Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 0-50765 | ||
Entity Registrant Name | Village Bank & Trust Financial Corp. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 16-1694602 | ||
Entity Address, Address Line One | 13319 Midlothian Turnpike | ||
Entity Address, City or Town | Midlothian | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23113 | ||
City Area Code | 804 | ||
Local Phone Number | 897-3900 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 26,087,000 | ||
Entity Common Stock, Shares Outstanding | 1,492,879 | ||
Entity Central Index Key | 0001290476 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Yount, Hyde & Barbour, P.C. | ||
Auditor Location | Richmond, Virginia | ||
Auditor Firm ID | 613 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 10,383,000 | $ 12,062,000 |
Federal funds sold | 7,331,000 | 4,616,000 |
Total cash and cash equivalents | 17,714,000 | 16,678,000 |
Investment securities available for sale, at fair value | 105,585,000 | 133,853,000 |
Restricted stock, at cost | 2,985,000 | 1,564,000 |
Loans held for sale | 4,983,000 | 2,268,000 |
Loans | ||
Outstandings | 538,427,000 | |
Allowance for credit losses | (3,423,000) | (3,370,000) |
Deferred costs, net | 803,000 | 588,000 |
Total loans, net | 535,645,000 | |
Loans | ||
Outstandings | 575,008,000 | |
Allowance for credit losses | (3,423,000) | (3,370,000) |
Deferred costs, net | 803,000 | |
Total loans, net | 572,388,000 | |
Premises and equipment, net | 11,760,000 | 11,748,000 |
Bank owned life insurance | 13,120,000 | 12,798,000 |
Accrued interest receivable | 3,827,000 | 3,651,000 |
Other assets | 4,254,000 | 5,065,000 |
Total Assets | 736,616,000 | 723,270,000 |
Deposits | ||
Noninterest bearing demand | 247,624,000 | 255,236,000 |
Interest bearing | 357,721,000 | 369,507,000 |
Total deposits | 605,345,000 | 624,743,000 |
Long-term debt - trust preferred securities | 8,764,000 | 8,764,000 |
Subordinated debt, net | 5,700,000 | 5,692,000 |
Other borrowings | 45,000,000 | 20,000,000 |
Accrued interest payable | 210,000 | 70,000 |
Other liabilities | 4,041,000 | 2,890,000 |
Total liabilities | 669,060,000 | 662,159,000 |
Shareholders' equity | ||
Common stock, $4 par value, 10,000,000 shares authorized; 1,492,879 shares issued and outstanding at December 31, 2023 and 1,482,790 shares issued and outstanding at December 31, 2022 | 5,908,000 | 5,868,000 |
Additional paid-in capital | 55,486,000 | 55,167,000 |
Retained earnings | 11,775,000 | 10,957,000 |
Stock in directors rabbi trust | (467,000) | (689,000) |
Directors deferred fees obligation | 467,000 | 689,000 |
Accumulated other comprehensive loss | (5,613,000) | (10,881,000) |
Total shareholders' equity | 67,556,000 | 61,111,000 |
Total liabilities and shareholders' equity | $ 736,616,000 | $ 723,270,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 1,492,879 | 1,482,790 |
Common stock, shares outstanding (in shares) | 1,492,879 | 1,482,790 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest income | ||
Loans | $ 29,493,000 | $ 24,776,000 |
Investment securities | 3,198,000 | 2,244,000 |
Federal funds sold | 583,000 | 467,000 |
Total interest income | 33,274,000 | 27,487,000 |
Interest expense | ||
Deposits | 5,295,000 | 1,079,000 |
Borrowed funds | 2,691,000 | 702,000 |
Total interest expense | 7,986,000 | 1,781,000 |
Net interest income | 25,288,000 | 25,706,000 |
Provision for (recovery of) credit losses | (300,000) | |
Provision for (recovery of) credit losses, after ASU 2016-13 | 50,000 | (300,000) |
Net interest income after provision for (recovery of) credit losses | 25,238,000 | 26,006,000 |
Noninterest income | ||
Service charges and fees | 2,738,000 | 2,625,000 |
Mortgage banking income, net | 1,690,000 | 3,427,000 |
Loss on sale of investment securities, net | (4,986,000) | |
Gain on sale of Small Business Administration loans | 0 | 79,000 |
Other | 522,000 | 471,000 |
Total noninterest income (loss) | (36,000) | 6,602,000 |
Noninterest expense | ||
Salaries and benefits | 13,389,000 | 13,768,000 |
Occupancy | 1,242,000 | 1,216,000 |
Equipment | 1,112,000 | 1,102,000 |
Supplies | 162,000 | 158,000 |
Data processing | 1,943,000 | 1,389,000 |
Professional and outside services | 1,598,000 | 1,387,000 |
Advertising and marketing | 404,000 | 386,000 |
FDIC insurance premium | 298,000 | 237,000 |
Other operating expense | 2,889,000 | 2,670,000 |
Total noninterest expense | 23,037,000 | 22,313,000 |
Income (loss) before income tax expense (benefit) | 2,165,000 | 10,295,000 |
Income tax expense (benefit) | 247,000 | 1,990,000 |
Net income (loss) | $ 1,918,000 | $ 8,305,000 |
Earnings (loss) per share, basic | $ 1.29 | $ 5.62 |
Earnings (loss) per share, diluted | $ 1.29 | $ 5.62 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Net Income (Loss) | $ 1,918 | $ 8,305 |
Other comprehensive income (loss) | ||
Unrealized holding gains (losses) arising during the period | 1,671 | (12,843) |
Tax effect | (351) | 2,697 |
Net change in unrealized holding gains (losses) on securities available for sale, net of tax | 1,320 | (10,146) |
Reclassification adjustment | ||
Reclassification adjustment for losses realized in income | 4,986 | |
Tax effect | (1,047) | |
Reclassification for gains included in net income, net of tax | 3,939 | |
Minimum pension adjustment | 14 | 14 |
Tax effect | (5) | (5) |
Minimum pension adjustment, net of tax | 9 | 9 |
Total other comprehensive income (loss) | 5,268 | (10,137) |
Total comprehensive income (loss) | $ 7,186 | $ (1,832) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Stock in Directors Rabbi Trust | Directors Deferred Fees Obligation. | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2021 | $ 5,822 | $ 54,814 | $ 3,509 | $ (730) | $ 730 | $ (744) | $ 63,401 |
Vesting of restricted stock | 43 | (43) | 41 | (41) | |||
Stock based compensation | 381 | 381 | |||||
Cash dividend declared | (857) | (857) | |||||
Net Income (Loss) | 8,305 | 8,305 | |||||
Other comprehensive income/loss | (10,137) | (10,137) | |||||
Balance at Dec. 31, 2022 | 5,868 | 55,167 | 10,957 | (689) | 689 | (10,881) | 61,111 |
Vesting of restricted stock | 40 | (40) | 222 | (222) | |||
Exercise of stock options | 3 | 15 | 18 | ||||
Stock based compensation | 359 | 359 | |||||
Cash dividend declared | (981) | (981) | |||||
Net Income (Loss) | 1,918 | 1,918 | |||||
Other comprehensive income/loss | 5,268 | 5,268 | |||||
Balance at Dec. 31, 2023 | $ 5,908 | $ 55,486 | 11,775 | $ (467) | $ 467 | $ (5,613) | 67,556 |
Impact of adoption of ASC 326 | $ (119) | $ (119) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Consolidated Statements of Shareholders' Equity | ||
Cash dividends declared, per share | $ 0.66 | $ 0.58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 1,918,000 | $ 8,305,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 604,000 | 546,000 |
Amortization of debt issuance costs | 8,000 | 32,000 |
Deferred income taxes | 101,000 | 146,000 |
Recovery of credit losses | (300,000) | |
Recovery of credit losses | 50,000 | (300,000) |
Gain on sale of Small Business Administration loans | 0 | (79,000) |
Loss on sale of investment securities | 4,986,000 | |
Gain on sales of loans held for sale | (2,409,000) | (4,751,000) |
Loss on disposal of premises and equipment | 0 | 3,000 |
Stock compensation expense | 359,000 | 381,000 |
Proceeds from sale of mortgage loans | 112,720,000 | 169,995,000 |
Origination of mortgage loans held for sale | (113,026,000) | (162,371,000) |
Amortization of premiums and accretion of discounts on securities, net | (221,000) | 58,000 |
Increase in bank owned life insurance | (322,000) | (304,000) |
Net change in: | ||
Interest receivable | (176,000) | (406,000) |
Other assets | (649,000) | 2,582,000 |
Interest payable | 140,000 | 2,000 |
Other liabilities | 874,000 | (3,570,000) |
Net cash provided by operating activities | 4,957,000 | 10,269,000 |
Cash Flows from Investing Activities | ||
Purchases of available for sale securities | (38,747,000) | (65,488,000) |
Proceeds from the sale of available-for-sale securities | 50,079,000 | 0 |
Proceeds from maturities, calls and paydowns of available for sale securities | 18,829,000 | 13,433,000 |
Net increase in loans | (36,666,000) | (12,665,000) |
Purchases of premises and equipment, net | (616,000) | (473,000) |
Purchase of restricted stock, net | (1,421,000) | (870,000) |
Net cash provided by (used in) investing activities | (8,542,000) | (66,063,000) |
Cash Flows from Financing Activities | ||
Proceeds from Stock Options Exercised | 0 | 18,000 |
Cash dividends paid | (981,000) | (857,000) |
Net increase in deposits | (19,398,000) | (39,305,000) |
Net increase in other borrowings | 25,000,000 | 20,000,000 |
Net cash provided by financing activities | 4,621,000 | (20,144,000) |
Net increase (decrease) in cash and cash equivalents | 1,036,000 | (75,938,000) |
Cash and cash equivalents, beginning of period | 16,678,000 | 92,616,000 |
Cash and cash equivalents, end of period | 17,714,000 | 16,678,000 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 7,846,000 | 1,779,000 |
Cash payments for taxes | 608,000 | 1,960,000 |
Supplemental Schedule of Non-Cash Activities | ||
Unrealized gains (losses) on securities available for sale | 6,658,000 | (12,843,000) |
Right of use assets obtained in exchange for new operating lease liabilities | 0 | 263,000 |
Minimum pension adjustment | $ 14,000 | $ 14,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. New Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. The company adopted ASU 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. This standard is commonly referred to as the current expected credit loss (“CECL”) methodology. As a result of adoption of Accounting Standards of Codification (“ASC”) 326, the Company recorded a net decrease to retained earnings of $119,000, net of taxes, which consisted of adjustments to the allowance for credit losses on loans as well as an adjustment to the Company’s reserve for unfunded loan commitments. Subsequent to adoption, the Company will record adjustments to its allowance for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using a weighted average remaining maturity (“WARM”) methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, changes in collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. The Company’s CECL implementation process was overseen by the Chief Financial Officer and included an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, an assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company’s historical loss experience. During 2022, the Company calculated its current expected credit losses model in parallel to its incurred loss model to further refine the methodology and model. In addition, the Company utilized internal personnel who were not involved in the development of the model to perform a comprehensive model validation. The following table illustrates the impact of ASC 326 adoption (in thousands): December 31, January 1, January 1, 2022 2023 2023 As Previously Reported Impact of As Reported (Incurred Loss) CECL Adoption Under CECL Assets: Loans Construction and land development Residential $ 79 $ 3 $ 82 Commercial 192 34 226 271 37 308 Commercial real estate Owner occupied 867 (475) 392 Non-owner occupied 1,289 192 1,481 Multifamily 33 7 40 Farmland — — — 2,189 (276) 1,913 Consumer real estate Home equity lines 11 24 35 Secured by 1-4 family residential First deed of trust 131 76 207 Second deed of trust 43 25 68 185 125 310 Commercial and industrial loans (except those secured by real estate) 576 1 577 Student loans 52 — 52 Consumer and other 37 (5) 32 Unallocated 60 (9) 51 Allowance for credit losses 3,370 (127) 3,243 Liabilities Allowance for credit losses on unfunded credit exposure — 277 277 Total Allowance for credit losses $ 3,370 $ 150 $ 3,520 On January 1, 2023, the Company adopted ASU 2022-02 “Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures,” which removed the recognition and measurement guidance on troubled debt restructurings (“TDRs”) and added disclosures on the financial effect and subsequent performance of certain types of modifications made to borrowers experiencing financial difficulties. Upon adoption of the standard, the Company recorded a reduction of $8,000 in the allowance for credit losses for the impact of changes in methodology used to estimate the allowance for credit losses for non-collateral dependent TDRs. There was no impact to the valuation of loans previously classified as collateral dependent TDRs. The allowance for loan and lease losses for modified loans is determined in a manner consistent with the methodology for loans under ASC 326. 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 credit losses and its related provision, including impaired loans, and the valuation of deferred tax assets. 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 (loss). Presently, the Company does not maintain a portfolio of trading or held to maturity securities. 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. 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. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery, the Company evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an allowance for credit losses is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the allowance for credit losses are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities available for sale not resulting from credit losses are recorded in other comprehensive income (loss). The Company regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Restricted stock, 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. The Company uses fair value accounting for its entire portfolio of loans held for sale (“LHFS”) in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for identical instruments traded in the secondary mortgage loan markets in which the Company conducts business and totaled $5.0 million as of December 31, 2023, of which $4.8 million is related to unpaid principal, and totaled $2.3 million as of December 31, 2022, of which $2.2 million is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. Interest Rate Lock Commitments and Forward Sales Commitments. The Company uses 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, 2023, and totaled $506,000, with a notional amount of $12.3 million and total positions of 47, and at December 31, 2022, totaled $207,000, with a notional amount of $12.1 million and total positions of 38. 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 2023 and 2022 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 $1,202,000 at December 31, 2023 and approximately $922,000 at December 31, 2022. Below is a summary of the current loan segments: Construction and land development loans Commercial real estate loans Consumer real estate loans Commercial and industrial customers. Government guaranteed balances represent Small Business Administration (“SBA”) loans originated by the Bank according to SBA guidelines. 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. Consumer and other loans Guaranteed student loans Allowance for Credit Losses The allowance for credit losses consists of the allowance for credit losses on loans, reserve for unfunded commitments, and the allowance on securities. The allowance for credit losses on loans is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Credit losses on loans 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 for credit losses on loans, in management’s judgement, represents the current estimate of expected credit losses over the term of loans held for investment, and is recorded at an amount that, in management’s judgement, reduces the recorded investment in loans to the net amount expected to be collected. 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 Company utilizes a third-party model to tabulate its estimate of current expected credit losses, using a WARM methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company primarily utilizes the short-term natural rate of unemployment forecast based on the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses using a statistical regression analysis. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, and collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis. The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. The Company records a reserve, reported in other liabilities, for expected credit losses on commitments to extend credit that are not unconditionally cancelable by the Company. The reserve for unfunded commitments is measured based on the principles utilized in estimating the allowance for credit losses on loans and an estimate of the amount of unfunded commitments expected to be advanced. Changes in the reserve for unfunded commitments are recorded through the provision for credit losses. 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. There were no assets held as other real estate owned (“OREO”) as of December 31, 2023 and December 31, 2022. 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. 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, 2023 and 2022. 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 seven 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, 2023 and 2022. 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. Comprehensive income Total comprehensive income (loss) consists of net income and other comprehensive income (loss). At December 31, 2023 and 2022, the accumulated other comprehensive income (loss) was comprised of unrealized (losses) on securities available for sale of ($5,603,000) and ($10,862,000), and unfunded pension liability of ($10,000) and ($19,000) 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 Company uses in estimating fair values of financial instruments. Revenue recognition The Company recognizes revenue as it is earned in accordance with ASU 2014-09. The following discussion is of revenues that are within the scope of the this 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 assesses 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 December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU |
Investment securities available
Investment securities available for sale | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2023 U.S. Government agency obligations $ 20,690 $ — $ (75) $ 20,615 Mortgage-backed securities 77,275 643 (5,381) 72,537 Municipals 2,264 — (608) 1,656 Subordinated debt 12,449 30 (1,702) 10,777 $ 112,678 $ 673 $ (7,766) $ 105,585 December 31, 2022 U.S. Government agency obligations $ 64,631 $ 5 $ (3,734) $ 60,902 Mortgage-backed securities 69,151 6 (8,597) 60,560 Municipals 2,268 — (718) 1,550 Subordinated debt 11,553 29 (741) 10,841 $ 147,603 $ 40 $ (13,790) $ 133,853 The Company had investment securities with a fair value of $24,926,000 and $5,613,000 pledged to secure borrowings from the Federal Home Loan Bank of Atlanta (“FHLB”) at December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, the Company executed a securities repositioning and balance sheet deleveraging strategy by selling available for sale securities with a total book value of $55,195,000 and a weighted average yield of 1.48% at a pre-tax loss of $4,986,000. The net proceeds from the sale were used to reduce FHLB borrowings by $15.0 million costing 5.57% and the remaining funds were reinvested back into the securities portfolio with a weighted average yield of 5.48%, with a duration of 3.4 years, and a weighted average life of 5.0 structured to improve the forward run rate on earnings, add interest rate risk protection to a higher for longer and potential down rate environments, while improving tangible common equity and maintaining our strong liquidity position. There were no sales of available for sale securities for the years ended December 31, 2022. Investment securities available for sale that had an unrealized loss position at December 31, 2023 and December 31, 2022 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, 2023 U.S. Government agency obligations $ — $ — $ 20,289 (75) $ 20,289 $ (75) Mortgage-backed securities 4,631 (24) 30,311 (5,357) 34,942 (5,381) Municipals — — 1,656 (608) 1,656 (608) Subordinated debt 4,145 (587) 5,937 (1,115) 10,082 (1,702) $ 8,776 $ (611) $ 58,193 $ (7,155) $ 66,969 $ (7,766) December 31, 2022 U.S. Government agency obligations $ 21,848 $ (723) $ 37,256 $ (3,011) $ 59,104 $ (3,734) Mortgage-backed securities 36,089 (3,588) 22,549 (5,009) 58,638 (8,597) Municipals — — 1,549 (718) 1,549 (718) Subordinated debt 5,305 (498) 2,007 (243) 7,312 (741) $ 63,242 $ (4,809) $ 63,361 $ (8,981) $ 126,603 $ (13,790) As of December 31, 2023, there were 56 investments available for sale totaling $67.0 million that were in a loss position and had an unrealized loss of $7.8 million. As of December 31, 2022, there were $63.4 million, or 28 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 $9.0 million and consisted of U.S. Government agency obligations, mortgage-backed securities, municipals 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 has not recorded an allowance for credit losses on these investments at December 31, 2023. The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2023, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 19,990 $ 19,928 One to five years 10,805 10,883 Five to ten years 17,370 15,781 More than ten years 64,513 58,993 Total $ 112,678 $ 105,585 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Loans and allowance for credit losses | |
