmland 2 — — — 2 1,493 36 — — 1,529 Consumer real estate Home equity lines 233 (13) — — 220 Secured by 1-4 family residential First deed of trust 367 (1) — 3 369 Second deed of trust 60 (47) — 55 68 660 (61) — 58 657 Commercial and industrial loans (except those secured by real estate) 385 (19) — 6 372 Student loans 109 21 (23) — 107 Consumer and other 34 (9) (7) 20 38 Unallocated 176 14 — — 190 $ 3,047 $ — $ (30) $ 84 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2019 Construction and land development Residential $ 42 $ (2) $ — $ 7 $ 47 Commercial 220 (61) — 2 161 262 (63) — 9 208 Commercial real estate Owner occupied 673 (10) — — 663 Non-owner occupied 673 101 — — 774 Multifamily 87 3 — — 90 Farmland 2 — — — 2 1,435 94 — — 1,529 Consumer real estate Home equity lines 244 (36) — 12 220 Secured by 1-4 family residential First deed of trust 385 (24) — 8 369 Second deed of trust 51 (48) — 65 68 680 (108) — 85 657 Commercial and industrial loans (except those secured by real estate) 308 41 (15) 38 372 Student loans 121 63 (77) — 107 Consumer and other 34 (6) (13) 23 38 Unallocated 211 (21) — — 190 $ 3,051 $ — $ (105) $ 155 $ 3,101 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2019 Construction and land development Residential $ 42 $ (1) $ — $ 7 $ 48 Commercial 220 (85) — 2 137 262 (86) — 9 185 Commercial real estate Owner occupied 673 (2) — — 671 Non-owner occupied 673 158 — — 831 Multifamily 87 (2) — — 85 Farmland 2 — — — 2 1,435 154 — — 1,589 Consumer real estate Home equity lines 244 50 (35) 12 271 Secured by 1-4 family residential First deed of trust 385 (56) — 14 343 Second deed of trust 51 (56) — 69 64 680 (62) (35) 95 678 Commercial and industrial loans (except those secured by real estate) 308 239 (64) 89 572 Student loans 121 80 (93) — 108 Consumer and other 34 (3) (26) 25 30 Unallocated 211 (187) — — 24 $ 3,051 $ 135 $ (218) $ 218 $ 3,186
Schedule of loans evaluated for impairment	Loans were evaluated for impairment as follows for the periods indicated (in thousands): Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2020 Construction and land development Residential $ 204 $ — $ 204 $ 7,723 $ — $ 7,723 Commercial 318 — 318 25,614 289 25,325 522 — 522 33,337 289 33,048 Commercial real estate Owner occupied 1,022 3 1,019 97,467 4,246 93,221 Non-owner occupied 1,373 — 1,373 116,863 1,691 115,172 Multifamily 48 — 48 10,155 — 10,155 Farmland 2 — 2 378 — 378 2,445 3 2,442 224,863 5,937 218,926 Consumer real estate Home equity lines 10 — 10 19,307 300 19,007 Secured by 1-4 family residential First deed of trust 160 8 152 55,070 2,171 52,899 Second deed of trust 157 77 80 11,389 817 10,572 327 85 242 85,766 3,288 82,478 Commercial and industrial loans (except those secured by real estate) 348 16 332 222,469 317 222,152 Student loans 97 — 97 30,656 — 30,656 Consumer and other 311 — 311 2,998 — 2,998 $ 4,050 $ 104 $ 3,946 $ 600,089 $ 9,831 $ 590,258 Year Ended December 31, 2019 Construction and land development Residential $ 48 $ — $ 48 $ 7,887 $ — $ 7,887 Commercial 137 — 137 24,063 337 23,726 185 — 185 31,950 337 31,613 Commercial real estate Owner occupied 671 15 656 98,353 3,503 94,850 Non-owner occupied 831 — 831 116,508 2,304 114,204 Multifamily 85 — 85 13,332 — 13,332 Farmland 2 — 2 156 — 156 1,589 15 1,574 228,349 5,807 222,542 Consumer real estate Home equity lines 271 — 271 21,509 300 21,209 Secured by 1-4 family residential First deed of trust 343 9 334 55,856 1,830 54,026 Second deed of trust 64 — 64 10,411 752 9,659 678 9 669 87,776 2,882 84,894 Commercial and industrial loans (except those secured by real estate) 572 135 437 45,074 346 44,728 Student loans 108 — 108 33,525 — 33,525 Consumer and other 54 — 54 2,621 — 2,621 $ 3,186 $ 159 $ 3,027 $ 429,295 $ 9,372 $ 419,923

Deposits (Tables)

Deposits (Tables)	9 Months Ended
	Sep. 30, 2020
Deposits
Schedule of deposits	Deposits as of September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): September 30, 2020 December 31, 2019 Amount % Amount % Demand accounts $ 217,204 37.9 % $ 131,228 29.6 % Interest checking accounts 59,711 10.4 % 48,427 10.9 % Money market accounts 147,467 25.7 % 99,955 22.6 % Savings accounts 33,733 5.9 % 26,396 6.0 % Time deposits of $250,000 and over 16,315 2.8 % 22,327 5.0 % Other time deposits 99,422 17.3 % 114,875 25.9 % Total $ 573,852 100.0 % $ 443,208 100.0 %

Stock incentive plan (Tables)

Stock incentive plan (Tables)	9 Months Ended
	Sep. 30, 2020
Stock incentive plan
Schedule of options outstanding under company's stock incentive plan	The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Nine Months Ended September 30, 2020 2019 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734
Schedule of company's non vested restricted stock awards	A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2020 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 369,300 Granted 17,498 29.68 524,940 Vested (4,224) 33.82 (126,720) Forfeited (1,094) 33.82 (32,820) Other 246 33.82 7,380 September 30, 2020 24,736 $ 30.90 $ 742,080

Fair value (Tables)

Fair value (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value
Schedule of recurring and Non recurring basis	Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at September 30, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 10,479 $ — $ 10,479 $ — Mortgage-backed securities 17,980 — 17,980 — Subordinated debt 7,846 — 7,596 250 Loans held for sale 27,525 — 27,525 — IRLC (40) — (40) — Financial Liabilities - Recurring Forward sales commitment (64) — (64) — Financial Assets - Non-Recurring Impaired loans 1,368 — — 1,368 Other real estate owned 336 — — 336 Fair Value Measurement at December 31, 2019 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 14,845 $ — $ 14,845 $ — Mortgage-backed securities 25,302 — 25,302 — Subordinated debt 6,790 — 6,540 250 Financial Assets - Non-Recurring Impaired loans 1,468 — — 1,468 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526
Schedule of financial instruments measured at fair value	The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured at fair value at September 30, 2020 and December 31, 2019 (dollars in thousands): September 30, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,368 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (10)% Other real estate owned $ 336 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances December 31, 2019 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,468 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (10)% Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%-10% (7)% Discount for lack of marketability and age of appraisal 6%‑30% (15)% Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7)% (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances
Schedule of company's financial instruments whether or not recognized	The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. September 30, December 31, 2020 2019 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 19,605 $ 19,605 $ 19,967 $ 19,967 Cash equivalents Level 2 18,482 18,482 — — Investment securities available for sale Level 2 36,055 36,055 46,687 46,687 Investment securities available for sale Level 3 250 250 250 250 Federal Home Loan Bank stock Level 2 2,141 2,141 1,694 1,694 Loans held for sale Level 2 27,525 27,525 12,722 12,722 Loans Level 3 598,721 599,223 427,827 429,254 Impaired loans Level 3 1,368 1,368 1,468 1,468 Assets held for sale Level 3 — — 514 514 Other real estate owned Level 3 336 336 526 526 Bank owned life insurance Level 3 7,756 7,756 7,612 7,612 Accrued interest receivable Level 2 4,880 4,880 2,597 2,597 Forward sales commitment Level 2 64 64 — — Financial liabilities Deposits Level 2 573,852 578,425 443,208 443,645 FHLB borrowings Level 2 39,000 39,447 29,000 29,285 Trust preferred securities Level 2 8,764 9,630 8,764 9,812 Other borrowings Level 2 50,740 50,740 10,912 10,912 Accrued interest payable Level 2 231 231 221 221 Interest rate lock commitments Level 2 40 40 — —

