Village Bank and Trust Financial (VBFC) 10-K 19 Mar 21 2020 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 01, 2021	Jun. 30, 2020
Document And Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	Village Bank & Trust Financial Corp.
Title of 12(b) Security	Common Stock, $4.00 par value
Trading Symbol	VBFC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 15,948,000
Entity Common Stock, Shares Outstanding		1,466,800
Entity Central Index Key	0001290476
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 12,709	$ 19,967
Federal funds sold	30,742	0
Total cash and cash equivalents	43,451	19,967
Investment securities available for sale, at fair value	40,844	46,937
Restricted stock, at cost	825	2,035
Loans held for sale	34,421	12,722
Loans
Outstandings	561,003	429,295
Allowance for loan losses	(3,970)	(3,186)
Deferred fees and costs, net	(2,048)	764
Total loans, net	554,985	426,873
Other real estate owned, net of valuation allowance	336	526
Assets held for sale		514
Premises and equipment, net	11,779	12,036
Bank owned life insurance	7,806	7,612
Accrued interest receivable	4,943	2,597
Other assets	6,846	8,494
Total Assets	706,236	540,313
Deposits
Noninterest bearing demand	222,305	131,228
Interest bearing	366,077	311,980
Total deposits	588,382	443,208
Federal Home Loan Bank advances	0	29,000
Long-term debt - trust preferred securities	8,764	8,764
Subordinated debt, net	5,628	5,595
Other borrowings	41,529	5,317
Accrued interest payable	194	221
Other liabilities	9,743	5,294
Total liabilities	654,240	497,399
Shareholders' equity
Common stock, $4 par value, 10,000,000 shares authorized; 1,466,516 shares issued and outstanding at December 31, 2020 and 1,435,009 shares issued and outstanding at December 31, 2019	5,794	5,779
Additional paid-in capital	54,510	54,285
Accumulated deficit	(8,738)	(17,292)
Stock in directors rabbi trust	(771)	(856)
Directors deferred fees obligation	771	856
Accumulated other comprehensive income	430	142
Total shareholders' equity	51,996	42,914
Total liabilities and shareholders' equity	$ 706,236	$ 540,313

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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)	1,466,516	1,435,009
Common stock, shares outstanding (in shares)	1,466,516	1,435,009

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Interest income
Loans	$ 24,784	$ 22,045
Investment securities	983	1,117
Federal funds sold	59	325
Total interest income	25,826	23,487
Interest expense
Deposits	3,098	3,852
Borrowed funds	1,335	1,478
Total interest expense	4,433	5,330
Net interest income	21,393	18,157
Provision for loan losses	950	135
Net interest income after provision for loan losses	20,443	18,022
Noninterest income
Service charges and fees	2,073	2,099
Mortgage banking income, net	9,732	5,039
Gain on sale of asset held for sale	1
Gain on sale of investment securities, net	12	101
Gain on sale of Small Business Administration loans	86	288
Other	341	381
Total noninterest income	12,245	7,908
Noninterest expense
Salaries and benefits	12,920	12,241
Occupancy	1,290	1,346
Equipment	881	852
Write down of assets held for sale		22
Supplies	188	193
Professional and outside services	3,104	3,036
Advertising and marketing	365	293
Foreclosed assets, net	(149)	17
FDIC insurance premium	217	158
Losses on debt extinguishment	696
Other operating expense	2,137	2,131
Total noninterest expense	21,649	20,289
Income before income tax expense	11,039	5,641
Income tax expense	2,485	1,164
Net income	$ 8,554	$ 4,477
Earnings per share, basic	$ 5.86	$ 3.10
Earnings per share, diluted	$ 5.86	$ 3.10

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 8,554	$ 4,477
Other comprehensive income
Unrealized holding gains arising during the period	365	1,218
Tax effect	(77)	(256)
Net change in unrealized holding gains on securities available for sale, net of tax	288	962
Reclassification adjustment
Reclassification adjustment for gains realized in income	(12)	(101)
Tax effect	3	21
Reclassification for gains included in net income, net of tax	(9)	(80)
Minimum pension adjustment	14	14
Tax effect	(5)	(5)
Minimum pension adjustment, net of tax	9	9
Total other comprehensive income	288	891
Total comprehensive income	$ 8,842	$ 5,368

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 (loss) [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		413						413
Expiration of common stock warrant		732		(732)
Net income			4,477					4,477
Other comprehensive income							891	891
Balance at Dec. 31, 2019	5,779	54,285	(17,292)	0	(856)	856	142	42,914
Vesting of restricted stock	15	(15)			85	(85)
Stock based compensation		240						240
Net income			8,554					8,554
Other comprehensive income							288	288
Balance at Dec. 31, 2020	$ 5,794	$ 54,510	$ (8,738)	$ 0	$ (771)	$ 771	$ 430	$ 51,996

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities
Net income	$ 8,554	$ 4,477
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	586	644
Amortization of debt issuance costs	32	32
Deferred income taxes	2,393	1,197
Provision for loan losses	950	135
Write-down of other real estate owned	16	40
Gain on sale of investment securities	(12)	(101)
Gain on sales of loans held for sale	(11,703)	(6,205)
Gain on sale of assets held for sale	(1)
Gain on sale of other real estate owned	(175)
Losses on debt extinguishment	696
Stock compensation expense	240	413
Proceeds from sale of mortgage loans	361,393	203,108
Origination of mortgage loans held for sale	(371,389)	(203,497)
Amortization of premiums and accretion of discounts on securities, net	209	218
Increase in bank owned life insurance	(194)	(171)
Net change in:
Interest receivable	(2,346)	65
Other assets	(810)	(2,366)
Interest payable	(27)
Other liabilities	4,449	2,156
Net cash (used in) provided by operating activities	(7,139)	145
Cash Flows from Investing Activities
Purchases of available for sale securities	(11,914)	(13,352)
Proceeds from the sale of available for sale securities	7,936	6,491
Proceeds from the sale of assets held for sale	515
Proceeds from maturities, calls and paydowns of available for sale securities	10,227	5,177
Net increase in loans	(129,062)	(14,916)
Proceeds from sale of other real estate owned	349
Purchases of premises and equipment, net	(329)	(225)
Redemptions (Purchase) of restricted stock, net	1,210	(374)
Net cash used in investing activities	(121,068)	(17,199)
Cash Flows from Financing Activities
Net increase in deposits	145,174	4,161
Proceeds from issuance (repayments) of Federal Home Loan Bank advances	(29,696)	8,000
Net increase in other borrowings	36,213	5,317
Net cash provided by financing activities	151,691	17,478
Net increase in cash and cash equivalents	23,484	424
Cash and cash equivalents, beginning of period	19,967	19,543
Cash and cash equivalents, end of period	43,451	19,967
Supplemental Disclosure of Cash Flow Information
Cash payments for interest	5,156	3,958
Supplemental Schedule of Non-Cash Activities
Unrealized gains on securities available for sale	353	1,117
Right of use assets obtained in exchange for new operating lease liabilities	303	1,405
Minimum pension adjustment	$ 14	$ 14

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies The accounting and reporting policies of Village Bank and Trust Financial Corp. and subsidiary (the “Company”) conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practice within the banking industry. The following is a description of the more significant of those policies: Business The Company is the holding company of Village Bank (the “Bank”). The Bank opened to the public on December 13, 1999 as a traditional community bank offering deposit and loan services to individuals and businesses in the Richmond, Virginia metropolitan area. In 2017, the Bank entered the Williamsburg, Virginia market by opening a full service branch. Village Bank Mortgage Corporation (the “Mortgage Company”) is a full service mortgage banking company wholly-owned by the Bank. The Bank is subject to regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Bank’s business is susceptible to being affected by state and federal legislation and regulations. The majority of the Company’s real estate loans are collateralized by properties in the Richmond, Virginia metropolitan area. Accordingly, the ultimate collectability of those loans collateralized by real estate is particularly susceptible to changes in market conditions in the Richmond area. Basis of presentation and consolidation The consolidated financial statements include the accounts of the Company, the Bank and the Mortgage Company. All material intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year financial statements to conform to current year presentation. The results of the reclassifications are not considered material. Use of estimates The preparation of the consolidated financial statements in conformity with 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 balance sheets dates and revenues and expenses during the reporting 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, the valuation of deferred tax assets, and the estimate of the fair value of assets held for sale. Securities At the time of purchase, debt securities are classified into the following categories: held to maturity, available for sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost adjusted for amortization of premiums and accretion of discounts on purchase using a method that approximates the effective interest method. Investments classified as trading or available for sale are stated at fair value. Changes in fair value of trading investments are included in current earnings while changes in fair value of available for sale investments are excluded from current earnings and reported, net of taxes, as a separate component of other comprehensive income. Presently, the Company does not maintain a portfolio of trading securities or held to maturity. The fair value of investment securities available for sale is estimated based on quoted prices for similar assets determined by bid quotations received from independent pricing services. Declines in the fair value of securities below their amortized cost that are other than temporary are reflected in earnings or other comprehensive income, as appropriate. For those debt securities whose fair value is less than their amortized cost basis, we consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. Restricted stock, at cost. The Company is required to maintain an investment in the capital stock of certain correspondent banks. The Company’s investment in these securities is recorded at cost. Interest income is recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings and are derived using the specific identification method for determining the cost of securities sold. 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 Accounting Standards Codification (“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 $34.4 million as of December 31, 2020, of which $32.9 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 Assets” in the Consolidated Balance Sheet at December 31, 2020, and totaled $1.6 million, with a notional amount of $38.9 million and total positions of 150. 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 December 31, 2020. The Company’s IRLCs are classified as Level 2. At December 31, 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 Liabilities” in the Consolidated Balance Sheet at December 31, 2020, and totaled $3.1 million, with a notional amount of $71.7 million and total positions of 289. The fair value of the forward sales commitments was considered immaterial at December 31, 2019. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2020 and 2019, and the sale of residential mortgage loans in the secondary market; the extent of which are disclosed in the Consolidated Statements of Cash Flows. Loans Loans are stated at the principal amount outstanding, net of unearned income. Loan origination fees and certain direct loan origination costs are deferred and amortized to interest income over the life of the loan as an adjustment to the loan’s yield over the term of the loan. A loan’s past due status is based on the contractual due date of the most delinquent payment dates. Interest is accrued on outstanding principal balances, unless the Company considers collection to be doubtful. Commercial and unsecured consumer loans are designated as nonaccrual when payment is delinquent 90 days or at the point which the Company considers collection doubtful, if earlier. Mortgage loans and most other types of consumer loans past due 90 days or more may remain on accrual status if management determines that such amounts are collectible. When loans are placed in nonaccrual status, previously accrued and unpaid interest is reversed against interest income in the current period and interest is subsequently recognized only to the extent cash is received as long as the remaining recorded investment in the loan is deemed fully collectible. Loans may be placed back on accrual status when, in the opinion of management, the circumstances warrant such action such as a history of timely payments subsequent to being placed on nonaccrual status, additional collateral is obtained or the borrowers cash flows improve. 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. The total contractual amount of standby letters of credit, whose contract amounts represent credit risk, was approximately $4,934,000 at December 31, 2020 and approximately $6,732,000 at December 31, 2019. Below is a summary of the current loan segments: Construction and land development loans consist primarily of loans for the purchase or refinance of unimproved lots or raw land. Additionally, the Company finances the construction of real estate projects typically where the permanent mortgage will remain with the Company. Specific underwriting guidelines are delineated in the Bank’s loan policies. Construction and land development loans carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those specific to real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on cash flows, collateral, geography and risk grade criteria. Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. Consumer real estate loans include consumer purpose 1-to-4 family residential properties and home equity loans. Consumer purpose loans have underwriting standards that are heavily influenced by statutory requirements, which include, but are not limited to, documentation requirements, limits on maximum loan-to-value percentages, and collection remedies. Loans to finance 1-4 family investment properties are primarily dependent upon rental income generated from the property and secondarily supported by the borrower’s personal income. The Company typically originates residential mortgages through our mortgage company and these loans are sold to secondary mortgage market correspondents. Consumer real estate loans carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of borrowers to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or marketable securities and may incorporate personal guarantees; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Government guaranteed balances represent Small Business Administration (“SBA”) loans originated by the Bank according to SBA guidelines. Consumer and other loans are generally small loans spread across many borrowers and are underwritten after determining the ability of the consumer borrower to repay their obligations as agreed. The underwriting standards are influenced by credit history, ability to repay, and loan-to-value. Consumer loans may be secured or unsecured and are comprised of revolving lines, installment loans and other consumer loans. Consumer and other loans carry risks associated with the continued credit-worthiness of the borrower and the value of the collateral, or lack thereof. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. Guaranteed student loans The Bank purchases Federal Rehabilitated Student Loan portfolios when approved by the Board of Directors. These loans are guaranteed by the U.S. Department of Education (“DOE”) which covers approximately 98% of the principal and interest. These loans are serviced by a third party servicer that specializes in handling these types of loans. We also purchase the guaranteed portion of United State Department of Agriculture Loans (“USDA”) which are guaranteed by the USDA for 100% of the principal and interest. The originating institution holds the unguaranteed portion of the loan and services the loan. These loans are typically purchased at a premium. In the event of a loan default or early prepayment the Bank may need to write off any unamortized premium. These loans are included in the commercial and industrial loan segment. Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions which may affect a borrower’s ability to repay, overall portfolio quality, and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience and risk characteristics (i.e. trends in delinquencies and other nonperforming loans, changes in economic conditions on both a local and national level, and changes in the categories of loans comprising the loan portfolio) adjusted for qualitative factors. The specific component relates to loans that we have concluded, based on the value of collateral, guarantees and any other pertinent factors, have known losses. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Troubled debt restructurings A loan or lease is accounted for as a TDR if we, for economic or legal reasons related to the borrower’s financial condition, grant a significant concession to the borrower that we would not otherwise consider. A TDR may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or balance of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk, or some combination of these concessions. TDRs generally remain categorized as nonperforming loans and leases until a six-month payment history has been maintained. In accordance with current accounting guidance, loans modified as troubled debt restructurings are, by definition, considered to be impaired loans. Impairment for these loans is measured on a loan-by-loan basis similar to other impaired loans as described above under “Allowance for loan losses”. Certain loans modified as TDRs may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan is modified as a TDR the allowance will be impacted by the difference between the results of these two measurement methodologies. Loans modified as TDRs that subsequently default are factored into the determination of the allowance in the same manner as other defaulted loans. Loan modifications made under the March 22 Joint Guidance and CARES Act, as amended by the CAA, were suspended from TDR evaluation. Other real estate owned Real estate acquired through or in lieu of foreclosure is initially recorded at estimated fair value less estimated selling costs establishing a new cost basis. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. If fair value declines subsequent to foreclosure a valuation allowance is recorded through expense. Operating costs after acquisition are expensed as incurred. The valuation allowance was $10,000 and $52,000 at December 31, 2020 and 2019, respectively. Costs relating to the development and improvement of such property are capitalized when appropriate, whereas those costs relating to holding the property are expensed. Assets held for sale There were no assets held for sale at December 31, 2020. Assets held for sale at December 31, 2019 included a branch building we previously closed. 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. Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation of buildings and improvements is computed using the straight-line method over the estimated useful lives of the assets of 39 years. Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from three to seven years. Amortization of premises (leasehold improvements) is computed using the straight-line method over the term of the lease or estimated lives of the improvements, whichever is shorter. Supplemental Executive Retirement Plan The Company recognizes the unfunded status of its Supplemental Executive Retirement Plan (the “SERP”) as a liability in its Consolidated Balance Sheets, measured at the projected benefit obligation as of December 31, 2020 and 2019. Net periodic pension costs are recorded each period based on actuarially determined amounts in accordance with GAAP and recognized in salaries and employment benefits in the Consolidated Statements of Income. Actuarial determinations of net periodic pension cost are based on assumptions related to discount rates, employee compensation and mortality and interest crediting rates. Other changes in the status of the plan are recorded in the year in which the changes occur through other comprehensive income. Income taxes Deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on recorded deferred income taxes of a change in tax laws or rates is recognized in income in the period that includes the enactment date. To the extent that available evidence about the future raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties associated with unrecognized tax benefits are classified as taxes other than income in the statement of income. The Company has no uncertain tax positions. Consolidated statements of cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Cash flows from loans originated by the Bank for investment and deposits are reported net. The Company did not pay income taxes in 2020 and 2019. Comprehensive income Total comprehensive income consists of net income and other comprehensive income. At December 31, 2020 and 2019, the accumulated other comprehensive income was comprised of unrealized gains on securities available for sale of $466,000 and $186,000 and unfunded pension liability of ($36,000) and ($44,000) net of tax, respectively. Earnings per common share Basic earnings per common share represent net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, divided by the weighted-average number of common shares outstanding during the period, inclusive of unvested restricted shares (Note 10). For diluted earnings per common share, net income available to common shareholders is divided by the weighted average number of common shares issued and outstanding for each period plus amounts representing the dilutive effect of stock options, as well as any adjustment to income that would result from the assumed issuance. The effects of stock options and warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Stock options and warrants are antidilutive if the underlying average market price of the stock that can be purchased for the period is less than the exercise price of the option or warrant. Potential dilutive common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. Stock incentive plan On May 26, 2015, the Company’s shareholders approved the adoption of the Village Bank and Trust Financial Corp. 2015 Stock Incentive Plan (the “2015 Plan”) authorizing the issuance of up to 60,000 shares of common stock. On May 19, 2020, the Company’s shareholders approved an amendment to the 2015 Plan authorizing the issuance of up to 120,000 shares of common stock. See Note 14 for more information on the 2015 Plan. Fair values of financial instruments The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability (exit price) shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact and willing to transact. See Note 18 for the methods and assumptions the Bank uses in estimating fair values of financial instruments. Revenue recognition The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09. The following discussion is of revenues that are within the scope of the new revenue guidance: · Debit and credit interchange fee income - Card processing fees consist of interchange fees from consumer debit and credit card networks and other card related services. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. · Service charges on deposit accounts - Revenue from service charges on deposit accounts is earned through deposit-related services, as well as overdraft, non-sufficient funds, account management and other deposit related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts’ monthly cycle, or at a point in time for transactional related services and fees. · Service charges on loan accounts - Revenue from loan accounts consists primarily of fees earned on prepayment penalties. Revenue is recognized for the services at a point in time for transactional related services and fees. · Gains/Losses on sale of OREO - The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. · Gains/Losses on sale of assets held for sale – The Company records a gain or loss from the sale of assets held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of assets held for sale to the buyer, the Company assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probably. Once these criteria are met, the asset held for sale is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. Segments 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 LHFS, gains on sales of loans in the secondary mortgage market, and loan origination fee income, net of commissions paid. 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. See additional information at Note 19, Segment Reporting. Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Loss