Loans and allowance for credit losses | Note 3. Loans Loans classified by type as of December 31, 2023 and 2022 are as follows (dollars in thousands): December 31, 2023 December 31, 2022 Amount % Amount % Construction and land development Residential $ 10,471 1.82 % $ 9,727 1.81 % Commercial 37,024 6.44 % 35,400 6.57 % 47,495 8.26 % 45,127 8.38 % Commercial real estate Owner occupied 122,666 21.33 % 119,643 22.22 % Non-owner occupied 154,855 26.93 % 153,610 28.53 % Multifamily 12,743 2.22 % 11,291 2.10 % Farmland 326 0.06 % 73 0.01 % 290,590 50.54 % 284,617 52.86 % Consumer real estate Home equity lines 21,557 3.75 % 18,421 3.42 % Secured by 1-4 family residential, First deed of trust 95,638 16.63 % 67,495 12.54 % Second deed of trust 11,337 1.97 % 7,764 1.44 % 128,532 22.35 % 93,680 17.40 % Commercial and industrial loans (except those secured by real estate) 86,203 14.99 % 90,348 16.78 % Guaranteed student loans 17,923 3.12 % 20,617 3.83 % Consumer and other 4,265 0.74 % 4,038 0.75 % Total loans 575,008 100.0 % 538,427 100.0 % Deferred and costs, net 803 588 Less: allowance for credit losses (3,423) (3,370) $ 572,388 $ 535,645 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. Loans pledged as collateral with the FHLB as part of their lending arrangements with the Company totaled $35.5 million and $33.7 million as of December 31, 2023 and 2022, 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, 2023 and 2022 (in thousands): 2023 2022 Beginning balance $ 4,365 $ 5,922 Additions 6,774 7,662 Effect of changes in composition of related parties (160) — Reductions (6,063) (9,219) Ending balance $ 4,916 $ 4,365 Executive officers and directors also had unused credit lines totaling $774,000 and $2,223,000 at December 31, 2023 and 2022, 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 (in thousands): December 31, December 31, 2023 2022 Consumer real estate Home equity lines $ — $ 300 Secured by 1-4 family residential First deed of trust 160 164 Second deed of trust 105 171 265 635 Commercial and industrial loans (except those secured by real estate) 26 19 Total loans $ 291 $ 654 There were no individual allowances associated with the total nonaccrual loans of $291,000 and $654,000 at December 31, 2023 and December 31, 2022, respectively, that were considered collateral dependent. 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, 2022 Construction and land development Residential $ 9,727 $ — $ — $ — $ 9,727 Commercial 32,763 2,637 — — 35,400 42,490 2,637 — — 45,127 Commercial real estate Owner occupied 115,825 2,583 1,235 — 119,643 Non-owner occupied 143,458 10,152 — — 153,610 Multifamily 11,291 — — — 11,291 Farmland 73 — — — 73 270,647 12,735 1,235 — 284,617 Consumer real estate Home equity lines 17,507 614 300 — 18,421 Secured by 1-4 family residential First deed of trust 66,616 407 472 — 67,495 Second deed of trust 7,517 72 175 — 7,764 91,640 1,093 947 — 93,680 Commercial and industrial loans (except those secured by real estate) 83,848 6,481 19 — 90,348 Guaranteed student loans 20,617 — — — 20,617 Consumer and other 4,017 — 21 — 4,038 Total loans $ 513,259 $ 22,946 $ 2,222 $ — $ 538,427 Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of December 31, 2023, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows (in thousands): Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans December 31, 2023 Construction and land development Residential Pass $ 6,320 $ 3,812 $ 339 $ — $ — $ — $ — $ — $ 10,471 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Residential $ 6,320 $ 3,812 $ 339 $ — $ — $ — $ — $ — $ 10,471 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass 5,007 14,506 10,339 235 — 1,183 5,754 — 37,024 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial $ 5,007 $ 14,506 $ 10,339 $ 235 $ — $ 1,183 $ 5,754 $ — $ 37,024 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Owner occupied Pass 11,945 21,846 20,044 9,855 12,145 41,067 788 — 117,690 Special Mention — 202 73 — — 4,701 — — 4,976 Substandard — — — — — — — — — Total Owner occupied $ 11,945 $ 22,048 $ 20,117 $ 9,855 $ 12,145 $ 45,768 $ 788 $ — $ 122,666 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied Pass 9,468 25,607 28,455 23,567 9,528 47,645 3,312 — 147,582 Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans Special Mention — — 2,173 — — 5,100 — — 7,273 Substandard — — — — — — — — — Total Non-owner occupied $ 9,468 $ 25,607 $ 30,628 $ 23,567 $ 9,528 $ 52,745 $ 3,312 $ — $ 154,855 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily Pass 1,300 — 2,503 548 885 6,113 1,394 — 12,743 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Multifamily $ 1,300 $ — $ 2,503 $ 548 $ 885 $ 6,113 $ 1,394 $ — $ 12,743 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland Pass — — — — — 26 300 — 326 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Farmland $ — $ — $ — $ — $ — $ 26 $ 300 $ — $ 326 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate Home equity lines Pass — 446 — — — — 21,036 — 21,482 Special Mention — — — — — — 75 — 75 Substandard — — — — — — — — — Total Home equity lines $ — $ 446 $ — $ — $ — $ — $ 21,111 $ — $ 21,557 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Secured by 1-4 family residential First deed of trust Pass 34,067 14,288 15,613 8,107 2,957 17,427 2,125 — 94,584 Special Mention — — — 170 — 724 — — 894 Substandard — — — — — 160 — — 160 Total First deed of trust $ 34,067 $ 14,288 $ 15,613 $ 8,277 $ 2,957 $ 18,311 $ 2,125 $ — $ 95,638 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Second deed of trust Pass 4,530 3,207 1,027 397 1,067 626 266 — 11,120 Special Mention — — — — 45 67 — — 112 Substandard — — — — — 105 — — 105 Total Second deed of trust $ 4,530 $ 3,207 $ 1,027 $ 397 $ 1,112 $ 798 $ 266 $ $ 11,337 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans (except those secured by real estate) Pass 15,022 15,900 15,321 5,634 2,852 3,698 27,068 — 85,495 Special Mention 37 — — — 318 22 306 — 683 Substandard — — — 13 — 12 — — 25 Total Commercial and industrial $ 15,059 $ 15,900 $ 15,321 $ 5,647 $ 3,170 $ 3,732 $ 27,374 $ — $ 86,203 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Guaranteed student loans Pass — — — — — 17,923 — — 17,923 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Guaranteed student loans $ — $ — $ — $ — $ — $ 17,923 $ — $ — $ 17,923 Current period gross writeoff $ 30 $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass 455 483 123 50 17 11 3,126 — 4,265 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Consumer and other $ 455 $ 483 $ 123 $ 50 $ 17 $ 11 $ 3,126 $ $ 4,265 Current period gross writeoff $ 3 $ — $ — $ — $ — $ — $ — $ — $ — Total Current period gross writeoff $ 33 $ — $ — $ — $ — $ — $ — $ — $ — Total loans $ 88,151 $ 100,297 $ 96,010 $ 48,576 $ 29,814 $ 146,610 $ 65,550 $ — $ 575,008 The following tables present the aging of the recorded investment in past due loans as of the dates indicated (in thousands): 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, 2023 Construction and land development Residential $ — $ — $ — $ — $ 10,471 $ 10,471 $ — Commercial — — — — 37,024 37,024 — — — — — 47,495 47,495 — Commercial real estate Owner occupied — — — — 122,666 122,666 — Non-owner occupied — — — — 154,855 154,855 — Multifamily — — — — 12,743 12,743 — Farmland — — — — 326 326 — — — — — 290,590 290,590 — Consumer real estate Home equity lines 83 25 — 108 21,449 21,557 — Secured by 1‑4 family residential First deed of trust — — — — 95,638 95,638 — Second deed of trust 33 — — 33 11,304 11,337 — 116 25 — 141 128,391 128,532 — Commercial and industrial loans (except those secured by real estate) — — — — 86,203 86,203 — Guaranteed student loans 690 493 2,228 3,411 14,512 17,923 2,228 Consumer and other 734 — — 734 3,531 4,265 — Total loans $ 1,540 $ 518 $ 2,228 $ 4,286 $ 570,722 $ 575,008 $ 2,228 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, 2022 Construction and land development Residential $ — $ — $ — $ — $ 9,727 $ 9,727 $ — Commercial — — — — 35,400 35,400 — — — — — 45,127 45,127 — Commercial real estate Owner occupied — — — — 119,643 119,643 — Non-owner occupied — — — — 153,610 153,610 — Multifamily — — — — 11,291 11,291 — Farmland — — — — 73 73 — — — — — 284,617 284,617 — Consumer real estate Home equity lines — 50 — 50 18,371 18,421 — Secured by 1-4 family residential First deed of trust — — — — 67,495 67,495 — Second deed of trust 54 — — 54 7,710 7,764 — 54 50 — 104 93,576 93,680 — Commercial and industrial loans (except those secured by real estate) 1,022 — 377 1,399 88,949 90,348 — Guaranteed student loans 831 390 1,725 2,946 17,671 20,617 1,725 Consumer and other — — — — 4,038 4,038 — Total loans $ 1,907 $ 440 $ 2,102 $ 4,449 $ 533,978 $ 538,427 $ 1,725 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 that are individually evaluated for credit losses are limited to loans that have specific risk characteristics that are not shared by other loans and based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. The repayment of these loans is expected to be substantially through the operations or the sale of the collateral. The allowance for credit losses on loans that are individually evaluated will be measured based on the fair value of the collateral either through operations or the sale of the collateral. When repayment is expected through the sale of the collateral, the allowance will be based on the fair value of the collateral less estimated costs to sell. Collateral dependent loans, or portions thereof, are charged off when deemed uncollectible. Collateral dependent loans are set forth in the following table as of the dates indicated (in thousands): December 31, 2023 December 31, 2022 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ — $ — $ — $ 4,332 $ 4,347 $ — Non-owner occupied — — — 312 312 — — — — 4,644 4,659 — Consumer real estate Home equity lines — — — 300 300 — Secured by 1‑4 family residential First deed of trust 160 160 — 1,745 1,745 — Second deed of trust 105 105 — 195 300 — 265 265 — 2,240 2,345 — Commercial and industrial loans (except those secured by real estate) 26 26 — 19 19 — 291 291 — 6,903 7,023 — With an allowance recorded Commercial real estate Owner occupied — — — 251 251 2 — — — 251 251 2 Consumer real estate Secured by 1-4 family residential First deed of trust — — — 136 136 6 — — — 136 136 6 Consumer and other — — — 21 21 1 — — — 408 408 9 Total Owner occupied — — — 4,583 4,598 2 Non-owner occupied — — — 312 312 — — — — 4,895 4,910 2 Consumer real estate Home equity lines — — — 300 300 — Secured by 1-4 family residential, First deed of trust 160 160 — 1,881 1,881 6 Second deed of trust 105 105 — 195 300 — 265 265 — 2,376 2,481 6 Commercial and industrial loans (except those secured by real estate) 26 26 — 19 19 — Consumer and other — — — 21 21 1 $ 291 $ 291 $ — $ 7,311 $ 7,431 $ 9 The following is a summary of average recorded investment in individually evaluated loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands): December 31, 2023 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Commercial real estate Owner occupied $ 1,166 $ 208 $ 4,339 $ 159 Non-owner occupied — — 857 20 1,166 208 5,196 179 Consumer real estate Home equity lines 74 — 300 27 Secured by 1-4 family residential First deed of trust 169 8 1,798 70 Second deed of trust 108 4 217 10 351 12 2,315 107 Commercial and industrial loans (except those secured by real estate) 57 8 94 4 1,574 228 7,605 290 With an allowance recorded Commercial real estate Owner occupied — — 257 15 — — 257 15 Consumer real estate Secured by 1-4 family residential First deed of trust — — 121 7 Second deed of trust — — 49 — — — 170 7 Consumer and other — — 11 — — — 438 22 Total Commercial real estate Owner occupied 1,166 208 4,596 174 Non-owner occupied — — 857 20 1,166 208 5,453 194 Consumer real estate Home equity lines 74 — 300 27 Secured by 1-4 family residential, First deed of trust 169 8 1,919 77 Second deed of trust 108 4 266 10 351 12 2,485 114 Commercial and industrial loans (except those secured by real estate) 57 8 94 4 Consumer and other — — 11 — $ 1,574 $ 228 $ 8,043 $ 312 Loan Modifications to Borrowers in Financial Difficulty As part of its credit risk management, the Company may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement. There were no modified loans identified during the year ended December 31, 2023. Prior Period Troubled Debt Restructuring Disclosures Prior to adopting the new accounting standard on loan modifications, the Company accounted for modifications of loans to borrowers experiencing financial difficulties as TDRs, when the modification resulted in a concession. The following discussion reflects loans that are considered TDRs prior to January 1, 2023. Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment as of December 31, 2022 (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance December 31, 2022 Commercial real estate Owner occupied $ 3,348 $ 3,348 $ — $ 2 Non-owner occupied 312 312 — — 3,660 3,660 — 2 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,409 1,409 — 6 Second deeds of trust 75 19 56 — 1,484 1,428 56 6 Commercial and industrial loans (except those secured by real estate) 19 — 19 — $ 5,163 $ 5,088 $ 75 $ 8 Number of loans 24 22 2 3 There were no new TDRs identified for the year ended December 31, 2022 A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no defaults on TDRs that were modified as TDRs during the twelve-month period ended December 31, 2022. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2023 | |
Provision for Loan, Lease, and Other Losses [Abstract] | |
Allowance for Loan Losses | Note 4. Allowance for Credit Losses In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, changes in collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. Activity in the allowance for credit losses is as follows for the periods indicated (in thousands): Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Year Ended December 31, 2023 Construction and land development Residential $ 79 $ 3 $ 4 $ — $ — $ 86 Commercial 192 34 2 — — 228 271 37 6 — — 314 Commercial real estate Owner occupied 867 (475) 17 — — 409 Non-owner occupied 1,289 192 (14) — — 1,467 Multifamily 33 7 4 — — 44 Farmland — — 3 — — 3 2,189 (276) 10 — — 1,923 Consumer real estate Home equity lines 11 24 5 — — 40 Secured by 1-4 family residential First deed of trust 131 76 83 — 3 293 Second deed of trust 43 25 15 — 16 99 185 125 103 — 19 432 Commercial and industrial loans (except those secured by real estate) 576 1 (110) — 173 640 Student loans 52 — 35 (30) — 57 Consumer and other 37 (5) 7 (3) — 36 Unallocated 60 (9) (30) — — 21 $ 3,370 $ (127) $ 21 $ (33) $ 192 $ 3,423 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2022 Construction and land development Residential $ 57 $ 22 $ — $ — $ 79 Commercial 229 (37) — — 192 286 (15) — — 271 Commercial real estate Owner occupied 833 34 — — 867 Non-owner occupied 1,083 206 — — 1,289 Multifamily 35 (2) — — 33 Farmland 2 (2) — — — 1,953 236 — — 2,189 Consumer real estate Home equity lines 12 (59) — 58 11 Secured by 1-4 family residential First deed of trust 123 3 — 5 131 Second deed of trust 47 (311) (27) 334 43 182 (367) (27) 397 185 Commercial and industrial loans (except those secured by real estate) 486 180 (157) 67 576 Student loans 65 18 (31) — 52 Consumer and other 29 10 (2) — 37 Unallocated 422 (362) — — 60 $ 3,423 $ (300) $ (217) $ 464 $ 3,370 Loans are required to be measured at amortized costs and to be presented at the net amount expected to be collected. Off balance sheet credit exposures, including loan commitments, are not recorded on balance sheet, but expected credit losses arising from off balance sheet credit exposures are recorded as a reserve for unfunded commitments and reported in Other Liabilities. Credit losses on available for sale debt securities are accounted for as an allowance for credit losses, which is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value and the amount expected to be collected on the financial assets. The allowance for credit losses on loans, available for sale debt securities and the reserve for unfunded commitments are established through a provision for credit losses charged against earnings. Amounts reported for the year ended December 31, 2023 are in accordance with ASC 326, whereas amounts reported for periods prior to January 1, 2023 are presented in accordance with previously applicable GAAP. The following table presents a breakdown of the provision for credit losses for the periods indicated (in thousands): Year Ended December 31, 2023 2022 Provision for credit losses: Provision (recovery) for loans $ 21 $ (300) Provision (recovery) for unfunded commitments 29 — Total $ 50 $ (300) On January 1, 2023, the Commercial Banking Segment adopted the CECL methodology for estimating credit losses, which resulted in an increase of $150,000 in the allowance for credit losses on January 1, 2023. The allowance for credit losses included an allowance for credit losses on loans of $3.24 million and a reserve for unfunded commitments of $277,000. As of December 31, 2023, the allowance for credit losses was $3.73 million and included an allowance for credit losses on loans of $3.42 million and a reserve for unfunded commitments of $306,000. The Company recorded a provision for credit losses for loans of $21,000 for the year ended December 31, 2023, which was the result of loan growth being offset by improved credit metrics as non-performing loans as a percentage of loans decreased from 0.12% at December 31, 2022 to 0.05% at December 31, 2023, and the impact of $159,000 in net-recoveries for the period. The Company recorded a provision for credit losses for unfunded commitments of $29,000 for the year ended December 31, 2023, which was driven by an increase in the total balance of unfunded commitments at December 31, 2023. The following information is presented prior to the adoption of ASC 326. The amount of the allowance for loan losses was determined by an evaluation of the level of loans outstanding, the level of non-performing loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. The level of the allowance reflected 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 risks, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance were allocated for specific credits; however, the entire allowance was available for any credit that, in management’s judgment, should be charged off. While management utilized its best judgment and information available, the ultimate adequacy of the allowance was 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 recovery of provision for loan loss expense of $300,000 for the year ended December 31, 2022. The recovery of provision for loan loss expense for the year ended December 31, 2022 resulted from reductions in qualitative factors driven by improving economic factors, improved credit metrics, and reduction in loan deferrals. The allowance for loan losses at December 31, 2022 included 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 $60,000 at December 31, 2022. Loans were evaluated for the need for credit reserve 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, 2023 Construction and land development Residential $ 86 $ — $ 86 $ 10,471 $ — $ 10,471 Commercial 228 — 228 37,024 — 37,024 314 — 314 47,495 — 47,495 Commercial real estate Owner occupied 409 — 409 122,666 — 122,666 Non-owner occupied 1,467 — 1,467 154,855 — 154,855 Multifamily 44 — 44 12,743 — 12,743 Farmland 3 — 3 326 — 326 1,923 — 1,923 290,590 — 290,590 Consumer real estate Home equity lines 40 — 40 21,557 — 21,557 Secured by 1-4 family residential First deed of trust 293 — 293 95,638 160 95,478 Second deed of trust 99 — 99 11,337 105 11,232 432 — 432 128,532 265 128,267 Commercial and industrial loans (except those secured by real estate) 640 — 640 86,203 26 86,177 Student loans 57 — 57 17,923 — 17,923 Consumer and other 57 — 57 4,265 — 4,265 $ 3,423 $ — $ 3,423 $ 575,008 $ 291 $ 574,717 Year Ended December 31, 2022 Construction and land development Residential $ 79 $ — $ 79 $ 9,727 $ — $ 9,727 Commercial 192 — 192 35,400 — 35,400 271 — 271 45,127 — 45,127 Commercial real estate Owner occupied 867 2 865 119,643 4,583 115,060 Non-owner occupied 1,289 — 1,289 153,610 312 153,298 Multifamily 33 — 33 11,291 — 11,291 Farmland — — — 73 — 73 2,189 2 2,187 284,617 4,895 279,722 Consumer real estate Home equity lines 11 — 11 18,421 300 18,121 Secured by 1-4 family residential — First deed of trust 131 6 125 67,495 1,881 65,614 Second deed of trust 43 — 43 7,764 195 7,569 185 6 179 93,680 2,376 91,304 Commercial and industrial loans (except those secured by real estate) 576 — 576 90,348 19 90,329 Student loans 52 — 52 20,617 — 20,617 Consumer and other 97 1 96 4,038 21 4,017 $ 3,370 $ 9 $ 3,361 $ 538,427 $ 7,311 $ 531,116 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | Note 5. Premises and Equipment The following is a summary of premises and equipment as of December 31, 2023 and 2022 (in thousands): 2023 2022 Land $ 4,352 $ 4,352 Buildings and improvements 11,448 11,444 Furniture, fixtures and equipment 8,500 7,945 Total premises and equipment 24,300 23,741 Less: Accumulated depreciation and amortization (12,540) (11,993) Premises and equipment, net $ 11,760 $ 11,748 Depreciation and amortization of premises and equipment for 2023 and 2022 amounted to $604,000 and $546,000, respectively. |
Investment in Bank Owned Life I
Investment in Bank Owned Life Insurance | 12 Months Ended |
Dec. 31, 2023 | |