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting
Schedule of segment information	The following table presents segment information as of and for the three and nine months ended September 30, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2020 Revenues Interest income $ 6,430 $ 156 $ (46) $ 6,540 Gain on sale of loans — 3,585 — 3,585 Other revenues 666 346 (62) 950 Total revenues 7,096 4,087 (108) 11,075 Expenses Provision for loan losses 250 — — 250 Interest expense 1,069 46 (46) 1,069 Salaries and benefits 2,526 1,118 — 3,644 Commissions — 1,054 — 1,054 Other expenses 1,873 300 (62) 2,111 Total operating expenses 5,718 2,518 (108) 8,128 Income before income taxes 1,378 1,569 — 2,947 Income tax expense 349 329 — 678 Net income $ 1,029 $ 1,240 $ — $ 2,269 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2019 Revenues Interest income $ 5,879 $ 197 $ (66) $ 6,010 Gain on sale of loans — 2,200 — 2,200 Other revenues 725 250 (52) 923 Total revenues 6,604 2,647 (118) 9,133 Expenses Interest expense 1,398 66 (66) 1,398 Salaries and benefits 2,009 832 — 2,841 Commissions — 657 — 657 Other expenses 1,821 278 (52) 2,047 Total operating expenses 5,228 1,833 (118) 6,943 Income before income taxes 1,376 814 — 2,190 Income tax expense 292 171 463 Net income $ 1,084 $ 643 $ — $ 1,727 Total assets $ 561,453 $ 10,854 $ (12,378) $ 559,929 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2020 Revenues Interest income $ 18,107 $ 401 $ (91) $ 18,417 Gain on sale of loans — 8,014 — 8,014 Other revenues 1,970 820 (179) 2,611 Total revenues 20,077 9,235 (270) 29,042 Expenses Provision for loan losses 950 — — 950 Interest expense 3,575 91 (91) 3,575 Salaries and benefits 6,362 2,916 — 9,278 Commissions — 2,269 — 2,269 Other expenses 5,187 878 (179) 5,886 Total operating expenses 16,074 6,154 (270) 21,958 Income before income taxes 4,003 3,081 — 7,084 Income tax espense 935 647 — 1,582 Net income $ 3,068 $ 2,434 $ — $ 5,502 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2019 Revenues Interest income $ 17,296 $ 384 $ (90) $ 17,590 Gain on sale of loans — 4,605 — 4,605 Other revenues 2,296 562 (162) 2,696 Total revenues 19,592 5,551 (252) 24,891 Expenses Interest expense 3,960 90 (90) 3,960 Salaries and benefits 7,057 2,421 — 9,478 Commissions — 1,369 — 1,369 Other expenses 5,460 794 (162) 6,092 Total operating expenses 16,477 4,674 (252) 20,899 Income before income taxes 3,115 877 — 3,992 Income tax espense 633 186 — 819 Net income $ 2,482 $ 691 $ — $ 3,173 Total assets $ 561,453 $ 10,854 $ (12,378) $ 559,929

Shareholders' Equity and Regu_2

Shareholders' Equity and Regulatory Matters (Tables)	9 Months Ended
	Sep. 30, 2020
Shareholders' Equity and Regulatory Matters
Schedule of accumulated other comprehensive income (loss)	The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes of $118,000 and $38,000 as of September 30, 2020 and December 31, 2019, respectively (in thousands): September 30, December 31, 2020 2019 Net unrealized gains on securities $ 482 $ 186 Net unrecognized losses on defined benefit plan (38) (44) Total accumulated other comprehensive income $ 444 $ 142
Schedule of capital amounts and ratios	The capital amounts and ratios at September 30, 2020 and December 31, 2019 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2020 Total capital (to risk-weighted assets) Village Bank $ 62,788 14.09 % $ 35,643 8.00 % $ 44,554 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 58,738 13.18 % 26,732 6.00 % 35,643 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 58,738 8.80 % 26,702 4.00 % 33,378 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 58,738 13.18 % 20,049 4.50 % 28,960 6.50 % December 31, 2019 Total capital (to risk-weighted assets) Village Bank $ 54,653 12.56 % $ 34,807 8.00 % $ 43,508 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 52,867 12.15 % 26,015 6.00 % 34,807 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 52,867 9.69 % 21,823 4.00 % 27,278 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 52,867 12.15 % 19,579 4.50 % 28,280 6.50 %

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and contingencies
Schedule of off balance sheet financial instruments	At September 30, 2020 and December 31, 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2020 2019 Undisbursed credit lines $ 104,490 $ 83,366 Commitments to extend or originate credit 51,496 15,722 Standby letters of credit 5,945 6,732 Total commitments to extend credit $ 161,931 $ 105,820

Earnings per common share (Deta

Earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator
Net income - basic and diluted	$ 2,269	$ 1,727	$ 5,502	$ 3,173
Denominator
Weighted average shares outstanding - basic (in shares)	1,462	1,451	1,456	1,442
Dilutive effect of common stock options (in shares)	0	0
Weighted average shares outstanding - diluted (in shares)	1,462	1,451	1,456	1,442
Earnings per share - basic (in dollars per share)	$ 1.55	$ 1.19	$ 3.78	$ 2.20
Earnings per share - diluted (in dollars per share)	$ 1.55	$ 1.19	$ 3.78	$ 2.20

Earnings per common share - Add

Earnings per common share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	6,573		6,573
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	629	550	593	563

Investment securities availab_3

Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 35,695	$ 46,700
Gross Unrealized Gains	824	352
Gross Unrealized Losses	(214)	(115)
Fair Value	36,305	46,937
U.S. Government Agencies Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,354	14,797
Gross Unrealized Gains	125	57
Gross Unrealized Losses		(9)
Fair Value	10,479	14,845
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	17,338	25,124
Gross Unrealized Gains	670	204
Gross Unrealized Losses	(28)	(26)
Fair Value	17,980	25,302
Subordinated Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,003	6,779
Gross Unrealized Gains	29	91
Gross Unrealized Losses	(186)	(80)
Fair Value	$ 7,846	$ 6,790

Investment securities availab_4

Investment securities available for sale - Summary of gross realized gains and losses to available for sale securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investment securities available for sale
Gross realized gains			$ 39	$ 101
Gross realized losses		$ 0	(27)
Available-for-sale Securities, Gross Realized Gain (Loss), Total	$ 0	$ 0	$ 12	$ 101

Investment securities availab_5

Investment securities available for sale - Summary of investment securities available for sale having fair value and unrealized loss position (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value	$ 7,239	$ 5,507
Securities in a loss position for less than 12 Months, Unrealized Losses	(109)	(33)
Securities in a loss position for more than 12 Months, Fair Value	901	6,308
Securities in a loss Position for more than 12 Months, Unrealized Losses	(105)	(82)
Total Fair Value	8,140	11,815
Total Unrealized Losses	(214)	(115)
U.S. Government Agencies Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value		2,001
Securities in a loss position for less than 12 Months, Unrealized Losses		(1)
Securities in a loss position for more than 12 Months, Fair Value		5,368
Securities in a loss Position for more than 12 Months, Unrealized Losses		(8)
Total Fair Value		7,369
Total Unrealized Losses		(9)
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value	2,073	2,747
Securities in a loss position for less than 12 Months, Unrealized Losses	(28)	(26)
Securities in a loss position for more than 12 Months, Fair Value		0
Securities in a loss Position for more than 12 Months, Unrealized Losses		0
Total Fair Value	2,073	2,747
Total Unrealized Losses	(28)	(26)
Subordinated Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value	5,166	759
Securities in a loss position for less than 12 Months, Unrealized Losses	(81)	(6)
Securities in a loss position for more than 12 Months, Fair Value	901	940
Securities in a loss Position for more than 12 Months, Unrealized Losses	(105)	(74)
Total Fair Value	6,067	1,699
Total Unrealized Losses	$ (186)	$ (80)