Investment securities available

Investment securities available for sale	12 Months Ended
	Dec. 31, 2020
Investment securities available for sale
Investment securities available for sale	Note 2. Investment Securities Available for Sale The amortized cost and fair value of investment securities available for sale as of December 31, 2020 and 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2020 U.S. Government agency obligations $ 8,048 $ 94 $ — $ 8,142 Mortgage-backed securities 23,412 645 (51) 24,006 Subordinated debt 8,795 37 (136) 8,696 $ 40,255 $ 776 $ (187) $ 40,844 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 December 31, 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 years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Gross realized gains $ 54 $ 101 Gross realized losses (42) — $ 12 $ 101 The Company sold approximately $8,000,000 and $6,500,000 in 2020 and 2019, respectively, of investment securities available for sale at a 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 had an unrealized loss position at December 31, 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 December 31, 2020 Mortgage-backed securities 5,475 (51) — — 5,475 (51) Subordinated debt 1,747 (11) 2,807 (125) 4,554 (136) $ 7,222 $ (62) $ 2,807 $ (125) $ 10,029 $ (187) 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) 940 (74) 1,699 (80) $ 5,507 $ (33) $ 6,308 $ (82) $ 11,815 $ (115) As of December 31, 2020, there were $2.8 million, or five issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $125,000 and consisted of Subordinated debt. As of December 31, 2019, there were $6.3 million, or 10 issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $82,000 and consisted of U.S. Government agency obligations, and subordinated debt. All of the unrealized losses are attributable to increases 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 declines in fair value are 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 December 31, 2020. The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 6,110 $ 6,145 One to five years 310 315 Five to ten years 10,524 10,473 More than ten years 23,311 23,911 Total $ 40,255 $ 40,844

Loans

Loans	12 Months Ended
	Dec. 31, 2020
Loans
Loans	Note 3. Loans Loans classified by type as of December 31, 2020 and 2019 are as follows (dollars in thousands): December 31, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 8,103 1.44 % $ 7,887 1.84 % Commercial 21,466 3.82 % 24,063 5.60 % 29,569 5.26 % 31,950 7.44 % Commercial real estate Owner occupied 99,784 17.79 % 98,353 22.91 % Non-owner occupied 121,184 21.60 % 116,508 27.14 % Multifamily 9,889 1.75 % 13,332 3.10 % Farmland 367 0.07 % 156 0.04 % 231,224 41.21 % 228,349 53.19 % Consumer real estate Home equity lines 18,394 3.28 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 57,089 10.18 % 55,856 13.01 % Second deed of trust 11,097 1.98 % 10,411 2.43 % 86,580 15.44 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 181,088 32.28 % 45,074 10.50 % Guaranteed student loans 29,657 5.29 % 33,525 7.81 % Consumer and other 2,885 0.52 % 2,621 0.61 % Total loans 561,003 100.0 % 429,295 100.0 % Deferred fees and costs, net (2,048) 764 Less: allowance for loan losses (3,970) (3,186) $ 554,985 $ 426,873 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the 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 originated $185,137,000 in loans under the SBA’s Paycheck Protection Program (“PPP”) as of December 31, 2020. These loans have provided essential funds to approximately 1,500 businesses and nonprofits and protected more than 20,000 jobs in our community. The Bank is participating in the second round of PPP funding approved by Congress and signed into law by the President of the United States of America on December 27, 2020. 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 as of December 31, 2020 (dollars in thousands): Loan Size # of Loans $ of Loans < $350,000 1,172 $ 72,526 $350,000 - $2 million 57 41,046 > $2 million 6 23,102 Total 1,235 $ 136,674 Loans pledged as collateral with the FHLB as part of their lending arrangements with the Company totaled $65,587,000 and $49,736,000 as of December 31, 2020 and 2019, respectively. The following is a summary of loans directly or indirectly with executive officers or directors of the Company for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Beginning balance $ 5,323 $ 5,201 Additions 11,228 8,751 Effect of changes in composition of related parties (287) — Reductions (11,592) (8,629) Ending balance $ 4,672 $ 5,323 Executive officers and directors also had unused credit lines totaling $1,507,000 and $2,806,000 at December 31, 2020 and 2019, respectively. Based on management’s evaluation all loans and credit lines to executive officers and directors were made in the ordinary course of business at the Company’s normal credit terms, including interest rate and collateralization prevailing at the time for comparable transactions with other persons. 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. 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 (dollars in thousands): December 31, December 31, 2020 2019 Commercial real estate Non-owner occupied $ 303 $ 497 303 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 630 842 Second deed of trust 317 63 1,247 1,205 Commercial and industrial loans (except those secured by real estate) 27 166 Total loans $ 1,577 $ 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 sound 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 December 31, 2020 Construction and land development Residential $ 8,103 $ — $ — $ — $ 8,103 Commercial 21,370 96 — — 21,466 29,473 96 — — 29,569 Commercial real estate Owner occupied 88,066 9,405 2,313 — 99,784 Non-owner occupied 116,161 4,244 779 — 121,184 Multifamily 9,889 — — — 9,889 Farmland 367 — — — 367 214,483 13,649 3,092 — 231,224 Consumer real estate Home equity lines 17,298 796 300 — 18,394 Secured by 1-4 family residential First deed of trust 53,731 2,212 1,146 — 57,089 Second deed of trust 9,425 1,236 436 — 11,097 80,454 4,244 1,882 — 86,580 Commercial and industrial loans (except those secured by real estate) 178,217 2,602 269 — 181,088 Guaranteed student loans 29,657 — — — 29,657 Consumer and other 2,844 41 — — 2,885 Total loans $ 536,336 $ 20,632 $ 5,243 $ — $ 561,003 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 tables present the aging of the recorded investment in past due loans 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 December 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,103 $ 8,103 $ — Commercial — — — — 21,466 21,466 — — — — — 29,569 29,569 — Commercial real estate Owner occupied 86 — — 86 99,698 99,784 — Non-owner occupied — — — — 121,184 121,184 — Multifamily — — — — 9,889 9,889 — Farmland — — — — 367 367 — 86 — — 86 231,138 231,224 — Consumer real estate Home equity lines — — — — 18,394 18,394 — Secured by 1‑4 family residential First deed of trust 133 — — 133 56,956 57,089 — Second deed of trust — 57 — 57 11,040 11,097 — 133 57 — 190 86,390 86,580 — Commercial and industrial loans (except those secured by real estate) 25 — — 25 181,063 181,088 — Guaranteed student loans 1,428 1,009 2,193 4,630 25,027 29,657 2,193 Consumer and other 1 — — 1 2,884 2,885 — Total loans $ 1,673 $ 1,066 $ 2,193 $ 4,932 $ 556,071 $ 561,003 $ 2,193 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 consist of 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 due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include nonperforming loans, such as loans on nonaccrual, loans past due by 90 days or more, TDRs 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): December 31, 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 $ — $ — $ — $ 337 $ 337 $ — — — — 337 337 — Commercial real estate Owner occupied 2,780 2,795 — 2,089 2,104 — Non-owner occupied 1,991 1,991 — 2,304 2,304 — 4,771 4,786 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 1,937 1,940 — 1,752 1,774 — Second deed of trust 699 992 — 752 960 — 2,936 3,232 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 141 141 — 211 373 — 7,848 8,159 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,125 1,125 9 1,414 1,414 15 1,125 1,125 9 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 74 74 8 78 78 9 74 74 8 78 78 9 Commercial and industrial loans (except those secured by real estate) — — — 135 334 135 1,199 1,199 17 1,627 1,826 159 Total Construction and land development Commercial — — — 337 337 — — — — 337 337 — Commercial real estate Owner occupied 3,905 3,920 9 3,503 3,518 15 Non-owner occupied 1,991 1,991 — 2,304 2,304 — 5,896 5,911 9 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 2,011 2,014 8 1,830 1,852 9 Second deed of trust 699 992 — 752 960 — 3,010 3,306 8 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 141 141 — 346 707 135 $ 9,047 $ 9,358 $ 17 $ 9,372 $ 9,978 $ 159 The following is a summary of average recorded investment in impaired loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands): December 31, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Residential $ — $ — $ 81 $ — Commercial 221 — 329 — 221 — 410 — Commercial real estate Owner occupied 3,189 124 2,695 143 Non-owner occupied 1,980 89 2,434 128 5,169 213 5,129 271 Consumer real estate Home equity lines 300 23 318 19 Secured by 1-4 family residential First deed of trust 2,069 66 2,280 76 Second deed of trust 802 46 810 40 3,171 135 3,408 135 Commercial and industrial loans (except those secured by real estate) 151 1 626 17 8,712 349 9,573 423 With an allowance recorded Commercial real estate Owner occupied 913 32 1,432 43 913 32 1,432 43 Consumer real estate Secured by 1-4 family residential First deed of trust 76 4 166 6 Second deed of trust 26 — — — 102 4 166 6 Commercial and industrial loans (except those secured by real estate) 129 — 225 1 Consumer and other — — 6 — 1,144 36 1,829 50 Total Construction and land development Residential — — 81 — Commercial 221 — 329 — 221 — 410 — Commercial real estate Owner occupied 4,102 156 4,127 186 Non-owner occupied 1,980 89 2,434 128 6,082 213 6,561 314 Consumer real estate Home equity lines 300 23 318 19 Secured by 1-4 family residential, First deed of trust 2,145 70 2,446 82 Second deed of trust 828 46 810 40 3,273 135 3,574 141 Commercial and industrial loans (except those secured by real estate) 280 1 851 18 Consumer and other — — 6 — $ 9,856 $ 385 $ 11,402 $ 473 As of December 31, 2020 and 2019, the Company had impaired loans of $1,577,000 and $1,868,000, respectively, which were on nonaccrual status. These loans had no valuation allowances as of December 31, 2020 and $135,000 as of December 31, 2019. Cumulative interest income that would have been recorded had nonaccrual loans been performing would have been $84,000 and $136,000 for 2020 and 2019, respectively. 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 borrowers 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 as of December 31, 2020 and 2019 (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance December 31, 2020 Commercial real estate Owner occupied $ 3,396 $ 3,396 $ — $ — Non-owner occupied 1,991 1,688 303 — 5,387 5,084 303 — Consumer real estate Secured by 1-4 family residential First deeds of trust 1,460 910 550 9 Second deeds of trust 617 556 61 8 2,077 1,466 611 17 Commercial and industrial loans (except those secured by real estate) 27 — 27 — $ 7,491 $ 6,550 $ 941 $ 17 Number of loans 34 27 7 2 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). December 31, 2020 December 31, 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 Non-owner occupied 1 $ 311 $ 311 1 $ 515 $ 515 1 $ 311 $ 311 1 $ 515 $ 515 There were no defaults on TDRs that were modified as TDRs during the twelve month periods ended December 31, 2020 and 2019. The CARES Act, as amended by the CAA, permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of January 1, 2022 or 60 days after the end of the COVID-19 emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. As of December 31, 2020, the Company had approximately $38.0 million in loans still under their modified terms. The Company’s modification program primarily included payment deferrals and interest only modifications.

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2020
Allowance for Loan Losses
Allowance for Loan Losses	Note 4. Allowance for Loan Losses Activity in the allowance for loan losses was as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2020 Construction and land development Residential $ 48 $ 141 $ — $ 25 $ 214 Commercial 137 148 — — 285 185 289 — 25 499 Commercial real estate Owner occupied 671 376 — — 1,047 Non-owner occupied 831 590 — — 1,421 Multifamily 85 (38) — — 47 Farmland 2 — — — 2 1,589 928 — — 2,517 Consumer real estate Home equity lines 271 (247) — — 24 Secured by 1-4 family residential First deed of trust 343 (190) — 13 166 Second deed of trust 64 45 (85) 55 79 678 (392) (85) 68 269 Commercial and industrial loans (except those secured by real estate) 572 (58) (135) 29 408 Student loans 108 27 (48) — 87 Consumer and other 30 26 (24) 4 36 Unallocated 24 130 — — 154 $ 3,186 $ 950 $ (292) $ 126 $ 3,970 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. Loans originated under PPP are not considered in the evaluation of the allowance for loan losses because these loans carry a 100% guarantee from the SBA; however, if the collectability on the guarantee on a loan is at risk that loan will be included in the evaluation of the allowance for loan losses. 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 year ended December 31, 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 incurred losses. However, the full economic impact of the COVID-19 pandemic is currently unknown and the Company must continue to monitor our loan portfolio for loss indicators which may require further provisions for loan losses. 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 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 $154,000 and $24,000 at December 31, 2020 and December 31, 2019, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Year Ended December 31, 2020 Construction and land development Residential $ 214 $ — $ 214 $ 8,103 $ — $ 8,103 Commercial 285 — 285 21,466 — 21,466 499 — 499 29,569 — 29,569 Commercial real estate Owner occupied 1,047 9 1,038 99,784 3,905 95,879 Non-owner occupied 1,421 — 1,421 121,184 1,991 119,193 Multifamily 47 — 47 9,889 — 9,889 Farmland 2 — 2 367 — 367 2,517 9 2,508 231,224 5,896 225,328 Consumer real estate Home equity lines 24 — 24 18,394 300 18,094 Secured by 1-4 family residential First deed of trust 166 8 158 57,089 2,011 55,078 Second deed of trust 79 — 79 11,097 699 10,398 269 8 261 86,580 3,010 83,570 Commercial and industrial loans (except those secured by real estate) 408 — 408 181,088 141 180,947 Student loans 87 — 87 29,657 — 29,657 Consumer and other 190 — 190 2,885 — 2,885 $ 3,970 $ 17 $ 3,953 $ 561,003 $ 9,047 $ 551,956 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

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2020
Premises and Equipment
Premises and Equipment	Note 5. Premises and Equipment The following is a summary of premises and equipment as of December 31, 2020 and 2019 (in thousands): 2020 2019 Land $ 4,352 $ 4,352 Buildings and improvements 10,796 10,601 Furniture, fixtures and equipment 7,614 7,479 Total premises and equipment 22,762 22,432 Less: Accumulated depreciation and amortization (10,983) (10,396) Premises and equipment, net $ 11,779 $ 12,036 Depreciation and amortization of premises and equipment for 2020 and 2019 amounted to $586,000 and $644,000, respectively.

Investment in Bank Owned Life I

Investment in Bank Owned Life Insurance	12 Months Ended
	Dec. 31, 2020
Investment in Bank Owned Life Insurance
Investment in Bank Owned Life Insurance	Note 6. Investment in Bank Owned Life Insurance The Bank is owner and designated beneficiary on life insurance policies in the aggregate face amount of $13,730,000 covering certain of its directors and executive officers. The earnings from these policies are used to offset expenses related to retirement plans. The cash surrender value of these policies at December 31, 2020 and 2019 was approximately $7,806,000 and $7,612,000, respectively.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2020
Deposits
Deposits	Note 7. Deposits Deposits as of December 31, 2020 and 2019 were as follows (dollars in thousands): December 31, 2020 December 31, 2019 Amount % Amount % Demand accounts $ 222,305 37.8 % $ 131,228 29.6 % Interest checking accounts 70,342 11.9 % 48,427 10.9 % Money market accounts 152,726 26.0 % 99,955 22.6 % Savings accounts 38,083 6.5 % 26,396 6.0 % Time deposits of $250,000 and over 16,014 2.7 % 22,327 5.0 % Other time deposits 88,912 15.1 % 114,875 25.9 % Total $ 588,382 100.0 % $ 443,208 100.0 % The following are the scheduled maturities of time deposits as of December 31, 2020 (in thousands): Greater Than Year Ending Less Than or Equal to December 31, $250,000 $250,000 Total 2021 $ 64,064 $ 11,349 $ 75,413 2022 15,583 4,403 19,986 2023 5,786 262 6,048 2024 1,338 — 1,338 2025 2,141 — 2,141 Total $ 88,912 $ 16,014 $ 104,926 Deposits held at the Company by related parties, which include officers, directors, greater than 5% shareholders and companies in which directors of the board have a significant ownership interest, approximated $14,159,000 and $15,067,000 at December 31, 2020 and 2019, respectively.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2020
Borrowings
Borrowings	Note 8. 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 $484,000 in FHLB stock at December 31, 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. FHLB borrowings are secured by the pledge of commercial loans and 1-4 family residential loans. The Company had no outstanding FHLB advances at December 31, 2020. The Company prepaid all of its outstanding FHLB advances during year ended December 31, 2020, which resulted in the recognition of $696,000 in in prepayment fees. The Company had FHLB advances of $29,000,000 at December 31, 2019 maturing through 2023. Through the Federal Reserve Bank, the Company can borrow funds through the Payment Protection Program Liquidity Fund (“PPPLF”) which are secured by the Company’s PPP loans. As of December 31, 2020, the Company had $41.5 million in outstanding advances under the PPPLF. The Company’s available borrowing capacity under the PPPLF as of December 31, 2020 was $95.2 million. The Company had advances from the FHLB for the periods indicated that consisted of the following (dollars in thousands): Year Ended December 31, 2019 Maturity Interest Advance Type Date Rate Amount Variable June 29, 2020 1.780 % $ 8,000 Fixed Rate June 28, 2021 2.854 % 3,000 Fixed Rate July 6, 2020 2.770 % 5,000 Fixed Rate September 27, 2021 3.102 % 2,000 Fixed Rate September 25, 2023 3.212 % 2,000 Fixed Rate November 15, 2021 3.149 % 6,500 Fixed Rate December 11, 2023 3.289 % 2,500 $ 29,000 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. There were no borrowings against the lines at December 31, 2020. The carrying value of these short term borrowing agreements was $5,317,000 at December 31, 2019. The Company’s unused lines of credit for future borrowings total approximately $93.1 million at December 31, 2020, which consists of $50.3 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, $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. Information related to borrowings as of December 31, 2020 and 2019 is as follows (dollars in thousands): Year Ended December 31, 2020 2019 Balance outstanding at end of year Maximum outstanding during the year Federal Funds Purchased $ 4,559 $ 6,594 FHLB advances 51,000 31,000 PPPLF 45,120 — Balance outstanding at end of year Federal Funds Purchased — 5,317 FHLB advances — 29,000 PPPLF 41,529 — Average amount outstanding during the year Federal Funds Purchased 91 456 FHLB advances 27,785 22,693 PPPLF 28,857 — Average interest rate during the year Federal Funds Purchased 1.65 % 2.32 % FHLB advances 2.17 % 3.05 % PPPLF 0.35 % 0.00 % Average interest rate at end of year Federal Funds Purchased 0.00 % 2.54 % FHLB advances 0.00 % 2.69 % PPPLF % 0.00 %

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	Note 9. Income Taxes The following summarizes the tax effects of temporary differences that comprise deferred tax assets and liabilities at December 31, 2020 and 2019 (in thousands): 2020 2019 Deferred tax assets Net operating loss carryforward $ 217 $ 2,995 Capital loss carryforward 25 25 State net operating loss carryforward — 97 AMT credit — 11 Allowance for loan losses 834 669 Deferred Cost, net of fees 430 — Interest on nonaccrual loans 18 29 Expenses and writedowns related to foreclosed property 66 97 Stock compensation 34 10 Employee benefits 794 792 Pension expense 3 8 Depreciation 31 134 Other, net 29 11 Total deferred tax assets 2,481 4,878 Deferred tax liabilities Unrealized gain on available for sale securities 124 50 Total deferred tax liabilities 124 50 Net deferred tax asset $ 2,357 $ 4,828 The net deferred tax asset is included in other assets on the consolidated balance sheet. ASC Topic 740, Income Taxes , requires that companies assess whether a valuation allowance should be established against their deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. Management considers both positive and negative evidence and analyzes changes in near-term market conditions as well as other factors which may impact future operating results. In making such judgments, significant weight is given to evidence that can be objectively verified. The deferred tax assets are analyzed quarterly for changes affecting realization. In assessing the Company’s ability to realize its net deferred tax asset, management considers whether it is more likely than not that some portion or all of the net deferred tax asset will or will not be realized. The Company’s ultimate realization of the net deferred tax asset is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. Management considers the nature and amount of historical and projected future taxable income, the scheduled reversal of deferred tax assets and liabilities, and available tax planning strategies in making this assessment. The amount of net deferred taxes recognized could be impacted by changes to any of these variables. Each quarter, the Company weighs both the positive and negative information with respect to realization of the net deferred tax asset and analyzes its position as to whether or not a valuation allowance is required. Given the consistent earnings and stable asset quality, the Company’s analysis concluded that, it is more likely than not that the Company will generate sufficient taxable income within the applicable carry-forward periods to realize its net deferred tax asset. The net operating losses available to offset future taxable income amounted to $1,031,000 at December 31, 2020 and will begin expiring in 2028. The income tax expense charged to operations for the years ended December 31, 2020 and 2019 consists of the following (in thousands): 2020 2019 Current tax expense (benefit) $ 92 $ (33) Deferred tax expense 2,393 1,197 Provision for income taxes $ 2,485 $ 1,164 A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Net income before income taxes $ 11,039 $ 5,641 Computed "expected" tax expense $ 2,318 $ 1,185 State taxes, net of fed 201 15 Cash surrender value of life insurance (41) (37) Other 7 1 Provision for income taxes $ 2,485 $ 1,164 Commercial banking organizations conducting business in Virginia are not subject to Virginia income taxes. Instead, they are subject to a franchise tax based on bank capital. The Company recorded franchise tax expense, within other operating expense, of approximately $439,000 and $385,000 for the years ended December 31, 2020 and 2019, respectively. With few exceptions, the Company is no longer subject to U.S. Federal, State, or local income tax examinations by tax authorities for years prior to 2017.