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 $21,844,000 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, 2023 and 2022 was approximately $13,120,000 and $12,798,000, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Deposits | Note 7. Deposits Deposits as of December 31, 2023 and 2022 were as follows (dollars in thousands): December 31, 2023 December 31, 2022 Amount % Amount % Demand accounts $ 247,624 40.9 % $ 255,236 40.9 % Interest checking accounts 76,289 12.6 % 90,252 14.4 % Money market accounts 195,249 32.3 % 179,036 28.6 % Savings accounts 39,633 6.5 % 55,695 8.9 % Time deposits of $250,000 and over 9,145 1.5 % 4,740 0.8 % Other time deposits 37,405 6.2 % 39,784 6.4 % Total $ 605,345 100.0 % $ 624,743 100.0 % The following are the scheduled maturities of time deposits as of December 31, 2023 (in thousands): Greater Than Year Ending Less Than or Equal to December 31, $250,000 $250,000 Total 2024 $ 29,997 $ 8,606 $ 38,603 2025 3,442 — 3,442 2026 2,443 — 2,443 2027 878 539 1,417 2028 645 — 645 Total $ 37,405 $ 9,145 $ 46,550 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 $10,868,000 and $15,366,000 at December 31, 2023 and 2022, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
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 $2,644,000 in FHLB stock at December 31, 2023 and $1,223,000 at December 31, 2022, 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 FHLB advances of $45,000,000 and $20,000,000 at December 31, 2023 and 2022, respectively. 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, 2023 or December 31, 2022. The Company’s unused lines of credit for future borrowings total approximately $26.2 million at December 31, 2023, which consists of $3.4 million available from the FHLB, $20.0 million on revolving bank line of credit, and $2.8 million under secured federal funds agreements 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, 2023 and 2022 is as follows (dollars in thousands): Year Ended December 31, 2023 2022 Maximum outstanding during the year Federal Funds Purchased $ 6,498 $ 6,000 FHLB advances 45,000 20,000 Balance outstanding at end of year Federal Funds Purchased — — FHLB advances 45,000 20,000 Average amount outstanding during the year Federal Funds Purchased 207 2 FHLB advances 33,356 164 Average interest rate during the year Federal Funds Purchased 4.25 % 4.61 % FHLB advances 4.71 % 4.65 % Average interest rate at end of year Federal Funds Purchased — % — % FHLB advances 4.89 % 4.57 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 (in thousands): 2023 2022 Deferred tax assets Capital loss carryforward $ 25 $ 25 Allowance for credit losses 719 708 Unfunded commitment liability 64 — Unrealized loss on available for sale securities 1,489 2,887 Interest on nonaccrual loans 18 18 Stock compensation 81 78 Employee benefits 764 836 Depreciation 21 24 Lease obligation 6 5 Other, net 35 63 Total deferred tax assets 3,222 4,644 Deferred tax liabilities Deferred costs, net of fees 169 123 Pension expense 10 6 Total deferred tax liabilities 179 129 Net deferred tax asset $ 3,043 $ 4,515 The net deferred tax asset is included in other assets on the consolidated balance sheet. ASC Topic 740, Income Taxes 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 income tax expense charged to operations for the years ended December 31, 2023 and 2022 consists of the following (in thousands): 2023 2022 Current tax expense $ 146 $ 1,844 Deferred tax expense 101 146 Provision for income taxes $ 247 $ 1,990 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, 2023 and 2022 (in thousands): 2023 2022 Net income before income taxes $ 2,165 $ 10,295 Computed "expected" tax expense $ 455 $ 2,162 State taxes, net of federal (121) (67) Cash surrender value of life insurance (68) (64) Other (19) (41) Provision for income taxes $ 247 $ 1,990 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 $671,000 and $640,000 for the years ended December 31, 2023 and 2022, 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 2020. |
Earnings per common share
Earnings per common share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per common share | |
Earnings per common share | Note 10. Earnings per Share The following table presents the basic and diluted earnings per share computations (dollars in thousands except per share data): Year Ended December 31, 2023 2022 Numerator Net income - basic and diluted $ 1,918 $ 8,305 Denominator Weighted average shares outstanding - basic 1,486 1,477 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,486 1,477 Earnings per share - basic $ 1.29 $ 5.62 Earnings per share - diluted $ 1.29 $ 5.62 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 15,130 and 12,834 restricted stock units outstanding as of December 31, 2023 and 2022, respectively, are dependent upon meeting certain performance criteria. As of December 31, 2023 and December 31, 2022, 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. There were none at December 31, 2023 and 2022. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Lease Commitments | |
Lease Commitments | Note 11. Lease Commitments The right-of-use assets and lease liabilities are included in other assets and other liabilities, respectively, in the Consolidated Statement of Financial Condition. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The incremental borrowing rate was equal to the rate of borrowing from the FHLB that aligned with the term of the lease contract. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not The following tables present information about the Company’s leases (dollars in thousands): For the year ended December 31, 2023 2022 Lease liabilities $ 847 $ 1,122 Right-of-use assets $ 818 $ 1,100 Weighted average remaining lease term 3.66 4.40 Weighted average discount rate 2.80 % 2.51 % For the year ended December 31, 2023 2022 Lease cost Operating lease cost $ 309 $ 301 Total lease cost $ 309 $ 301 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, 2023 Lease payments due Twelve months ending December 31, 2024 $ 313 Twelve months ending December 31, 2025 214 Twelve months ending December 31, 2026 163 Twelve months ending December 31, 2027 146 Twelve months ending December 31, 2028 52 Thereafter 8 Total undiscounted cash flows $ 896 Discount 49 Lease liabilities $ 847 Cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2023 and 2022 was $307,000 and $293,000, respectively. The Company recognized lease expense of $309,000 and $301,000 for the year ended December 31, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Commitments and contingencies | Note 12. Commitments and Contingencies Off-balance-sheet risk 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, 2023 and 2022, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): December 31, December 31, 2023 2022 Undisbursed credit lines $ 127,918 $ 119,454 Commitments to extend or originate credit 7,463 9,899 Standby letters of credit 1,202 922 Total commitments to extend credit $ 136,583 $ 130,275 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 |
Shareholders' Equity and Regula
Shareholders' Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity and Regulatory Matters | |
Shareholders' Equity and Regulatory Matters | Note 13. Shareholders’ Equity and Regulatory Matters Accumulated Other Comprehensive Income (Loss) The following table presents the accumulated other comprehensive loss as of December 31, 2023 and 2022, respectively (in thousands): Unrealized Defined Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) Other comprehensive (loss) income Other comprehensive loss before reclassification 1,320 9 1,329 Amounts reclassified from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 5,259 9 5,268 Accumulated other comprehensive loss December 31, 2023 $ (5,604) $ (9) $ (5,613) Unrealized Defined Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2021 $ (717) $ (27) $ (744) Other comprehensive (loss) income Other comprehensive loss before reclassification (10,146) 9 (10,137) Amounts reclassified from AOCI into earnings - - - Net current period other comprehensive income (10,146) 9 (10,137) Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) 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”). Under the SBHC Policy Statement, qualifying bank holding companies, with total consolidated assets of less than $3 billion 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% 2.5% 7% 6.0% 2.5% 8.5% 8.0% 2.5% 10.5% 4% 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% 8.0% 10.0% 5.0% The capital amounts and ratios at December 31, 2023 and 2022 for the Bank are presented in the table below (dollars in thousands): Minimum Capital Requirements Actual Including Conservation Buffer (1) To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital (to risk- weighted assets) Village Bank $ 86,493 14.49 % $ 62,679 10.50 % $ 59,695 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 82,764 13.86 % 50,740 8.50 % 47,756 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 82,764 11.14 % 29,706 4.00 % 37,133 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 82,764 13.86 % 41,786 7.00 % 38,801 6.50 % December 31, 2022 Total capital (to risk- weighted assets) Village Bank $ 84,982 14.81 % $ 60,267 10.50 % $ 57,398 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,612 14.22 % 48,788 8.50 % 45,918 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,612 10.95 % 29,805 4.00 % 37,256 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,612 14.22 % 40,178 7.00 % 37,308 6.50 % (1) Basel III Capital Rules require banking organizations to maintain a minimum CETI ratio of 4.5% , plus a 2.5% capital conservation buffer; a minimum Tier 1 capital ratio of 6.0% , plus a 2.5% capital conservation buffer; a minimum, total risk-based capital ratio of 8.0% , plus a 2.5% conservation buffer; and a minimum Tier leverage ratio of 4.0% |
Stock incentive plan
Stock incentive plan | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 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 14 $ 25.28 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited (14) 25.28 9.76 — — — Exercised — — $ — (720) 25.63 9.76 Options outstanding, end of period — $ — $ — $ — 14 $ 25.28 $ 9.76 $ — Options exercisable, end of period — 14 The following table summarizes information about stock options outstanding at December 31, 2022: 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 14 0.54 $ 25.28 14 $ 25.28 14 0.54 25.28 14 25.28 During 2023, 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, 2024, vest based on the Company’s achievement of performance targets related to return on tangible common equity over the performance period, with possible payouts ranging from 0% to 150% of the target awards. During 2022, 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, 2023, vest based on the Company’s achievement of performance targets related to return on tangible common equity over the performance period, with possible payouts ranging from 0% to 150% of the target awards. The total number of shares underlying non-vested restricted stock was 31,077 and 28,296 at December 31, 2023 and 2022, 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 expense related to non-vested share-based compensation arrangements granted under the stock incentive plan as of December 31, 2023 and 2022 was $914,000 and $1,022,000, respectively. The time-based unrecognized compensation expense of $645,000 is expected to be recognized over a weighted average period of 2.21 years. During 2023, there were no forfeitures of shares of restricted stock awards. During 2022, there were forfeitures of 924 shares of 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, 2022 28,296 $ 46.60 $ 1,127,879 Granted 13,877 39.18 553,137 Vested (12,581) 38.00 (501,479) Forfeited — — — Other (1) 1,485 29.00 59,192 December 31, 2023 31,077 $ 45.93 $ 1,238,729 (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 $359,000 and $381,000 for the years ended December 31, 2023 and 2022, respectively. |
Trust preferred securities
Trust preferred securities | 12 Months Ended |
Dec. 31, 2023 | |
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 unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On February 24, 2005, $5.2 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have a floating rate of interest indexed to the London InterBank Offered Rate (“LIBOR”) (three-month LIBOR plus 2.15%) which adjusts, and is payable, quarterly. The interest rate was 7.78% and 6.89% at December 31, 2023 and 2022, respectively. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term Secured Overnight Funding Rate (“SOFR”) plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. 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, 2023 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 7.03% and 6.14% at December 31, 2023 and 2022, respectively. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term SOFR plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. 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, 2023 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
Subordinated Debt | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debt | |
Subordinated Debt | Note 16. Subordinated Debt On March 21, 2018, the Company issued $5,700,000 of fixed-to-floating rate subordinated notes due March 31, 2028 in a private placement. The Company received $5,539,000 in net proceeds after deducting issuance costs. The subordinated notes accrued interest at a fixed rate of 6.50% for the first five years until March 21, 2023. The subordinated notes have a LIBOR-indexed floating rate of interest (three-month LIBOR plus 3.73%) which adjusts and is also payable quarterly. The interest rate at December 31, 2023 was 9.37%. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term SOFR plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. The Company may redeem the subordinated notes in whole or in part, on or after March 31, 2023. The subordinated notes are unsecured and subordinated in right of payment to all of the Company’s existing and future senior indebtedness, whether secured or unsecured, including claims of depositors and general creditors, and rank equally in right of payment with any unsecured, subordinated indebtedness that the Company may incur in the future. The carrying value of the notes totaled $5,700,000 and $5,692,000 at December 31, 2023 and December 31, 2022, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Plans | |
Retirement Plans | Note 17. Retirement Plans 401K Plan Supplemental Executive Retirement Plan Directors Deferral Plan |
Fair value
Fair value | 12 Months Ended |
Dec. 31, 2023 | |
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, 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 Level 2 Inputs Level 3 Inputs The Company used the following methods to determine the fair value of each type of financial instrument: Securities Collateral dependent Loans held for sale: Derivative asset – interest rate lock commitments (“IRLCs”): Forward sale commitments: 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, 2023 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 U.S. Government Agencies $ 20,615 $ — $ 20,615 $ — Mortgage-backed securities 72,537 — 72,537 — Municipals 1,656 — 1,656 — Subordinated debt 10,777 — 10,277 500 Loans held for sale 4,983 — 4,983 — IRLC 271 — 271 — Financial Liabilities - Recurring Forward sales commitment 506 — 506 — Fair Value Measurement at December 31, 2022 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 U.S. Government Agencies $ 60,902 $ — $ 60,902 $ — Mortgage-backed securities 60,560 — 60,560 — Municipals 1,550 — 1,550 — Subordinated debt 10,841 — 8,841 2,000 Loans held for sale 2,268 — 2,268 — IRLC 142 — 142 — Financial Liabilities - Recurring Forward sales commitment 207 — 207 — There were no Level 3 fair value measurements for financial instruments measured on a non-recurring basis at fair value at December 31, 2023 and December 31, 2022. 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 (in thousands). December 31, December 31, 2023 2022 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value Financial assets Cash Level 1 $ 10,383 $ 10,383 $ 12,062 $ 12,062 Cash equivalents Level 2 7,331 7,331 4,616 4,616 Investment securities available for sale Level 2 105,085 105,085 131,853 131,853 Investment securities available for sale Level 3 500 500 2,000 2,000 Federal Home Loan Bank stock Level 2 2,644 2,644 1,223 1,223 Loans held for sale Level 2 4,983 4,983 2,268 2,268 Loans Level 3 575,008 547,935 538,427 521,150 Bank owned life insurance Level 2 13,120 13,120 12,798 12,798 Accrued interest receivable Level 2 3,827 3,827 3,651 3,651 Interest rate lock commitments Level 2 271 271 142 142 Financial liabilities Deposits Level 2 605,345 605,226 624,743 625,037 FHLB borrowings Level 2 45,000 44,999 20,000 20,000 Trust preferred securities Level 2 8,764 8,848 8,764 7,066 Other borrowings Level 2 5,700 5,700 5,692 5,692 Accrued interest payable Level 2 210 210 70 70 Forward sales commitment Level 2 506 506 207 207 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2023 Revenues Interest income $ 32,900 $ 374 $ — $ 33,274 Mortgage banking income, net — 2,212 (522) 1,690 Other revenues 3,433 — (173) 3,260 Total revenues 36,333 2,586 (695) 38,224 Expenses Provision for credit losses 50 — — 50 Interest expense 7,986 — — 7,986 Salaries and benefits 10,585 2,804 — 13,389 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 9,251 1,092 (695) 9,648 Total operating expenses 32,858 3,896 (695) 36,059 Income (loss) before income taxes 3,475 (1,310) — 2,165 Income tax expense (benefit) 522 (275) — 247 Net income (loss) $ 2,953 $ (1,035) $ — $ 1,918 Total assets $ 747,711 $ 16,947 $ (28,042) $ 736,616 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2022 Revenues Interest income $ 27,250 $ 237 $ — $ 27,487 Mortgage banking income, net — 3,542 (94) 3,448 Other revenues 3,335 — (180) 3,155 Total revenues 30,585 3,779 (274) 34,090 Expenses Recovery of provision for loan losses (300) — — (300) Interest expense 1,781 — — 1,781 Salaries and benefits 10,585 3,183 — 13,768 Other expenses 7,625 1,195 (274) 8,546 Total operating expenses 19,691 4,378 (274) 23,795 Income (loss) before income taxes 10,894 (599) — 10,295 Income tax expense (benefit) 2,116 (126) — 1,990 Net income (loss) $ 8,778 $ (473) $ — $ 8,305 Total assets $ 738,110 $ 17,874 $ (32,714) $ 723,270 |
Parent Corporation Only Financi
Parent Corporation Only Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Assets Cash and due from banks $ 1,666 $ 1,868 Investment in subsidiaries 77,151 70,731 Investment in special purpose subsidiary 264 264 Prepaid expenses and other assets 3,008 2,756 $ 82,089 $ 75,619 Liabilities and Shareholders’ Equity Liabilities Balance due to nonbank subsidiaries $ 8,764 $ 8,764 Other borrowings 5,700 5,692 Accrued interest payable 69 46 Other liabilities — 6 Total liabilities 14,533 14,508 Shareholders’ equity Common stock 5,908 5,868 Additional paid-in capital 55,486 55,167 Retained Earnings 11,775 10,957 Stock in directors rabbi trust (467) (689) Directors deferred fees obligation 467 689 Accumulated other comprehensive loss (5,613) (10,881) Total stockholders’ equity 67,556 61,111 $ 82,089 $ 75,619 Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2023 and 2022 (in thousands) 2023 2022 Income Interest income $ 4 $ 3 Dividends received from subsidiaries 1,975 1,835 Total Income 1,979 1,838 Interest expense Interest on borrowed funds 1,111 694 Total interest expense 1,111 694 Net interest income 868 1,144 Noninterest expense Supplies 30 30 Professional and outside services 42 42 Other 47 45 Total noninterest expense 119 117 Net income before undistributed income of subsidiary 749 1,027 Undistributed income of subsidiary 911 7,108 Net income before income tax benefit 1,660 8,135 Income tax benefit (258) (170) Net income $ 1,918 $ 8,305 Total comprehensive income (loss) $ 7,186 $ (1,832) Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Cash Flows Years Ended December 31, 2023 and 2022 (in thousands) 2023 2022 Cash Flows from Operating Activities Net income $ 1,918 $ 8,305 Adjustments to reconcile net income to net cash used in operating activities Amortization of debt issuance costs 8 32 Undistributed income of subsidiary (911) (7,108) Net change in: Other assets (253) (170) Interest Payable 23 — Other liabilities (6) 1 Net cash used in operating activities 779 1,060 Cash Flows from Investing Activities Net cash provided by investing activities — — Cash Flows from Financing Activities Proceeds from exercise of stock options — 18 Cash dividends paid (981) (857) Net cash used in financing activities (981) (839) Net increase in cash (202) 221 Cash, beginning of year 1,868 1,647 Cash, end of year $ 1,666 $ 1,868 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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. New Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. The company adopted ASU 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. This standard is commonly referred to as the current expected credit loss (“CECL”) methodology. As a result of adoption of Accounting Standards of Codification (“ASC”) 326, the Company recorded a net decrease to retained earnings of $119,000, net of taxes, which consisted of adjustments to the allowance for credit losses on loans as well as an adjustment to the Company’s reserve for unfunded loan commitments. Subsequent to adoption, the Company will record adjustments to its allowance for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using a weighted average remaining maturity (“WARM”) methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, changes in collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. The Company’s CECL implementation process was overseen by the Chief Financial Officer and included an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, an assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company’s historical loss experience. During 2022, the Company calculated its current expected credit losses model in parallel to its incurred loss model to further refine the methodology and model. In addition, the Company utilized internal personnel who were not involved in the development of the model to perform a comprehensive model validation. The following table illustrates the impact of ASC 326 adoption (in thousands): December 31, January 1, January 1, 2022 2023 2023 As Previously Reported Impact of As Reported (Incurred Loss) CECL Adoption Under CECL Assets: Loans Construction and land development Residential $ 79 $ 3 $ 82 Commercial 192 34 226 271 37 308 Commercial real estate Owner occupied 867 (475) 392 Non-owner occupied 1,289 192 1,481 Multifamily 33 7 40 Farmland — — — 2,189 (276) 1,913 Consumer real estate Home equity lines 11 24 35 Secured by 1-4 family residential First deed of trust 131 76 207 Second deed of trust 43 25 68 185 125 310 Commercial and industrial loans (except those secured by real estate) 576 1 577 Student loans 52 — 52 Consumer and other 37 (5) 32 Unallocated 60 (9) 51 Allowance for credit losses 3,370 (127) 3,243 Liabilities Allowance for credit losses on unfunded credit exposure — 277 277 Total Allowance for credit losses $ 3,370 $ 150 $ 3,520 On January 1, 2023, the Company adopted ASU 2022-02 “Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures,” which removed the recognition and measurement guidance on troubled debt restructurings (“TDRs”) and added disclosures on the financial effect and subsequent performance of certain types of modifications made to borrowers experiencing financial difficulties. Upon adoption of the standard, the Company recorded a reduction of $8,000 in the allowance for credit losses for the impact of changes in methodology used to estimate the allowance for credit losses for non-collateral dependent TDRs. There was no impact to the valuation of loans previously classified as collateral dependent TDRs. The allowance for loan and lease losses for modified loans is determined in a manner consistent with the methodology for loans under ASC 326. |