Investment securities availab_6

Investment securities available for sale - Summary of amortized cost and estimated fair value of investment securities available for sale (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost
Less than one year	$ 8,213
One to five years	359
Five to ten years	9,925
More than ten years	17,198
Total	35,695
Fair Value
Less than one year	8,277
One to five years	365
Five to ten years	9,822
More than ten years	17,841
Total	$ 36,305	$ 46,937

Investment securities availab_7

Investment securities available for sale - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Schedule of Available-for-sale Securities [Line Items]
Proceeds from Sale of Available-for-sale Securities, Debt			$ 7,936	$ 6,491
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 0	$ 0	$ 12	$ 101
Number of positions, less than 12 months | item	11		11
Securities in a loss position for less than 12 Months, Fair Value	$ 7,239		$ 7,239		$ 5,507
Securities in a loss position for less than 12 Months, Unrealized Losses	$ 109		$ 109		33
Number of positions, more than 12 months | item	2		2
Securities in a loss position for more than 12 Months, Fair Value	$ 901		$ 901		6,308
Securities in a loss Position for more than 12 Months, Unrealized Losses	105		105		82
Investment Pledged As Security For Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank	$ 0		$ 0		$ 0

Loans and allowance for loan _3

Loans and allowance for loan losses - Classified by type (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 600,089			$ 429,295
Deferred fees and costs, net	(3,606)			764
Less: allowance for loan losses	(4,050)		$ (3,759)	(3,186)	$ (3,101)		$ (3,047)	$ (3,051)
Total loans, net	$ 592,433			$ 426,873
Percentage of class of loans to loan portfolio (in percent)	100.00%			100.00%
Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 33,337			$ 31,950
Less: allowance for loan losses	$ (522)	$ (508)		$ (185)	(208)	$ (190)		(262)
Percentage of class of loans to loan portfolio (in percent)	5.56%			7.44%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 224,863			$ 228,349
Less: allowance for loan losses	$ (2,445)	(2,153)		$ (1,589)	(1,529)	(1,493)		(1,435)
Percentage of class of loans to loan portfolio (in percent)	37.46%			53.19%
Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 85,766			$ 87,776
Less: allowance for loan losses	$ (327)	(281)		$ (678)	(657)		$ (660)	(680)
Percentage of class of loans to loan portfolio (in percent)	14.30%			20.45%
Residential [Member] | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 7,723			$ 7,887
Less: allowance for loan losses	$ (204)	(213)		$ (48)	(47)	(31)		(42)
Percentage of class of loans to loan portfolio (in percent)	1.29%			1.84%
Commercial [Member] | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 25,614			$ 24,063
Less: allowance for loan losses	$ (318)	(295)		$ (137)	(161)	(159)		(220)
Percentage of class of loans to loan portfolio (in percent)	4.27%			5.60%
Owner Occupied [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 97,467			$ 98,353
Less: allowance for loan losses	$ (1,022)	(904)		$ (671)	(663)	(659)		(673)
Percentage of class of loans to loan portfolio (in percent)	16.24%			22.91%
Non-Owner Occupied [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 116,863			$ 116,508
Less: allowance for loan losses	$ (1,373)	(1,202)		$ (831)	(774)	(747)		(673)
Percentage of class of loans to loan portfolio (in percent)	19.47%			27.14%
Multifamily [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 10,155			$ 13,332
Less: allowance for loan losses	$ (48)	(47)		$ (85)	(90)	(85)		(87)
Percentage of class of loans to loan portfolio (in percent)	1.69%			3.10%
Farmland [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 378			$ 156
Less: allowance for loan losses	$ (2)			$ (2)	(2)	(2)		(2)
Percentage of class of loans to loan portfolio (in percent)	0.06%			0.04%
Home equity lines [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 19,307			$ 21,509
Less: allowance for loan losses	$ (10)	(40)		$ (271)	(220)	(233)		(244)
Percentage of class of loans to loan portfolio (in percent)	3.22%			5.01%
First Deed of Trust [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 55,070			$ 55,856
Less: allowance for loan losses	$ (160)	(166)		$ (343)	(369)	(367)		(385)
Percentage of class of loans to loan portfolio (in percent)	9.18%			13.01%
Second Deed of Trust [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 11,389			$ 10,411
Less: allowance for loan losses	$ (157)	(75)		$ (64)	(68)	(60)		(51)
Percentage of class of loans to loan portfolio (in percent)	1.90%			2.43%
Commercial and industrial loans (except those secured by real estate)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 222,469			$ 45,074
Less: allowance for loan losses	(348)			(572)	(372)	(385)
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	222,469			45,074
Less: allowance for loan losses	$ (348)	(317)		$ (572)	(372)			(308)
Percentage of class of loans to loan portfolio (in percent)	37.07%			10.50%
Guaranteed student loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 30,656			$ 33,525
Less: allowance for loan losses	(97)			(108)
Guaranteed student loans [Member] | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	30,656			33,525
Less: allowance for loan losses	$ (97)	(101)		$ (108)	(107)	(109)		(121)
Percentage of class of loans to loan portfolio (in percent)	5.11%			7.81%
Consumer And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 2,998			$ 2,621
Less: allowance for loan losses	(311)			(54)
Consumer And Other [Member] | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,998			2,621
Less: allowance for loan losses	$ (38)	$ (40)		$ (30)	$ (38)	$ (34)		$ (34)
Percentage of class of loans to loan portfolio (in percent)	0.50%			0.61%

Loans and allowance for loan _4

Loans and allowance for loan losses - Information on PPP loans (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Institutionloanitem	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan amount	$ 592,433,000		$ 592,433,000		$ 426,873,000
SBA fee earned	6,307,000	$ 5,594,000	$ 17,622,000	$ 16,515,000
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of businesses and non profits funded by PPP loans | Institution			1,500
Number of jobs protected by PPP loans | item			20,000
Number of loans granted | loan			1,526
Loan amount	185,137,000		$ 185,137,000
SBA fee earned			$ 6,584,000
PPP loan $350,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan			1,426
Loan amount	94,240,000		$ 94,240,000
SBA fee earned			$ 4,547,000
PPP loan $350,000 - $2 million
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan			94
Loan amount	67,795,000		$ 67,795,000
SBA fee earned			$ 1,853,000
PPP loan > $2 million
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan			6
Loan amount	$ 23,102,000		$ 23,102,000
SBA fee earned			$ 184,000

Loans and allowance for loan _5

Loans and allowance for loan losses - Information on nonaccrual loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2,226	$ 1,868
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	307	497
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	307	497
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,722	1,205
Consumer real estate | Home equity lines [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	300	300
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	949	842
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	473	63
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 197	$ 166

Loans and allowance for loan _6

Loans and allowance for loan losses - Information on the risk rating of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 600,089	$ 429,295
Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	222,469	45,074
Guaranteed student loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	30,656	33,525
Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,998	2,621
Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	580,481	412,628
Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	13,930	13,974
Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,678	2,693
Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Total loans	33,337	31,950
Construction and land development | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,723	7,887
Construction and land development | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	25,614	24,063
Construction and land development | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	32,949	31,645
Construction and land development | Risk Rated 1-4 [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,723	7,887
Construction and land development | Risk Rated 1-4 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	25,226	23,758
Construction and land development | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	99
Construction and land development | Risk Rated 5 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	99
Construction and land development | Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	289	305
Construction and land development | Risk Rate 6 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	289	305
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	224,863	228,349
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	97,467	98,353
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	116,863	116,508
Commercial real estate | Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,155	13,332
Commercial real estate | Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	378	156
Commercial real estate | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	211,980	219,184
Commercial real estate | Risk Rated 1-4 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	85,290	90,146
Commercial real estate | Risk Rated 1-4 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	116,157	115,781
Commercial real estate | Risk Rated 1-4 [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,155	13,186
Commercial real estate | Risk Rated 1-4 [Member] | Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	378	71
Commercial real estate | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,761	8,533
Commercial real estate | Risk Rated 5 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,535	8,072
Commercial real estate | Risk Rated 5 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	226	230
Commercial real estate | Risk Rated 5 [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		146
Commercial real estate | Risk Rated 5 [Member] | Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		85
Commercial real estate | Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,122	632
Commercial real estate | Risk Rate 6 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,642	135
Commercial real estate | Risk Rate 6 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	480	497
Consumer real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	85,766	87,776
Consumer real estate | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	19,307	21,509
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	55,070	55,856
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,389	10,411
Consumer real estate | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	80,734	83,816
Consumer real estate | Risk Rated 1-4 [Member] | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	17,546	20,486
Consumer real estate | Risk Rated 1-4 [Member] | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	52,878	53,200
Consumer real estate | Risk Rated 1-4 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,310	10,130
Consumer real estate | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,228	2,550
Consumer real estate | Risk Rated 5 [Member] | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,461	723
Consumer real estate | Risk Rated 5 [Member] | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	874	1,660
Consumer real estate | Risk Rated 5 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	893	167
Consumer real estate | Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,804	1,410
Consumer real estate | Risk Rate 6 [Member] | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	300	300
Consumer real estate | Risk Rate 6 [Member] | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,318	996
Consumer real estate | Risk Rate 6 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	186	114
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	222,469	45,074
Commercial and industrial loans | Guaranteed student loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	30,656	33,525
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,998	2,621
Commercial and industrial loans | Risk Rated 1-4 [Member] | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	221,207	41,837
Commercial and industrial loans | Risk Rated 1-4 [Member] | Guaranteed student loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	30,656	33,525
Commercial and industrial loans | Risk Rated 1-4 [Member] | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,955	2,621
Commercial and industrial loans | Risk Rated 5 [Member] | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	799	2,891
Commercial and industrial loans | Risk Rated 5 [Member] | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	43
Commercial and industrial loans | Risk Rate 6 [Member] | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 463	$ 346