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2020
Earnings per share
Earnings per share	Note 10. Earnings per Share The following table presents the basic and diluted earnings per share computations (in thousands except per share data): 2020 2019 Numerator Net income - basic and diluted $ 8,554 $ 4,477 Denominator Weighted average shares outstanding - basic 1,459 1,445 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,459 1,445 Earnings per share - basic $ 5.86 $ 3.10 Earnings per share - diluted $ 5.86 $ 3.10 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. The vesting of 6,573 and 4,155 restricted stock units outstanding as of December 31, 2020 and 2019, respectively, are dependent upon meeting certain performance criteria. As of December 31, 2020 and December 31, 2019, it was indeterminable whether these non-vested restricted stock units will vest and as such those shares are excluded from common shares issued and outstanding at each date and are not included in the computation of earnings per share for any period presented. 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 592 and 555 shares were not included in computing diluted earnings per share at December 31, 2020 and 2019, respectively, because their effects were anti-dilutive.

Lease Commitments

Lease Commitments	12 Months Ended
	Dec. 31, 2020
Lease Commitments
Lease Commitments	Note 11. Lease Commitments The following tables present information about the Company’s leases (dollars in thousands): For the years ended December 31, 2020 2019 Lease liabilities $ 930 $ 1,027 Right-of-use assets $ 916 $ 1,015 Weighted average remaining lease term 5.05 years 4.29 years Weighted average discount rate 2.39 % 2.98 % For the years ended December 31, 2020 2019 Lease cost Operating lease cost $ $ 427 Total lease cost $ $ 427 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): As of December 31, 2020 Lease payments due Twelve months ending December 31, 2021 $ 337 Twelve months ending December 31, 2022 181 Twelve months ending December 31, 2023 106 Twelve months ending December 31, 2024 111 Twelve months ending December 31, 2025 102 Thereafter 154 Total undiscounted cash flows $ 991 Discount 61 Lease liabilities $ 930 Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2020 and 2019 was $378,000 and $415,000, respectively. The Company recognized lease expense of $427,000 for each of the years ended December 31, 2020 and 2019.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and contingencies
Commitments and contingencies	Note 12. 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 nonperformance 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 December 31, 2020 and 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): December 31, December 31, 2020 2019 Undisbursed credit lines $ 107,130 $ 83,366 Commitments to extend or originate credit 38,910 15,722 Standby letters of credit 4,934 6,732 Total commitments to extend credit $ 150,974 $ 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, any 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 3. The distribution of commitments to extend credit approximates the distribution of loans outstanding.

Shareholders' Equity and Regula

Shareholders' Equity and Regulatory Matters	12 Months Ended
	Dec. 31, 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 $114,000 and $38,000 as of December 31, 2020 and 2019, respectively (in thousands): Year Ended December 31, 2020 2019 Net unrealized gains on securities $ 466 $ 186 Net unrecognized losses on defined benefit plan (36) (44) Total other comprehensive income $ 430 $ 142 Regulatory Matters The Company meets the eligibility criteria of a small bank holding company in accordance with the Board of Governors of the Federal Reserve System’s (the “Federal Reserve”) 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 Federal Deposit Insurance Corporation (“FDIC”). The FDIC has adopted rules to implement the Basel III Capital Rules. The Basel III Capital Rules establish minimum capital ratios and 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 capital conservation buffer is designed to absorb losses during periods of economic stress and was fully phased in as at January 1, 2019. 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 December 31, 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 December 31, 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 December 31, 2020. The capital amounts and ratios at December 31, 2020 and 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 December 31, 2020 Total capital (to risk- weighted assets) Village Bank $ 65,723 14.20 % $ 37,015 8.00 % $ 46,269 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 61,753 13.35 % 27,761 6.00 % 37,015 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 61,753 9.28 % 26,607 4.00 % 33,259 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 61,753 13.35 % 20,821 4.50 % 30,075 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 %

Stock incentive plan

Stock incentive plan	12 Months Ended
	Dec. 31, 2020
Stock incentive plan
Stock incentive plan	Note 14. Stock Incentive Plans 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: Year Ended December 31, 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 The following table summarizes information about stock options outstanding at December 31, 2020: Outstanding Exercisable Weighted Average Remaining Weighted Weighted Years of Average Average Range of Number of Contractual Exercise Number of Exercise Exercise Prices Options Life Price Options Price $25.28-$25.76 734 2.57 $ 25.63 734 $ 25.63 734 2.57 25.63 734 25.63 During 2020, we granted certain officers time-based restricted shares of common stock and performance-based restricted stock units. The time-based restricted shares vest ratably over a three year period provided the officer is employed with the Company on the applicable vesting date. The performance-based units which have a two-year performance period that began on January 2, 2021, vest based on the Company’s achievement of performance targets related to 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 2019, we granted certain officers time-based restricted shares of common stock and performance-based restricted stock units. The time-based shares vest ratably over a three-year period provided that the officer is employed with the Company on the applicable vesting date. The performance-based units, which have a two-year performance period that began on January 2, 2020, vest based on the Company’s achievement of performance targets related to return on tangible common equity and the adversely classified items ratio with possible payouts ranging from 0% to 150% of the target awards. The total number of shares underlying non-vested restricted stock was 24,529 and 12,310 at December 31, 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 December 31, 2020 and 2019 was $593,000 and $364,000, respectively. The time based unrecognized compensation of $455,000 is expected to be recognized over a weighted average period of 2.28 years. During 2020 and 2019, there were forfeitures of 1,094 and 8,274 shares of restricted stock awards, respectively. A summary of changes in the Company’s non-vested restricted stock awards for the year follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 423,341 Granted 17,798 29.67 612,073 Vested (4,731) 33.83 (162,699) Forfeited (1,094) 33.82 (37,623) Other (1) 246 33.82 8,460 December 31, 2020 24,529 $ 30.87 $ 843,552 (1) Represents the incremental increase in shares that vested based on the restricted stock units vesting at the maximum potential value as opposed to the targeted value of the award. Stock-based compensation expense was $240,000 and $413,000 for the years ended December 31, 2020 and 2019, respectively.

Trust preferred securities

Trust preferred securities	12 Months Ended
	Dec. 31, 2020
Trust preferred securities
Trust preferred securities	Note 15. Trust Preferred Securities During the first quarter of 2005, Southern Community Financial Capital Trust I, a wholly-owned 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 was 2.38% and 4.06% at December 31, 2020 and 2019, respectively. 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 December 31, 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 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 was 1.63% and 3.31% at December 31, 2020 and 2019, respectively. 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 December 31, 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 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 Offering

Subordinated Debt Offering	12 Months Ended
	Dec. 31, 2020
Subordinated Debt Offering
Subordinated Debt Offering	Note 16. Subordinated Debt Offering 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. At December 31, 2020, the carrying value of the notes totaled $5,628,000.

Retirement Plans

Retirement Plans	12 Months Ended
	Dec. 31, 2020
Retirement Plans
Retirement Plans	Note 17. Retirement Plans 401K Plan : The Bank provides a qualified 401K plan to all eligible employees which is administered through the Virginia Bankers Association Benefits Corporation. Employees are eligible to participate in the plan after three months of employment. Eligible employees may, subject to statutory limitations, contribute a portion of their salary to the plan through payroll deduction. Due to economic conditions at the time, the Bank ceased its matching program in 2009; however, beginning January 2013, the Bank reinstituted the 401K match. The Bank provided a matching contribution of 100% of the first 1% the participant contributes, and then 50% of the next 5% of their salary, totaling a maximum 3.5%. Participants are always fully vested in their own contributions, and the Bank’s matching contributions vest 100% after two years of service. Total contributions to the plan for the years ended December 31, 2020 and 2019 were $420,000, and $351,000, respectively. Supplemental Executive Retirement Plan : The Bank established the Village Bank SERP on January 1, 2005 to provide supplemental retirement income to certain executive officers as designated by the Personnel Committee, later replaced by the Compensation Committee, and approved by the board of directors. The SERP is an unfunded employee pension plan under the provisions of the Employee Retirement Income Security Act of 1974. An eligible employee, once designated by the Committee and approved by the board of directors in writing to participate in the SERP, becomes a participant in the SERP 60 days following such approval (unless an earlier participation date is approved). The retirement benefit to be received by a participant is determined by the Committee and approved by the board of directors and is payable in equal monthly installments over the period specified in the SERP for each respective participant, commencing on the first day of the month following a participant’s retirement or termination of employment, provided the participant has been employed by the Bank for a minimum of 10 years. The Compensation Committee, in its sole discretion, may choose to treat a participant who has experienced a termination of employment on or after attaining age 65 but prior to completing his service requirement as having completed his service requirement. During the second quarter of 2019, the ownership of the Company's largest shareholder exceeded 50% of the Company's outstanding common stock, which triggered change in control provisions included in the SERP. The SERP provides for the acceleration of the vesting of benefits in the event of a change in control, which resulted in the three executives participating in the plan becoming fully vested as of the date of the change in control. At December 31, 2020 and 2019, the Bank’s liability under the SERP was $2,524,000 and $2,546,000, respectively, and expense for the years ended December 31, 2020 and 2019 was $133,000 and $513,000, respectively. The increase in other comprehensive income related to the minimum pension adjustment was $9,000 net of tax for the years ended December 31, 2020 and 2019. The increase in cash surrender value of the bank owned life insurance related to the participants was $194,000 and $171,000 for the years ended December 31, 2020 and 2019, respectively. Directors’ Deferral Plan : The Bank established the Village Bank Outside Directors Deferral Plan (the “Directors Deferral Plan”) on January 1, 2005 under which non-employee directors of the Bank have the opportunity to defer receipt of all or a portion of certain compensation until retirement or departure from the board of directors. Deferral of compensation under the Directors Deferral Plan is voluntary by non-employee directors and to participate in the plan a director must file a deferral election as provided in the plan. A director shall become an active participant with respect to a plan year (as defined in the plan) only if he is expected to have compensation during the plan year and he timely files a deferral election. A separate account is established for each participant in the plan and each account shall, in addition to compensation deferred at the election of the participant, be credited with interest on the balance of the account, the rate of such interest to be established by the board of directors in its sole discretion at the beginning of each plan year. For those directors electing to purchase stock, the obligation will only be settled by delivery of the fixed number of shares they purchased. At December 31, 2020 and 2019, the Bank’s liability under the Directors Deferral Plan was $524,000 and $419,000, respectively, and expense for the years ended December 31, 2020 and 2019 was $111,000 and $109,000, respectively. In the first quarter of 2015 and the fourth quarter of 2013, certain directors elected to purchase common stock with funds from their deferred compensation accounts causing the December 31, 2015 and December 31, 2013 liability to be lower than the December 31, 2014 liability. A rabbi trust was established to hold the shares. At December 31, 2020 and 2019, the trust held 37,290 and 40,875 shares, respectively, of Company common stock totaling $771,000 and $856,000, respectively.

Fair value

Fair value	12 Months Ended
	Dec. 31, 2020
Fair Value
Fair Value	Note 18. Fair Value The Company determines the fair value of its financial instruments based on the requirements established in 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 Company does not record loans held for investment at fair value on a recurring basis. However, there are instances when a loan is considered impaired and an allowance for loan losses is established. The Company measures impairment either based on the fair value of the loan using the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent, or using the present value of expected future cash flows discounted at the loan’s effective interest rate, which is not a fair value measurement. The Company maintains a valuation allowance to the extent that this measure of the impaired loan is less than the recorded investment in the loan. When an impaired loan is measured at fair value based solely on observable market prices or a current appraisal without further adjustment for unobservable inputs, the Company records the impaired loan as a nonrecurring fair value measurement classified as Level 2. However, if based on management’s review, additional discounts to observed market prices or appraisals are required or if observable inputs are not available, the Company records the impaired loan as a nonrecurring fair value measurement classified as Level 3. Impaired loans that are measured based on expected future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest, are not recorded at fair value and are therefore excluded from fair value disclosure requirements Loans held for sale: During the first quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of 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 similar instruments traded in the secondary mortgage loan markets in which the Company conducts business. The Company's portfolio of LHFS 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 IRLC 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 IRLC or mortgage LHFS. All of the Company’s forward sale commitments are classified as Level 2. Other Real Estate Owned: 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 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 (in thousands): Fair Value Measurement at December 31, 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 $ 8,142 $ — $ 8,142 $ — Mortgage-backed securities 24,006 — 24,006 — Subordinated debt 8,696 — 8,446 250 Loans held for sale 34,421 — 34,421 — IRLC 1,552 — 1,552 — Financial Liabilities - Recurring Forward sales commitment 3,105 — 3,105 — Financial Assets - Non-Recurring 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 for the years ended December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) 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 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 Sheet at fair value. December 31, 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 $ 12,709 $ 12,709 $ 19,967 $ 19,967 Cash equivalents Level 2 30,742 30,742 — — Investment securities available for sale Level 1 1,193 1,193 — — Investment securities available for sale Level 2 39,401 39,401 46,687 46,687 Investment securities available for sale Level 3 250 250 250 250 Federal Home Loan Bank stock Level 2 484 484 1,694 1,694 Loans held for sale Level 2 34,421 34,421 12,722 12,722 Loans Level 3 561,003 562,362 427,827 429,254 Impaired loans Level 3 — — 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 7,806 7,806 7,612 7,612 Accrued interest receivable Level 2 4,943 4,943 2,597 2,597 Interest rate lock commitments Level 2 1,552 1,552 — — Financial liabilities Deposits Level 2 588,382 589,017 443,208 443,645 FHLB borrowings Level 2 — — 29,000 29,285 Trust preferred securities Level 2 8,764 9,697 8,764 9,812 Other borrowings Level 2 47,157 47,157 10,912 10,912 Accrued interest payable Level 2 194 194 221 221 Forward sales commitment Level 2 3,105 3,105 — —

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2020
Segment Reporting
Segment Reporting	Note 19. 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 LHFS, 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 years ended December 31, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2020 Revenues Interest income $ 25,404 $ 581 $ (159) $ 25,826 Gain on sale of loans — 11,703 — 11,703 Other revenues 2,688 1,408 (242) 3,854 Total revenues 28,092 13,692 (401) 41,383 Expenses Provision for loan losses 950 — — 950 Interest expense 4,433 159 (159) 4,433 Salaries and benefits 8,867 4,053 — 12,920 Commissions — 3,312 — 3,312 Other expenses 7,784 1,187 (242) 8,729 Total operating expenses 22,034 8,711 (401) 30,344 Income before income taxes 6,058 4,981 — 11,039 Income tax expense 1,439 1,046 — 2,485 Net income $ 4,619 $ 3,935 $ — $ 8,554 Total assets $ 704,258 $ 18,604 $ (16,626) $ 706,236 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2019 Revenues Interest income $ 23,079 $ 539 $ (131) $ 23,487 Gain on sale of loans — 6,205 — 6,205 Other revenues 3,044 754 (220) 3,578 Total revenues 26,123 7,498 (351) 33,270 Expenses Provision for loan losses 135 — — 135 Interest expense 5,330 131 (131) 5,330 Salaries and benefits 9,047 3,194 — 12,241 Commissions — 1,875 — 1,875 Other expenses 7,209 1,059 (220) 8,048 Total operating expenses 21,721 6,259 (351) 27,629 Income before income taxes 4,402 1,239 — 5,641 Income tax expense 904 260 — 1,164 Net income $ 3,498 $ 979 $ — $ 4,477 Total assets $ 542,053 $ 10,924 $ (12,664) $ 540,313

Parent Corporation Only Financi

Parent Corporation Only Financial Statements	12 Months Ended
	Dec. 31, 2020
Parent Corporation Only Financial Statements
Parent Corporation Only Financial Statements	Note 20. Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Balance Sheet (in thousands) December 31, December 31, 2020 2019 Assets Cash and due from banks $ 1,549 $ 1,007 Investment in subsidiaries 62,183 53,768 Investment in special purpose subsidiary 264 264 Prepaid expenses and other assets 2,438 2,284 $ 66,434 $ 57,323 Liabilities and Shareholders’ Equity Liabilities Balance due to nonbank subsidiaries $ 8,764 $ 8,764 Other borrowings 5,628 5,595 Accrued interest payable 46 47 Other liabilities — 3 Total liabilities 14,438 14,409 Shareholders’ equity Common stock 5,794 5,779 Additional paid-in capital 54,510 54,285 Accumulated deficit (8,738) (17,292) Stock in directors rabbi trust (771) (856) Directors deferred fees obligation 771 856 Accumulated other comprehensive income 430 142 Total stockholders’ equity 51,996 42,914 $ 66,434 $ 57,323 Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Operations and Comprehensive Income Years Ended December 31, 2020 and 2019 (in thousands) 2020 2019 Income Interest income $ 4 $ 3 Dividends received from subsidiaries 1,250 1,000 Total Income 1,254 1,003 Interest expense Interest on borrowed funds 631 775 Total interest expense 631 775 Net interest expense 623 228 Noninterest expense Supplies 30 30 Professional and outside services 39 61 Other 43 42 Total noninterest expense 112 133 Net loss before undistributed income (loss) of subsidiary 511 (905) Undistributed income (loss) of subsidiary 7,888 4,192 Net income before income tax benefit 8,399 4,287 Income tax benefit (155) (190) Net income $ 8,554 $ 4,477 Total comprehensive income $ 8,842 $ 5,368 Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Cash Flows Years Ended December 31, 2020 and 2019 (in thousands) 2020 2019 Cash Flows from Operating Activities Net income $ 8,554 $ 4,477 Adjustments to reconcile net income to net cash used in operating activities Amortization of debt issuance costs 33 32 Undistributed income of subsidiary (9,138) (5,192) Net change in: Other assets (154) (190) Interest Payable — — Other liabilities (3) 3 Net cash used in operating activities (708) (870) Cash Flows from Investing Activities Dividend from subsidiary 1,250 1,000 Net cash provided by investing activities 1,250 1,000 Cash Flows from Financing Activities Net cash provided by financing activities — — Net increase in cash 542 130 Cash, beginning of year 1,007 877 Cash, end of year $ 1,549 $ 1,007