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 credit losses and its related provision, including impaired loans, and the valuation of deferred tax assets. |
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 (loss). Presently, the Company does not maintain a portfolio of trading or held to maturity securities. 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. 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. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery, the Company evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an allowance for credit losses is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the allowance for credit losses are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities available for sale not resulting from credit losses are recorded in other comprehensive income (loss). The Company regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Restricted stock, 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. The Company uses fair value accounting for its entire portfolio of loans held for sale (“LHFS”) in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for identical instruments traded in the secondary mortgage loan markets in which the Company conducts business and totaled $5.0 million as of December 31, 2023, of which $4.8 million is related to unpaid principal, and totaled $2.3 million as of December 31, 2022, of which $2.2 million is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. Interest Rate Lock Commitments and Forward Sales Commitments. The Company uses 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, 2023, and totaled $506,000, with a notional amount of $12.3 million and total positions of 47, and at December 31, 2022, totaled $207,000, with a notional amount of $12.1 million and total positions of 38. |
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 2023 and 2022 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 $1,202,000 at December 31, 2023 and approximately $922,000 at December 31, 2022. Below is a summary of the current loan segments: Construction and land development loans Commercial real estate loans Consumer real estate loans Commercial and industrial customers. Government guaranteed balances represent Small Business Administration (“SBA”) loans originated by the Bank according to SBA guidelines. 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. Consumer and other loans Guaranteed student loans |
Allowance for loan losses | Allowance for Credit Losses The allowance for credit losses consists of the allowance for credit losses on loans, reserve for unfunded commitments, and the allowance on securities. The allowance for credit losses on loans is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Credit losses on loans 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 for credit losses on loans, in management’s judgement, represents the current estimate of expected credit losses over the term of loans held for investment, and is recorded at an amount that, in management’s judgement, reduces the recorded investment in loans to the net amount expected to be collected. 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 Company utilizes a third-party model to tabulate its estimate of current expected credit losses, using a WARM methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company primarily utilizes the short-term natural rate of unemployment forecast based on the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses using a statistical regression analysis. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, and collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis. The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. The Company records a reserve, reported in other liabilities, for expected credit losses on commitments to extend credit that are not unconditionally cancelable by the Company. The reserve for unfunded commitments is measured based on the principles utilized in estimating the allowance for credit losses on loans and an estimate of the amount of unfunded commitments expected to be advanced. Changes in the reserve for unfunded commitments are recorded through the provision for credit losses. |
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. There were no assets held as other real estate owned (“OREO”) as of December 31, 2023 and December 31, 2022. 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. 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, 2023 and 2022. 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 seven |
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, 2023 and 2022. 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. |
Comprehensive income | Comprehensive income Total comprehensive income (loss) consists of net income and other comprehensive income (loss). At December 31, 2023 and 2022, the accumulated other comprehensive income (loss) was comprised of unrealized (losses) on securities available for sale of ($5,603,000) and ($10,862,000), and unfunded pension liability of ($10,000) and ($19,000) 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 Company uses in estimating fair values of financial instruments. |
Revenue recognition | Revenue recognition The Company recognizes revenue as it is earned in accordance with ASU 2014-09. The following discussion is of revenues that are within the scope of the this 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 assesses 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 December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this ASU require an entity to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold, which is greater than five percent of the amount computed by multiplying pretax income by the entity’s applicable statutory rate, on an annual basis. Additionally, the amendments in this ASU require an entity to disclose the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions that are equal to or greater than five percent of total income taxes paid (net of refunds received). Lastly, the amendments in this ASU require an entity to disclose income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign. This ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision mark (CODM), an amount for other segment items by reportable segment and a description of its composition, all annual disclosures required by FASB ASU Topic 280 in interim periods as well, and the title and position of the CODM and how the CODM uses the reported measures. Additionally, this ASU requires that at least one of the reported segment profit and loss measures should be the measure that is most consistent with the measurement principles used in an entity’s consolidated financial statements. Lastly, this ASU requires public business entities with a single reportable segment to provide all disclosures required by these amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively. In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This ASU incorporates certain U.S. Securities and Exchange Commission (SEC) disclosure requirements into the FASB Accounting Standards Codification. The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC’s existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. For all other entities, the amendments will be effective two years later. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective for any entity. The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements. In July 2023, the FASB issued ASU 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718)”. This ASU amends the FASB ASC pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”. ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. 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 2021, 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 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 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. |
Investment securities availab_2
Investment securities available for sales (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2023 U.S. Government agency obligations $ 20,690 $ — $ (75) $ 20,615 Mortgage-backed securities 77,275 643 (5,381) 72,537 Municipals 2,264 — (608) 1,656 Subordinated debt 12,449 30 (1,702) 10,777 $ 112,678 $ 673 $ (7,766) $ 105,585 December 31, 2022 U.S. Government agency obligations $ 64,631 $ 5 $ (3,734) $ 60,902 Mortgage-backed securities 69,151 6 (8,597) 60,560 Municipals 2,268 — (718) 1,550 Subordinated debt 11,553 29 (741) 10,841 $ 147,603 $ 40 $ (13,790) $ 133,853 |
Schedule of investment securities available for sale | Investment securities available for sale that had an unrealized loss position at December 31, 2023 and December 31, 2022 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, 2023 U.S. Government agency obligations $ — $ — $ 20,289 (75) $ 20,289 $ (75) Mortgage-backed securities 4,631 (24) 30,311 (5,357) 34,942 (5,381) Municipals — — 1,656 (608) 1,656 (608) Subordinated debt 4,145 (587) 5,937 (1,115) 10,082 (1,702) $ 8,776 $ (611) $ 58,193 $ (7,155) $ 66,969 $ (7,766) December 31, 2022 U.S. Government agency obligations $ 21,848 $ (723) $ 37,256 $ (3,011) $ 59,104 $ (3,734) Mortgage-backed securities 36,089 (3,588) 22,549 (5,009) 58,638 (8,597) Municipals — — 1,549 (718) 1,549 (718) Subordinated debt 5,305 (498) 2,007 (243) 7,312 (741) $ 63,242 $ (4,809) $ 63,361 $ (8,981) $ 126,603 $ (13,790) |
Schedule of investment by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2023, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 19,990 $ 19,928 One to five years 10,805 10,883 Five to ten years 17,370 15,781 More than ten years 64,513 58,993 Total $ 112,678 $ 105,585 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans and allowance for credit losses | |
Schedule of composition of loan portfolio (excluding mortgage loans held for sale) | Loans classified by type as of December 31, 2023 and 2022 are as follows (dollars in thousands): December 31, 2023 December 31, 2022 Amount % Amount % Construction and land development Residential $ 10,471 1.82 % $ 9,727 1.81 % Commercial 37,024 6.44 % 35,400 6.57 % 47,495 8.26 % 45,127 8.38 % Commercial real estate Owner occupied 122,666 21.33 % 119,643 22.22 % Non-owner occupied 154,855 26.93 % 153,610 28.53 % Multifamily 12,743 2.22 % 11,291 2.10 % Farmland 326 0.06 % 73 0.01 % 290,590 50.54 % 284,617 52.86 % Consumer real estate Home equity lines 21,557 3.75 % 18,421 3.42 % Secured by 1-4 family residential, First deed of trust 95,638 16.63 % 67,495 12.54 % Second deed of trust 11,337 1.97 % 7,764 1.44 % 128,532 22.35 % 93,680 17.40 % Commercial and industrial loans (except those secured by real estate) 86,203 14.99 % 90,348 16.78 % Guaranteed student loans 17,923 3.12 % 20,617 3.83 % Consumer and other 4,265 0.74 % 4,038 0.75 % Total loans 575,008 100.0 % 538,427 100.0 % Deferred and costs, net 803 588 Less: allowance for credit losses (3,423) (3,370) $ 572,388 $ 535,645 |
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, 2023 and 2022 (in thousands): 2023 2022 Beginning balance $ 4,365 $ 5,922 Additions 6,774 7,662 Effect of changes in composition of related parties (160) — Reductions (6,063) (9,219) Ending balance $ 4,916 $ 4,365 |
Schedule of information on nonaccrual loans | The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): December 31, December 31, 2023 2022 Consumer real estate Home equity lines $ — $ 300 Secured by 1-4 family residential First deed of trust 160 164 Second deed of trust 105 171 265 635 Commercial and industrial loans (except those secured by real estate) 26 19 Total loans $ 291 $ 654 |
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, 2022 Construction and land development Residential $ 9,727 $ — $ — $ — $ 9,727 Commercial 32,763 2,637 — — 35,400 42,490 2,637 — — 45,127 Commercial real estate Owner occupied 115,825 2,583 1,235 — 119,643 Non-owner occupied 143,458 10,152 — — 153,610 Multifamily 11,291 — — — 11,291 Farmland 73 — — — 73 270,647 12,735 1,235 — 284,617 Consumer real estate Home equity lines 17,507 614 300 — 18,421 Secured by 1-4 family residential First deed of trust 66,616 407 472 — 67,495 Second deed of trust 7,517 72 175 — 7,764 91,640 1,093 947 — 93,680 Commercial and industrial loans (except those secured by real estate) 83,848 6,481 19 — 90,348 Guaranteed student loans 20,617 — — — 20,617 Consumer and other 4,017 — 21 — 4,038 Total loans $ 513,259 $ 22,946 $ 2,222 $ — $ 538,427 |
Schedule of information on the risk rating of loans by period | Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans December 31, 2023 Construction and land development Residential Pass $ 6,320 $ 3,812 $ 339 $ — $ — $ — $ — $ — $ 10,471 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Residential $ 6,320 $ 3,812 $ 339 $ — $ — $ — $ — $ — $ 10,471 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass 5,007 14,506 10,339 235 — 1,183 5,754 — 37,024 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial $ 5,007 $ 14,506 $ 10,339 $ 235 $ — $ 1,183 $ 5,754 $ — $ 37,024 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Owner occupied Pass 11,945 21,846 20,044 9,855 12,145 41,067 788 — 117,690 Special Mention — 202 73 — — 4,701 — — 4,976 Substandard — — — — — — — — — Total Owner occupied $ 11,945 $ 22,048 $ 20,117 $ 9,855 $ 12,145 $ 45,768 $ 788 $ — $ 122,666 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied Pass 9,468 25,607 28,455 23,567 9,528 47,645 3,312 — 147,582 Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans Special Mention — — 2,173 — — 5,100 — — 7,273 Substandard — — — — — — — — — Total Non-owner occupied $ 9,468 $ 25,607 $ 30,628 $ 23,567 $ 9,528 $ 52,745 $ 3,312 $ — $ 154,855 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily Pass 1,300 — 2,503 548 885 6,113 1,394 — 12,743 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Multifamily $ 1,300 $ — $ 2,503 $ 548 $ 885 $ 6,113 $ 1,394 $ — $ 12,743 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland Pass — — — — — 26 300 — 326 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Farmland $ — $ — $ — $ — $ — $ 26 $ 300 $ — $ 326 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate Home equity lines Pass — 446 — — — — 21,036 — 21,482 Special Mention — — — — — — 75 — 75 Substandard — — — — — — — — — Total Home equity lines $ — $ 446 $ — $ — $ — $ — $ 21,111 $ — $ 21,557 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Secured by 1-4 family residential First deed of trust Pass 34,067 14,288 15,613 8,107 2,957 17,427 2,125 — 94,584 Special Mention — — — 170 — 724 — — 894 Substandard — — — — — 160 — — 160 Total First deed of trust $ 34,067 $ 14,288 $ 15,613 $ 8,277 $ 2,957 $ 18,311 $ 2,125 $ — $ 95,638 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Second deed of trust Pass 4,530 3,207 1,027 397 1,067 626 266 — 11,120 Special Mention — — — — 45 67 — — 112 Substandard — — — — — 105 — — 105 Total Second deed of trust $ 4,530 $ 3,207 $ 1,027 $ 397 $ 1,112 $ 798 $ 266 $ $ 11,337 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans (except those secured by real estate) Pass 15,022 15,900 15,321 5,634 2,852 3,698 27,068 — 85,495 Special Mention 37 — — — 318 22 306 — 683 Substandard — — — 13 — 12 — — 25 Total Commercial and industrial $ 15,059 $ 15,900 $ 15,321 $ 5,647 $ 3,170 $ 3,732 $ 27,374 $ — $ 86,203 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Guaranteed student loans Pass — — — — — 17,923 — — 17,923 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Guaranteed student loans $ — $ — $ — $ — $ — $ 17,923 $ — $ — $ 17,923 Current period gross writeoff $ 30 $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other Pass 455 483 123 50 17 11 3,126 — 4,265 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Consumer and other $ 455 $ 483 $ 123 $ 50 $ 17 $ 11 $ 3,126 $ $ 4,265 Current period gross writeoff $ 3 $ — $ — $ — $ — $ — $ — $ — $ — Total Current period gross writeoff $ 33 $ — $ — $ — $ — $ — $ — $ — $ — Total loans $ 88,151 $ 100,297 $ 96,010 $ 48,576 $ 29,814 $ 146,610 $ 65,550 $ — $ 575,008 |
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): 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, 2023 Construction and land development Residential $ — $ — $ — $ — $ 10,471 $ 10,471 $ — Commercial — — — — 37,024 37,024 — — — — — 47,495 47,495 — Commercial real estate Owner occupied — — — — 122,666 122,666 — Non-owner occupied — — — — 154,855 154,855 — Multifamily — — — — 12,743 12,743 — Farmland — — — — 326 326 — — — — — 290,590 290,590 — Consumer real estate Home equity lines 83 25 — 108 21,449 21,557 — Secured by 1‑4 family residential First deed of trust — — — — 95,638 95,638 — Second deed of trust 33 — — 33 11,304 11,337 — 116 25 — 141 128,391 128,532 — Commercial and industrial loans (except those secured by real estate) — — — — 86,203 86,203 — Guaranteed student loans 690 493 2,228 3,411 14,512 17,923 2,228 Consumer and other 734 — — 734 3,531 4,265 — Total loans $ 1,540 $ 518 $ 2,228 $ 4,286 $ 570,722 $ 575,008 $ 2,228 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, 2022 Construction and land development Residential $ — $ — $ — $ — $ 9,727 $ 9,727 $ — Commercial — — — — 35,400 35,400 — — — — — 45,127 45,127 — Commercial real estate Owner occupied — — — — 119,643 119,643 — Non-owner occupied — — — — 153,610 153,610 — Multifamily — — — — 11,291 11,291 — Farmland — — — — 73 73 — — — — — 284,617 284,617 — Consumer real estate Home equity lines — 50 — 50 18,371 18,421 — Secured by 1-4 family residential First deed of trust — — — — 67,495 67,495 — Second deed of trust 54 — — 54 7,710 7,764 — 54 50 — 104 93,576 93,680 — Commercial and industrial loans (except those secured by real estate) 1,022 — 377 1,399 88,949 90,348 — Guaranteed student loans 831 390 1,725 2,946 17,671 20,617 1,725 Consumer and other — — — — 4,038 4,038 — Total loans $ 1,907 $ 440 $ 2,102 $ 4,449 $ 533,978 $ 538,427 $ 1,725 |
Schedule of impaired loans, after ASU 2016-13 | December 31, 2023 December 31, 2022 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ — $ — $ — $ 4,332 $ 4,347 $ — Non-owner occupied — — — 312 312 — — — — 4,644 4,659 — Consumer real estate Home equity lines — — — 300 300 — Secured by 1‑4 family residential First deed of trust 160 160 — 1,745 1,745 — Second deed of trust 105 105 — 195 300 — 265 265 — 2,240 2,345 — Commercial and industrial loans (except those secured by real estate) 26 26 — 19 19 — 291 291 — 6,903 7,023 — With an allowance recorded Commercial real estate Owner occupied — — — 251 251 2 — — — 251 251 2 Consumer real estate Secured by 1-4 family residential First deed of trust — — — 136 136 6 — — — 136 136 6 Consumer and other — — — 21 21 1 — — — 408 408 9 Total Owner occupied — — — 4,583 4,598 2 Non-owner occupied — — — 312 312 — — — — 4,895 4,910 2 Consumer real estate Home equity lines — — — 300 300 — Secured by 1-4 family residential, First deed of trust 160 160 — 1,881 1,881 6 Second deed of trust 105 105 — 195 300 — 265 265 — 2,376 2,481 6 Commercial and industrial loans (except those secured by real estate) 26 26 — 19 19 — Consumer and other — — — 21 21 1 $ 291 $ 291 $ — $ 7,311 $ 7,431 $ 9 |
Schedule of average recorded investment in impaired loans | The following is a summary of average recorded investment in individually evaluated loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands): December 31, 2023 2022 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Commercial real estate Owner occupied $ 1,166 $ 208 $ 4,339 $ 159 Non-owner occupied — — 857 20 1,166 208 5,196 179 Consumer real estate Home equity lines 74 — 300 27 Secured by 1-4 family residential First deed of trust 169 8 1,798 70 Second deed of trust 108 4 217 10 351 12 2,315 107 Commercial and industrial loans (except those secured by real estate) 57 8 94 4 1,574 228 7,605 290 With an allowance recorded Commercial real estate Owner occupied — — 257 15 — — 257 15 Consumer real estate Secured by 1-4 family residential First deed of trust — — 121 7 Second deed of trust — — 49 — — — 170 7 Consumer and other — — 11 — — — 438 22 Total Commercial real estate Owner occupied 1,166 208 4,596 174 Non-owner occupied — — 857 20 1,166 208 5,453 194 Consumer real estate Home equity lines 74 — 300 27 Secured by 1-4 family residential, First deed of trust 169 8 1,919 77 Second deed of trust 108 4 266 10 351 12 2,485 114 Commercial and industrial loans (except those secured by real estate) 57 8 94 4 Consumer and other — — 11 — $ 1,574 $ 228 $ 8,043 $ 312 |