Loans and allowance for loan _7

Loans and allowance for loan losses - Recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 3,920	$ 7,523
Current	596,169	421,772
Total loans	600,089	429,295
Recorded Investment, 90 Days and Accruing	1,674	2,567
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,450	3,647
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	796	1,309
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,674	2,567
Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	222,469	45,074
Guaranteed student loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	30,656	33,525
Consumer And Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	2,998	2,621
Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	33,337	31,950
Total loans	33,337	31,950
Construction and land development | Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,723	7,887
Total loans	7,723	7,887
Construction and land development | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	25,614	24,063
Total loans	25,614	24,063
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		701
Current	224,863	227,648
Total loans	224,863	228,349
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		701
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		701
Current	97,467	97,652
Total loans	97,467	98,353
Commercial real estate | Owner Occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		701
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	116,863	116,508
Total loans	116,863	116,508
Commercial real estate | Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	10,155	13,332
Total loans	10,155	13,332
Commercial real estate | Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	378	156
Total loans	378	156
Consumer real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	385	475
Current	85,381	87,301
Total loans	85,766	87,776
Consumer real estate | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	250	475
Consumer real estate | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	135
Consumer real estate | Home equity lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	193	52
Current	19,114	21,457
Total loans	19,307	21,509
Consumer real estate | Home equity lines [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	193	52
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	135	290
Current	54,935	55,566
Total loans	55,070	55,856
Consumer real estate | First Deed of Trust [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		290
Consumer real estate | First Deed of Trust [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	135
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	57	133
Current	11,332	10,278
Total loans	11,389	10,411
Consumer real estate | Second Deed of Trust [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	57	133
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		773
Current	222,469	44,301
Total loans	222,469	45,074
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		773
Commercial and industrial loans | Guaranteed student loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,535	5,570
Current	27,121	27,955
Total loans	30,656	33,525
Recorded Investment, 90 Days and Accruing	1,674	2,567
Commercial and industrial loans | Guaranteed student loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,200	1,694
Commercial and industrial loans | Guaranteed student loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	661	1,309
Commercial and industrial loans | Guaranteed student loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,674	2,567
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		4
Current	2,998	2,617
Total loans	$ 2,998	2,621
Commercial and industrial loans | Consumer And Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		$ 4

Loans and allowance for loan _8

Loans and allowance for loan losses - Impaired loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
With no related allowance recorded
Recorded Investment	$ 8,359	$ 7,745
Unpaid Principal Balance	8,604	8,152
With an allowance recorded
Recorded Investment	1,472	1,627
Unpaid Principal Balance	1,634	1,826
Related Allowance	104	159
Total
Recorded Investment	9,831	9,372
Unpaid Principal Balance	10,238	9,978
Related Allowance	104	159
Construction and land development
With no related allowance recorded
Recorded Investment	289	337
Unpaid Principal Balance	289	337
Total
Recorded Investment	289	337
Unpaid Principal Balance	289	337
Construction and land development | Commercial [Member]
With no related allowance recorded
Recorded Investment	289	337
Unpaid Principal Balance	289	337
Total
Recorded Investment	289	337
Unpaid Principal Balance	289	337
Commercial real estate
With no related allowance recorded
Recorded Investment	4,812	4,393
Unpaid Principal Balance	4,827	4,408
With an allowance recorded
Recorded Investment	1,125	1,414
Unpaid Principal Balance	1,125	1,414
Related Allowance	3	15
Total
Recorded Investment	5,937	5,807
Unpaid Principal Balance	5,952	5,822
Related Allowance	3	15
Commercial real estate | Owner Occupied [Member]
With no related allowance recorded
Recorded Investment	3,121	2,089
Unpaid Principal Balance	3,136	2,104
With an allowance recorded
Recorded Investment	1,125	1,414
Unpaid Principal Balance	1,125	1,414
Related Allowance	3	15
Total
Recorded Investment	4,246	3,503
Unpaid Principal Balance	4,261	3,518
Related Allowance	3	15
Commercial real estate | Non-Owner Occupied [Member]
With no related allowance recorded
Recorded Investment	1,691	2,304
Unpaid Principal Balance	1,691	2,304
Total
Recorded Investment	1,691	2,304
Unpaid Principal Balance	1,691	2,304
Consumer real estate
With no related allowance recorded
Recorded Investment	3,110	2,804
Unpaid Principal Balance	3,340	3,034
With an allowance recorded
Recorded Investment	178	78
Unpaid Principal Balance	178	78
Related Allowance	85	9
Total
Recorded Investment	3,288	2,882
Unpaid Principal Balance	3,518	3,112
Related Allowance	85	9
Consumer real estate | Home equity lines [Member]
With no related allowance recorded
Recorded Investment	300	300
Unpaid Principal Balance	300	300
Total
Recorded Investment	300	300
Unpaid Principal Balance	300	300
Consumer real estate | First Deed of Trust [Member]
With no related allowance recorded
Recorded Investment	2,096	1,752
Unpaid Principal Balance	2,118	1,774
With an allowance recorded
Recorded Investment	75	78
Unpaid Principal Balance	75	78
Related Allowance	8	9
Total
Recorded Investment	2,171	1,830
Unpaid Principal Balance	2,193	1,852
Related Allowance	8	9
Consumer real estate | Second Deed of Trust [Member]
With no related allowance recorded
Recorded Investment	714	752
Unpaid Principal Balance	922	960
With an allowance recorded
Recorded Investment	103
Unpaid Principal Balance	103
Related Allowance	77
Total
Recorded Investment	817	752
Unpaid Principal Balance	1,025	960
Related Allowance	77
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
With no related allowance recorded
Recorded Investment	148	211
Unpaid Principal Balance	148	373
With an allowance recorded
Recorded Investment	169	135
Unpaid Principal Balance	331	334
Related Allowance	16	135
Total
Recorded Investment	317	346
Unpaid Principal Balance	479	707
Related Allowance	$ 16	$ 135