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Business	Business The Company is the holding company of Village Bank (the “Bank”). The Bank opened to the public on December 13, 1999 as a traditional community bank offering deposit and loan services to individuals and businesses in the Richmond, Virginia metropolitan area. In 2017, the Bank entered the Williamsburg, Virginia market by opening a full service branch. Village Bank Mortgage Corporation (the “Mortgage Company”) is a full service mortgage banking company wholly-owned by the Bank. The Bank is subject to regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Bank’s business is susceptible to being affected by state and federal legislation and regulations. The majority of the Company’s real estate loans are collateralized by properties in the Richmond, Virginia metropolitan area. Accordingly, the ultimate collectability of those loans collateralized by real estate is particularly susceptible to changes in market conditions in the Richmond area.
Basis of presentation and consolidation	Basis of presentation and consolidation The consolidated financial statements include the accounts of the Company, the Bank and the Mortgage Company. All material intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year financial statements to conform to current year presentation. The results of the reclassifications are not considered material.
Use of estimates	Use of estimates The preparation of the consolidated financial statements in conformity with 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 balance sheets dates and revenues and expenses during the reporting 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, the valuation of deferred tax assets, and the estimate of the fair value of assets held for sale.
Securities	Securities At the time of purchase, debt securities are classified into the following categories: held to maturity, available for sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost adjusted for amortization of premiums and accretion of discounts on purchase using a method that approximates the effective interest method. Investments classified as trading or available for sale are stated at fair value. Changes in fair value of trading investments are included in current earnings while changes in fair value of available for sale investments are excluded from current earnings and reported, net of taxes, as a separate component of other comprehensive income. Presently, the Company does not maintain a portfolio of trading securities or held to maturity. The fair value of investment securities available for sale is estimated based on quoted prices for similar assets determined by bid quotations received from independent pricing services. Declines in the fair value of securities below their amortized cost that are other than temporary are reflected in earnings or other comprehensive income, as appropriate. For those debt securities whose fair value is less than their amortized cost basis, we consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. Restricted stock, at cost. The Company is required to maintain an investment in the capital stock of certain correspondent banks. The Company’s investment in these securities is recorded at cost. Interest income is recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings and are derived using the specific identification method for determining the cost of securities sold.
Mortgage Banking and Derivatives	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 Accounting Standards Codification (“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 $34.4 million as of December 31, 2020, of which $32.9 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 Assets” in the Consolidated Balance Sheet at December 31, 2020, and totaled $1.6 million, with a notional amount of $38.9 million and total positions of 150. 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 December 31, 2020. The Company’s IRLCs are classified as Level 2. At December 31, 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 Liabilities” in the Consolidated Balance Sheet at December 31, 2020, and totaled $3.1 million, with a notional amount of $71.7 million and total positions of 289. The fair value of the forward sales commitments was considered immaterial at December 31, 2019.
Transfers of financial assets	Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2020 and 2019, and the sale of residential mortgage loans in the secondary market; the extent of which are disclosed in the Consolidated Statements of Cash Flows.
Loans	Loans Loans are stated at the principal amount outstanding, net of unearned income. Loan origination fees and certain direct loan origination costs are deferred and amortized to interest income over the life of the loan as an adjustment to the loan’s yield over the term of the loan. A loan’s past due status is based on the contractual due date of the most delinquent payment dates. Interest is accrued on outstanding principal balances, unless the Company considers collection to be doubtful. Commercial and unsecured consumer loans are designated as nonaccrual when payment is delinquent 90 days or at the point which the Company considers collection doubtful, if earlier. Mortgage loans and most other types of consumer loans past due 90 days or more may remain on accrual status if management determines that such amounts are collectible. When loans are placed in nonaccrual status, previously accrued and unpaid interest is reversed against interest income in the current period and interest is subsequently recognized only to the extent cash is received as long as the remaining recorded investment in the loan is deemed fully collectible. Loans may be placed back on accrual status when, in the opinion of management, the circumstances warrant such action such as a history of timely payments subsequent to being placed on nonaccrual status, additional collateral is obtained or the borrowers cash flows improve. 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. The total contractual amount of standby letters of credit, whose contract amounts represent credit risk, was approximately $4,934,000 at December 31, 2020 and approximately $6,732,000 at December 31, 2019. Below is a summary of the current loan segments: Construction and land development loans consist primarily of loans for the purchase or refinance of unimproved lots or raw land. Additionally, the Company finances the construction of real estate projects typically where the permanent mortgage will remain with the Company. Specific underwriting guidelines are delineated in the Bank’s loan policies. Construction and land development loans carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those specific to real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on cash flows, collateral, geography and risk grade criteria. Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. Consumer real estate loans include consumer purpose 1-to-4 family residential properties and home equity loans. Consumer purpose loans have underwriting standards that are heavily influenced by statutory requirements, which include, but are not limited to, documentation requirements, limits on maximum loan-to-value percentages, and collection remedies. Loans to finance 1-4 family investment properties are primarily dependent upon rental income generated from the property and secondarily supported by the borrower’s personal income. The Company typically originates residential mortgages through our mortgage company and these loans are sold to secondary mortgage market correspondents. Consumer real estate loans carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Management examines current and projected cash flows to determine the ability of borrowers to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or marketable securities and may incorporate personal guarantees; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Government guaranteed balances represent Small Business Administration (“SBA”) loans originated by the Bank according to SBA guidelines. Consumer and other loans are generally small loans spread across many borrowers and are underwritten after determining the ability of the consumer borrower to repay their obligations as agreed. The underwriting standards are influenced by credit history, ability to repay, and loan-to-value. Consumer loans may be secured or unsecured and are comprised of revolving lines, installment loans and other consumer loans. Consumer and other loans carry risks associated with the continued credit-worthiness of the borrower and the value of the collateral, or lack thereof. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. Guaranteed student loans The Bank purchases Federal Rehabilitated Student Loan portfolios when approved by the Board of Directors. These loans are guaranteed by the U.S. Department of Education (“DOE”) which covers approximately 98% of the principal and interest. These loans are serviced by a third party servicer that specializes in handling these types of loans. We also purchase the guaranteed portion of United State Department of Agriculture Loans (“USDA”) which are guaranteed by the USDA for 100% of the principal and interest. The originating institution holds the unguaranteed portion of the loan and services the loan. These loans are typically purchased at a premium. In the event of a loan default or early prepayment the Bank may need to write off any unamortized premium. These loans are included in the commercial and industrial loan segment.
Allowance for loan losses	Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable losses inherent in the loan portfolio. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions which may affect a borrower’s ability to repay, overall portfolio quality, and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience and risk characteristics (i.e. trends in delinquencies and other nonperforming loans, changes in economic conditions on both a local and national level, and changes in the categories of loans comprising the loan portfolio) adjusted for qualitative factors. The specific component relates to loans that we have concluded, based on the value of collateral, guarantees and any other pertinent factors, have known losses. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.
Troubled debt restructurings	Troubled debt restructurings A loan or lease is accounted for as a TDR if we, for economic or legal reasons related to the borrower’s financial condition, grant a significant concession to the borrower that we would not otherwise consider. A TDR may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or balance of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk, or some combination of these concessions. TDRs generally remain categorized as nonperforming loans and leases until a six-month payment history has been maintained. In accordance with current accounting guidance, loans modified as troubled debt restructurings are, by definition, considered to be impaired loans. Impairment for these loans is measured on a loan-by-loan basis similar to other impaired loans as described above under “Allowance for loan losses”. Certain loans modified as TDRs may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan is modified as a TDR the allowance will be impacted by the difference between the results of these two measurement methodologies. Loans modified as TDRs that subsequently default are factored into the determination of the allowance in the same manner as other defaulted loans. Loan modifications made under the March 22 Joint Guidance and CARES Act, as amended by the CAA, were suspended from TDR evaluation.
Other real estate owned	Other real estate owned Real estate acquired through or in lieu of foreclosure is initially recorded at estimated fair value less estimated selling costs establishing a new cost basis. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. If fair value declines subsequent to foreclosure a valuation allowance is recorded through expense. Operating costs after acquisition are expensed as incurred. The valuation allowance was $10,000 and $52,000 at December 31, 2020 and 2019, respectively. Costs relating to the development and improvement of such property are capitalized when appropriate, whereas those costs relating to holding the property are expensed.
Assets held for sale	Assets held for sale There were no assets held for sale at December 31, 2020. Assets held for sale at December 31, 2019 included a branch building we previously closed. 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.
Premises and equipment	Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation of buildings and improvements is computed using the straight-line method over the estimated useful lives of the assets of 39 years. Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from three to seven years. Amortization of premises (leasehold improvements) is computed using the straight-line method over the term of the lease or estimated lives of the improvements, whichever is shorter.
Supplemental Executive Retirement Plan	Supplemental Executive Retirement Plan The Company recognizes the unfunded status of its Supplemental Executive Retirement Plan (the “SERP”) as a liability in its Consolidated Balance Sheets, measured at the projected benefit obligation as of December 31, 2020 and 2019. Net periodic pension costs are recorded each period based on actuarially determined amounts in accordance with GAAP and recognized in salaries and employment benefits in the Consolidated Statements of Income. Actuarial determinations of net periodic pension cost are based on assumptions related to discount rates, employee compensation and mortality and interest crediting rates. Other changes in the status of the plan are recorded in the year in which the changes occur through other comprehensive income.
Income taxes	Income taxes Deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The effect on recorded deferred income taxes of a change in tax laws or rates is recognized in income in the period that includes the enactment date. To the extent that available evidence about the future raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest and penalties associated with unrecognized tax benefits are classified as taxes other than income in the statement of income. The Company has no uncertain tax positions.
Consolidated statements of cash flows	Consolidated statements of cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Cash flows from loans originated by the Bank for investment and deposits are reported net. The Company did not pay income taxes in 2020 and 2019.
Comprehensive income	Comprehensive income Total comprehensive income consists of net income and other comprehensive income. At December 31, 2020 and 2019, the accumulated other comprehensive income was comprised of unrealized gains on securities available for sale of $466,000 and $186,000 and unfunded pension liability of ($36,000) and ($44,000) net of tax, respectively.
Earnings per common share	Earnings per common share Basic earnings per common share represent net income available to common shareholders, which represents net income less dividends paid or payable to preferred stock shareholders, divided by the weighted-average number of common shares outstanding during the period, inclusive of unvested restricted shares (Note 10). For diluted earnings per common share, net income available to common shareholders is divided by the weighted average number of common shares issued and outstanding for each period plus amounts representing the dilutive effect of stock options, as well as any adjustment to income that would result from the assumed issuance. The effects of stock options and warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Stock options and warrants are antidilutive if the underlying average market price of the stock that can be purchased for the period is less than the exercise price of the option or warrant. Potential dilutive common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method.
Stock incentive plan	Stock incentive plan On May 26, 2015, the Company’s shareholders approved the adoption of the Village Bank and Trust Financial Corp. 2015 Stock Incentive Plan (the “2015 Plan”) authorizing the issuance of up to 60,000 shares of common stock. On May 19, 2020, the Company’s shareholders approved an amendment to the 2015 Plan authorizing the issuance of up to 120,000 shares of common stock. See Note 14 for more information on the 2015 Plan.
Fair values of financial instruments	Fair values of financial instruments The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability (exit price) shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact and willing to transact. See Note 18 for the methods and assumptions the Bank uses in estimating fair values of financial instruments.
Revenue recognition	Revenue recognition The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09. The following discussion is of revenues that are within the scope of the new revenue guidance: · Debit and credit interchange fee income - Card processing fees consist of interchange fees from consumer debit and credit card networks and other card related services. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. · Service charges on deposit accounts - Revenue from service charges on deposit accounts is earned through deposit-related services, as well as overdraft, non-sufficient funds, account management and other deposit related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts’ monthly cycle, or at a point in time for transactional related services and fees. · Service charges on loan accounts - Revenue from loan accounts consists primarily of fees earned on prepayment penalties. Revenue is recognized for the services at a point in time for transactional related services and fees. · Gains/Losses on sale of OREO - The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. · Gains/Losses on sale of assets held for sale – The Company records a gain or loss from the sale of assets held for sale when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of assets held for sale to the buyer, the Company assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probably. Once these criteria are met, the asset held for sale is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer.
Segments	Segments 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 LHFS, gains on sales of loans in the secondary mortgage market, and loan origination fee income, net of commissions paid. 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. See additional information at Note 19, Segment Reporting.
Recent accounting pronouncements	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. The Company is currently assessing the impact that ASU 2016-13 will have on the Company’s consolidated financial statements. 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 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, 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, the amendments in the ASU are effective for fiscal years beginning after December 31, 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. Subsequently, in January 20201, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.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. In August 2020, a joint statement on additional loan modifications was issued. Among other things, the Interagency Statement addresses accounting and regulatory reporting considerations for loan modifications, including those accounted for under Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was signed into law on March 27, 2020 to help support individuals and businesses through loans, grants, tax changes and other types of relief. The most significant impacts of the Act related to accounting for loan modifications and establishment of the Paycheck Protection Program (“PPP”). On December 21, 2020, the Consolidated Appropriates Act of 2021 (“CAA”) was passed. The CAA extends or modifies many of the relief programs first created by the CARES Act, including the PPP and treatment of certain loan modifications related to the COVID-19 pandemic. As of December 31 2020, the Company had a total of $3,259,000 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.

Investment securities availab_2

Investment securities available for sale (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2020 and 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2020 U.S. Government agency obligations $ 8,048 $ 94 $ — $ 8,142 Mortgage-backed securities 23,412 645 (51) 24,006 Subordinated debt 8,795 37 (136) 8,696 $ 40,255 $ 776 $ (187) $ 40,844 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 years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Gross realized gains $ 54 $ 101 Gross realized losses (42) — $ 12 $ 101
Schedule of investment securities available for sale	Investment securities available for sale that had an unrealized loss position at December 31, 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 December 31, 2020 Mortgage-backed securities 5,475 (51) — — 5,475 (51) Subordinated debt 1,747 (11) 2,807 (125) 4,554 (136) $ 7,222 $ (62) $ 2,807 $ (125) $ 10,029 $ (187) 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) 940 (74) 1,699 (80) $ 5,507 $ (33) $ 6,308 $ (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 December 31, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 6,110 $ 6,145 One to five years 310 315 Five to ten years 10,524 10,473 More than ten years 23,311 23,911 Total $ 40,255 $ 40,844