Schedule of troubled debt restructurings on financing receivables | Specific Valuation Total Performing Nonaccrual Allowance December 31, 2022 Commercial real estate Owner occupied $ 3,348 $ 3,348 $ — $ 2 Non-owner occupied 312 312 — — 3,660 3,660 — 2 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,409 1,409 — 6 Second deeds of trust 75 19 56 — 1,484 1,428 56 6 Commercial and industrial loans (except those secured by real estate) 19 — 19 — $ 5,163 $ 5,088 $ 75 $ 8 Number of loans 24 22 2 3 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Provision for Loan, Lease, and Other Losses [Abstract] | |
Schedule of activity in the allowance for loan losses | Activity in the allowance for credit losses is as follows for the periods indicated (in thousands): Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Year Ended December 31, 2023 Construction and land development Residential $ 79 $ 3 $ 4 $ — $ — $ 86 Commercial 192 34 2 — — 228 271 37 6 — — 314 Commercial real estate Owner occupied 867 (475) 17 — — 409 Non-owner occupied 1,289 192 (14) — — 1,467 Multifamily 33 7 4 — — 44 Farmland — — 3 — — 3 2,189 (276) 10 — — 1,923 Consumer real estate Home equity lines 11 24 5 — — 40 Secured by 1-4 family residential First deed of trust 131 76 83 — 3 293 Second deed of trust 43 25 15 — 16 99 185 125 103 — 19 432 Commercial and industrial loans (except those secured by real estate) 576 1 (110) — 173 640 Student loans 52 — 35 (30) — 57 Consumer and other 37 (5) 7 (3) — 36 Unallocated 60 (9) (30) — — 21 $ 3,370 $ (127) $ 21 $ (33) $ 192 $ 3,423 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2022 Construction and land development Residential $ 57 $ 22 $ — $ — $ 79 Commercial 229 (37) — — 192 286 (15) — — 271 Commercial real estate Owner occupied 833 34 — — 867 Non-owner occupied 1,083 206 — — 1,289 Multifamily 35 (2) — — 33 Farmland 2 (2) — — — 1,953 236 — — 2,189 Consumer real estate Home equity lines 12 (59) — 58 11 Secured by 1-4 family residential First deed of trust 123 3 — 5 131 Second deed of trust 47 (311) (27) 334 43 182 (367) (27) 397 185 Commercial and industrial loans (except those secured by real estate) 486 180 (157) 67 576 Student loans 65 18 (31) — 52 Consumer and other 29 10 (2) — 37 Unallocated 422 (362) — — 60 $ 3,423 $ (300) $ (217) $ 464 $ 3,370 |
Schedule of loans evaluated for impairment | Loans were evaluated for the need for credit reserve 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, 2023 Construction and land development Residential $ 86 $ — $ 86 $ 10,471 $ — $ 10,471 Commercial 228 — 228 37,024 — 37,024 314 — 314 47,495 — 47,495 Commercial real estate Owner occupied 409 — 409 122,666 — 122,666 Non-owner occupied 1,467 — 1,467 154,855 — 154,855 Multifamily 44 — 44 12,743 — 12,743 Farmland 3 — 3 326 — 326 1,923 — 1,923 290,590 — 290,590 Consumer real estate Home equity lines 40 — 40 21,557 — 21,557 Secured by 1-4 family residential First deed of trust 293 — 293 95,638 160 95,478 Second deed of trust 99 — 99 11,337 105 11,232 432 — 432 128,532 265 128,267 Commercial and industrial loans (except those secured by real estate) 640 — 640 86,203 26 86,177 Student loans 57 — 57 17,923 — 17,923 Consumer and other 57 — 57 4,265 — 4,265 $ 3,423 $ — $ 3,423 $ 575,008 $ 291 $ 574,717 Year Ended December 31, 2022 Construction and land development Residential $ 79 $ — $ 79 $ 9,727 $ — $ 9,727 Commercial 192 — 192 35,400 — 35,400 271 — 271 45,127 — 45,127 Commercial real estate Owner occupied 867 2 865 119,643 4,583 115,060 Non-owner occupied 1,289 — 1,289 153,610 312 153,298 Multifamily 33 — 33 11,291 — 11,291 Farmland — — — 73 — 73 2,189 2 2,187 284,617 4,895 279,722 Consumer real estate Home equity lines 11 — 11 18,421 300 18,121 Secured by 1-4 family residential — First deed of trust 131 6 125 67,495 1,881 65,614 Second deed of trust 43 — 43 7,764 195 7,569 185 6 179 93,680 2,376 91,304 Commercial and industrial loans (except those secured by real estate) 576 — 576 90,348 19 90,329 Student loans 52 — 52 20,617 — 20,617 Consumer and other 97 1 96 4,038 21 4,017 $ 3,370 $ 9 $ 3,361 $ 538,427 $ 7,311 $ 531,116 |
Schedule of provision for credit losses | The following table presents a breakdown of the provision for credit losses for the periods indicated (in thousands): Year Ended December 31, 2023 2022 Provision for credit losses: Provision (recovery) for loans $ 21 $ (300) Provision (recovery) for unfunded commitments 29 — Total $ 50 $ (300) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Schedule of premises and equipment | The following is a summary of premises and equipment as of December 31, 2023 and 2022 (in thousands): 2023 2022 Land $ 4,352 $ 4,352 Buildings and improvements 11,448 11,444 Furniture, fixtures and equipment 8,500 7,945 Total premises and equipment 24,300 23,741 Less: Accumulated depreciation and amortization (12,540) (11,993) Premises and equipment, net $ 11,760 $ 11,748 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Schedule of deposits | Deposits as of December 31, 2023 and 2022 were as follows (dollars in thousands): December 31, 2023 December 31, 2022 Amount % Amount % Demand accounts $ 247,624 40.9 % $ 255,236 40.9 % Interest checking accounts 76,289 12.6 % 90,252 14.4 % Money market accounts 195,249 32.3 % 179,036 28.6 % Savings accounts 39,633 6.5 % 55,695 8.9 % Time deposits of $250,000 and over 9,145 1.5 % 4,740 0.8 % Other time deposits 37,405 6.2 % 39,784 6.4 % Total $ 605,345 100.0 % $ 624,743 100.0 % |
Schedule of maturities of time deposits | The following are the scheduled maturities of time deposits as of December 31, 2023 (in thousands): Greater Than Year Ending Less Than or Equal to December 31, $250,000 $250,000 Total 2024 $ 29,997 $ 8,606 $ 38,603 2025 3,442 — 3,442 2026 2,443 — 2,443 2027 878 539 1,417 2028 645 — 645 Total $ 37,405 $ 9,145 $ 46,550 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings | |
Schedule of Debt | Information related to borrowings as of December 31, 2023 and 2022 is as follows (dollars in thousands): Year Ended December 31, 2023 2022 Maximum outstanding during the year Federal Funds Purchased $ 6,498 $ 6,000 FHLB advances 45,000 20,000 Balance outstanding at end of year Federal Funds Purchased — — FHLB advances 45,000 20,000 Average amount outstanding during the year Federal Funds Purchased 207 2 FHLB advances 33,356 164 Average interest rate during the year Federal Funds Purchased 4.25 % 4.61 % FHLB advances 4.71 % 4.65 % Average interest rate at end of year Federal Funds Purchased — % — % FHLB advances 4.89 % 4.57 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 (in thousands): 2023 2022 Deferred tax assets Capital loss carryforward $ 25 $ 25 Allowance for credit losses 719 708 Unfunded commitment liability 64 — Unrealized loss on available for sale securities 1,489 2,887 Interest on nonaccrual loans 18 18 Stock compensation 81 78 Employee benefits 764 836 Depreciation 21 24 Lease obligation 6 5 Other, net 35 63 Total deferred tax assets 3,222 4,644 Deferred tax liabilities Deferred costs, net of fees 169 123 Pension expense 10 6 Total deferred tax liabilities 179 129 Net deferred tax asset $ 3,043 $ 4,515 |
Schedule of Provision for income taxes | The income tax expense charged to operations for the years ended December 31, 2023 and 2022 consists of the following (in thousands): 2023 2022 Current tax expense $ 146 $ 1,844 Deferred tax expense 101 146 Provision for income taxes $ 247 $ 1,990 |
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, 2023 and 2022 (in thousands): 2023 2022 Net income before income taxes $ 2,165 $ 10,295 Computed "expected" tax expense $ 455 $ 2,162 State taxes, net of federal (121) (67) Cash surrender value of life insurance (68) (64) Other (19) (41) Provision for income taxes $ 247 $ 1,990 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per common share | |
Schedule of basic and diluted earnings per common share | The following table presents the basic and diluted earnings per share computations (dollars in thousands except per share data): Year Ended December 31, 2023 2022 Numerator Net income - basic and diluted $ 1,918 $ 8,305 Denominator Weighted average shares outstanding - basic 1,486 1,477 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,486 1,477 Earnings per share - basic $ 1.29 $ 5.62 Earnings per share - diluted $ 1.29 $ 5.62 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 year ended December 31, 2023 2022 Lease liabilities $ 847 $ 1,122 Right-of-use assets $ 818 $ 1,100 Weighted average remaining lease term 3.66 4.40 Weighted average discount rate 2.80 % 2.51 % For the year ended December 31, 2023 2022 Lease cost Operating lease cost $ 309 $ 301 Total lease cost $ 309 $ 301 |
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, 2023 Lease payments due Twelve months ending December 31, 2024 $ 313 Twelve months ending December 31, 2025 214 Twelve months ending December 31, 2026 163 Twelve months ending December 31, 2027 146 Twelve months ending December 31, 2028 52 Thereafter 8 Total undiscounted cash flows $ 896 Discount 49 Lease liabilities $ 847 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and contingencies | |
Schedule of off balance sheet financial instruments | At December 31, 2023 and 2022, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): December 31, December 31, 2023 2022 Undisbursed credit lines $ 127,918 $ 119,454 Commitments to extend or originate credit 7,463 9,899 Standby letters of credit 1,202 922 Total commitments to extend credit $ 136,583 $ 130,275 |
Shareholders' Equity and Regu_2
Shareholders' Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Shareholders' Equity and Regulatory Matters | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the accumulated other comprehensive loss as of December 31, 2023 and 2022, respectively (in thousands): Unrealized Defined Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) Other comprehensive (loss) income Other comprehensive loss before reclassification 1,320 9 1,329 Amounts reclassified from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 5,259 9 5,268 Accumulated other comprehensive loss December 31, 2023 $ (5,604) $ (9) $ (5,613) Unrealized Defined Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2021 $ (717) $ (27) $ (744) Other comprehensive (loss) income Other comprehensive loss before reclassification (10,146) 9 (10,137) Amounts reclassified from AOCI into earnings - - - Net current period other comprehensive income (10,146) 9 (10,137) Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) |
Schedule of capital amounts and ratios | The capital amounts and ratios at December 31, 2023 and 2022 for the Bank are presented in the table below (dollars in thousands): Minimum Capital Requirements Actual Including Conservation Buffer (1) To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital (to risk- weighted assets) Village Bank $ 86,493 14.49 % $ 62,679 10.50 % $ 59,695 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 82,764 13.86 % 50,740 8.50 % 47,756 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 82,764 11.14 % 29,706 4.00 % 37,133 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 82,764 13.86 % 41,786 7.00 % 38,801 6.50 % December 31, 2022 Total capital (to risk- weighted assets) Village Bank $ 84,982 14.81 % $ 60,267 10.50 % $ 57,398 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,612 14.22 % 48,788 8.50 % 45,918 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,612 10.95 % 29,805 4.00 % 37,256 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,612 14.22 % 40,178 7.00 % 37,308 6.50 % (1) Basel III Capital Rules require banking organizations to maintain a minimum CETI ratio of 4.5% , plus a 2.5% capital conservation buffer; a minimum Tier 1 capital ratio of 6.0% , plus a 2.5% capital conservation buffer; a minimum, total risk-based capital ratio of 8.0% , plus a 2.5% conservation buffer; and a minimum Tier leverage ratio of 4.0% |
Stock incentive plan (Tables)
Stock incentive plan (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock incentive plan | |
Schedule of options outstanding under company's stock incentive plan | Year Ended December 31, 2023 2022 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 14 $ 25.28 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited (14) 25.28 9.76 — — — Exercised — — $ — (720) 25.63 9.76 Options outstanding, end of period — $ — $ — $ — 14 $ 25.28 $ 9.76 $ — Options exercisable, end of period — 14 |
Schedule of information about stock options outstanding | The following table summarizes information about stock options outstanding at December 31, 2022: 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 14 0.54 $ 25.28 14 $ 25.28 14 0.54 25.28 14 25.28 |
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, 2022 28,296 $ 46.60 $ 1,127,879 Granted 13,877 39.18 553,137 Vested (12,581) 38.00 (501,479) Forfeited — — — Other (1) 1,485 29.00 59,192 December 31, 2023 31,077 $ 45.93 $ 1,238,729 (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. |
Fair value (Tables)
Fair value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 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 U.S. Government Agencies $ 20,615 $ — $ 20,615 $ — Mortgage-backed securities 72,537 — 72,537 — Municipals 1,656 — 1,656 — Subordinated debt 10,777 — 10,277 500 Loans held for sale 4,983 — 4,983 — IRLC 271 — 271 — Financial Liabilities - Recurring Forward sales commitment 506 — 506 — Fair Value Measurement at December 31, 2022 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 U.S. Government Agencies $ 60,902 $ — $ 60,902 $ — Mortgage-backed securities 60,560 — 60,560 — Municipals 1,550 — 1,550 — Subordinated debt 10,841 — 8,841 2,000 Loans held for sale 2,268 — 2,268 — IRLC 142 — 142 — Financial Liabilities - Recurring Forward sales commitment 207 — 207 — |
Schedule of company's financial instruments whether or not recognized | December 31, December 31, 2023 2022 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value Financial assets Cash Level 1 $ 10,383 $ 10,383 $ 12,062 $ 12,062 Cash equivalents Level 2 7,331 7,331 4,616 4,616 Investment securities available for sale Level 2 105,085 105,085 131,853 131,853 Investment securities available for sale Level 3 500 500 2,000 2,000 Federal Home Loan Bank stock Level 2 2,644 2,644 1,223 1,223 Loans held for sale Level 2 4,983 4,983 2,268 2,268 Loans Level 3 575,008 547,935 538,427 521,150 Bank owned life insurance Level 2 13,120 13,120 12,798 12,798 Accrued interest receivable Level 2 3,827 3,827 3,651 3,651 Interest rate lock commitments Level 2 271 271 142 142 Financial liabilities Deposits Level 2 605,345 605,226 624,743 625,037 FHLB borrowings Level 2 45,000 44,999 20,000 20,000 Trust preferred securities Level 2 8,764 8,848 8,764 7,066 Other borrowings Level 2 5,700 5,700 5,692 5,692 Accrued interest payable Level 2 210 210 70 70 Forward sales commitment Level 2 506 506 207 207 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting | |
Schedule of segment information | The following table presents segment information as of and for the years ended December 31, 2023 and 2022 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2023 Revenues Interest income $ 32,900 $ 374 $ — $ 33,274 Mortgage banking income, net — 2,212 (522) 1,690 Other revenues 3,433 — (173) 3,260 Total revenues 36,333 2,586 (695) 38,224 Expenses Provision for credit losses 50 — — 50 Interest expense 7,986 — — 7,986 Salaries and benefits 10,585 2,804 — 13,389 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 9,251 1,092 (695) 9,648 Total operating expenses 32,858 3,896 (695) 36,059 Income (loss) before income taxes 3,475 (1,310) — 2,165 Income tax expense (benefit) 522 (275) — 247 Net income (loss) $ 2,953 $ (1,035) $ — $ 1,918 Total assets $ 747,711 $ 16,947 $ (28,042) $ 736,616 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Year Ended December 31, 2022 Revenues Interest income $ 27,250 $ 237 $ — $ 27,487 Mortgage banking income, net — 3,542 (94) 3,448 Other revenues 3,335 — (180) 3,155 Total revenues 30,585 3,779 (274) 34,090 Expenses Recovery of provision for loan losses (300) — — (300) Interest expense 1,781 — — 1,781 Salaries and benefits 10,585 3,183 — 13,768 Other expenses 7,625 1,195 (274) 8,546 Total operating expenses 19,691 4,378 (274) 23,795 Income (loss) before income taxes 10,894 (599) — 10,295 Income tax expense (benefit) 2,116 (126) — 1,990 Net income (loss) $ 8,778 $ (473) $ — $ 8,305 Total assets $ 738,110 $ 17,874 $ (32,714) $ 723,270 |
Parent Corporation Only Finan_2
Parent Corporation Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Assets Cash and due from banks $ 1,666 $ 1,868 Investment in subsidiaries 77,151 70,731 Investment in special purpose subsidiary 264 264 Prepaid expenses and other assets 3,008 2,756 $ 82,089 $ 75,619 Liabilities and Shareholders’ Equity Liabilities Balance due to nonbank subsidiaries $ 8,764 $ 8,764 Other borrowings 5,700 5,692 Accrued interest payable 69 46 Other liabilities — 6 Total liabilities 14,533 14,508 Shareholders’ equity Common stock 5,908 5,868 Additional paid-in capital 55,486 55,167 Retained Earnings 11,775 10,957 Stock in directors rabbi trust (467) (689) Directors deferred fees obligation 467 689 Accumulated other comprehensive loss (5,613) (10,881) Total stockholders’ equity 67,556 61,111 $ 82,089 $ 75,619 |
Condensed Statements of Operations and Comprehensive Income | Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Income and Comprehensive Income Years Ended December 31, 2023 and 2022 (in thousands) 2023 2022 Income Interest income $ 4 $ 3 Dividends received from subsidiaries 1,975 1,835 Total Income 1,979 1,838 Interest expense Interest on borrowed funds 1,111 694 Total interest expense 1,111 694 Net interest income 868 1,144 Noninterest expense Supplies 30 30 Professional and outside services 42 42 Other 47 45 Total noninterest expense 119 117 Net income before undistributed income of subsidiary 749 1,027 Undistributed income of subsidiary 911 7,108 Net income before income tax benefit 1,660 8,135 Income tax benefit (258) (170) Net income $ 1,918 $ 8,305 Total comprehensive income (loss) $ 7,186 $ (1,832) |
Condensed Statements of Cash Flows | Village Bank and Trust Financial Corp. (Parent Corporation Only) Condensed Statements of Cash Flows Years Ended December 31, 2023 and 2022 (in thousands) 2023 2022 Cash Flows from Operating Activities Net income $ 1,918 $ 8,305 Adjustments to reconcile net income to net cash used in operating activities Amortization of debt issuance costs 8 32 Undistributed income of subsidiary (911) (7,108) Net change in: Other assets (253) (170) Interest Payable 23 — Other liabilities (6) 1 Net cash used in operating activities 779 1,060 Cash Flows from Investing Activities Net cash provided by investing activities — — Cash Flows from Financing Activities Proceeds from exercise of stock options — 18 Cash dividends paid (981) (857) Net cash used in financing activities (981) (839) Net increase in cash (202) 221 Cash, beginning of year 1,868 1,647 Cash, end of year $ 1,666 $ 1,868 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | 24 Months Ended | |||
Dec. 31, 2023 USD ($) position segment | Dec. 31, 2022 USD ($) position | Dec. 31, 2023 USD ($) position | May 19, 2020 shares | May 26, 2015 shares | |
Accounting Policies [Line Items] | |||||
Loans held for sale | $ 5,000,000 | $ 2,300,000 | $ 5,000,000 | ||
Unpaid Principal balance | $ 4,800,000 | 2,200,000 | 4,800,000 | ||
Loan Non Accrual Period | 90 days | ||||
Loan Accrual Period | 90 days | ||||
Contractual amount of standby letters of credit | $ 1,202,000 | 922,000 | |||
Assets held for sale | $ 0 | 0 | $ 0 | ||
Property, Plant and Equipment, Useful Life | 39 years | 39 years | |||
Net unrealized gains (losses) on securities | $ (5,603,000) | (10,862,000) | $ (5,603,000) | ||
Assets held as other real estate owned | 0 | ||||
Net unrecognized losses on defined benefit plan | (10,000) | (19,000) | (10,000) | ||
IRLC Notional amount | $ 7,500,000 | 7,500,000 | |||
Number of reportable segments | segment | 2 | ||||
Other Assets | |||||
Accounting Policies [Line Items] | |||||
Fair value of IRLC | $ 271,000 | 142,000 | $ 271,000 | ||
IRLC Notional amount | $ 9,900,000 | ||||
IRLC total positions | position | 27 | 31 | 27 | ||
Other Liabilities | |||||
Accounting Policies [Line Items] | |||||
IRLC total positions | position | 47 | 38 | 47 | ||
Fair value of forward sales commitments | $ 506,000 | $ 207,000 | $ 506,000 | ||
Forward sales commitments notional amount | $ 12,300,000 | $ 12,100,000 | $ 12,300,000 | ||
US Department of Education [Member] | |||||
Accounting Policies [Line Items] | |||||
Percentages Of Principal And Accrued Interest Covered By Guarantee | 98% | ||||
Maximum | Equipment | |||||
Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years | 7 years | |||
Minimum | Equipment | |||||
Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | 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 |
Principles of presentation - Im
Principles of presentation - Impact of ASC 326 (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance Ending Balance | $ 3,423,000 | $ 3,370,000 | $ 3,423,000 | |
Total Allowance for credit losses | 3,423,000 | 3,370,000 | 3,423,000 | |