Loans and allowance for loan _9

Loans and allowance for loan losses - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
With no related allowance recorded
Average Recorded Investment	$ 8,999	$ 8,666
Interest Income Recognized		170
With an allowance recorded
Average Recorded Investment	1,194	1,270
Interest Income Recognized	14	22
Total
Average Recorded Investment	10,193	9,936
Interest Income Recognized	14	192
Construction and land development
With no related allowance recorded
Average Recorded Investment	294	305
Total
Average Recorded Investment	294	305
Construction and land development | Commercial [Member]
With no related allowance recorded
Average Recorded Investment	294	305
Total
Average Recorded Investment	294	305
Commercial real estate
With no related allowance recorded
Average Recorded Investment	5,301	5,074
Interest Income Recognized		105
With an allowance recorded
Average Recorded Investment	843	985
Interest Income Recognized	14	14
Total
Average Recorded Investment	6,144	6,059
Interest Income Recognized	14	119
Commercial real estate | Owner Occupied [Member]
With no related allowance recorded
Average Recorded Investment	3,325	3,016
Interest Income Recognized		68
With an allowance recorded
Average Recorded Investment	843	985
Interest Income Recognized	14	14
Total
Average Recorded Investment	4,168	4,001
Interest Income Recognized	14	82
Commercial real estate | Non-Owner Occupied [Member]
With no related allowance recorded
Average Recorded Investment	1,976	2,058
Interest Income Recognized		37
Total
Average Recorded Investment	1,976	2,058
Interest Income Recognized		37
Consumer real estate
With no related allowance recorded
Average Recorded Investment	3,249	3,119
Interest Income Recognized		65
With an allowance recorded
Average Recorded Investment	179	122
Interest Income Recognized		2
Total
Average Recorded Investment	3,428	3,241
Interest Income Recognized		67
Consumer real estate | Home equity lines [Member]
With no related allowance recorded
Average Recorded Investment	300	300
Interest Income Recognized		8
With an allowance recorded
Average Recorded Investment		300
Interest Income Recognized		8
Total
Average Recorded Investment	300
Consumer real estate | First Deed of Trust [Member]
With no related allowance recorded
Average Recorded Investment	2,113	2,023
Interest Income Recognized		33
With an allowance recorded
Average Recorded Investment	76	77
Interest Income Recognized		2
Total
Average Recorded Investment	2,189	2,100
Interest Income Recognized		35
Consumer real estate | Second Deed of Trust [Member]
With no related allowance recorded
Average Recorded Investment	836	796
Interest Income Recognized		24
With an allowance recorded
Average Recorded Investment	103	45
Total
Average Recorded Investment	939	841
Interest Income Recognized		24
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
With no related allowance recorded
Average Recorded Investment	155	168
With an allowance recorded
Average Recorded Investment	56	163
Interest Income Recognized		6
Total
Average Recorded Investment	211	331
Interest Income Recognized		$ 6
Commercial and industrial loans | Consumer And Other [Member]
With an allowance recorded
Average Recorded Investment	116
Total
Average Recorded Investment	$ 116

Loans and allowance for loan_10

Loans and allowance for loan losses - Nonaccrual TDRs and the related specific valuation allowance by portfolio segment (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)loan	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)loan
Information concerning Troubled Debt Restructurings
Number of Loans	0	0
Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 28,000		$ 28,000		$ 24,000
Number of Loans | loan			3		3
Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	7,862,000		$ 7,862,000		$ 8,410,000
Number of Loans | loan			37		38
Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	6,584,000		$ 6,584,000		$ 7,059,000
Number of Loans | loan			26		29
Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,278,000		$ 1,278,000		$ 1,351,000
Number of Loans | loan			11		9
Commercial real estate
Information concerning Troubled Debt Restructurings
Number of Loans			1,000	1,000
Commercial real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	4,000		$ 4,000		$ 15,000
Commercial real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	5,422,000		5,422,000		5,806,000
Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	5,115,000		5,115,000		5,309,000
Commercial real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	307,000		307,000		497,000
Consumer real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	8,000		8,000		9,000
Consumer real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	2,243,000		2,243,000		2,393,000
Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,469,000		1,469,000		1,570,000
Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	774,000		$ 774,000		823,000
Owner Occupied [Member] | Commercial real estate
Information concerning Troubled Debt Restructurings
Number of Loans			1,000
Owner Occupied [Member] | Commercial real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	4,000		$ 4,000		15,000
Owner Occupied [Member] | Commercial real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	3,731,000		3,731,000		3,502,000
Owner Occupied [Member] | Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	3,424,000		3,424,000		3,502,000
Owner Occupied [Member] | Commercial real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	307,000		307,000
Non-Owner Occupied [Member] | Commercial real estate
Information concerning Troubled Debt Restructurings
Number of Loans				1,000
Non-Owner Occupied [Member] | Commercial real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,691,000		1,691,000		2,304,000
Non-Owner Occupied [Member] | Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,691,000		1,691,000		1,807,000
Non-Owner Occupied [Member] | Commercial real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment					497,000
First Deed of Trust [Member] | Consumer real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	8,000		8,000		9,000
First Deed of Trust [Member] | Consumer real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,613,000		1,613,000		1,641,000
First Deed of Trust [Member] | Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	901,000		901,000		881,000
First Deed of Trust [Member] | Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	712,000		712,000		760,000
Second Deed of Trust [Member] | Consumer real estate | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	630,000		630,000		752,000
Second Deed of Trust [Member] | Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	568,000		568,000		689,000
Second Deed of Trust [Member] | Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	62,000		62,000		63,000
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	16,000		16,000
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Portfolio Segment [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	197,000		197,000		211,000
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment					180,000
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 197,000		$ 197,000		$ 31,000

Loans and allowance for loan_11

Loans and allowance for loan losses - Information about TDRs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans	0	0
Commercial real estate
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans			1,000	1,000
Pre-Modification Recorded Investment			$ 311,000	$ 515,000
Post-Modification Recorded Investment			$ 311,000	$ 515,000
Commercial real estate | Owner Occupied [Member]
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans			1,000
Pre-Modification Recorded Investment			$ 311,000
Post-Modification Recorded Investment			$ 311,000
Commercial real estate | Non-Owner Occupied [Member]
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans				1,000
Pre-Modification Recorded Investment				$ 515,000
Post-Modification Recorded Investment				$ 515,000

Loans and allowance for loan_12

Loans and allowance for loan losses - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance			$ 3,186	$ 3,051	$ 3,051
Provision for (Recovery of) Loan Losses	$ 250		950	0	135
Charge-offs	(23)	$ (30)	(188)	(105)	(218)
Recoveries	64	84	102	155	218
Ending Balance	4,050	3,101	4,050	3,101	3,186
Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		385	572
Provision for (Recovery of) Loan Losses		(19)
Recoveries		6
Ending Balance	348	372	348	372	572
Guaranteed student loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance			108
Ending Balance	97		97		108
Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance			54
Ending Balance	311		311		54
Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	508	190	185	262	262
Provision for (Recovery of) Loan Losses		18	320	(63)	(86)
Recoveries	14		17	9	9
Ending Balance	522	208	522	208	185
Construction and land development | Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	213	31	48	42	42
Provision for (Recovery of) Loan Losses	(23)	16	139	(2)	(1)
Recoveries	14		17	7	7
Ending Balance	204	47	204	47	48
Construction and land development | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	295	159	137	220	220
Provision for (Recovery of) Loan Losses	23	2	181	(61)	(85)
Recoveries				2	2
Ending Balance	318	161	318	161	137
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	2,153	1,493	1,589	1,435	1,435
Provision for (Recovery of) Loan Losses	292	36	856	94	154
Ending Balance	2,445	1,529	2,445	1,529	1,589
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	904	659	671	673	673
Provision for (Recovery of) Loan Losses	118	4	351	(10)	(2)
Ending Balance	1,022	663	1,022	663	671
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,202	747	831	673	673
Provision for (Recovery of) Loan Losses	171	27	542	101	158
Ending Balance	1,373	774	1,373	774	831
Commercial real estate | Multifamily [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	47	85	85	87	87
Provision for (Recovery of) Loan Losses	1	5	(37)	3	(2)
Ending Balance	48	90	48	90	85
Commercial real estate | Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		2	2	2	2
Provision for (Recovery of) Loan Losses	2
Ending Balance	2	2	2	2	2
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	281		678	680	680
Provision for (Recovery of) Loan Losses	1	(61)	(407)	(108)	(62)
Charge-offs					(35)
Recoveries	45	58	56	85	95
Ending Balance	327	657	327	657	678
Consumer real estate | Home equity lines [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	40	233	271	244	244
Provision for (Recovery of) Loan Losses	(30)	(13)	(261)	(36)	50
Charge-offs					(35)
Recoveries				12	12
Ending Balance	10	220	10	220	271
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	166	367	343	385	385
Provision for (Recovery of) Loan Losses	(7)	(1)	(188)	(24)	(56)
Recoveries	1	3	5	8	14
Ending Balance	160	369	160	369	343
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	75	60	64	51	51
Provision for (Recovery of) Loan Losses	38	(47)	42	(48)	(56)
Recoveries	44	55	51	65	69
Ending Balance	157	68	157	68	64
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	317		572	308	308
Provision for (Recovery of) Loan Losses	27		(114)	41	239
Charge-offs			(135)	(15)	(64)
Recoveries	4		25	38	89
Ending Balance	348	372	348	372	572
Commercial and industrial loans | Guaranteed student loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	101	109	108	121	121
Provision for (Recovery of) Loan Losses	6	21	25	63	80
Charge-offs	(10)	(23)	(36)	(77)	(93)
Ending Balance	97	107	97	107	108
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	40	34	30	34	34
Provision for (Recovery of) Loan Losses	10	(9)	21	(6)	(3)
Charge-offs	(13)	(7)	(17)	(13)	(26)
Recoveries	1	20	4	23	25
Ending Balance	38	38	38	38	30
Commercial and industrial loans | Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	359	176	24	211	211
Provision for (Recovery of) Loan Losses	(86)	14	249	(21)	(187)
Ending Balance	$ 273	$ 190	$ 273	$ 190	$ 24