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2020
Loans
Schedule of composition of loan portfolio (excluding mortgage loans held for sale)	Loans classified by type as of December 31, 2020 and 2019 are as follows (dollars in thousands): December 31, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 8,103 1.44 % $ 7,887 1.84 % Commercial 21,466 3.82 % 24,063 5.60 % 29,569 5.26 % 31,950 7.44 % Commercial real estate Owner occupied 99,784 17.79 % 98,353 22.91 % Non-owner occupied 121,184 21.60 % 116,508 27.14 % Multifamily 9,889 1.75 % 13,332 3.10 % Farmland 367 0.07 % 156 0.04 % 231,224 41.21 % 228,349 53.19 % Consumer real estate Home equity lines 18,394 3.28 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 57,089 10.18 % 55,856 13.01 % Second deed of trust 11,097 1.98 % 10,411 2.43 % 86,580 15.44 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 181,088 32.28 % 45,074 10.50 % Guaranteed student loans 29,657 5.29 % 33,525 7.81 % Consumer and other 2,885 0.52 % 2,621 0.61 % Total loans 561,003 100.0 % 429,295 100.0 % Deferred fees and costs, net (2,048) 764 Less: allowance for loan losses (3,970) (3,186) $ 554,985 $ 426,873
Schedule of PPP loans by loan size including SBA fees earned	. Below is a breakdown of PPP loans by loan size as of December 31, 2020 (dollars in thousands): Loan Size # of Loans $ of Loans < $350,000 1,172 $ 72,526 $350,000 - $2 million 57 41,046 > $2 million 6 23,102 Total 1,235 $ 136,674
Summary of loans directly or indirectly with executive officers or directors of the Company	The following is a summary of loans directly or indirectly with executive officers or directors of the Company for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Beginning balance $ 5,323 $ 5,201 Additions 11,228 8,751 Effect of changes in composition of related parties (287) — Reductions (11,592) (8,629) Ending balance $ 4,672 $ 5,323
Schedule of information on nonaccrual loans	The following table provides information on nonaccrual loans segregated by type at the dates indicated (dollars in thousands): December 31, December 31, 2020 2019 Commercial real estate Non-owner occupied $ 303 $ 497 303 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 630 842 Second deed of trust 317 63 1,247 1,205 Commercial and industrial loans (except those secured by real estate) 27 166 Total loans $ 1,577 $ 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 December 31, 2020 Construction and land development Residential $ 8,103 $ — $ — $ — $ 8,103 Commercial 21,370 96 — — 21,466 29,473 96 — — 29,569 Commercial real estate Owner occupied 88,066 9,405 2,313 — 99,784 Non-owner occupied 116,161 4,244 779 — 121,184 Multifamily 9,889 — — — 9,889 Farmland 367 — — — 367 214,483 13,649 3,092 — 231,224 Consumer real estate Home equity lines 17,298 796 300 — 18,394 Secured by 1-4 family residential First deed of trust 53,731 2,212 1,146 — 57,089 Second deed of trust 9,425 1,236 436 — 11,097 80,454 4,244 1,882 — 86,580 Commercial and industrial loans (except those secured by real estate) 178,217 2,602 269 — 181,088 Guaranteed student loans 29,657 — — — 29,657 Consumer and other 2,844 41 — — 2,885 Total loans $ 536,336 $ 20,632 $ 5,243 $ — $ 561,003 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 tables present the aging of the recorded investment in past due loans 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 December 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,103 $ 8,103 $ — Commercial — — — — 21,466 21,466 — — — — — 29,569 29,569 — Commercial real estate Owner occupied 86 — — 86 99,698 99,784 — Non-owner occupied — — — — 121,184 121,184 — Multifamily — — — — 9,889 9,889 — Farmland — — — — 367 367 — 86 — — 86 231,138 231,224 — Consumer real estate Home equity lines — — — — 18,394 18,394 — Secured by 1‑4 family residential First deed of trust 133 — — 133 56,956 57,089 — Second deed of trust — 57 — 57 11,040 11,097 — 133 57 — 190 86,390 86,580 — Commercial and industrial loans (except those secured by real estate) 25 — — 25 181,063 181,088 — Guaranteed student loans 1,428 1,009 2,193 4,630 25,027 29,657 2,193 Consumer and other 1 — — 1 2,884 2,885 — Total loans $ 1,673 $ 1,066 $ 2,193 $ 4,932 $ 556,071 $ 561,003 $ 2,193 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, 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): December 31, 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 $ — $ — $ — $ 337 $ 337 $ — — — — 337 337 — Commercial real estate Owner occupied 2,780 2,795 — 2,089 2,104 — Non-owner occupied 1,991 1,991 — 2,304 2,304 — 4,771 4,786 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 1,937 1,940 — 1,752 1,774 — Second deed of trust 699 992 — 752 960 — 2,936 3,232 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 141 141 — 211 373 — 7,848 8,159 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,125 1,125 9 1,414 1,414 15 1,125 1,125 9 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 74 74 8 78 78 9 74 74 8 78 78 9 Commercial and industrial loans (except those secured by real estate) — — — 135 334 135 1,199 1,199 17 1,627 1,826 159 Total Construction and land development Commercial — — — 337 337 — — — — 337 337 — Commercial real estate Owner occupied 3,905 3,920 9 3,503 3,518 15 Non-owner occupied 1,991 1,991 — 2,304 2,304 — 5,896 5,911 9 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 2,011 2,014 8 1,830 1,852 9 Second deed of trust 699 992 — 752 960 — 3,010 3,306 8 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 141 141 — 346 707 135 $ 9,047 $ 9,358 $ 17 $ 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 valuation allowance and interest income recognized on those loans for periods indicated (in thousands): December 31, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Residential $ — $ — $ 81 $ — Commercial 221 — 329 — 221 — 410 — Commercial real estate Owner occupied 3,189 124 2,695 143 Non-owner occupied 1,980 89 2,434 128 5,169 213 5,129 271 Consumer real estate Home equity lines 300 23 318 19 Secured by 1-4 family residential First deed of trust 2,069 66 2,280 76 Second deed of trust 802 46 810 40 3,171 135 3,408 135 Commercial and industrial loans (except those secured by real estate) 151 1 626 17 8,712 349 9,573 423 With an allowance recorded Commercial real estate Owner occupied 913 32 1,432 43 913 32 1,432 43 Consumer real estate Secured by 1-4 family residential First deed of trust 76 4 166 6 Second deed of trust 26 — — — 102 4 166 6 Commercial and industrial loans (except those secured by real estate) 129 — 225 1 Consumer and other — — 6 — 1,144 36 1,829 50 Total Construction and land development Residential — — 81 — Commercial 221 — 329 — 221 — 410 — Commercial real estate Owner occupied 4,102 156 4,127 186 Non-owner occupied 1,980 89 2,434 128 6,082 213 6,561 314 Consumer real estate Home equity lines 300 23 318 19 Secured by 1-4 family residential, First deed of trust 2,145 70 2,446 82 Second deed of trust 828 46 810 40 3,273 135 3,574 141 Commercial and industrial loans (except those secured by real estate) 280 1 851 18 Consumer and other — — 6 — $ 9,856 $ 385 $ 11,402 $ 473
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 as of December 31, 2020 and 2019 (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance December 31, 2020 Commercial real estate Owner occupied $ 3,396 $ 3,396 $ — $ — Non-owner occupied 1,991 1,688 303 — 5,387 5,084 303 — Consumer real estate Secured by 1-4 family residential First deeds of trust 1,460 910 550 9 Second deeds of trust 617 556 61 8 2,077 1,466 611 17 Commercial and industrial loans (except those secured by real estate) 27 — 27 — $ 7,491 $ 6,550 $ 941 $ 17 Number of loans 34 27 7 2 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). December 31, 2020 December 31, 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 Non-owner occupied 1 $ 311 $ 311 1 $ 515 $ 515 1 $ 311 $ 311 1 $ 515 $ 515

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2020
Allowance for Loan Losses
Schedule of activity in the allowance for loan losses	Activity in the allowance for loan losses was as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2020 Construction and land development Residential $ 48 $ 141 $ — $ 25 $ 214 Commercial 137 148 — — 285 185 289 — 25 499 Commercial real estate Owner occupied 671 376 — — 1,047 Non-owner occupied 831 590 — — 1,421 Multifamily 85 (38) — — 47 Farmland 2 — — — 2 1,589 928 — — 2,517 Consumer real estate Home equity lines 271 (247) — — 24 Secured by 1-4 family residential First deed of trust 343 (190) — 13 166 Second deed of trust 64 45 (85) 55 79 678 (392) (85) 68 269 Commercial and industrial loans (except those secured by real estate) 572 (58) (135) 29 408 Student loans 108 27 (48) — 87 Consumer and other 30 26 (24) 4 36 Unallocated 24 130 — — 154 $ 3,186 $ 950 $ (292) $ 126 $ 3,970 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): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Year Ended December 31, 2020 Construction and land development Residential $ 214 $ — $ 214 $ 8,103 $ — $ 8,103 Commercial 285 — 285 21,466 — 21,466 499 — 499 29,569 — 29,569 Commercial real estate Owner occupied 1,047 9 1,038 99,784 3,905 95,879 Non-owner occupied 1,421 — 1,421 121,184 1,991 119,193 Multifamily 47 — 47 9,889 — 9,889 Farmland 2 — 2 367 — 367 2,517 9 2,508 231,224 5,896 225,328 Consumer real estate Home equity lines 24 — 24 18,394 300 18,094 Secured by 1-4 family residential First deed of trust 166 8 158 57,089 2,011 55,078 Second deed of trust 79 — 79 11,097 699 10,398 269 8 261 86,580 3,010 83,570 Commercial and industrial loans (except those secured by real estate) 408 — 408 181,088 141 180,947 Student loans 87 — 87 29,657 — 29,657 Consumer and other 190 — 190 2,885 — 2,885 $ 3,970 $ 17 $ 3,953 $ 561,003 $ 9,047 $ 551,956 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

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2020
Premises and Equipment
Schedule of premises and equipment	The following is a summary of premises and equipment as of December 31, 2020 and 2019 (in thousands): 2020 2019 Land $ 4,352 $ 4,352 Buildings and improvements 10,796 10,601 Furniture, fixtures and equipment 7,614 7,479 Total premises and equipment 22,762 22,432 Less: Accumulated depreciation and amortization (10,983) (10,396) Premises and equipment, net $ 11,779 $ 12,036

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2020
Deposits
Schedule of deposits	Deposits as of December 31, 2020 and 2019 were as follows (dollars in thousands): December 31, 2020 December 31, 2019 Amount % Amount % Demand accounts $ 222,305 37.8 % $ 131,228 29.6 % Interest checking accounts 70,342 11.9 % 48,427 10.9 % Money market accounts 152,726 26.0 % 99,955 22.6 % Savings accounts 38,083 6.5 % 26,396 6.0 % Time deposits of $250,000 and over 16,014 2.7 % 22,327 5.0 % Other time deposits 88,912 15.1 % 114,875 25.9 % Total $ 588,382 100.0 % $ 443,208 100.0 %
Schedule of maturities of time deposits	The following are the scheduled maturities of time deposits as of December 31, 2020 (in thousands): Greater Than Year Ending Less Than or Equal to December 31, $250,000 $250,000 Total 2021 $ 64,064 $ 11,349 $ 75,413 2022 15,583 4,403 19,986 2023 5,786 262 6,048 2024 1,338 — 1,338 2025 2,141 — 2,141 Total $ 88,912 $ 16,014 $ 104,926

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2020
Borrowings
Schedule of advances from the FHLB	The Company had advances from the FHLB for the periods indicated that consisted of the following (dollars in thousands): Year Ended December 31, 2019 Maturity Interest Advance Type Date Rate Amount Variable June 29, 2020 1.780 % $ 8,000 Fixed Rate June 28, 2021 2.854 % 3,000 Fixed Rate July 6, 2020 2.770 % 5,000 Fixed Rate September 27, 2021 3.102 % 2,000 Fixed Rate September 25, 2023 3.212 % 2,000 Fixed Rate November 15, 2021 3.149 % 6,500 Fixed Rate December 11, 2023 3.289 % 2,500 $ 29,000
Schedule of Debt	Information related to borrowings as of December 31, 2020 and 2019 is as follows (dollars in thousands): Year Ended December 31, 2020 2019 Balance outstanding at end of year Maximum outstanding during the year Federal Funds Purchased $ 4,559 $ 6,594 FHLB advances 51,000 31,000 PPPLF 45,120 — Balance outstanding at end of year Federal Funds Purchased — 5,317 FHLB advances — 29,000 PPPLF 41,529 — Average amount outstanding during the year Federal Funds Purchased 91 456 FHLB advances 27,785 22,693 PPPLF 28,857 — Average interest rate during the year Federal Funds Purchased 1.65 % 2.32 % FHLB advances 2.17 % 3.05 % PPPLF 0.35 % 0.00 % Average interest rate at end of year Federal Funds Purchased 0.00 % 2.54 % FHLB advances 0.00 % 2.69 % PPPLF % 0.00 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2020
Income Taxes
Schedule of deferred tax assets and liabilities	The following summarizes the tax effects of temporary differences that comprise deferred tax assets and liabilities at December 31, 2020 and 2019 (in thousands): 2020 2019 Deferred tax assets Net operating loss carryforward $ 217 $ 2,995 Capital loss carryforward 25 25 State net operating loss carryforward — 97 AMT credit — 11 Allowance for loan losses 834 669 Deferred Cost, net of fees 430 — Interest on nonaccrual loans 18 29 Expenses and writedowns related to foreclosed property 66 97 Stock compensation 34 10 Employee benefits 794 792 Pension expense 3 8 Depreciation 31 134 Other, net 29 11 Total deferred tax assets 2,481 4,878 Deferred tax liabilities Unrealized gain on available for sale securities 124 50 Total deferred tax liabilities 124 50 Net deferred tax asset $ 2,357 $ 4,828
Schedule of Provision for income taxes	The income tax expense charged to operations for the years ended December 31, 2020 and 2019 consists of the following (in thousands): 2020 2019 Current tax expense (benefit) $ 92 $ (33) Deferred tax expense 2,393 1,197 Provision for income taxes $ 2,485 $ 1,164
Schedule of effective income tax rate reconciliation	A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2020 and 2019 (in thousands): 2020 2019 Net income before income taxes $ 11,039 $ 5,641 Computed "expected" tax expense $ 2,318 $ 1,185 State taxes, net of fed 201 15 Cash surrender value of life insurance (41) (37) Other 7 1 Provision for income taxes $ 2,485 $ 1,164

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2020
Earnings per share
Schedule of basic and diluted earnings per common share	The following table presents the basic and diluted earnings per share computations (in thousands except per share data): 2020 2019 Numerator Net income - basic and diluted $ 8,554 $ 4,477 Denominator Weighted average shares outstanding - basic 1,459 1,445 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,459 1,445 Earnings per share - basic $ 5.86 $ 3.10 Earnings per share - diluted $ 5.86 $ 3.10

Lease Commitments (Tables)

Lease Commitments (Tables)	12 Months Ended
	Dec. 31, 2020
Lease Commitments
Schedule of information about the Company's leases	The following tables present information about the Company’s leases (dollars in thousands): For the years ended December 31, 2020 2019 Lease liabilities $ 930 $ 1,027 Right-of-use assets $ 916 $ 1,015 Weighted average remaining lease term 5.05 years 4.29 years Weighted average discount rate 2.39 % 2.98 % For the years ended December 31, 2020 2019 Lease cost Operating lease cost $ $ 427 Total lease cost $ $ 427
Schedule of maturity analysis of operating lease liabilities	A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): As of December 31, 2020 Lease payments due Twelve months ending December 31, 2021 $ 337 Twelve months ending December 31, 2022 181 Twelve months ending December 31, 2023 106 Twelve months ending December 31, 2024 111 Twelve months ending December 31, 2025 102 Thereafter 154 Total undiscounted cash flows $ 991 Discount 61 Lease liabilities $ 930

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and contingencies
Schedule of off balance sheet financial instruments	At December 31, 2020 and 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): December 31, December 31, 2020 2019 Undisbursed credit lines $ 107,130 $ 83,366 Commitments to extend or originate credit 38,910 15,722 Standby letters of credit 4,934 6,732 Total commitments to extend credit $ 150,974 $ 105,820

Shareholders' Equity and Regu_2

Shareholders' Equity and Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 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 $114,000 and $38,000 as of December 31, 2020 and 2019, respectively (in thousands): Year Ended December 31, 2020 2019 Net unrealized gains on securities $ 466 $ 186 Net unrecognized losses on defined benefit plan (36) (44) Total other comprehensive income $ 430 $ 142
Schedule of capital amounts and ratios	The capital amounts and ratios at December 31, 2020 and 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 December 31, 2020 Total capital (to risk- weighted assets) Village Bank $ 65,723 14.20 % $ 37,015 8.00 % $ 46,269 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 61,753 13.35 % 27,761 6.00 % 37,015 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 61,753 9.28 % 26,607 4.00 % 33,259 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 61,753 13.35 % 20,821 4.50 % 30,075 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 %

Stock incentive plan (Tables)

Stock incentive plan (Tables)	12 Months Ended
	Dec. 31, 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: Year Ended December 31, 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 information about stock options outstanding	The following table summarizes information about stock options outstanding at December 31, 2020: Outstanding Exercisable Weighted Average Remaining Weighted Weighted Years of Average Average Range of Number of Contractual Exercise Number of Exercise Exercise Prices Options Life Price Options Price $25.28-$25.76 734 2.57 $ 25.63 734 $ 25.63 734 2.57 25.63 734 25.63
Schedule of company's non vested restricted stock awards	A summary of changes in the Company’s non-vested restricted stock awards for the year follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 423,341 Granted 17,798 29.67 612,073 Vested (4,731) 33.83 (162,699) Forfeited (1,094) 33.82 (37,623) Other (1) 246 33.82 8,460 December 31, 2020 24,529 $ 30.87 $ 843,552 Represents the incremental increase in shares that vested based on the restricted stock units vesting at the maximum potential value as opposed to the targeted value of the award.

Fair value (Tables)

Fair value (Tables)	12 Months Ended
	Dec. 31, 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 (in thousands): Fair Value Measurement at December 31, 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 $ 8,142 $ — $ 8,142 $ — Mortgage-backed securities 24,006 — 24,006 — Subordinated debt 8,696 — 8,446 250 Loans held for sale 34,421 — 34,421 — IRLC 1,552 — 1,552 — Financial Liabilities - Recurring Forward sales commitment 3,105 — 3,105 — Financial Assets - Non-Recurring 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 for the years ended December 31, 2020 and 2019 (dollars in thousands): December 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) 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	December 31, 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 $ 12,709 $ 12,709 $ 19,967 $ 19,967 Cash equivalents Level 2 30,742 30,742 — — Investment securities available for sale Level 1 1,193 1,193 — — Investment securities available for sale Level 2 39,401 39,401 46,687 46,687 Investment securities available for sale Level 3 250 250 250 250 Federal Home Loan Bank stock Level 2 484 484 1,694 1,694 Loans held for sale Level 2 34,421 34,421 12,722 12,722 Loans Level 3 561,003 562,362 427,827 429,254 Impaired loans Level 3 — — 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 7,806 7,806 7,612 7,612 Accrued interest receivable Level 2 4,943 4,943 2,597 2,597 Interest rate lock commitments Level 2 1,552 1,552 — — Financial liabilities Deposits Level 2 588,382 589,017 443,208 443,645 FHLB borrowings Level 2 — — 29,000 29,285 Trust preferred securities Level 2 8,764 9,697 8,764 9,812 Other borrowings Level 2 47,157 47,157 10,912 10,912 Accrued interest payable Level 2 194 194 221 221 Forward sales commitment Level 2 3,105 3,105 — —

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2020
Segment Reporting
Schedule of segment information	The following table presents segment information as of and for the years ended December 31, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2020 Revenues Interest income $ 25,404 $ 581 $ (159) $ 25,826 Gain on sale of loans — 11,703 — 11,703 Other revenues 2,688 1,408 (242) 3,854 Total revenues 28,092 13,692 (401) 41,383 Expenses Provision for loan losses 950 — — 950 Interest expense 4,433 159 (159) 4,433 Salaries and benefits 8,867 4,053 — 12,920 Commissions — 3,312 — 3,312 Other expenses 7,784 1,187 (242) 8,729 Total operating expenses 22,034 8,711 (401) 30,344 Income before income taxes 6,058 4,981 — 11,039 Income tax expense 1,439 1,046 — 2,485 Net income $ 4,619 $ 3,935 $ — $ 8,554 Total assets $ 704,258 $ 18,604 $ (16,626) $ 706,236 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2019 Revenues Interest income $ 23,079 $ 539 $ (131) $ 23,487 Gain on sale of loans — 6,205 — 6,205 Other revenues 3,044 754 (220) 3,578 Total revenues 26,123 7,498 (351) 33,270 Expenses Provision for loan losses 135 — — 135 Interest expense 5,330 131 (131) 5,330 Salaries and benefits 9,047 3,194 — 12,241 Commissions — 1,875 — 1,875 Other expenses 7,209 1,059 (220) 8,048 Total operating expenses 21,721 6,259 (351) 27,629 Income before income taxes 4,402 1,239 — 5,641 Income tax expense 904 260 — 1,164 Net income $ 3,498 $ 979 $ — $ 4,477 Total assets $ 542,053 $ 10,924 $ (12,664) $ 540,313

Parent Corporation Only Finan_2

Parent Corporation Only Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2020
Parent Corporation Only Financial Statements
Condensed Balance Sheet	Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Balance Sheet (in thousands) December 31, December 31, 2020 2019 Assets Cash and due from banks $ 1,549 $ 1,007 Investment in subsidiaries 62,183 53,768 Investment in special purpose subsidiary 264 264 Prepaid expenses and other assets 2,438 2,284 $ 66,434 $ 57,323 Liabilities and Shareholders’ Equity Liabilities Balance due to nonbank subsidiaries $ 8,764 $ 8,764 Other borrowings 5,628 5,595 Accrued interest payable 46 47 Other liabilities — 3 Total liabilities 14,438 14,409 Shareholders’ equity Common stock 5,794 5,779 Additional paid-in capital 54,510 54,285 Accumulated deficit (8,738) (17,292) Stock in directors rabbi trust (771) (856) Directors deferred fees obligation 771 856 Accumulated other comprehensive income 430 142 Total stockholders’ equity 51,996 42,914 $ 66,434 $ 57,323
Condensed Statements of Operations and Comprehensive Income	Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Operations and Comprehensive Income Years Ended December 31, 2020 and 2019 (in thousands) 2020 2019 Income Interest income $ 4 $ 3 Dividends received from subsidiaries 1,250 1,000 Total Income 1,254 1,003 Interest expense Interest on borrowed funds 631 775 Total interest expense 631 775 Net interest expense 623 228 Noninterest expense Supplies 30 30 Professional and outside services 39 61 Other 43 42 Total noninterest expense 112 133 Net loss before undistributed income (loss) of subsidiary 511 (905) Undistributed income (loss) of subsidiary 7,888 4,192 Net income before income tax benefit 8,399 4,287 Income tax benefit (155) (190) Net income $ 8,554 $ 4,477 Total comprehensive income $ 8,842 $ 5,368
Condensed Statements of Cash Flows	Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Cash Flows Years Ended December 31, 2020 and 2019 (in thousands) 2020 2019 Cash Flows from Operating Activities Net income $ 8,554 $ 4,477 Adjustments to reconcile net income to net cash used in operating activities Amortization of debt issuance costs 33 32 Undistributed income of subsidiary (9,138) (5,192) Net change in: Other assets (154) (190) Interest Payable — — Other liabilities (3) 3 Net cash used in operating activities (708) (870) Cash Flows from Investing Activities Dividend from subsidiary 1,250 1,000 Net cash provided by investing activities 1,250 1,000 Cash Flows from Financing Activities Net cash provided by financing activities — — Net increase in cash 542 130 Cash, beginning of year 1,007 877 Cash, end of year $ 1,549 $ 1,007