Allowance for credit losses on unfunded credit exposure | 306,000 | |||
Total Allowance for credit losses | 3,730,000 | |||
Retained earnings | 11,775,000 | 10,957,000 | ||
Adoption of ASC 326 | ||||
Allowance Ending Balance | (127,000) | |||
Total Allowance for credit losses | (127,000) | |||
Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | $ (127,000) | |||
Total Allowance for credit losses | (127,000) | |||
Allowance for credit losses on unfunded credit exposure | 277,000 | |||
Total Allowance for credit losses | 150,000 | |||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 3,243,000 | |||
Total Allowance for credit losses | 3,243,000 | |||
Allowance for credit losses on unfunded credit exposure | 277,000 | |||
Total Allowance for credit losses | 3,520,000 | |||
Retained earnings | (119,000) | |||
Accounting Standards Update 2022-02 | ||||
Allowance for credit loss on financing receivable, non-collateral dependent troubled debt restructuring loans | (8,000,000) | |||
Consumer and other | ||||
Allowance Ending Balance | 57,000 | 97,000 | ||
Total Allowance for credit losses | 57,000 | 97,000 | ||
Construction and land development | ||||
Allowance Ending Balance | 314,000 | 271,000 | 286,000 | |
Total Allowance for credit losses | 314,000 | 271,000 | 286,000 | |
Construction and land development | Adoption of ASC 326 | ||||
Allowance Ending Balance | 37,000 | |||
Total Allowance for credit losses | 37,000 | |||
Construction and land development | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 37,000 | |||
Total Allowance for credit losses | 37,000 | |||
Construction and land development | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 308,000 | |||
Total Allowance for credit losses | 308,000 | |||
Construction and land development | Residential | ||||
Allowance Ending Balance | 86,000 | 79,000 | 57,000 | |
Total Allowance for credit losses | 86,000 | 79,000 | 57,000 | |
Construction and land development | Residential | Adoption of ASC 326 | ||||
Allowance Ending Balance | 3,000 | |||
Total Allowance for credit losses | 3,000 | |||
Construction and land development | Residential | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 3,000 | |||
Total Allowance for credit losses | 3,000 | |||
Construction and land development | Residential | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 82,000 | |||
Total Allowance for credit losses | 82,000 | |||
Construction and land development | Commercial | ||||
Allowance Ending Balance | 228,000 | 192,000 | 229,000 | |
Total Allowance for credit losses | 228,000 | 192,000 | 229,000 | |
Construction and land development | Commercial | Adoption of ASC 326 | ||||
Allowance Ending Balance | 34,000 | |||
Total Allowance for credit losses | 34,000 | |||
Construction and land development | Commercial | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 34,000 | |||
Total Allowance for credit losses | 34,000 | |||
Construction and land development | Commercial | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 226,000 | |||
Total Allowance for credit losses | 226,000 | |||
Commercial real estate | ||||
Allowance Ending Balance | 1,923,000 | 2,189,000 | 1,953,000 | |
Total Allowance for credit losses | 1,923,000 | 2,189,000 | 1,953,000 | |
Commercial real estate | Adoption of ASC 326 | ||||
Allowance Ending Balance | (276,000) | |||
Total Allowance for credit losses | (276,000) | |||
Commercial real estate | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | (276,000) | |||
Total Allowance for credit losses | (276,000) | |||
Commercial real estate | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 1,913,000 | |||
Total Allowance for credit losses | 1,913,000 | |||
Commercial real estate | Owner occupied | ||||
Allowance Ending Balance | 409,000 | 867,000 | 833,000 | |
Total Allowance for credit losses | 409,000 | 867,000 | 833,000 | |
Commercial real estate | Owner occupied | Adoption of ASC 326 | ||||
Allowance Ending Balance | (475,000) | |||
Total Allowance for credit losses | (475,000) | |||
Commercial real estate | Owner occupied | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | (475,000) | |||
Total Allowance for credit losses | (475,000) | |||
Commercial real estate | Owner occupied | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 392,000 | |||
Total Allowance for credit losses | 392,000 | |||
Commercial real estate | Non-owner occupied | ||||
Allowance Ending Balance | 1,467,000 | 1,289,000 | 1,083,000 | |
Total Allowance for credit losses | 1,467,000 | 1,289,000 | 1,083,000 | |
Commercial real estate | Non-owner occupied | Adoption of ASC 326 | ||||
Allowance Ending Balance | 192,000 | |||
Total Allowance for credit losses | 192,000 | |||
Commercial real estate | Non-owner occupied | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 192,000 | |||
Total Allowance for credit losses | 192,000 | |||
Commercial real estate | Non-owner occupied | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 1,481,000 | |||
Total Allowance for credit losses | 1,481,000 | |||
Commercial real estate | Multifamily | ||||
Allowance Ending Balance | 44,000 | 33,000 | 35,000 | |
Total Allowance for credit losses | 44,000 | 33,000 | 35,000 | |
Commercial real estate | Multifamily | Adoption of ASC 326 | ||||
Allowance Ending Balance | 7,000 | |||
Total Allowance for credit losses | 7,000 | |||
Commercial real estate | Multifamily | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 7,000 | |||
Total Allowance for credit losses | 7,000 | |||
Commercial real estate | Multifamily | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 40,000 | |||
Total Allowance for credit losses | 40,000 | |||
Commercial real estate | Farmland | ||||
Allowance Ending Balance | 3,000 | 0 | 2,000 | |
Total Allowance for credit losses | 3,000 | 0 | 2,000 | |
Consumer real estate secured by 1-4 family residential | ||||
Allowance Ending Balance | 432,000 | 185,000 | 182,000 | |
Total Allowance for credit losses | 432,000 | 185,000 | 182,000 | |
Consumer real estate secured by 1-4 family residential | Adoption of ASC 326 | ||||
Allowance Ending Balance | 125,000 | |||
Total Allowance for credit losses | 125,000 | |||
Consumer real estate secured by 1-4 family residential | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 125,000 | |||
Total Allowance for credit losses | 125,000 | |||
Consumer real estate secured by 1-4 family residential | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 310,000 | |||
Total Allowance for credit losses | 310,000 | |||
Consumer real estate secured by 1-4 family residential | Home equity lines | ||||
Allowance Ending Balance | 40,000 | 11,000 | 12,000 | |
Total Allowance for credit losses | 40,000 | 11,000 | 12,000 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | Adoption of ASC 326 | ||||
Allowance Ending Balance | 24,000 | |||
Total Allowance for credit losses | 24,000 | |||
Consumer real estate secured by 1-4 family residential | Home equity lines | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 24,000 | |||
Total Allowance for credit losses | 24,000 | |||
Consumer real estate secured by 1-4 family residential | Home equity lines | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 35,000 | |||
Total Allowance for credit losses | 35,000 | |||
Consumer real estate secured by 1-4 family residential | First deed of trust | ||||
Allowance Ending Balance | 293,000 | 131,000 | 123,000 | |
Total Allowance for credit losses | 293,000 | 131,000 | 123,000 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | Adoption of ASC 326 | ||||
Allowance Ending Balance | 76,000 | |||
Total Allowance for credit losses | 76,000 | |||
Consumer real estate secured by 1-4 family residential | First deed of trust | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 76,000 | |||
Total Allowance for credit losses | 76,000 | |||
Consumer real estate secured by 1-4 family residential | First deed of trust | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 207,000 | |||
Total Allowance for credit losses | 207,000 | |||
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||||
Allowance Ending Balance | 99,000 | 43,000 | 47,000 | |
Total Allowance for credit losses | 99,000 | 43,000 | 47,000 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Adoption of ASC 326 | ||||
Allowance Ending Balance | 25,000 | |||
Total Allowance for credit losses | 25,000 | |||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 25,000 | |||
Total Allowance for credit losses | 25,000 | |||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 68,000 | |||
Total Allowance for credit losses | 68,000 | |||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||||
Allowance Ending Balance | 640,000 | 576,000 | 486,000 | |
Total Allowance for credit losses | 640,000 | 576,000 | 486,000 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Adoption of ASC 326 | ||||
Allowance Ending Balance | 1,000 | |||
Total Allowance for credit losses | 1,000 | |||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | 1,000 | |||
Total Allowance for credit losses | 1,000 | |||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 577,000 | |||
Total Allowance for credit losses | 577,000 | |||
Commercial and industrial loans | Guaranteed student loans | ||||
Allowance Ending Balance | 57,000 | 52,000 | 65,000 | |
Total Allowance for credit losses | 57,000 | 52,000 | 65,000 | |
Commercial and industrial loans | Guaranteed student loans | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 52,000 | |||
Total Allowance for credit losses | 52,000 | |||
Commercial and industrial loans | Consumer and other | ||||
Allowance Ending Balance | 36,000 | 37,000 | 29,000 | |
Total Allowance for credit losses | 36,000 | 37,000 | 29,000 | |
Commercial and industrial loans | Consumer and other | Adoption of ASC 326 | ||||
Allowance Ending Balance | (5,000) | |||
Total Allowance for credit losses | (5,000) | |||
Commercial and industrial loans | Consumer and other | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | (5,000) | |||
Total Allowance for credit losses | (5,000) | |||
Commercial and industrial loans | Consumer and other | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 32,000 | |||
Total Allowance for credit losses | 32,000 | |||
Commercial and industrial loans | Unallocated | ||||
Allowance Ending Balance | 21,000 | 60,000 | 422,000 | |
Total Allowance for credit losses | 21,000 | $ 60,000 | $ 422,000 | |
Commercial and industrial loans | Unallocated | Adoption of ASC 326 | ||||
Allowance Ending Balance | (9,000) | |||
Total Allowance for credit losses | $ (9,000) | |||
Commercial and industrial loans | Unallocated | Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Allowance Ending Balance | (9,000) | |||
Total Allowance for credit losses | (9,000) | |||
Commercial and industrial loans | Unallocated | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Allowance Ending Balance | 51,000 | |||
Total Allowance for credit losses | $ 51,000 |
Investment securities availab_3
Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 112,678 | $ 147,603 |
Gross Unrealized Gains | 673 | 40 |
Gross Unrealized Losses | (7,766) | (13,790) |
Fair Value | 105,585 | 133,853 |
U.S. Government agencies obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,690 | 64,631 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (75) | (3,734) |
Fair Value | 20,615 | 60,902 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 77,275 | 69,151 |
Gross Unrealized Gains | 643 | 6 |
Gross Unrealized Losses | (5,381) | (8,597) |
Fair Value | 72,537 | 60,560 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,264 | 2,268 |
Gross Unrealized Losses | (608) | (718) |
Fair Value | 1,656 | 1,550 |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,449 | 11,553 |
Gross Unrealized Gains | 30 | 29 |
Gross Unrealized Losses | (1,702) | (741) |
Fair Value | $ 10,777 | $ 10,841 |
Investment securities availab_4
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, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | $ 8,776 | $ 63,242 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (611) | (4,809) |
Securities in a loss position for more than 12 Months, Fair Value | 58,193 | 63,361 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (7,155) | (8,981) |
Total Fair Value | 66,969 | 126,603 |
Total Unrealized Losses | (7,766) | (13,790) |
U.S. Government agencies obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 0 | 21,848 |
Securities in a loss position for less than 12 Months, Unrealized Losses | 0 | (723) |
Securities in a loss position for more than 12 Months, Fair Value | 20,289 | 37,256 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (75) | (3,011) |
Total Fair Value | 20,289 | 59,104 |
Total Unrealized Losses | (75) | (3,734) |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 4,631 | 36,089 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (24) | (3,588) |
Securities in a loss position for more than 12 Months, Fair Value | 30,311 | 22,549 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (5,357) | (5,009) |
Total Fair Value | 34,942 | 58,638 |
Total Unrealized Losses | (5,381) | (8,597) |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 0 | 0 |
Securities in a loss position for less than 12 Months, Unrealized Losses | 0 | 0 |
Securities in a loss position for more than 12 Months, Fair Value | 1,656 | 1,549 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (608) | (718) |
Total Fair Value | 1,656 | 1,549 |
Total Unrealized Losses | (608) | (718) |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 4,145 | 5,305 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (587) | (498) |
Securities in a loss position for more than 12 Months, Fair Value | 5,937 | 2,007 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (1,115) | (243) |
Total Fair Value | 10,082 | 7,312 |
Total Unrealized Losses | $ (1,702) | $ (741) |
Investment securities availab_5
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, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Less than one year | $ 19,990 | |
One to five years | 10,805 | |
Five to ten years | 17,370 | |
More than ten years | 64,513 | |
Total | 112,678 | |
Fair Value | ||
Less than one year | 19,928 | |
One to five years | 10,883 | |
Five to ten years | 15,781 | |
More than ten years | 58,993 | |
Total | $ 105,585 | $ 133,853 |
Investment securities availab_6
Investment securities available for sale - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) position | Dec. 31, 2022 USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 112,678,000 | $ 147,603,000 |
Proceeds from the sale of available-for-sale securities | $ 50,079,000 | 0 |
Weighted average yield | 1.48% | |
Loss on sale of investment securities, net | $ (4,986,000) | |
Reduction of FHLB borrowings | $ 15,000,000 | |
FLBH Borrowings rate | 5.57% | |
Weighted average life of reinvested proceeds | 5 years | |
Number of positions, more than 12 months | position | 28 | |
Number of positions, Total months | position | 56 | |
Total Fair Value | $ 66,969,000 | 126,603,000 |
Total Unrealized Losses | 7,766,000 | 13,790,000 |
Available-for-sale Securities, Gross Unrealized Loss | 9,000,000 | |
FHLB advances | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | 24,926,000 | $ 5,613,000 |
Securities Sold, Available For Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 55,195,000 | |
Securities Sold, Reinvested, Available For Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Weighted average yield | 5.48% | |
Duration of reinvested proceeds | 3 years 4 months 24 days |
Investment securities availab_7
Investment securities available for sale - Summary of gross realized gains and losses to available for sale securities (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Investment securities available for sale | |
Available-for-sale Securities, Gross Realized Gain (Loss), Total | $ (4,986,000) |
Loans - Classified by type (Det
Loans - Classified by type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 538,427 | ||
Deferred (fees) and costs, net | 588 | ||
Less: allowance for credit losses | $ (3,423) | (3,370) | $ (3,423) |
Total loans, net | $ 535,645 | ||
Percentage of class of loans to loan portfolio (in percent) | 100% | 100% | |
Loans | |||
Total loans | $ 575,008 | ||
Deferred (fees) and costs, net | 803 | ||
Less: allowance for credit losses | (3,423) | $ (3,370) | (3,423) |
Total loans, net | 572,388 | ||
Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 45,127 | ||
Less: allowance for credit losses | $ (314) | $ (271) | (286) |
Percentage of class of loans to loan portfolio (in percent) | 8.26% | 8.38% | |
Loans | |||
Total loans | $ 47,495 | ||
Less: allowance for credit losses | (314) | $ (271) | (286) |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 284,617 | ||
Less: allowance for credit losses | $ (1,923) | $ (2,189) | (1,953) |
Percentage of class of loans to loan portfolio (in percent) | 50.54% | 52.86% | |
Loans | |||
Total loans | $ 290,590 | ||
Less: allowance for credit losses | (1,923) | $ (2,189) | (1,953) |
Consumer real estate secured by 1-4 family residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 93,680 | ||
Less: allowance for credit losses | $ (432) | $ (185) | (182) |
Percentage of class of loans to loan portfolio (in percent) | 22.35% | 17.40% | |
Loans | |||
Total loans | $ 128,532 | ||
Less: allowance for credit losses | (432) | $ (185) | (182) |
Residential | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 9,727 | ||
Less: allowance for credit losses | $ (86) | $ (79) | (57) |
Percentage of class of loans to loan portfolio (in percent) | 1.82% | 1.81% | |
Loans | |||
Total loans | $ 10,471 | ||
Less: allowance for credit losses | (86) | $ (79) | (57) |
Commercial | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 35,400 | ||
Less: allowance for credit losses | $ (228) | $ (192) | (229) |
Percentage of class of loans to loan portfolio (in percent) | 6.44% | 6.57% | |
Loans | |||
Total loans | $ 37,024 | ||
Less: allowance for credit losses | (228) | $ (192) | (229) |
Owner occupied | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 119,643 | ||
Less: allowance for credit losses | $ (409) | $ (867) | (833) |
Percentage of class of loans to loan portfolio (in percent) | 21.33% | 22.22% | |
Loans | |||
Total loans | $ 122,666 | ||
Less: allowance for credit losses | (409) | $ (867) | (833) |
Non-owner occupied | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 153,610 | ||
Less: allowance for credit losses | $ (1,467) | $ (1,289) | (1,083) |
Percentage of class of loans to loan portfolio (in percent) | 26.93% | 28.53% | |
Loans | |||
Total loans | $ 154,855 | ||
Less: allowance for credit losses | (1,467) | $ (1,289) | (1,083) |
Multifamily | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 11,291 | ||
Less: allowance for credit losses | $ (44) | $ (33) | (35) |
Percentage of class of loans to loan portfolio (in percent) | 2.22% | 2.10% | |
Loans | |||
Total loans | $ 12,743 | ||
Less: allowance for credit losses | (44) | $ (33) | (35) |
Farmland | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 73 | ||
Less: allowance for credit losses | $ (3) | $ 0 | (2) |
Percentage of class of loans to loan portfolio (in percent) | 0.06% | 0.01% | |
Loans | |||
Total loans | $ 326 | ||
Less: allowance for credit losses | (3) | $ 0 | (2) |
Home equity lines | Consumer real estate secured by 1-4 family residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 18,421 | ||
Less: allowance for credit losses | $ (40) | $ (11) | (12) |
Percentage of class of loans to loan portfolio (in percent) | 3.75% | 3.42% | |
Loans | |||
Total loans | $ 21,557 | ||
Less: allowance for credit losses | (40) | $ (11) | (12) |
First deed of trust | Consumer real estate secured by 1-4 family residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 67,495 | ||
Less: allowance for credit losses | $ (293) | $ (131) | (123) |
Percentage of class of loans to loan portfolio (in percent) | 16.63% | 12.54% | |
Loans | |||
Total loans | $ 95,638 | ||
Less: allowance for credit losses | (293) | $ (131) | (123) |
Second deed of trust | Consumer real estate secured by 1-4 family residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 7,764 | ||
Less: allowance for credit losses | $ (99) | $ (43) | (47) |
Percentage of class of loans to loan portfolio (in percent) | 1.97% | 1.44% | |
Loans | |||
Total loans | $ 11,337 | ||
Less: allowance for credit losses | (99) | $ (43) | (47) |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 90,348 | ||
Less: allowance for credit losses | $ (640) | $ (576) | (486) |
Percentage of class of loans to loan portfolio (in percent) | 14.99% | 16.78% | |
Loans | |||
Total loans | $ 86,203 | ||
Less: allowance for credit losses | (640) | $ (576) | (486) |
Guaranteed student loans | Commercial and industrial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 20,617 | ||
Less: allowance for credit losses | $ (57) | $ (52) | (65) |
Percentage of class of loans to loan portfolio (in percent) | 3.12% | 3.83% | |
Loans | |||
Total loans | $ 17,923 | ||
Less: allowance for credit losses | (57) | $ (52) | (65) |
Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 4,038 | ||
Less: allowance for credit losses | (57) | (97) | |
Loans | |||
Total loans | 4,265 | ||
Less: allowance for credit losses | (57) | (97) | |
Consumer and other | Commercial and industrial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 4,038 | ||
Less: allowance for credit losses | $ (36) | $ (37) | (29) |
Percentage of class of loans to loan portfolio (in percent) | 0.74% | 0.75% | |
Loans | |||
Total loans | $ 4,265 | ||
Less: allowance for credit losses | $ (36) | $ (37) | $ (29) |
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, 2023 | Dec. 31, 2022 | |