Loans and allowance for loan_13

Loans and allowance for loan losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	$ 4,050		$ 3,759	$ 3,186	$ 3,101		$ 3,047	$ 3,051
Allowance Individually Evaluated for Impairment	104			159
Allowance Collectively Evaluated for Impairment	3,946			3,027
Loans Ending Balance	600,089			429,295
Loans Individually Evaluated for Impairment	9,831			9,372
Loans Collectively Evaluated for Impairment	590,258			419,923
Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	522	$ 508		185	208	$ 190		262
Allowance Collectively Evaluated for Impairment	522			185
Loans Ending Balance	33,337			31,950
Loans Individually Evaluated for Impairment	289			337
Loans Collectively Evaluated for Impairment	33,048			31,613
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	2,445	2,153		1,589	1,529	1,493		1,435
Allowance Individually Evaluated for Impairment	3			15
Allowance Collectively Evaluated for Impairment	2,442			1,574
Loans Ending Balance	224,863			228,349
Loans Individually Evaluated for Impairment	5,937			5,807
Loans Collectively Evaluated for Impairment	218,926			222,542
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	327	281		678	657		$ 660	680
Allowance Individually Evaluated for Impairment	85			9
Allowance Collectively Evaluated for Impairment	242			669
Loans Ending Balance	85,766			87,776
Loans Individually Evaluated for Impairment	3,288			2,882
Loans Collectively Evaluated for Impairment	82,478			84,894
Residential [Member] | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	204	213		48	47	31		42
Allowance Collectively Evaluated for Impairment	204			48
Loans Ending Balance	7,723			7,887
Loans Collectively Evaluated for Impairment	7,723			7,887
Commercial [Member] | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	318	295		137	161	159		220
Allowance Collectively Evaluated for Impairment	318			137
Loans Ending Balance	25,614			24,063
Loans Individually Evaluated for Impairment	289			337
Loans Collectively Evaluated for Impairment	25,325			23,726
Owner Occupied [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	1,022	904		671	663	659		673
Allowance Individually Evaluated for Impairment	3			15
Allowance Collectively Evaluated for Impairment	1,019			656
Loans Ending Balance	97,467			98,353
Loans Individually Evaluated for Impairment	4,246			3,503
Loans Collectively Evaluated for Impairment	93,221			94,850
Non-Owner Occupied [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	1,373	1,202		831	774	747		673
Allowance Collectively Evaluated for Impairment	1,373			831
Loans Ending Balance	116,863			116,508
Loans Individually Evaluated for Impairment	1,691			2,304
Loans Collectively Evaluated for Impairment	115,172			114,204
Multifamily [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	48	47		85	90	85		87
Allowance Collectively Evaluated for Impairment	48			85
Loans Ending Balance	10,155			13,332
Loans Collectively Evaluated for Impairment	10,155			13,332
Farmland [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	2			2	2	2		2
Allowance Collectively Evaluated for Impairment	2			2
Loans Ending Balance	378			156
Loans Collectively Evaluated for Impairment	378			156
Home equity lines [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	10	40		271	220	233		244
Allowance Collectively Evaluated for Impairment	10			271
Loans Ending Balance	19,307			21,509
Loans Individually Evaluated for Impairment	300			300
Loans Collectively Evaluated for Impairment	19,007			21,209
First Deed of Trust [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	160	166		343	369	367		385
Allowance Individually Evaluated for Impairment	8			9
Allowance Collectively Evaluated for Impairment	152			334
Loans Ending Balance	55,070			55,856
Loans Individually Evaluated for Impairment	2,171			1,830
Loans Collectively Evaluated for Impairment	52,899			54,026
Second Deed of Trust [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	157	75		64	68	60		51
Allowance Individually Evaluated for Impairment	77
Allowance Collectively Evaluated for Impairment	80			64
Loans Ending Balance	11,389			10,411
Loans Individually Evaluated for Impairment	817			752
Loans Collectively Evaluated for Impairment	10,572			9,659
Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	348			572	372	385
Allowance Individually Evaluated for Impairment	16			135
Allowance Collectively Evaluated for Impairment	332			437
Loans Ending Balance	222,469			45,074
Loans Individually Evaluated for Impairment	317			346
Loans Collectively Evaluated for Impairment	222,152			44,728
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	348	317		572	372			308
Loans Ending Balance	222,469			45,074
Guaranteed student loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	97			108
Allowance Collectively Evaluated for Impairment	97			108
Loans Ending Balance	30,656			33,525
Loans Collectively Evaluated for Impairment	30,656			33,525
Guaranteed student loans [Member] | Commercial and industrial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	97	101		108	107	109		121
Loans Ending Balance	30,656			33,525
Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	311			54
Allowance Collectively Evaluated for Impairment	311			54
Loans Ending Balance	2,998			2,621
Loans Collectively Evaluated for Impairment	2,998			2,621
Consumer And Other [Member] | Commercial and industrial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	38	$ 40		30	$ 38	$ 34		$ 34
Loans Ending Balance	$ 2,998			$ 2,621

Loans and allowance for loan_14

Loans and allowance for loan losses - Additional Information (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)loan	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	$ 57,423,000		$ 57,423,000				$ 49,736,000
TDRs	0	0
Defaults on TDRs that were modified as TDRs | loan					0
Loans and Leases Receivable, Allowance	$ 4,050,000	$ 3,101,000	4,050,000	$ 3,101,000	$ 3,051,000	$ 3,759,000	3,186,000	$ 3,047,000
Provision for loan losses	$ 250,000	0	$ 950,000	0
Guaranteed student loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage Of Recovery Loss On Portfolio From Historical Experience	98.00%		98.00%
Unallocated Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Allowance	$ 273,000	$ 190,000	$ 273,000	$ 190,000			$ 24,000

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Deposits
Demand accounts	$ 217,204	$ 131,228
Interest checking accounts	59,711	48,427
Money market accounts	147,467	99,955
Savings accounts	33,733	26,396
Other time deposits	99,422	114,875
Total	$ 573,852	$ 443,208
Percentage of individual deposits to deposit liability
Demand accounts (in hundredths)	37.90%	29.60%
Interest checking accounts(in hundredths)	10.40%	10.90%
Money market accounts (in hundredths)	25.70%	22.60%
Savings account (in hundredths)	5.90%	6.00%
Time deposits of $250,000 and over (in hundredths)	2.80%	5.00%
Other time deposits (in hundredths)	17.30%	25.90%
Total (in hundredths)	100.00%	100.00%
Geographic Distribution, Domestic [Member]
Deposits
Time deposits of $250,000 and over	$ 16,315	$ 22,327

Borrowings (Details)