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2020USD ($)segmentposition	Dec. 31, 2019USD ($)	May 19, 2020shares	May 26, 2015shares
Accounting Policies [Line Items]
Loans held for sale	$ 34,400,000
Unpaid Principal balance	32,900,000
Gain (Loss) on Sale of Mortgage Loans	$ 12,700,000
Loan Non Accrual Period	90 days
Loan Accrual Period	90 days
Contractual amount of standby letters of credit	$ 4,934,000	$ 6,732,000
Real Estate Owned, Valuation Allowance	10,000	52,000
Net unrealized gains on securities	466,000	186,000
Net unrecognized losses on defined benefit plan	(36,000)	(44,000)
Past due loans	$ 4,932,000	$ 7,523,000
Number of reportable segments | segment	2
Guaranteed student loans [Member]
Accounting Policies [Line Items]
Percentage of recovery	98.00%
Loans past due greater than 30 days [Member]
Accounting Policies [Line Items]
Past due loans	$ 3,259,000
Other Assets
Accounting Policies [Line Items]
Fair value of IRLC	1,600,000
IRLC Notional amount	$ 38,900,000
IRLC total positions | position	150
Other Liabilities
Accounting Policies [Line Items]
Fair value of forward sales commitments	$ 3,100,000
Forward sales commitments notional amount	$ 71,700,000
Forward sales commitments total positions | position	289
US Department of Education [Member]
Accounting Policies [Line Items]
Percentages Of Principal And Accrued Interest Covered By Guarantee	98.00%
United State Department of Agriculture Loans [Member]
Accounting Policies [Line Items]
Percentages Of Principal And Accrued Interest Covered By Guarantee	100.00%
Buildings and improvements
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	39 years
Maximum | Equipment
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Minimum | Equipment
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Stock Incentive Plan 2015 [Member]
Accounting Policies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares			120,000	60,000

Investment securities availab_3

Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 40,255	$ 46,700
Gross Unrealized Gains	776	352
Gross Unrealized Losses	(187)	(115)
Fair Value	40,844	46,937
U.S. Government Agencies Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,048	14,797
Gross Unrealized Gains	94	57
Gross Unrealized Losses		(9)
Fair Value	8,142	14,845
Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	23,412	25,124
Gross Unrealized Gains	645	204
Gross Unrealized Losses	(51)	(26)
Fair Value	24,006	25,302
Subordinated Debt Offering [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,795	6,779
Gross Unrealized Gains	37	91
Gross Unrealized Losses	(136)	(80)
Fair Value	$ 8,696	$ 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	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investment securities available for sale
Gross realized gains	$ 54	$ 101
Gross realized losses	(42)
Available-for-sale Securities, Gross Realized Gain (Loss), Total	$ 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	Dec. 31, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value	$ 7,222	$ 5,507
Securities in a loss position for less than 12 Months, Unrealized Losses	(62)	(33)
Securities in a loss position for more than 12 Months, Fair Value	2,807	6,308
Securities in a loss Position for more than 12 Months, Unrealized Losses	(125)	(82)
Total Fair Value	10,029	11,815
Total Unrealized Losses	(187)	(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	5,475	2,747
Securities in a loss position for less than 12 Months, Unrealized Losses	(51)	(26)
Securities in a loss position for more than 12 Months, Fair Value	0	0
Securities in a loss Position for more than 12 Months, Unrealized Losses	0	0
Total Fair Value	5,475	2,747
Total Unrealized Losses	(51)	(26)
Subordinated Debt Offering [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities in a loss position for less than 12 Months, Fair Value	1,747	759
Securities in a loss position for less than 12 Months, Unrealized Losses	(11)	(6)
Securities in a loss position for more than 12 Months, Fair Value	2,807	940
Securities in a loss Position for more than 12 Months, Unrealized Losses	(125)	(74)
Total Fair Value	4,554	1,699
Total Unrealized Losses	$ (136)	$ (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	Dec. 31, 2020	Dec. 31, 2019
Amortized Cost
Less than one year	$ 6,110
One to five years	310
Five to ten years	10,524
More than ten years	23,311
Total	40,255
Fair Value
Less than one year	6,145
One to five years	315
Five to ten years	10,473
More than ten years	23,911
Total	$ 40,844	$ 46,937

Investment securities availab_7

Investment securities available for sale - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)position	Dec. 31, 2019USD ($)position
Investment securities available for sale
Proceeds from Sale of Available-for-sale Securities, Debt	$ 7,936,000	$ 6,491,000
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 12,000	$ 101,000
Number of positions, more than 12 months | position	5	10
Securities in a loss position for more than 12 Months, Fair Value	$ 2,807,000	$ 6,308,000
Securities in a loss Position for more than 12 Months, Unrealized Losses	125,000	82,000
Available-for-sale Securities, Gross Unrealized Loss	$ 125,000	$ 82,000

Loans - Classified by type (Det

Loans - Classified by type (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 561,003	$ 429,295
Deferred fees and costs, net	(2,048)	764
Less: allowance for loan losses	(3,970)	(3,186)	$ (3,051)
Total loans, net	$ 554,985	$ 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	$ 29,569	$ 31,950
Less: allowance for loan losses	$ (499)	$ (185)	(262)
Percentage of class of loans to loan portfolio (in percent)	5.26%	7.44%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 231,224	$ 228,349
Less: allowance for loan losses	$ (2,517)	$ (1,589)	(1,435)
Percentage of class of loans to loan portfolio (in percent)	41.21%	53.19%
Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 86,580	$ 87,776
Less: allowance for loan losses	$ (269)	$ (678)	(680)
Percentage of class of loans to loan portfolio (in percent)	15.44%	20.45%
Residential [Member] | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 8,103	$ 7,887
Less: allowance for loan losses	$ (214)	$ (48)	(42)
Percentage of class of loans to loan portfolio (in percent)	1.44%	1.84%
Commercial [Member] | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 21,466	$ 24,063
Less: allowance for loan losses	$ (285)	$ (137)	(220)
Percentage of class of loans to loan portfolio (in percent)	3.82%	5.60%
Owner Occupied [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 99,784	$ 98,353
Less: allowance for loan losses	$ (1,047)	$ (671)	(673)
Percentage of class of loans to loan portfolio (in percent)	17.79%	22.91%
Non-Owner Occupied [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 121,184	$ 116,508
Less: allowance for loan losses	$ (1,421)	$ (831)	(673)
Percentage of class of loans to loan portfolio (in percent)	21.60%	27.14%
Multifamily [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 9,889	$ 13,332
Less: allowance for loan losses	$ (47)	$ (85)	(87)
Percentage of class of loans to loan portfolio (in percent)	1.75%	3.10%
Farmland [Member] | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 367	$ 156
Less: allowance for loan losses	$ (2)	$ (2)	(2)
Percentage of class of loans to loan portfolio (in percent)	0.07%	0.04%
Home equity lines [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 18,394	$ 21,509
Less: allowance for loan losses	$ (24)	$ (271)	(244)
Percentage of class of loans to loan portfolio (in percent)	3.28%	5.01%
First Deed of Trust [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 57,089	$ 55,856
Less: allowance for loan losses	$ (166)	$ (343)	(385)
Percentage of class of loans to loan portfolio (in percent)	10.18%	13.01%
Second Deed of Trust [Member] | Consumer real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 11,097	$ 10,411
Less: allowance for loan losses	$ (79)	$ (64)	(51)
Percentage of class of loans to loan portfolio (in percent)	1.98%	2.43%
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 181,088	$ 45,074
Less: allowance for loan losses	$ (408)	$ (572)	(308)
Percentage of class of loans to loan portfolio (in percent)	32.28%	10.50%
Student loans [Member] | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 29,657	$ 33,525
Less: allowance for loan losses	$ (87)	$ (108)	(121)
Percentage of class of loans to loan portfolio (in percent)	5.29%	7.81%
Consumer And Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 2,885	$ 2,621
Less: allowance for loan losses	(190)	(54)
Consumer And Other [Member] | Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,885	2,621
Less: allowance for loan losses	$ (36)	$ (30)	$ (34)
Percentage of class of loans to loan portfolio (in percent)	0.52%	0.61%

Loans - Information on PPP loan

Loans - Information on PPP loans (Details)	12 Months Ended
	Dec. 31, 2020USD ($)itemloan	Dec. 31, 2019USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of businesses and non profits funded by PPP loans | item	1,500
Number of jobs protected by PPP loans | item	20,000
Loan amount	$ 554,985,000	$ 426,873,000
SBA fee earned	$ 24,784,000	$ 22,045,000
PPP Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan	1,235
Loan amount	$ 136,674,000
SBA fee earned	$ 185,137,000
PPP loan $350,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan	1,172
Loan amount	$ 72,526,000
PPP loan $350,000 - $2 million
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan	57
Loan amount	$ 41,046,000
PPP loan > $2 million
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans granted | loan	6
Loan amount	$ 23,102,000

Loans - Summary of loans direct

Loans - Summary of loans directly or indirectly with executive officers or directors of the Company (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Loans
Beginning balance	$ 5,323	$ 5,201
Additions	11,228	8,751
Effect of changes in composition of related parties	(287)	0
Reductions	(11,592)	(8,629)
Ending balance	$ 4,672	$ 5,323

Loans - Information on nonaccru

Loans - Information on nonaccrual loans (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 1,577,000	$ 1,868,000
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	303,000	497,000
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	303,000	497,000
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	1,247,000	1,205,000
Consumer real estate | Home equity lines [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	300,000	300,000
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	630,000	842,000
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	317,000	63,000
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 27,000	$ 166,000

Loans - Information on the risk

Loans - Information on the risk rating of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 561,003	$ 429,295
Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,885	2,621
Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	536,336	412,628
Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	20,632	13,974
Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,243	2,693
Construction and land development
Financing Receivable, Recorded Investment [Line Items]
Total loans	29,569	31,950
Construction and land development | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,103	7,887
Construction and land development | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	21,466	24,063
Construction and land development | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	29,473	31,645
Construction and land development | Risk Rated 1-4 [Member] | Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,103	7,887
Construction and land development | Risk Rated 1-4 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	21,370	23,758
Construction and land development | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	96
Construction and land development | Risk Rated 5 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	96
Construction and land development | Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		305
Construction and land development | Risk Rate 6 [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		305
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	231,224	228,349
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	99,784	98,353
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	121,184	116,508
Commercial real estate | Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,889	13,332
Commercial real estate | Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	367	156
Commercial real estate | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	214,483	219,184
Commercial real estate | Risk Rated 1-4 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	88,066	90,146
Commercial real estate | Risk Rated 1-4 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	116,161	115,781
Commercial real estate | Risk Rated 1-4 [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,889	13,186
Commercial real estate | Risk Rated 1-4 [Member] | Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	367	71
Commercial real estate | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	13,649	8,533
Commercial real estate | Risk Rated 5 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,405	8,072
Commercial real estate | Risk Rated 5 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,244	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	3,092	632
Commercial real estate | Risk Rate 6 [Member] | Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,313	135
Commercial real estate | Risk Rate 6 [Member] | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	779	497
Consumer real estate
Financing Receivable, Recorded Investment [Line Items]
Total loans	86,580	87,776
Consumer real estate | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	18,394	21,509
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	57,089	55,856
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,097	10,411
Consumer real estate | Risk Rated 1-4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	80,454	83,816
Consumer real estate | Risk Rated 1-4 [Member] | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	17,298	20,486
Consumer real estate | Risk Rated 1-4 [Member] | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	53,731	53,200
Consumer real estate | Risk Rated 1-4 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,425	10,130
Consumer real estate | Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,244	2,550
Consumer real estate | Risk Rated 5 [Member] | Home equity lines [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	796	723
Consumer real estate | Risk Rated 5 [Member] | First Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,212	1,660
Consumer real estate | Risk Rated 5 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,236	167
Consumer real estate | Risk Rate 6 [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,882	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	1,146	996
Consumer real estate | Risk Rate 6 [Member] | Second Deed of Trust [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	436	114
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
Financing Receivable, Recorded Investment [Line Items]
Total loans	181,088	45,074
Commercial and industrial loans | Student loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	29,657	33,525
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,885	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	178,217	41,837
Commercial and industrial loans | Risk Rated 1-4 [Member] | Student loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	29,657	33,525
Commercial and industrial loans | Risk Rated 1-4 [Member] | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,844	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	2,602	2,891
Commercial and industrial loans | Risk Rated 5 [Member] | Consumer And Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	41
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	$ 269	$ 346

Loans - Recorded investment in

Loans - Recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 4,932	$ 7,523
Current	556,071	421,772
Total loans	561,003	429,295
Recorded Investment, 90 Days and Accruing	2,193	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	1,673	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	1,066	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	2,193	2,567
Consumer And Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	2,885	2,621
Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	29,569	31,950
Total loans	29,569	31,950
Construction and land development | Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,103	7,887
Total loans	8,103	7,887
Construction and land development | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	21,466	24,063
Total loans	21,466	24,063
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	86	701
Current	231,138	227,648
Total loans	231,224	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	86	701
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	86	701
Current	99,698	97,652
Total loans	99,784	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	86	701
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	121,184	116,508
Total loans	121,184	116,508
Commercial real estate | Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,889	13,332
Total loans	9,889	13,332
Commercial real estate | Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	367	156
Total loans	367	156
Consumer real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	190	475
Current	86,390	87,301
Total loans	86,580	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	133	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	57
Consumer real estate | Home equity lines [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due		52
Current	18,394	21,457
Total loans	18,394	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		52
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	133	290
Current	56,956	55,566
Total loans	57,089	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	133	290
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	11,040	10,278
Total loans	11,097	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		133
Consumer real estate | Second 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	57
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	25	773
Current	181,063	44,301
Total loans	181,088	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	25	773
Commercial and industrial loans | Student loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	4,630	5,570
Current	25,027	27,955
Total loans	29,657	33,525
Recorded Investment, 90 Days and Accruing	2,193	2,567
Commercial and industrial loans | 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	1,428	1,694
Commercial and industrial loans | 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	1,009	1,309
Commercial and industrial loans | 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	2,193	2,567
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	1	4
Current	2,884	2,617
Total loans	2,885	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	$ 1	$ 4

Loans - Impaired loans (Details

Loans - Impaired loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Total
Recorded Investment	$ 0	$ 0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Construction and land development
With no related allowance recorded
Recorded Investment		337
Unpaid Principal Balance		337
Total
Recorded Investment		337
Unpaid Principal Balance		337
Construction and land development | Commercial [Member]
With no related allowance recorded
Recorded Investment		337
Unpaid Principal Balance		337
Total
Recorded Investment	0	337
Unpaid Principal Balance	0	337
Related Allowance	0	0
Commercial real estate
With no related allowance recorded
Recorded Investment	4,771	4,393
Unpaid Principal Balance	4,786	4,408
With an allowance recorded
Recorded Investment	1,125	1,414
Unpaid Principal Balance	1,125	1,414
Related Allowance	9
Total
Recorded Investment	5,896	5,807
Unpaid Principal Balance	5,911	5,822
Related Allowance	9	15
Commercial real estate | Owner Occupied [Member]
With no related allowance recorded
Recorded Investment	2,780	2,089
Unpaid Principal Balance	2,795	2,104
With an allowance recorded
Recorded Investment	1,125	1,414
Unpaid Principal Balance	1,125	1,414
Total
Recorded Investment	3,905	3,503
Unpaid Principal Balance	3,920	3,518
Related Allowance	9	15
Commercial real estate | Non-Owner Occupied [Member]
With no related allowance recorded
Recorded Investment	1,991	2,304
Unpaid Principal Balance	1,991	2,304
Total
Recorded Investment	1,991	2,304
Unpaid Principal Balance	1,991	2,304
Consumer real estate
With no related allowance recorded
Recorded Investment	2,936	2,804
Unpaid Principal Balance	3,232	3,034
With an allowance recorded
Recorded Investment	74	78
Unpaid Principal Balance	74	78
Related Allowance	8	9
Total
Recorded Investment	3,010	2,882
Unpaid Principal Balance	3,306	3,112
Related Allowance	8	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	1,937	1,752
Unpaid Principal Balance	1,940	1,774
With an allowance recorded
Recorded Investment	74	78
Unpaid Principal Balance	74	78
Total
Recorded Investment	2,011	1,830
Unpaid Principal Balance	2,014	1,852
Related Allowance	8	9
Consumer real estate | Second Deed of Trust [Member]
With no related allowance recorded
Recorded Investment	699	752
Unpaid Principal Balance	992	960
Total
Recorded Investment	699	752
Unpaid Principal Balance	992	960
Commercial and industrial loans
With no related allowance recorded
Recorded Investment	7,848	7,745
Unpaid Principal Balance	8,159	8,152
With an allowance recorded
Recorded Investment	1,199	1,627
Unpaid Principal Balance	1,199	1,826
Related Allowance	17	159
Total
Recorded Investment	9,047	9,372
Unpaid Principal Balance	9,358	9,978
Related Allowance	17	159
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
With no related allowance recorded
Recorded Investment	141	211
Unpaid Principal Balance	141	373
With an allowance recorded
Recorded Investment		135
Unpaid Principal Balance		334
Total
Recorded Investment	141	346
Unpaid Principal Balance	$ 141	707
Related Allowance		$ 135