Loans and allowance for credit losses | ||
Beginning balance | $ 4,365 | $ 5,922 |
Additions | 6,774 | 7,662 |
Effect of changes in composition of related parties | (160) | 0 |
Reductions | (6,063) | (9,219) |
Ending balance | $ 4,916 | $ 4,365 |
Loans - Information on the risk
Loans - Information on the risk rating of loans (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 538,427,000 | |
Total loans | $ 575,008,000 | |
Total loans | 291,000 | 654,000 |
Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,038,000 | |
Total loans | 4,265,000 | |
Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 513,259,000 | |
Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22,946,000 | |
Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,222,000 | |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 45,127,000 | |
Total loans | 47,495,000 | |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,727,000 | |
Total loans | 10,471,000 | |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 35,400,000 | |
Total loans | 37,024,000 | |
Construction and land development | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 42,490,000 | |
Construction and land development | Risk Rated 1-4 | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,727,000 | |
Construction and land development | Risk Rated 1-4 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,763,000 | |
Construction and land development | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637,000 | |
Construction and land development | Risk Rated 5 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637,000 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 284,617,000 | |
Total loans | 290,590,000 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 119,643,000 | |
Total loans | 122,666,000 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 153,610,000 | |
Total loans | 154,855,000 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,291,000 | |
Total loans | 12,743,000 | |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73,000 | |
Total loans | 326,000 | |
Commercial real estate | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 270,647,000 | |
Commercial real estate | Risk Rated 1-4 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 115,825,000 | |
Commercial real estate | Risk Rated 1-4 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 143,458,000 | |
Commercial real estate | Risk Rated 1-4 | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,291,000 | |
Commercial real estate | Risk Rated 1-4 | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73,000 | |
Commercial real estate | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,735,000 | |
Commercial real estate | Risk Rated 5 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,583,000 | |
Commercial real estate | Risk Rated 5 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,152,000 | |
Commercial real estate | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,235,000 | |
Commercial real estate | Risk Rated 6 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,235,000 | |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 93,680,000 | |
Total loans | 128,532,000 | |
Total loans | 265,000 | 635,000 |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,421,000 | |
Total loans | 21,557,000 | |
Total loans | 300,000 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 67,495,000 | |
Total loans | 95,638,000 | |
Total loans | 160,000 | 164,000 |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,764,000 | |
Total loans | 11,337,000 | |
Total loans | 105,000 | 171,000 |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 91,640,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,507,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,616,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,517,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,093,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 614,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 407,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 72,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 947,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 472,000 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 175,000 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 90,348,000 | |
Total loans | 86,203,000 | |
Total loans | 26,000 | 19,000 |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,617,000 | |
Total loans | 17,923,000 | |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,038,000 | |
Total loans | $ 4,265,000 | |
Commercial and industrial loans | Risk Rated 1-4 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 83,848,000 | |
Commercial and industrial loans | Risk Rated 1-4 | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,617,000 | |
Commercial and industrial loans | Risk Rated 1-4 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,017,000 | |
Commercial and industrial loans | Risk Rated 5 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,481,000 | |
Commercial and industrial loans | Risk Rated 6 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,000 | |
Commercial and industrial loans | Risk Rated 6 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 21,000 |
Loans - Risk category of loans
Loans - Risk category of loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | $ 88,151 |
2022 | 100,297 |
2021 | 96,010 |
2020 | 48,576 |
2019 | 29,814 |
Prior | 146,610 |
Revolving | 65,550 |
Total loans | 575,008 |
Current-period gross write-offs | |
2023 | 33 |
Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 47,495 |
Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 290,590 |
Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 128,532 |
Residential | Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 6,320 |
2022 | 3,812 |
2021 | 339 |
Total loans | 10,471 |
Residential | Construction and land development | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 6,320 |
2022 | 3,812 |
2021 | 339 |
Total loans | 10,471 |
Commercial | Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 5,007 |
2022 | 14,506 |
2021 | 10,339 |
2020 | 235 |
Prior | 1,183 |
Revolving | 5,754 |
Total loans | 37,024 |
Commercial | Construction and land development | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 5,007 |
2022 | 14,506 |
2021 | 10,339 |
2020 | 235 |
Prior | 1,183 |
Revolving | 5,754 |
Total loans | 37,024 |
Owner occupied | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 11,945 |
2022 | 22,048 |
2021 | 20,117 |
2020 | 9,855 |
2019 | 12,145 |
Prior | 45,768 |
Revolving | 788 |
Total loans | 122,666 |
Owner occupied | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 11,945 |
2022 | 21,846 |
2021 | 20,044 |
2020 | 9,855 |
2019 | 12,145 |
Prior | 41,067 |
Revolving | 788 |
Total loans | 117,690 |
Owner occupied | Commercial real estate | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 202 |
2021 | 73 |
Prior | 4,701 |
Total loans | 4,976 |
Non-owner occupied | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 9,468 |
2022 | 25,607 |
2021 | 30,628 |
2020 | 23,567 |
2019 | 9,528 |
Prior | 52,745 |
Revolving | 3,312 |
Total loans | 154,855 |
Non-owner occupied | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 9,468 |
2022 | 25,607 |
2021 | 28,455 |
2020 | 23,567 |
2019 | 9,528 |
Prior | 47,645 |
Revolving | 3,312 |
Total loans | 147,582 |
Non-owner occupied | Commercial real estate | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | 2,173 |
Prior | 5,100 |
Total loans | 7,273 |
Multifamily | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 1,300 |
2021 | 2,503 |
2020 | 548 |
2019 | 885 |
Prior | 6,113 |
Revolving | 1,394 |
Total loans | 12,743 |
Multifamily | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 1,300 |
2021 | 2,503 |
2020 | 548 |
2019 | 885 |
Prior | 6,113 |
Revolving | 1,394 |
Total loans | 12,743 |
Farmland | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 26 |
Revolving | 300 |
Total loans | 326 |
Farmland | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 26 |
Revolving | 300 |
Total loans | 326 |
Home equity lines | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 446 |
Revolving | 21,111 |
Total loans | 21,557 |
Home equity lines | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 446 |
Revolving | 21,036 |
Total loans | 21,482 |
Home equity lines | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Revolving | 75 |
Total loans | 75 |
First deed of trust | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 34,067 |
2022 | 14,288 |
2021 | 15,613 |
2020 | 8,277 |
2019 | 2,957 |
Prior | 18,311 |
Revolving | 2,125 |
Total loans | 95,638 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 34,067 |
2022 | 14,288 |
2021 | 15,613 |
2020 | 8,107 |
2019 | 2,957 |
Prior | 17,427 |
Revolving | 2,125 |
Total loans | 94,584 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | 170 |
Prior | 724 |
Total loans | 894 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 160 |
Total loans | 160 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 4,530 |
2022 | 3,207 |
2021 | 1,027 |
2020 | 397 |
2019 | 1,112 |
Prior | 798 |
Revolving | 266 |
Total loans | 11,337 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 4,530 |
2022 | 3,207 |
2021 | 1,027 |
2020 | 397 |
2019 | 1,067 |
Prior | 626 |
Revolving | 266 |
Total loans | 11,120 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2019 | 45 |
Prior | 67 |
Total loans | 112 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 105 |
Total loans | 105 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 15,059 |
2022 | 15,900 |
2021 | 15,321 |
2020 | 5,647 |
2019 | 3,170 |
Prior | 3,732 |
Revolving | 27,374 |
Total loans | 86,203 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 15,022 |
2022 | 15,900 |
2021 | 15,321 |
2020 | 5,634 |
2019 | 2,852 |
Prior | 3,698 |
Revolving | 27,068 |
Total loans | 85,495 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 37 |
2019 | 318 |
Prior | 22 |
Revolving | 306 |
Total loans | 683 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | 13 |
Prior | 12 |
Total loans | 25 |
Guaranteed student loans | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 17,923 |
Total loans | 17,923 |
Current-period gross write-offs | |
2023 | 30 |
Guaranteed student loans | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 17,923 |
Total loans | 17,923 |
Consumer and other | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 4,265 |
Consumer and other | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 455 |
2022 | 483 |
2021 | 123 |
2020 | 50 |
2019 | 17 |
Prior | 11 |
Revolving | 3,126 |
Total loans | 4,265 |
Current-period gross write-offs | |
2023 | 3 |
Consumer and other | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 455 |
2022 | 483 |
2021 | 123 |
2020 | 50 |
2019 | 17 |
Prior | 11 |
Revolving | 3,126 |
Total loans | $ 4,265 |
Loans - Aging of recorded inves
Loans - Aging of recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 538,427 | |
Total loans | $ 575,008 | |
Recorded Investment, 90 Days and Accruing | 2,228 | 1,725 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 533,978 | |
Total loans | 570,722 | |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,449 | |
Total loans | 4,286 | |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,907 | |
Total loans | 1,540 | |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 440 | |
Total loans | 518 | |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,102 | |
Total loans | 2,228 | |
Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,038 | |
Total loans | 4,265 | |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 45,127 | |
Total loans | 47,495 | |
Construction and land development | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 45,127 | |
Total loans | 47,495 | |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 9,727 | |
Total loans | 10,471 | |
Construction and land development | Residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 9,727 | |
Total loans | 10,471 | |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 35,400 | |
Total loans | 37,024 | |
Construction and land development | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 35,400 | |
Total loans | 37,024 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 284,617 | |
Total loans | 290,590 | |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 284,617 | |
Total loans | 290,590 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 119,643 | |
Total loans | 122,666 | |
Commercial real estate | Owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 119,643 | |
Total loans | 122,666 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 153,610 | |
Total loans | 154,855 | |
Commercial real estate | Non-owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 153,610 | |
Total loans | 154,855 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 11,291 | |
Total loans | 12,743 | |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 11,291 | |
Total loans | 12,743 | |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 73 | |
Total loans | 326 | |
Commercial real estate | Farmland | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 73 | |
Total loans | 326 | |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 93,680 | |
Total loans | 128,532 | |
Consumer real estate secured by 1-4 family residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 93,576 | |
Total loans | 128,391 | |
Consumer real estate secured by 1-4 family residential | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 104 | |
Total loans | 141 | |
Consumer real estate secured by 1-4 family residential | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 116 | |
Consumer real estate secured by 1-4 family residential | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 25 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 18,421 | |
Total loans | 21,557 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 18,371 | |
Total loans | 21,449 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 108 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 83 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 25 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 67,495 | |
Total loans | 95,638 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 67,495 | |
Total loans | 95,638 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 7,764 | |
Total loans | 11,337 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 7,710 | |
Total loans | 11,304 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 33 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 33 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 90,348 | |
Total loans | 86,203 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 88,949 | |
Total loans | 86,203 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,399 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,022 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 377 | |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 20,617 | |
Total loans | 17,923 | |
Recorded Investment, 90 Days and Accruing | 2,228 | 1,725 |
Commercial and industrial loans | Guaranteed student loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 17,671 | |
Total loans | 14,512 | |
Commercial and industrial loans | Guaranteed student loans | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,946 | |
Total loans | 3,411 | |
Commercial and industrial loans | Guaranteed student loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 831 | |
Total loans | 690 | |
Commercial and industrial loans | Guaranteed student loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 390 | |
Total loans | 493 | |
Commercial and industrial loans | Guaranteed student loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,725 | |
Total loans | 2,228 | |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,038 | |
Total loans | 4,265 | |
Commercial and industrial loans | Consumer and other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 4,038 | |
Total loans | 3,531 | |
Commercial and industrial loans | Consumer and other | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 734 | |
Commercial and industrial loans | Consumer and other | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 734 |
Loans - Impaired loans (Details
Loans - Impaired loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
With no related allowance recorded | ||
Recorded Investment | $ 6,903 | |
Recorded Investment, after ASU 2016-13 | $ 291 | |
Unpaid Principal Balance | 7,023 | |
Unpaid Principle Balance, after ASU 2016-13 | 291 | |
With an allowance recorded | ||
Recorded Investment | 408 | |
Unpaid Principal Balance | 408 | |
Related Allowance | 9 | |
Total | ||
Recorded Investment | 7,311 | |
Recorded Investment, after ASU 2016-13 | 291 | |
Unpaid Principal Balance | 7,431 | |
Unpaid Principle Balance, after ASU 2016-13 | 291 | |
Related Allowance | 9 | |
Commercial real estate | ||
With no related allowance recorded | ||
Recorded Investment | 4,644 | |
Unpaid Principal Balance | 4,659 | |
With an allowance recorded | ||
Recorded Investment | 251 | |
Unpaid Principal Balance | 251 | |
Total | ||
Recorded Investment | 4,895 | |
Unpaid Principal Balance | 4,910 | |
Related Allowance | 2 | |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 4,332 | |
Unpaid Principal Balance | 4,347 | |
With an allowance recorded | ||
Recorded Investment | 251 | |
Unpaid Principal Balance | 251 | |
Total | ||
Recorded Investment | 4,583 | |
Unpaid Principal Balance | 4,598 | |
Related Allowance | 2 | |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 312 | |
Unpaid Principal Balance | 312 | |
Total | ||
Recorded Investment | 312 | |
Unpaid Principal Balance | 312 | |
Related Allowance | 0 | |
Related Allowance, after ASU 2016-13 | 0 | |
Consumer real estate secured by 1-4 family residential | ||
With no related allowance recorded | ||
Recorded Investment | 2,240 | |
Recorded Investment, after ASU 2016-13 | 265 | |
Unpaid Principal Balance | 2,345 | |
Unpaid Principle Balance, after ASU 2016-13 | 265 | |
With an allowance recorded | ||
Recorded Investment | 136 | |
Unpaid Principal Balance | 136 | |
Related Allowance | 6 | |
Total | ||
Recorded Investment | 2,376 | |
Recorded Investment, after ASU 2016-13 | 265 | |
Unpaid Principal Balance | 2,481 | |
Unpaid Principle Balance, after ASU 2016-13 | 265 | |
Related Allowance | 6 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
With no related allowance recorded | ||
Recorded Investment | 300 | |
Unpaid Principal Balance | 300 | |
Total | ||
Recorded Investment | 300 | |
Unpaid Principal Balance | 300 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 1,745 | |
Recorded Investment, after ASU 2016-13 | 160 | |
Unpaid Principal Balance | 1,745 | |
Unpaid Principle Balance, after ASU 2016-13 | 160 | |
With an allowance recorded | ||
Recorded Investment | 136 | |
Unpaid Principal Balance | 136 | |
Total | ||
Recorded Investment | 1,881 | |
Recorded Investment, after ASU 2016-13 | 160 | |
Unpaid Principal Balance | 1,881 | |
Unpaid Principle Balance, after ASU 2016-13 | 160 | |
Related Allowance | 6 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 195 | |
Recorded Investment, after ASU 2016-13 | 105 | |
Unpaid Principal Balance | 300 | |
Unpaid Principle Balance, after ASU 2016-13 | 105 | |
Total | ||
Recorded Investment | 195 | |
Recorded Investment, after ASU 2016-13 | 105 | |
Unpaid Principal Balance | 300 | |
Unpaid Principle Balance, after ASU 2016-13 | 105 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Recorded Investment | 19 | |
Recorded Investment, after ASU 2016-13 | 26 | |
Unpaid Principal Balance | 19 | |
Unpaid Principle Balance, after ASU 2016-13 | 26 | |
Total | ||
Recorded Investment | 19 | |
Recorded Investment, after ASU 2016-13 | 26 | |
Unpaid Principal Balance | 19 | |
Unpaid Principle Balance, after ASU 2016-13 | $ 26 | |
Consumer and other | ||
With an allowance recorded | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | 1 | |
Consumer and other | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Total | ||
Related Allowance | $ 1 |
Loans - Average recorded invest
Loans - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commercial real estate | ||
With no related allowance recorded | ||
Average Recorded Investment | $ 1,166 | $ 5,196 |
Interest Income Recognized | 179 | |
Interest Income Recognized, after ASU 2016-13 | 208 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 257 | |
Interest Income Recognized | 15 | |
Total | ||
Average Recorded Investment | 5,453 | |
Average Recorded Investment, after ASU 2016-13 | 1,166 | |
Interest Income Recognized | 194 | |
Interest Income Recognized, after ASU 2016-13 | 208 | |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 1,166 | 4,339 |
Interest Income Recognized | 159 | |
Interest Income Recognized, after ASU 2016-13 | 208 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 257 | |
Interest Income Recognized | 15 | |
Total | ||
Average Recorded Investment | 4,596 | |
Average Recorded Investment, after ASU 2016-13 | 1,166 | |
Interest Income Recognized | 174 | |
Interest Income Recognized, after ASU 2016-13 | 208 | |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 857 | |
Interest Income Recognized | 20 | |
Consumer real estate secured by 1-4 family residential | ||
With no related allowance recorded | ||
Average Recorded Investment | 351 | 2,315 |
Interest Income Recognized | 107 | |
Interest Income Recognized, after ASU 2016-13 | 12 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 170 | |
Interest Income Recognized | 7 | |
Total | ||
Average Recorded Investment | 2,485 | |
Average Recorded Investment, after ASU 2016-13 | 351 | |
Interest Income Recognized | 114 | |