Borrowings (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank Stock	$ 2,141,000	$ 1,694,000
Long-term Federal Home Loan Bank Advances	39,000,000	$ 29,000,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Due Date		2023
Long-term Debt	0
Line of Credit Facility, Remaining Borrowing Capacity	48,400,000
PPPLF
Federal Home Loan Bank, Advances [Line Items]
Current borrowing capacity	45,120,000
Unused borrowing capacity	140,017,000
Federal Home Loan Bank Advances [Member]
Federal Home Loan Bank, Advances [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	5,600,000
Revolving Credit Facility [Member]
Federal Home Loan Bank, Advances [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	10,000,000
Secured Debt [Member]
Federal Home Loan Bank, Advances [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	7,800,000
Line of Credit [Member]
Federal Home Loan Bank, Advances [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 25,000,000

Trust preferred securities (Det

Trust preferred securities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 20, 2007	Feb. 24, 2005
Debt Instrument [Line Items]
Trust preferred capital notes	$ 8,764	$ 8,764
Percentage of Tier one risk based capital required for capital adequacy (in hundredths)	25.00%
Southern Community Financial Capital Trust I [Member]
Debt Instrument [Line Items]
Trust preferred capital notes				$ 5,200
Interest rate (in hundredths)	2.39%
Principal assets of the trust	$ 5,200
Southern Community Financial Capital Trust I [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.15%
Village Financial Statutory Trust II [Member]
Debt Instrument [Line Items]
Trust preferred capital notes			$ 3,600
Interest rate (in hundredths)	1.64%
Principal assets of the trust	$ 3,600
Village Financial Statutory Trust II [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.40%

Subordinated Debt (Details)

Subordinated Debt (Details) - USD ($)	Mar. 21, 2018	Mar. 31, 2018	Sep. 30, 2020	Dec. 31, 2019
Proceeds from Issuance of Subordinated Long-term Debt	$ 5,539,000
Subordinated Debt.			$ 5,620,000	$ 5,595,000
Subordinated Debt [Member]
Debt Instrument, Face Amount	$ 5,700,000
Debt Instrument, Maturity Date	Mar. 31, 2028
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Debt Instrument, Basis Spread on Variable Rate		3.73%

Stock incentive plan - Options

Stock incentive plan - Options outstanding under company's stock incentive plan (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Options
Options outstanding, beginning of period	734	734
Granted	0	0
Forfeited	0	0
Exercised	0	0
Options outstanding, end of period	734	734
Options exercisable, end of period	734	734
Weighted Average Exercise Price
Options outstanding, beginning of period	$ 25.63	$ 25.63
Granted	0	0
Forfeited	0	0
Exercised	0	0
Options outstanding, end of period	25.63	25.63
Fair Value Per Share
Options outstanding, beginning of period	9.76	9.76
Granted	0	0
Forfeited	0	0
Exercised	0	0
Options outstanding, end of period	$ 9.76	$ 9.76
Intrinsic Value Options outstanding	$ 0	$ 0

Stock incentive plan - Non vest

Stock incentive plan - Non vested restricted stock award (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ending Balance	6,573
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	12,310
Shares, Granted	17,498
Shares, Vested	(4,224)
Shares, Forfeited	(1,094)	(8,074)
Shares, Other	246
Ending Balance	24,736	12,110
Weighted-Average Grant-Date Fair-Value, Beginning Balance	$ 33.83
Weighted-Average Grant-Date Fair-Value, Granted	29.68
Weighted-Average Grant-Date Fair-Value, Vested	33.82
Weighted-Average Grant-Date Fair-Value, Forfeited	33.82
Weighted-Average Grant Date Fair Value, Other	33.82
Weighted-Average Grant-Date Fair-Value, Ending Balance	$ 30.90
Aggregate Intrinsic Value, Beginning Balance	$ 369,300
Aggregate Intrinsic Value, Granted	524,940
Aggregate Intrinsic Value, Vested	(126,720)
Aggregate Intrinsic Value, Forfeited	(32,820)
Aggregate Intrinsic Value, Other	7,380
Aggregate Intrinsic Value, Ending Balance	$ 742,080

Stock incentive plan - Addition

Stock incentive plan - Additional Information (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance	6,573			6,573
Allocated Share-based Compensation Expense				$ 157,000	$ 396,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				17,498
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 29.68
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance	24,736		12,110	24,736	12,110	12,310
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 271,600		$ 387,256	$ 271,600	$ 387,256
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				1,094	8,074
Shares, Other				246
Performance Based Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	4,004		4,155
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29		$ 33.82
Time Based Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	12,744	750	8,155
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29.11	$ 42.99	$ 33.82
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years	3 years	3 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 511,401			$ 511,401
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years 6 months 7 days
Performance Shares [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio	150.00%		150.00%
Performance Shares [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio	0.00%		0.00%

Fair value - Recurring and non

Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 27,525	$ 12,722
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	27,525	12,722
IRLC	(40)
Financial Liabilities - Recurring Forward sales commitment	(64)
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,368	1,468
Assets held for sale	0	514
Other real estate owned	336	526
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government agency obligations	0	0
Mortgage-backed securities	0	0
Subordinated debt	0	0
Loans held for sale	0
IRLC	0
Financial Liabilities - Recurring Forward sales commitment	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government agency obligations	10,479	14,845
Mortgage-backed securities	17,980	25,302
Subordinated debt	7,596	6,540
Loans held for sale	27,525
IRLC	(40)
Financial Liabilities - Recurring Forward sales commitment	(64)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government agency obligations	0	0
Mortgage-backed securities	0	0
Subordinated debt	250	250
Loans held for sale	0
IRLC	0
Financial Liabilities - Recurring Forward sales commitment	0
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government agency obligations	10,479	14,845
Mortgage-backed securities	17,980	25,302
Subordinated debt	7,846	6,790
Loans held for sale	27,525
IRLC	(40)
Financial Liabilities - Recurring Forward sales commitment	(64)
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Assets held for sale		0
Other real estate owned	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Assets held for sale		0
Other real estate owned	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,368	1,468
Assets held for sale		514
Other real estate owned	336	526
Fair Value, Measurements, Nonrecurring [Member] | Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,368	1,468
Assets held for sale		514
Other real estate owned	$ 336	$ 526

Fair value - Financial instrume

Fair value - Financial instruments measured at fair value (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Impaired Loans Real Estate Secured [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 1,368	$ 1,468
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	6.00%	6.00%
Discount for lack of marketability and age of appraisal	6.00%	6.00%
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	10.00%	10.00%
Discount for lack of marketability and age of appraisal	30.00%	30.00%
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	(7.00%)	(7.00%)
Discount for lack of marketability and age of appraisal	(10.00%)	(10.00%)
Asset Held For Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		$ 514
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs		6.00%
Discount for lack of marketability and age of appraisal		6.00%
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs		10.00%
Discount for lack of marketability and age of appraisal		30.00%
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs		(7.00%)
Discount for lack of marketability and age of appraisal		(15.00%)
Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	$ 336	$ 526
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	6.00%	6.00%
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	10.00%	10.00%
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling costs	(7.00%)	(7.00%)

Fair value - Carrying amounts a

Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets
Investment securities available for sale	$ 36,305	$ 46,937
Loans held for sale	27,525	12,722
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member]
Financial assets
Cash	19,605	19,967
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Cash	19,605	19,967
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member]
Financial assets
Cash equivalents	18,482
Investment securities available for sale	36,055	46,687
Federal Home Loan Bank stock	2,141	1,694
Loans held for sale	27,525	12,722
Accrued interest receivable	4,880	2,597
Forward sales commitment	64
Financial liabilities
Deposits	573,852	443,208
FHLB borrowings	39,000	29,000
Trust preferred securities	8,764	8,764
Other borrowings	50,740	10,912
Accrued interest payable	231	221
Interest rate lock commitments	40
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Cash equivalents	18,482
Investment securities available for sale	36,055	46,687
Federal Home Loan Bank stock	2,141	1,694
Loans held for sale	27,525	12,722
Accrued interest receivable	4,880	2,597
Forward sales commitment	64
Financial liabilities
Deposits	578,425	443,645
FHLB borrowings	39,447	29,285
Trust preferred securities	9,630	9,812
Other borrowings	50,740	10,912
Accrued interest payable	231	221
Interest rate lock commitments	40
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member]
Financial assets
Investment securities available for sale	250	250
Loans	598,721	427,827
Impaired loans	1,368	1,468
Assets held for sale	0	514
Other real estate owned	336	526
Bank owned life insurance	7,756	7,612
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Investment securities available for sale	250	250
Loans	599,223	429,254
Impaired loans	1,368	1,468
Assets held for sale	0	514
Other real estate owned	336	526
Bank owned life insurance	$ 7,756	$ 7,612