Loans - Average recorded invest

Loans - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
With no related allowance recorded
Average Recorded Investment	$ 8,712	$ 9,573
Interest Income Recognized	349	423
With an allowance recorded
Average Recorded Investment	1,144	1,829
Interest Income Recognized	36	50
Total
Average Recorded Investment	9,856	11,402
Interest Income Recognized	385	473
Construction and land development
With no related allowance recorded
Average Recorded Investment	221	410
Total
Average Recorded Investment	221	410
Construction and land development | Residential [Member]
With no related allowance recorded
Average Recorded Investment		81
Total
Average Recorded Investment		81
Construction and land development | Commercial [Member]
With no related allowance recorded
Average Recorded Investment	221	329
Total
Average Recorded Investment	221	329
Commercial real estate
With no related allowance recorded
Average Recorded Investment	5,169	5,129
Interest Income Recognized	213	271
With an allowance recorded
Average Recorded Investment	913	1,432
Interest Income Recognized	32	43
Total
Average Recorded Investment	6,082	6,561
Interest Income Recognized	213	314
Commercial real estate | Owner Occupied [Member]
With no related allowance recorded
Average Recorded Investment	3,189	2,695
Interest Income Recognized	124	143
With an allowance recorded
Average Recorded Investment	913	1,432
Interest Income Recognized	32	43
Total
Average Recorded Investment	4,102	4,127
Interest Income Recognized	156	186
Commercial real estate | Non-Owner Occupied [Member]
With no related allowance recorded
Average Recorded Investment	1,980	2,434
Interest Income Recognized	89	128
Total
Average Recorded Investment	1,980	2,434
Interest Income Recognized	89	128
Consumer real estate
With no related allowance recorded
Average Recorded Investment	3,171	3,408
Interest Income Recognized	135	135
With an allowance recorded
Average Recorded Investment	102	166
Interest Income Recognized	4	6
Total
Average Recorded Investment	3,273	3,574
Interest Income Recognized	135	141
Consumer real estate | Home equity lines [Member]
With no related allowance recorded
Average Recorded Investment	300	318
Interest Income Recognized	23	19
Total
Average Recorded Investment	300	318
Interest Income Recognized	23	19
Consumer real estate | First Deed of Trust [Member]
With no related allowance recorded
Average Recorded Investment	2,069	2,280
Interest Income Recognized	66	76
With an allowance recorded
Average Recorded Investment	76	166
Interest Income Recognized	4	6
Total
Average Recorded Investment	2,145	2,446
Interest Income Recognized	70	82
Consumer real estate | Second Deed of Trust [Member]
With no related allowance recorded
Average Recorded Investment	802	810
Interest Income Recognized	46	40
With an allowance recorded
Average Recorded Investment	26
Total
Average Recorded Investment	828	810
Interest Income Recognized	46	40
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate)
With no related allowance recorded
Average Recorded Investment	151	626
Interest Income Recognized	1	17
With an allowance recorded
Average Recorded Investment	129	225
Interest Income Recognized		1
Total
Average Recorded Investment	280	851
Interest Income Recognized	$ 1	18
Commercial and industrial loans | Consumer And Other [Member]
With an allowance recorded
Average Recorded Investment		6
Total
Average Recorded Investment		$ 6

Loans - Nonaccrual TDRs and the

Loans - Nonaccrual TDRs and the related specific valuation allowance by portfolio segment (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 7,491	$ 8,410
Number of Loans	34	38
Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 17	$ 24
Number of Loans	2	3
Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 6,550	$ 7,059
Number of Loans	27	29
Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 941	$ 1,351
Number of Loans	7	9
Commercial real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 5,387	$ 5,806
Commercial real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment		15
Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	5,084	5,309
Commercial real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	303	497
Consumer real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	2,077	2,393
Consumer real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	17	9
Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	1,466	1,570
Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	611	823
Owner Occupied [Member] | Commercial real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	3,396	3,502
Owner Occupied [Member] | Commercial real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment		15
Owner Occupied [Member] | Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	3,396	3,502
Non-Owner Occupied [Member] | Commercial real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 1,991	$ 2,304
Number of Loans | loan	1	1
Non-Owner Occupied [Member] | Commercial real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	$ 1,688	$ 1,807
Non-Owner Occupied [Member] | Commercial real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	303	497
First Deed of Trust [Member] | Consumer real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	1,460	1,641
First Deed of Trust [Member] | Consumer real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	9	9
First Deed of Trust [Member] | Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	910	881
First Deed of Trust [Member] | Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	550	760
Second Deed of Trust [Member] | Consumer real estate
Information concerning Troubled Debt Restructurings
Recorded Investment	617	752
Second Deed of Trust [Member] | Consumer real estate | Specific Valuation Allowance [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	8
Second Deed of Trust [Member] | Consumer real estate | Performing Financing Receivable [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	556	689
Second Deed of Trust [Member] | Consumer real estate | Nonperforming Financial Instruments [Member]
Information concerning Troubled Debt Restructurings
Recorded Investment	61	63
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans
Information concerning Troubled Debt Restructurings
Recorded Investment	27	211
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
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	$ 27	$ 31

Loans - Information about TDRs

Loans - Information about TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans	34	38
Consumer Real Estate Secured By 1-4 Family Residential [Member]
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans | loan	1	1
Pre-Modification Recorded Investment	$ 311	$ 515
Post-Modification Recorded Investment	$ 311	$ 515
Commercial real estate | Non-Owner Occupied [Member]
Information About Tdrs Identified During Period Line Items [Line Items]
Number of Loans | loan	1	1
Pre-Modification Recorded Investment	$ 311	$ 515
Post-Modification Recorded Investment	$ 311	$ 515

Loans - Additional Information

Loans - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Pledged as Collateral	$ 65,587,000	$ 49,736,000
TDRs	34,000	38,000
Defaults on TDRs that were modified as TDRs | loan	0	0
Loans and Leases Receivable, Allowance	$ 3,970,000	$ 3,186,000	$ 3,051,000
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	1,507,000	2,806,000
Financing Receivable, Allowance for Credit Losses	0	135,000
Impaired Financing Receivable, Interest Income, Cash Basis Method	84,000	136,000
Provision for loan losses	950,000	135,000
Amount of loans under modified terms	$ 38,000,000
Student loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Percentage Of Recovery Loss On Portfolio From Historical Experience	98.00%
Unallocated Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Allowance	$ 154,000	$ 24,000

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance for loan losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 3,186	$ 3,051
Provision for (Recovery of) Loan Losses	950	135
Charge-offs	(292)	(218)
Recoveries	126	218
Ending Balance	3,970	3,186
Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	54
Ending Balance	190	54
Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	185	262
Provision for (Recovery of) Loan Losses	289	(86)
Recoveries	25	9
Ending Balance	499	185
Construction and land development | Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	48	42
Provision for (Recovery of) Loan Losses	141	(1)
Recoveries	25	7
Ending Balance	214	48
Construction and land development | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	137	220
Provision for (Recovery of) Loan Losses	148	(85)
Recoveries		2
Ending Balance	285	137
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,589	1,435
Provision for (Recovery of) Loan Losses	928	154
Ending Balance	2,517	1,589
Commercial real estate | Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	671	673
Provision for (Recovery of) Loan Losses	376	(2)
Ending Balance	1,047	671
Commercial real estate | Non-Owner Occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	831	673
Provision for (Recovery of) Loan Losses	590	158
Ending Balance	1,421	831
Commercial real estate | Multifamily [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	85	87
Provision for (Recovery of) Loan Losses	(38)	(2)
Ending Balance	47	85
Commercial real estate | Farmland [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	2	2
Ending Balance	2	2
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	678	680
Provision for (Recovery of) Loan Losses	(392)	(62)
Charge-offs	(85)	(35)
Recoveries	68	95
Ending Balance	269	678
Consumer real estate | Home equity lines [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	271	244
Provision for (Recovery of) Loan Losses	(247)	50
Charge-offs		(35)
Recoveries		12
Ending Balance	24	271
Consumer real estate | First Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	343	385
Provision for (Recovery of) Loan Losses	(190)	(56)
Recoveries	13	14
Ending Balance	166	343
Consumer real estate | Second Deed of Trust [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	64	51
Provision for (Recovery of) Loan Losses	45	(56)
Charge-offs	(85)
Recoveries	55	69
Ending Balance	79	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	572	308
Provision for (Recovery of) Loan Losses	(58)	239
Charge-offs	(135)	(64)
Recoveries	29	89
Ending Balance	408	572
Commercial and industrial loans | Student loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	108	121
Provision for (Recovery of) Loan Losses	27	80
Charge-offs	(48)	(93)
Ending Balance	87	108
Commercial and industrial loans | Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	30	34
Provision for (Recovery of) Loan Losses	26	(3)
Charge-offs	(24)	(26)
Recoveries	4	25
Ending Balance	36	30
Commercial and industrial loans | Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	24	211
Provision for (Recovery of) Loan Losses	130	(187)
Ending Balance	$ 154	$ 24

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	$ 3,970	$ 3,186	$ 3,051
Allowance Individually Evaluated for Impairment	17	159
Allowance Collectively Evaluated for Impairment	3,953	3,027
Loans Ending Balance	561,003	429,295
Loans Individually Evaluated for Impairment	9,047	9,372
Loans Collectively Evaluated for Impairment	551,956	419,923
Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	499	185	262
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	499	185
Loans Ending Balance	29,569	31,950
Loans Individually Evaluated for Impairment		337
Loans Collectively Evaluated for Impairment	29,569	31,613
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	2,517	1,589	1,435
Allowance Individually Evaluated for Impairment	9	15
Allowance Collectively Evaluated for Impairment	2,508	1,574
Loans Ending Balance	231,224	228,349
Loans Individually Evaluated for Impairment	5,896	5,807
Loans Collectively Evaluated for Impairment	225,328	222,542
Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	269	678	680
Allowance Individually Evaluated for Impairment	8	9
Allowance Collectively Evaluated for Impairment	261	669
Loans Ending Balance	86,580	87,776
Loans Individually Evaluated for Impairment	3,010	2,882
Loans Collectively Evaluated for Impairment	83,570	84,894
Residential [Member] | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	214	48	42
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	214	48
Loans Ending Balance	8,103	7,887
Loans Individually Evaluated for Impairment		0
Loans Collectively Evaluated for Impairment	8,103	7,887
Commercial [Member] | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	285	137	220
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	285	137
Loans Ending Balance	21,466	24,063
Loans Individually Evaluated for Impairment		337
Loans Collectively Evaluated for Impairment	21,466	23,726
Owner Occupied [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	1,047	671	673
Allowance Individually Evaluated for Impairment	9	15
Allowance Collectively Evaluated for Impairment	1,038	656
Loans Ending Balance	99,784	98,353
Loans Individually Evaluated for Impairment	3,905	3,503
Loans Collectively Evaluated for Impairment	95,879	94,850
Non-Owner Occupied [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	1,421	831	673
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	1,421	831
Loans Ending Balance	121,184	116,508
Loans Individually Evaluated for Impairment	1,991	2,304
Loans Collectively Evaluated for Impairment	119,193	114,204
Multifamily [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	47	85	87
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	47	85
Loans Ending Balance	9,889	13,332
Loans Individually Evaluated for Impairment		0
Loans Collectively Evaluated for Impairment	9,889	13,332
Farmland [Member] | Commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	2	2	2
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	2	2
Loans Ending Balance	367	156
Loans Individually Evaluated for Impairment		0
Loans Collectively Evaluated for Impairment	367	156
Home equity lines [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	24	271	244
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	24	271
Loans Ending Balance	18,394	21,509
Loans Individually Evaluated for Impairment	300	300
Loans Collectively Evaluated for Impairment	18,094	21,209
First Deed of Trust [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	166	343	385
Allowance Individually Evaluated for Impairment	8	9
Allowance Collectively Evaluated for Impairment	158	334
Loans Ending Balance	57,089	55,856
Loans Individually Evaluated for Impairment	2,011	1,830
Loans Collectively Evaluated for Impairment	55,078	54,026
Second Deed of Trust [Member] | Consumer real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	79	64	51
Allowance Collectively Evaluated for Impairment	79	64
Loans Ending Balance	11,097	10,411
Loans Individually Evaluated for Impairment	699	752
Loans Collectively Evaluated for Impairment	10,398	9,659
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	408	572	308
Allowance Individually Evaluated for Impairment		135
Allowance Collectively Evaluated for Impairment	408	437
Loans Ending Balance	181,088	45,074
Loans Individually Evaluated for Impairment	141	346
Loans Collectively Evaluated for Impairment	180,947	44,728
Student loans [Member] | Commercial and industrial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	87	108	121
Allowance Individually Evaluated for Impairment		0
Allowance Collectively Evaluated for Impairment	87	108
Loans Ending Balance	29,657	33,525
Loans Individually Evaluated for Impairment		0
Loans Collectively Evaluated for Impairment	29,657	33,525
Consumer And Other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	190	54
Allowance Collectively Evaluated for Impairment	190	54
Loans Ending Balance	2,885	2,621
Loans Collectively Evaluated for Impairment	2,885	2,621
Consumer And Other [Member] | Commercial and industrial loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance Ending Balance	36	30	$ 34
Loans Ending Balance	$ 2,885	$ 2,621

Allowance for Loan Losses - Add

Allowance for Loan Losses - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Provision for loan losses	$ 950,000	$ 135,000
Loans and Leases Receivable, Allowance	3,970,000	3,186,000	$ 3,051,000
Unallocated Financing Receivable [Member]
Loans and Leases Receivable, Allowance	$ 154,000	$ 24,000

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 22,762	$ 22,432
Less: Accumulated depreciation and amortization	(10,983)	(10,396)
Premises and equipment, net	11,779	12,036
Land [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment	4,352	4,352
Buildings and improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	10,796	10,601
Furniture fixtures and equipments [Member]
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 7,614	$ 7,479

Premises and Equipment - Additi

Premises and Equipment - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Premises and Equipment
Depreciation, Depletion and Amortization	$ 586,000	$ 644,000

Investment in Bank Owned Life_2

Investment in Bank Owned Life Insurance - (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Investment in Bank Owned Life Insurance
Bank owned life insurance, face amount	$ 13,730,000
Cash surrender value	$ 7,806,000	$ 7,612,000

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deposits
Demand accounts	$ 222,305	$ 131,228
Interest checking accounts	70,342	48,427
Money market accounts	152,726	99,955
Savings accounts	38,083	26,396
Other time deposits	88,912	114,875
Total	$ 588,382	$ 443,208
Percentage of individual deposits to deposit liability
Demand accounts (in hundredths)	37.80%	29.60%
Interest checking accounts(in hundredths)	11.90%	10.90%
Money market accounts (in hundredths)	26.00%	22.60%
Savings account (in hundredths)	6.50%	6.00%
Time deposits of $250,000 and over (in hundredths)	2.70%	5.00%
Other time deposits (in hundredths)	15.10%	25.90%
Total (in hundredths)	100.00%	100.00%
Geographic Distribution, Domestic [Member]
Deposits
Time deposits of $250,000 and over	$ 16,014	$ 22,327

Deposits - Maturities of time d

Deposits - Maturities of time deposits (Details) $ in Thousands	Dec. 31, 2020USD ($)
Time deposit [Line Items]
2021	$ 75,413
2022	19,986
2023	6,048
2024	1,338
2025	2,141
Time Deposits	104,926
Less Than 250,000 [Member]
Time deposit [Line Items]
2021	64,064
2022	15,583
2023	5,786
2024	1,338
2025	2,141
Time Deposits	88,912
Greater than or Equal to 250,000 [Member]
Time deposit [Line Items]
2021	11,349
2022	4,403
2023	262
2025	0
Time Deposits	$ 16,014

Deposits - Additional Informati

Deposits - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Time Deposits, Fiscal Year Maturity [Abstract]
Related Party Deposit Liabilities Percentage	5.00%
Related Party Deposit Liabilities	$ 14,159,000	$ 15,067,000

Borrowings - Advances from the

Borrowings - Advances from the FHLB (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Federal Home Loan Bank, Advances [Line Items]
Advances from Federal Home Loan Banks	$ 29,000
Federal Home Loan Bank, Advances One [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Variable
Federal Home Loan Bank, Advances, Date	Jun. 29, 2020
Federal Home Loan Bank, Advances, Interest Rate	1.78%
Advances from Federal Home Loan Banks	$ 8,000
Federal Home Loan Bank, Advances Two [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Jun. 28, 2021
Federal Home Loan Bank, Advances, Interest Rate	2.854%
Advances from Federal Home Loan Banks	$ 3,000
Federal Home Loan Bank, Advances Three [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Jul. 6, 2020
Federal Home Loan Bank, Advances, Interest Rate	2.77%
Advances from Federal Home Loan Banks	$ 5,000
Federal Home Loan Bank Advances Four [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Sep. 27, 2021
Federal Home Loan Bank, Advances, Interest Rate	3.102%
Advances from Federal Home Loan Banks	$ 2,000
Federal Home Loan Bank Advances Five [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Sep. 25, 2023
Federal Home Loan Bank, Advances, Interest Rate	3.212%
Advances from Federal Home Loan Banks	$ 2,000
Federal Home Loan Bank Advances Six [Member]
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Nov. 15, 2021
Federal Home Loan Bank, Advances, Interest Rate	3.149%
Advances from Federal Home Loan Banks	$ 6,500
Federal Home Loan Bank Advances Seven Member
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank, Advances, Interest Rate, Type	Fixed Rate
Federal Home Loan Bank, Advances, Date	Dec. 11, 2023
Federal Home Loan Bank, Advances, Interest Rate	3.289%
Advances from Federal Home Loan Banks	$ 2,500

Borrowings - Information relate

Borrowings - Information related to borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Federal Funds Purchased
Debt Instrument [Line Items]
Maximum outstanding during the year FHLB advances	$ 4,559	$ 6,594
Balance outstanding at end of year FHLB advances	0	5,317
Average amount outstanding during the year FHLB advances	$ 91	$ 456
Average interest rate during the year FHLB advances	1.65%	2.32%
Average interest rate at end of year FHLB advances	0.00%	2.54%
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Maximum outstanding during the year FHLB advances	$ 51,000	$ 31,000
Balance outstanding at end of year FHLB advances	0	29,000
Average amount outstanding during the year FHLB advances	$ 27,785	$ 22,693
Average interest rate during the year FHLB advances	2.17%	3.05%
Average interest rate at end of year FHLB advances	0.00%	2.69%
PPPLF
Debt Instrument [Line Items]
Maximum outstanding during the year FHLB advances	$ 45,120
Balance outstanding at end of year FHLB advances	41,529
Average amount outstanding during the year FHLB advances	$ 28,857
Average interest rate during the year FHLB advances	0.35%	0.00%
Average interest rate at end of year FHLB advances	0.35%	0.00%

Borrowings - Additional informa

Borrowings - Additional information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances [Line Items]
Federal Home Loan Bank Stock	$ 484,000	$ 1,694,000
Long-term Federal Home Loan Bank Advances	0	$ 29,000,000
Line of Credit Facility, Remaining Borrowing Capacity	93,100,000
Prepayment fees on FHLB advances	696,000
PPPLF
Federal Home Loan Bank, Advances [Line Items]
Current borrowing capacity	41,500,000
Unused borrowing capacity	95,200,000
Federal Home Loan Bank Advances [Member]
Federal Home Loan Bank, Advances [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	50,300,000
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

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Net operating loss carryforward	$ 217	$ 2,995
Capital loss carryforward	25	25
State net operating loss carryforward		97
AMT credit		11
Allowance for loan losses	834	669
Deferred Cost, net of fees	430
Interest on nonaccrual loans	18	29
Expenses and writedowns related to foreclosed property	66	97
Stock compensation	34	10
Employee benefits	794	792
Pension expense	3	8
Depreciation	31	134
Other, net	29	11
Total deferred tax assets	2,481	4,878
Deferred tax liabilities
Unrealized gain on available for sale securities	124	50
Total deferred tax liabilities	124	50
Net deferred tax asset	$ 2,357	$ 4,828

Income Taxes - Provision for in

Income Taxes - Provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Current tax expense (benefit)	$ 92	$ (33)
Deferred tax expense	2,393	1,197
Provision for income taxes	$ 2,485	$ 1,164

Income Taxes - Effective income

Income Taxes - Effective income tax rate reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Net income before income taxes	$ 11,039	$ 5,641
Computed "expected" tax expense	2,318	1,185
State taxes, net of fed	201	15
Cash surrender value of life insurance	(41)	(37)
Other	7	1
Provision for income taxes	$ 2,485	$ 1,164

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Operating Loss Carryforwards	$ 1,031,000
Taxes, Other	$ 439,000	$ 385,000

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Numerator
Net income - basic and diluted	$ 8,554	$ 4,477
Denominator
Weighted average shares outstanding - basic (in shares)	1,459	1,445
Dilutive effect of common stock options (in shares)	0	0
Weighted average shares outstanding - diluted (in shares)	1,459	1,445
Earnings per share - basic (in dollars per share)	$ 5.86	$ 3.10
Earnings per share - diluted (in dollars per share)	$ 5.86	$ 3.10

Earnings per share - Additional

Earnings per share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 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	4,155
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	592	555

Lease Commitments (Details)

Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lease Commitments
Lease liabilities	$ 930	$ 1,027
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities.	Other Liabilities.
Right-of-use assets	$ 916	$ 1,015
Weighted average remaining lease term	5 years 18 days	4 years 3 months 15 days
Weighted average discount rate	2.39%	2.98%
Lease cost
Operating lease cost	$ 427	$ 427
Total lease cost	$ 427	$ 427

Lease Commitments - Summary of

Lease Commitments - Summary of maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Lease payments due
Twelve months ending December 31, 2021	$ 337
Twelve months ending December 31, 2022	181
Twelve months ending December 31, 2023	106
Twelve months ending December 31, 2024	111
Twelve months ending December 31, 2025	102
Thereafter	154
Total undiscounted cash flows	991
Discount	61
Lease liabilities	$ 930	$ 1,027

Lease Commitments - Additional

Lease Commitments - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lease Commitments
Operating Lease, Expense	$ 427,000	$ 427,000
Operating Lease, Payments	$ 378,000	$ 415,000

Commitments and contingencies_2

Commitments and contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	$ 150,974	$ 105,820
Standby letters of Credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	4,934	6,732
Undisbursed credit lines
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	107,130	83,366
Commitments to extend or originate credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total commitments to extend credit	$ 38,910	$ 15,722

Shareholders' Equity and Regu_3

Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Shareholders' Equity and Regulatory Matters
Net unrealized gains on securities	$ 466,000	$ 186,000
Net unrecognized losses on defined benefit plan	(36,000)	(44,000)
Total accumulated other comprehensive income	$ 430,000	$ 142,000

Shareholders' Equity and Regu_4

Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands	Dec. 31, 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
For Capital Adequacy Purposes (in percentage)	4
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%
Maximum
Total capital (to risk- weighted assets) Village Bank, Ratio
Actual Ratio (in percentage)	10.5
Tier 1 capital (to risk-capital to average assets), Ratio
For Capital Adequacy Purposes (in percentage)	8
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio
For Capital Adequacy Purposes (in percentage)	7.00%
Minimum
Total capital (to risk- weighted assets) Village Bank, Ratio
Actual Ratio (in percentage)	8.5
Tier 1 capital (to risk-capital to average assets), Ratio
For Capital Adequacy Purposes (in percentage)	6
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio
For Capital Adequacy Purposes (in percentage)	4.50%
Subsidiaries [Member]
Total capital (to risk- weighted assets) Village Bank, Amount
Actual Amount	$ 65,723	$ 54,653
For Capital Adequacy Purposes	37,015	26,015
To be Well Capitalized Amount	$ 46,269	$ 43,508
Total capital (to risk- weighted assets) Village Bank, Ratio
Actual Ratio (in percentage)	14.20	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	$ 61,753	$ 34,807
For Capital Adequacy Purposes	27,761	52,867
To be Well Capitalized Amount	$ 37,015	$ 34,807
Tier 1 capital (to risk-capital to average assets), Ratio
Actual Ratio (in percentage)	13.35	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	$ 61,753	$ 52,867
For Capital Adequacy Purposes	26,607	21,823
To be Well Capitalized Amount	$ 33,259	$ 27,278
Leverage ratio (Tier 1 capital to average assets), Ratio
Actual Ratio (in percentage)	9.28	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	$ 61,753	$ 52,867
For Capital Adequacy Purposes	20,821	19,579
To be Well Capitalized Amount	$ 30,075	$ 28,280
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio
Actual Ratio (in percentage)	13.35%	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 ($)shares	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
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
Stock Redeemed or Called During Period, Shares | shares		5,027
Dividends Payable		$ 56,554
Deferred Tax Liabilities, Gross			$ 124,000	$ 50,000
Preference Stock Issued During Period Value New Issues	$ 14,738,000
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
Capital Conservation Buffer Percentage			2.5
Village Financial Statutory Trust II [Member]
Deferred Tax Liabilities, Gross			$ 114,000	$ 38,000

Stock incentive plan - Options

Stock incentive plan - Options outstanding under company's stock incentive plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Options
Options outstanding, beginning of period	734	734
Granted	0	0
Forfeited	0
Exercised		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
Exercised		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
Exercised		0
Options outstanding, end of period	$ 9.76	$ 9.76
Intrinsic Value Options outstanding	$ 0	$ 0

Stock Incentive Plans - stock o

Stock Incentive Plans - stock options outstanding (Details)	12 Months Ended
	Dec. 31, 2020$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower range (in dollars per share)	$ 25.28
Range of Exercise Prices, upper range (in dollars per share)	$ 25.76
Outstanding Number of Options (in shares) | shares	734
Outstanding Weighted Average Remaining Years of Contractual Life	0 years
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 25.63
Exercisable Number of Options (in shares) | shares	734
Exercisable Weighted Average Exercise Price (in dollars per share)	$ 25.63
$25.28-$25.76 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Outstanding Number of Options (in shares) | shares	734
Outstanding Weighted Average Remaining Years of Contractual Life	0 years
Outstanding Weighted Average Exercise Price (in dollars per share)	$ 25.63
Exercisable Number of Options (in shares) | shares	734
Exercisable Weighted Average Exercise Price (in dollars per share)	$ 25.63

Stock incentive plan - Non vest

Stock incentive plan - Non vested restricted stock award (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	4,155
Ending Balance	6,573	4,155
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance	12,310
Shares, Granted	17,798
Shares, Vested	(4,731)
Shares, Forfeited	(1,094)	(8,274)
Shares, Other	(246)
Ending Balance	24,529	12,310
Weighted-Average Grant-Date Fair-Value, Beginning Balance	$ 33.83
Weighted-Average Grant-Date Fair-Value, Granted	29.67
Weighted-Average Grant-Date Fair-Value, Vested	33.83
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	$ 30.87	$ 33.83
Aggregate Intrinsic Value, Beginning Balance	$ 423,341
Aggregate Intrinsic Value, Granted	612,073
Aggregate Intrinsic Value, Vested	(162,699)
Aggregate Intrinsic Value, Forfeited	(37,623)
Aggregate Intrinsic Value, Other	(8,460)
Aggregate Intrinsic Value, Ending Balance	$ 843,552	$ 423,341

Stock incentive plan - Addition

Stock incentive plan - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	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	4,155
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 455,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 3 months 11 days
Allocated Share-based Compensation Expense	$ 240,000	$ 413,000
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, Nonvested, Number, Beginning Balance	24,529	12,310
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 593,000	$ 364,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	1,094	8,274
Performance Shares [Member] | Maximum
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
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio	0.00%	0.00%

Trust preferred securities (Det

Trust preferred securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
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]
Debt Instrument, Issuance Date	Feb. 24, 2005
Trust preferred capital notes	$ 5,200
Debt Instrument, Basis Spread on Variable Rate	2.15%
Interest rate (in hundredths)	2.38%	4.06%
Maturity date	Mar. 15, 2035
Principal assets of the trust	$ 5,200
Village Financial Statutory Trust II [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date	Sep. 20, 2007
Trust preferred capital notes	$ 3,600
Debt Instrument, Basis Spread on Variable Rate	1.40%
Interest rate (in hundredths)	1.63%	3.31%
Maturity date	Dec. 31, 2037
Principal assets of the trust	$ 3,600

Subordinated Debt Offering (Det

Subordinated Debt Offering (Details) - USD ($)	Mar. 21, 2018	Dec. 31, 2020	Dec. 31, 2019
Proceeds from Issuance of Subordinated Long-term Debt	$ 5,539,000
Subordinated Debt.		$ 5,628,000	$ 5,595,000
Subordinated Debt Offering [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%

Retirement Plans - Additional I

Retirement Plans - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan Contributions Made by Employer and Employee	$ 420,000	$ 351,000
Bank Owned Life Insurance Income	$ 194,000	171,000
Defined Contribution Plan, Description	The Bank provided a matching contribution of 100% of the first 1% the participant contributes, and then 50% of the next 5% of their salary, totaling a maximum 3.5%. Participants are always fully vested in their own contributions, and the Bank's matching contributions vest 100% after two years of service.
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	100.00%
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax	$ 9,000	9,000
Supplemental Employee Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Bank Owned Life Insurance Income	$ 194,000	171,000
Defined Contribution Retirement Plan Participant Approval Period	60 days
Deferred Compensation Arrangement with Individual, Requisite Service Period	10 years
Liability, Defined Benefit Plan	$ 2,524,000	2,546,000
Defined Contribution Plan, Cost	133,000	513,000
Directors Deferral Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability, Defined Benefit Plan	524,000	419,000
Defined Contribution Plan, Cost	111,000	109,000
Common Stock, Shares Held in Employee Trust	$ 771,000	$ 856,000
Common Stock, Shares Held in Employee Trust, Shares	37,290	40,875

Fair value - Recurring and non

Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans held for sale	$ 34,400
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	34,421	$ 12,722
Financial Liabilities-Recurring Forward sales commitment	3,105	0
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		1,468
Assets held for sale		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]
US Government Agencies		0
Mortgage-backed securities		0
Subordinated debt		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]
US Government Agencies	8,142	14,845
Mortgage-backed securities	24,006	25,302
Subordinated debt	8,446	6,540
Loans held for sale	34,421
IRLC	1,552
Financial Liabilities-Recurring Forward sales commitment	3,105
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
US Government Agencies		0
Mortgage-backed securities		0
Subordinated debt	250	250
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
US Government Agencies	8,142	14,845
Mortgage-backed securities	24,006	25,302
Subordinated debt	8,696	6,790
Loans held for sale	34,421
IRLC	1,552
Financial Liabilities-Recurring Forward sales commitment	3,105
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
Assets held for sale		0
Other real estate owned		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
Assets held for sale		0
Other real estate owned		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		1,468
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		1,468
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	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
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]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	Appraisal or Internal Valuation	Appraisal or Internal Valuation
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum
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
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%
Impaired Loans Real Estate Secured [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure		$ 1,468
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques		Appraisal or Internal Valuation
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum
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%
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum
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%
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%
Discount for lack of marketability and age of appraisal		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]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques		Appraisal or Discounted Cash Flow
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum
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
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%

Fair value - Carrying amounts a

Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets
Investment securities available for sale, at fair value	$ 40,844	$ 46,937
Loans held for sale	34,400
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member]
Financial assets
Cash	12,709	19,967
Investment securities available for sale, at fair value	1,193	0
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Cash	12,709	19,967
Investment securities available for sale, at fair value	1,193	0
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member]
Financial assets
Cash equivalents	30,742	0
Investment securities available for sale, at fair value	39,401	46,687
Federal Home Loan Bank stock	484	1,694
Loans held for sale	34,421	12,722
Accrued interest receivable	4,943	2,597
Interest rate lock commitments	1,552	0
Financial liabilities
Deposits	588,382	443,208
FHLB borrowings		29,000
Trust preferred securities	8,764	8,764
Other borrowings	47,157	10,912
Accrued interest payable	194	221
Forward sales commitment	3,105	0
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Cash equivalents	30,742	0
Investment securities available for sale, at fair value	39,401	46,687
Federal Home Loan Bank stock	484	1,694
Loans held for sale	34,421	12,722
Accrued interest receivable	4,943	2,597
Interest rate lock commitments	1,552	0
Financial liabilities
Deposits	589,017	443,645
FHLB borrowings		29,285
Trust preferred securities	9,697	9,812
Other borrowings	47,157	10,912
Accrued interest payable	194	221
Forward sales commitment	3,105	0
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member]
Financial assets
Investment securities available for sale, at fair value	250	250
Loans	561,003	427,827
Impaired loans		1,468
Assets held for sale		514
Other real estate owned	336	526
Bank owned life insurance	7,806	7,612
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Financial assets
Investment securities available for sale, at fair value	250	250
Loans	562,362	429,254
Impaired loans		1,468
Assets held for sale		514
Other real estate owned	336	526
Bank owned life insurance	$ 7,806	$ 7,612

Segment Reporting - Segment inf

Segment Reporting - Segment information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)segment	Dec. 31, 2019USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segment	2
Revenues
Interest income	$ 25,826	$ 23,487
Gain on sale of loans	11,703	6,205
Other revenues	3,854	3,578
Total revenues	41,383	33,270
Expenses
Provision for loan losses	950	135
Interest expense	4,433	5,330
Salaries and benefits	12,920	12,241
Commissions	3,312	1,875
Other expenses	8,729	8,048
Total operating expenses	30,344	27,629
Income before income taxes	11,039	5,641
Income tax expense	2,485	1,164
Net income	8,554	4,477
Total assets	706,236	540,313
Eliminations [Member]
Revenues
Interest income	(159)	(131)
Gain on sale of loans	0	0
Other revenues	(242)	(220)
Total revenues	(401)	(351)
Expenses
Provision for loan losses	0	0
Interest expense	(159)	(131)
Salaries and benefits	0	0
Commissions	0	0
Other expenses	(242)	(220)
Total operating expenses	(401)	(351)
Income before income taxes	0	0
Income tax expense	0	0
Net income	0	0
Total assets	(16,626)	(12,664)
Commercial Banking [Member]
Revenues
Interest income	25,404	23,079
Gain on sale of loans	0	0
Other revenues	2,688	3,044
Total revenues	28,092	26,123
Expenses
Provision for loan losses	950	135
Interest expense	4,433	5,330
Salaries and benefits	8,867	9,047
Commissions	0	0
Other expenses	7,784	7,209
Total operating expenses	22,034	21,721
Income before income taxes	6,058	4,402
Income tax expense	1,439	904
Net income	4,619	3,498
Total assets	704,258	542,053
Mortagage Banking [Member]
Revenues
Interest income	581	539
Gain on sale of loans	11,703	6,205
Other revenues	1,408	754
Total revenues	13,692	7,498
Expenses
Provision for loan losses	0	0
Interest expense	159	131
Salaries and benefits	4,053	3,194
Commissions	3,312	1,875
Other expenses	1,187	1,059
Total operating expenses	8,711	6,259
Income before income taxes	4,981	1,239
Income tax expense	1,046	260
Net income	3,935	979
Total assets	$ 18,604	$ 10,924

Parent Corporation Only Finan_3

Parent Corporation Only Financial Statements - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 12,709	$ 19,967
Total Assets	706,236	540,313
Liabilities
Other borrowings	41,529	5,317
Accrued interest payable	194	221
Other liabilities	9,743	5,294
Total liabilities	654,240	497,399
Shareholders' equity
Common stock	5,794	5,779
Additional paid-in capital	54,510	54,285
Accumulated deficit	(8,738)	(17,292)
Accumulated other comprehensive income	430	142
Total shareholders' equity	51,996	42,914	$ 37,133
Total liabilities and shareholders' equity	706,236	540,313
Parent Company [Member]
Assets
Cash and due from banks	1,549	1,007
Investment in subsidiaries	62,183	53,768
Investment in special purpose subsidiary	264	264
Prepaid expenses and other assets	2,438	2,284
Total Assets	66,434	57,323
Liabilities
Balance due to nonbank subsidiaries	8,764	8,764
Other borrowings	5,628	5,595
Accrued interest payable	46	47
Other liabilities	0	3
Total liabilities	14,438	14,409
Shareholders' equity
Common stock	5,794	5,779
Additional paid-in capital	54,510	54,285
Accumulated deficit	(8,738)	(17,292)
Stock in directors rabbi trust	(771)	(856)
Directors deferred fees obligation	771	856
Accumulated other comprehensive income	430	142
Total shareholders' equity	51,996	42,914
Total liabilities and shareholders' equity	$ 66,434	$ 57,323

Parent Corporation Only Finan_4

Parent Corporation Only Financial Statements - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income
Total interest income	$ 25,826	$ 23,487
Interest expense
Interest on borrowed funds	1,335	1,478
Total interest expense	4,433	5,330
Net interest income	21,393	18,157
Noninterest expense
Supplies	188	193
Professional and outside services	3,104	3,036
Other	2,137	2,131
Total noninterest expense	21,649	20,289
Net income before income tax benefit	11,039	5,641
Income tax benefit	2,485	1,164
Net income	8,554	4,477
Total comprehensive income	288	891
Parent Company [Member]
Income
Interest Income	4	3
Dividends received from subsidiaries	1,250	1,000
Total interest income	1,254	1,003
Interest expense
Interest on borrowed funds	631	775
Total interest expense	631	775
Net interest income	623	228
Noninterest expense
Supplies	30	30
Professional and outside services	39	61
Other	43	42
Total noninterest expense	112	133
Net loss before undistributed income (loss) of subsidiary	511	(905)
Undistributed income (loss) of subsidiary	7,888	4,192
Net income before income tax benefit	8,399	4,287
Income tax benefit	(155)	(190)
Net income	8,554	4,477
Total comprehensive income	$ 8,842	$ 5,368

Parent Corporation Only Finan_5

Parent Corporation Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities
Net income	$ 8,554	$ 4,477
Adjustments to reconcile net income to net cash used in operating activities
Amortization of debt issuance costs	32	32
Net change in:
Other assets	810	2,366
Interest payable	(27)
Other liabilities	4,449	2,156
Net cash used in operating activities	(7,139)	145
Cash Flows from Investing Activities
Net cash provided by investing activities	(121,068)	(17,199)
Cash Flows from Financing Activities
Net cash provided by financing activities	151,691	17,478
Parent Company [Member]
Cash Flows from Operating Activities
Net income	8,554	4,477
Adjustments to reconcile net income to net cash used in operating activities
Amortization of debt issuance costs	33	32
Undistributed income of subsidiary	(9,138)	(5,192)
Net change in:
Other assets	(154)	(190)
Interest payable	0	0
Other liabilities	(3)	3
Net cash used in operating activities	(708)	(870)
Cash Flows from Investing Activities
Dividend from subsidiary	1,250	1,000
Net cash provided by investing activities	1,250	1,000
Cash Flows from Financing Activities
Net cash provided by financing activities	0	0
Net increase in cash	542	130
Cash, beginning of year	1,007	877
Cash, end of year	$ 1,549	$ 1,007