Segment Reporting - Segment inf

Segment Reporting - Segment information (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment			2
Revenues
Interest income	$ 6,540	$ 6,010	$ 18,417	$ 17,590
Gain on sale of loans	3,585	2,200	8,014	4,605
Other revenues	950	923	2,611	2,696
Total revenues	11,075	9,133	29,042	24,891
Expenses
Provision for loan losses	250		950	0	$ 135
Interest expense	1,069	1,398	3,575	3,960
Salaries and benefits	3,644	2,841	9,278	9,478
Commissions	1,054	657	2,269	1,369
Other expenses	2,111	2,047	5,886	6,092
Total operating expenses	8,128	6,943	21,958	20,899
Income before income taxes	2,947	2,190	7,084	3,992
Income tax expense	678	463	1,582	819
Net income	2,269	1,727	5,502	3,173
Total assets	727,364	559,929	727,364	559,929	$ 540,313
Eliminations [Member]
Revenues
Interest income	(46)	(66)	(91)	(90)
Gain on sale of loans	0	0	0	0
Other revenues	(62)	(52)	(179)	(162)
Total revenues	(108)	(118)	(270)	(252)
Expenses
Provision for loan losses	0		0
Interest expense	(46)	(66)	(91)	(90)
Salaries and benefits	0	0	0	0
Commissions	0	0	0	0
Other expenses	(62)	(52)	(179)	(162)
Total operating expenses	(108)	(118)	(270)	(252)
Income before income taxes	0	0	0	0
Income tax expense	0	0	0	0
Net income	0	0	0	0
Total assets	(15,132)	(12,378)	(15,132)	(12,378)
Commercial Banking [Member]
Revenues
Interest income	6,430	5,879	18,107	17,296
Gain on sale of loans	0	0	0	0
Other revenues	666	725	1,970	2,296
Total revenues	7,096	6,604	20,077	19,592
Expenses
Provision for loan losses	250		950
Interest expense	1,069	1,398	3,575	3,960
Salaries and benefits	2,526	2,009	6,362	7,057
Commissions	0	0	0	0
Other expenses	1,873	1,821	5,187	5,460
Total operating expenses	5,718	5,228	16,074	16,477
Income before income taxes	1,378	1,376	4,003	3,115
Income tax expense	349	292	935	633
Net income	1,029	1,084	3,068	2,482
Total assets	728,707	561,453	728,707	561,453
Mortgage Banking [Member]
Revenues
Interest income	156	197	401	384
Gain on sale of loans	3,585	2,200	8,014	4,605
Other revenues	346	250	820	562
Total revenues	4,087	2,647	9,235	5,551
Expenses
Provision for loan losses	0		0
Interest expense	46	66	91	90
Salaries and benefits	1,118	832	2,916	2,421
Commissions	1,054	657	2,269	1,369
Other expenses	300	278	878	794
Total operating expenses	2,518	1,833	6,154	4,674
Income before income taxes	1,569	814	3,081	877
Income tax expense	329	171	647	186
Net income	1,240	643	2,434	691
Total assets	$ 13,789	$ 10,854	$ 13,789	$ 10,854

Shareholders' Equity and Regu_3

Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Shareholders' Equity and Regulatory Matters
Net unrealized gains on securities	$ 482	$ 186
Net unrecognized losses on defined benefit plan	(38)	(44)
Total accumulated other comprehensive income	$ 444	$ 142

Shareholders' Equity and Regu_4

Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Total capital (to risk- weighted assets) Village Bank, Ratio
To be Well Capitalized (in percentage)	10
Tier 1 capital (to risk-capital to average assets), Ratio
To be Well Capitalized (in percentage)	8
Leverage ratio (Tier 1 capital to average assets), Ratio
To be Well Capitalized (in percentage)	5
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio
To be Well Capitalized (in percentage)	6.50%
Subsidiaries [Member]
Total capital (to risk- weighted assets) Village Bank, Amount
Actual Amount	$ 62,788	$ 54,653
For Capital Adequacy Purposes	35,643	34,807
To be Well Capitalized Amount	$ 44,554	$ 43,508
Total capital (to risk- weighted assets) Village Bank, Ratio
Actual Ratio (in percentage)	14.09	12.56
For Capital Adequacy Purposes (in percentage)	8	8
To be Well Capitalized (in percentage)	10	10
Tier 1 capital (to risk- weighted assets) Village Bank, Amount
Actual Amount	$ 58,738	$ 52,867
For Capital Adequacy Purposes	26,732	26,015
To be Well Capitalized Amount	$ 35,643	$ 34,807
Tier 1 capital (to risk-capital to average assets), Ratio
Actual Ratio (in percentage)	13.18	12.15
For Capital Adequacy Purposes (in percentage)	6	6
To be Well Capitalized (in percentage)	8	8
Leverage ratio (Tier 1 capital to average assets), Amount
Actual Amount	$ 58,738	$ 52,867
For Capital Adequacy Purposes	26,702	21,823
To be Well Capitalized Amount	$ 33,378	$ 27,278
Leverage ratio (Tier 1 capital to average assets), Ratio
Actual Ratio (in percentage)	8.80	9.69
For Capital Adequacy Purposes (in percentage)	4	4
To be Well Capitalized (in percentage)	5	5
Common equity (Tier 1 risk based capital to risk weighted assets), Amount
Actual Amount	$ 58,738	$ 52,867
For Capital Adequacy Purposes	20,049	19,579
To be Well Capitalized Amount	$ 28,960	$ 28,280
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio
Actual Ratio (in percentage)	13.18%	12.15%
For Capital Adequacy Purposes (in percentage)	4.50%	4.50%
To be Well Capitalized (in percentage)	6.50%	6.50%

Shareholders' Equity and Regu_5

Shareholders' Equity and Regulatory Matters - Additional Information (Details)	May 01, 2009USD ($)$ / sharesshares	Mar. 31, 2018USD ($)shares	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Shareholders' Equity and Regulatory Matters
Preferred Stock, Shares Issued | shares	14,738
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 4
Preferred Stock, Liquidation Preference Per Share | $ / shares	$ 1,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	499,029
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 4.43
Payments to Acquire Businesses, Gross | $	$ 14,738,000
Stock Redeemed or Called During Period, Shares | shares		5,027
Dividends Payable | $		$ 56,554
Deferred Tax Liabilities, Gross | $			$ 118,000	$ 38,000
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets			6.50%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets			8
Capital Required to be Well Capitalized to Risk Weighted Assets			10
Tier One Leverage Capital Required to be Well Capitalized to Average Assets			5
Description of Regulatory Requirements, Prompt Corrective Action			On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or "CBLR"). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the "prompt corrective action" framework.

Commitments and contingencies_2

Commitments and contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	$ 161,931	$ 105,820
Undisbursed credit lines
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	104,490	83,366
Commitments to extend or originate credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	51,496	15,722
Standby letters of Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	$ 5,945	$ 6,732

Mortgage Banking and Derivati_2

Mortgage Banking and Derivatives (Details)	Sep. 30, 2020USD ($)position	Dec. 31, 2019USD ($)
Participating Mortgage Loans [Line Items]
Fair value of LHFS	$ 27,525,000	$ 12,722,000
Unpaid principal balance	27,600,000
Other Assets
Participating Mortgage Loans [Line Items]
Fair value of forward sales commitments	64,000
Forward sales commitments notional amount	$ 80,800,000
Forward sales commitments total positions | position	324
Other Liabilities
Participating Mortgage Loans [Line Items]
Fair value of IRLC	$ 40,000
IRLC notional amount	$ 53,300,000
IRLC total positions | position	215

Recent accounting pronounceme_2

Recent accounting pronouncements (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Past due loans	$ 3,920,000	$ 7,523,000
Loans past due greater than 30 days [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Past due loans	$ 3,535,000
Guaranteed student loans [Member] | Loans past due greater than 30 days [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of recovery	98.00%