Interest Income Recognized, after ASU 2016-13 | 12 | |
Consumer real estate secured by 1-4 family residential | Non-owner occupied | ||
Total | ||
Average Recorded Investment | 857 | |
Interest Income Recognized | 20 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
With no related allowance recorded | ||
Average Recorded Investment | 74 | 300 |
Interest Income Recognized | 27 | |
Total | ||
Average Recorded Investment | 300 | |
Average Recorded Investment, after ASU 2016-13 | 74 | |
Interest Income Recognized | 27 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 169 | 1,798 |
Interest Income Recognized | 70 | |
Interest Income Recognized, after ASU 2016-13 | 8 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 121 | |
Interest Income Recognized | 7 | |
Total | ||
Average Recorded Investment | 1,919 | |
Average Recorded Investment, after ASU 2016-13 | 169 | |
Interest Income Recognized | 77 | |
Interest Income Recognized, after ASU 2016-13 | 8 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 108 | 217 |
Interest Income Recognized | 10 | |
Interest Income Recognized, after ASU 2016-13 | 4 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 49 | |
Total | ||
Average Recorded Investment | 266 | |
Average Recorded Investment, after ASU 2016-13 | 108 | |
Interest Income Recognized | 10 | |
Interest Income Recognized, after ASU 2016-13 | 4 | |
Commercial and industrial loans | ||
With no related allowance recorded | ||
Average Recorded Investment | 1,574 | 7,605 |
Interest Income Recognized | 290 | |
Interest Income Recognized, after ASU 2016-13 | 228 | |
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 438 | |
Interest Income Recognized | 22 | |
Total | ||
Average Recorded Investment | 8,043 | |
Average Recorded Investment, after ASU 2016-13 | 1,574 | |
Interest Income Recognized | 312 | |
Interest Income Recognized, after ASU 2016-13 | 228 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Average Recorded Investment | 57 | 94 |
Interest Income Recognized | 4 | |
Interest Income Recognized, after ASU 2016-13 | 8 | |
Total | ||
Average Recorded Investment | 94 | |
Average Recorded Investment, after ASU 2016-13 | 57 | |
Interest Income Recognized | 4 | |
Interest Income Recognized, after ASU 2016-13 | $ 8 | |
Commercial and industrial loans | Consumer and other | ||
With an allowance recorded | ||
Average Recorded Investment, after ASU 2016-13 | 11 | |
Total | ||
Average Recorded Investment | $ 11 |
Loans and allowance for credit
Loans and allowance for credit losses - Allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 3,370 | $ 3,423 |
Provision for (Recovery of) Loan Losses | (300) | |
Charge-offs | (217) | |
Recoveries | 464 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 3,370 | 3,423 |
Provision for (Recovery of) Credit Losses | 21 | |
Charge-offs | (33) | |
Recoveries | 192 | |
Ending Balance | 3,423 | 3,370 |
Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | (127) | |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 97 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 97 | |
Ending Balance | 57 | 97 |
Construction and land development | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 271 | 286 |
Provision for (Recovery of) Loan Losses | (15) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 271 | 286 |
Provision for (Recovery of) Credit Losses | 6 | |
Ending Balance | 314 | 271 |
Construction and land development | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 37 | |
Construction and land development | Residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 79 | 57 |
Provision for (Recovery of) Loan Losses | 22 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 79 | 57 |
Provision for (Recovery of) Credit Losses | 4 | |
Ending Balance | 86 | 79 |
Construction and land development | Residential | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 3 | |
Construction and land development | Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 192 | 229 |
Provision for (Recovery of) Loan Losses | (37) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 192 | 229 |
Provision for (Recovery of) Credit Losses | 2 | |
Ending Balance | 228 | 192 |
Construction and land development | Commercial | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 34 | |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 2,189 | 1,953 |
Provision for (Recovery of) Loan Losses | 236 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,189 | 1,953 |
Provision for (Recovery of) Credit Losses | 10 | |
Ending Balance | 1,923 | 2,189 |
Commercial real estate | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | (276) | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 867 | 833 |
Provision for (Recovery of) Loan Losses | 34 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 867 | 833 |
Provision for (Recovery of) Credit Losses | 17 | |
Ending Balance | 409 | 867 |
Commercial real estate | Owner occupied | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | (475) | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 1,289 | 1,083 |
Provision for (Recovery of) Loan Losses | 206 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 1,289 | 1,083 |
Provision for (Recovery of) Credit Losses | (14) | |
Ending Balance | 1,467 | 1,289 |
Commercial real estate | Non-owner occupied | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 192 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 33 | 35 |
Provision for (Recovery of) Loan Losses | (2) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 33 | 35 |
Provision for (Recovery of) Credit Losses | 4 | |
Ending Balance | 44 | 33 |
Commercial real estate | Multifamily | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 7 | |
Commercial real estate | Farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 0 | 2 |
Provision for (Recovery of) Loan Losses | (2) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | 2 |
Provision for (Recovery of) Credit Losses | 3 | |
Ending Balance | 3 | 0 |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 185 | 182 |
Provision for (Recovery of) Loan Losses | (367) | |
Charge-offs | (27) | |
Recoveries | 397 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 185 | 182 |
Provision for (Recovery of) Credit Losses | 103 | |
Recoveries | 19 | |
Ending Balance | 432 | 185 |
Consumer real estate secured by 1-4 family residential | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 125 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 11 | 12 |
Provision for (Recovery of) Loan Losses | (59) | |
Recoveries | 58 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 11 | 12 |
Provision for (Recovery of) Credit Losses | 5 | |
Ending Balance | 40 | 11 |
Consumer real estate secured by 1-4 family residential | Home equity lines | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 24 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 131 | 123 |
Provision for (Recovery of) Loan Losses | 3 | |
Recoveries | 5 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 131 | 123 |
Provision for (Recovery of) Credit Losses | 83 | |
Recoveries | 3 | |
Ending Balance | 293 | 131 |
Consumer real estate secured by 1-4 family residential | First deed of trust | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 76 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 43 | 47 |
Provision for (Recovery of) Loan Losses | (311) | |
Charge-offs | (27) | |
Recoveries | 334 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 43 | 47 |
Provision for (Recovery of) Credit Losses | 15 | |
Recoveries | 16 | |
Ending Balance | 99 | 43 |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 25 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 576 | 486 |
Provision for (Recovery of) Loan Losses | 180 | |
Charge-offs | (157) | |
Recoveries | 67 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 576 | 486 |
Provision for (Recovery of) Credit Losses | (110) | |
Recoveries | 173 | |
Ending Balance | 640 | 576 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | 1 | |
Commercial and industrial loans | Student loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 52 | 65 |
Provision for (Recovery of) Loan Losses | 18 | |
Charge-offs | (31) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 52 | 65 |
Provision for (Recovery of) Credit Losses | 35 | |
Charge-offs | (30) | |
Ending Balance | 57 | 52 |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 37 | 29 |
Provision for (Recovery of) Loan Losses | 10 | |
Charge-offs | (2) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 37 | 29 |
Provision for (Recovery of) Credit Losses | 7 | |
Charge-offs | (3) | |
Ending Balance | 36 | 37 |
Commercial and industrial loans | Consumer and other | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | (5) | |
Commercial and industrial loans | Unallocated | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 60 | 422 |
Provision for (Recovery of) Loan Losses | (362) | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 60 | 422 |
Provision for (Recovery of) Credit Losses | (30) | |
Ending Balance | 21 | $ 60 |
Commercial and industrial loans | Unallocated | Adoption of ASC 326 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Ending Balance | $ (9) |
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, 2023 USD ($) loan | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 5,163 |
New TDR identifications | loan | 24 |
Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 8 |
New TDR identifications | loan | 3 |
Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 5,088 |
New TDR identifications | loan | 22 |
Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 75 |
New TDR identifications | loan | 2 |
Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 3,660 |
Commercial real estate | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 2 |
Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,660 |
Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,484 |
Consumer real estate secured by 1-4 family residential | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 6 |
Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,428 |
Consumer real estate secured by 1-4 family residential | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 56 |
Owner occupied | Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,348 |
Owner occupied | Commercial real estate | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 2 |
Owner occupied | Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,348 |
Non-owner occupied | Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 312 |
Non-owner occupied | Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 312 |
First deed of trust | Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,409 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 6 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,409 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 75 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 19 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 56 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 19 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 19 |
Allowance for Loan Losses (Deta
Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 3,370,000 | $ 3,423,000 |
Provision for (Recovery of) Loan Losses | (300,000) | |
Provision for (recovery of) credit losses, after ASU 2016-13 | 50,000 | (300,000) |
Charge-offs | (217,000) | |
Recoveries | $ 464,000 | |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 97,000 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for Loan, Lease, and Other Losses [Abstract] | |||
Recovery of credit losses | $ (300,000) | ||
Recovery of credit losses | $ 50,000 | (300,000) | |
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | $ 3,423,000 | $ 3,370,000 | $ 3,423,000 |
Allowance for Loan Losses - A_2
Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Jan. 01, 2023 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan amount | $ 535,645,000 | |||
Defaults on TDRs that were modified as TDRs | loan | 0 | 0 | ||
Provision for (recovery of) credit losses | $ (300,000) | |||
Provision for (recovery of) credit losses, after ASU 2016-13 | $ 50,000 | (300,000) | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | 3,423,000 | 3,370,000 | $ 3,423,000 | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 774,000 | 2,223,000 | ||
Total Allowance for credit losses | 3,730,000 | |||
Total Allowance for credit losses | 3,423,000 | 3,370,000 | $ 3,423,000 | |
Allowance for credit losses on unfunded credit exposure | 306,000 | |||
Provision for credit losses for loans | $ 21,000 | $ (300,000) | ||
Loan growth being offset by improved credit metrics as non-performing loans as a percentage of loans | 0.05% | 0.12% | ||
Net recoveries for credit losses for loans | $ 159,000 | |||
Recovery for credit losses for unfunded commitments | 29,000 | |||
Adoption of ASC 326 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | (127,000) | |||
Total Allowance for credit losses | (127,000) | |||
Accounting Standards Update 2016-13 | Adoption of ASC 326 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | $ (127,000) | |||
Total Allowance for credit losses | 150,000 | |||
Total Allowance for credit losses | (127,000) | |||
Allowance for credit losses on unfunded credit exposure | 277,000 | |||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest | 3,243,000 | |||
Total Allowance for credit losses | 3,520,000 | |||
Total Allowance for credit losses | 3,243,000 | |||
Allowance for credit losses on unfunded credit exposure | $ 277,000 | |||
Asset Pledged as Collateral [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans pledged as collateral | $ 33,700,000 | |||
Loans pledged as collateral | $ 35,500,000 | |||
Guaranteed student loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage Of Recovery Loss On Portfolio From Historical Experience | 98% |
Allowance for Loan Losses - Pro
Allowance for Loan Losses - Provision for credit losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Provision for Loan, Lease, and Other Losses [Abstract] | ||
Provision (recovery) for loans | $ 21,000 | $ (300,000) |
Provision (recovery) for unfunded commitments | 29,000 | |
Total | $ 50,000 | $ (300,000) |
Allowance For Loan Losses - Loa
Allowance For Loan Losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | $ 3,423 | $ 3,370 | $ 3,423 |
Allowance Ending Balance | 3,423 | 3,370 | 3,423 |
Allowance Individually Evaluated for Impairment | 9 | ||
Allowance Collectively Evaluated for Impairment | 3,361 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 3,423 | ||
Loans Ending Balance | 538,427 | ||
Total loans | 575,008 | ||
Loans Individually Evaluated for Impairment | 7,311 | ||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 291 | ||
Loans Collectively Evaluated for Impairment | 531,116 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 574,717 | ||
Construction and land development | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 314 | 271 | 286 |
Allowance Ending Balance | 314 | 271 | 286 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 271 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 314 | ||
Loans Ending Balance | 45,127 | ||
Total loans | 47,495 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 45,127 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 47,495 | ||
Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 1,923 | 2,189 | 1,953 |
Allowance Ending Balance | 1,923 | 2,189 | 1,953 |
Allowance Individually Evaluated for Impairment | 2 | ||
Allowance Collectively Evaluated for Impairment | 2,187 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 1,923 | ||
Loans Ending Balance | 284,617 | ||
Total loans | 290,590 | ||
Loans Individually Evaluated for Impairment | 4,895 | ||
Loans Collectively Evaluated for Impairment | 279,722 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 290,590 | ||
Consumer real estate secured by 1-4 family residential | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 432 | 185 | 182 |
Allowance Ending Balance | 432 | 185 | 182 |
Allowance Individually Evaluated for Impairment | 6 | ||
Allowance Collectively Evaluated for Impairment | 179 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 432 | ||
Loans Ending Balance | 93,680 | ||
Total loans | 128,532 | ||
Loans Individually Evaluated for Impairment | 2,376 | ||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 265 | ||
Loans Collectively Evaluated for Impairment | 91,304 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 128,267 | ||
Residential | Construction and land development | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 86 | 79 | 57 |
Allowance Ending Balance | 86 | 79 | 57 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 79 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 86 | ||
Loans Ending Balance | 9,727 | ||
Total loans | 10,471 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 9,727 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 10,471 | ||
Commercial | Construction and land development | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 228 | 192 | 229 |
Allowance Ending Balance | 228 | 192 | 229 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 192 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 228 | ||
Loans Ending Balance | 35,400 | ||
Total loans | 37,024 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 35,400 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 37,024 | ||
Owner occupied | Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 409 | 867 | 833 |
Allowance Ending Balance | 409 | 867 | 833 |
Allowance Individually Evaluated for Impairment | 2 | ||
Allowance Collectively Evaluated for Impairment | 865 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 409 | ||
Loans Ending Balance | 119,643 | ||
Total loans | 122,666 | ||
Loans Individually Evaluated for Impairment | 4,583 | ||
Loans Collectively Evaluated for Impairment | 115,060 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 122,666 | ||
Non-owner occupied | Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 1,467 | 1,289 | 1,083 |
Allowance Ending Balance | 1,467 | 1,289 | 1,083 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 1,289 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 1,467 | ||
Loans Ending Balance | 153,610 | ||
Total loans | 154,855 | ||
Loans Individually Evaluated for Impairment | 312 | ||
Loans Collectively Evaluated for Impairment | 153,298 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 154,855 | ||
Multifamily | Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 44 | 33 | 35 |
Allowance Ending Balance | 44 | 33 | 35 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 33 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 44 | ||
Loans Ending Balance | 11,291 | ||
Total loans | 12,743 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 11,291 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 12,743 | ||
Farmland | Commercial real estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 3 | 0 | 2 |
Allowance Ending Balance | 3 | 0 | 2 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 3 | ||
Loans Ending Balance | 73 | ||
Total loans | 326 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 73 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 326 | ||
Home equity lines | Consumer real estate secured by 1-4 family residential | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 40 | 11 | 12 |
Allowance Ending Balance | 40 | 11 | 12 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 11 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 40 | ||
Loans Ending Balance | 18,421 | ||
Total loans | 21,557 | ||
Loans Individually Evaluated for Impairment | 300 | ||
Loans Collectively Evaluated for Impairment | 18,121 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 21,557 | ||
First deed of trust | Consumer real estate secured by 1-4 family residential | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 293 | 131 | 123 |
Allowance Ending Balance | 293 | 131 | 123 |
Allowance Individually Evaluated for Impairment | 6 | ||
Allowance Collectively Evaluated for Impairment | 125 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 293 | ||
Loans Ending Balance | 67,495 | ||
Total loans | 95,638 | ||
Loans Individually Evaluated for Impairment | 1,881 | ||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 160 | ||
Loans Collectively Evaluated for Impairment | 65,614 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 95,478 | ||
Second deed of trust | Consumer real estate secured by 1-4 family residential | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 99 | 43 | 47 |
Allowance Ending Balance | 99 | 43 | 47 |
Allowance Collectively Evaluated for Impairment | 43 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 99 | ||
Loans Ending Balance | 7,764 | ||
Total loans | 11,337 | ||
Loans Individually Evaluated for Impairment | 195 | ||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 105 | ||
Loans Collectively Evaluated for Impairment | 7,569 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 11,232 | ||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 640 | 576 | 486 |
Allowance Ending Balance | 640 | 576 | 486 |
Allowance Collectively Evaluated for Impairment | 576 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 640 | ||
Loans Ending Balance | 90,348 | ||
Total loans | 86,203 | ||
Loans Individually Evaluated for Impairment | 19 | ||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 26 | ||
Loans Collectively Evaluated for Impairment | 90,329 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 86,177 | ||
Guaranteed student loans | Commercial and industrial loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 57 | 52 | 65 |
Allowance Ending Balance | 57 | 52 | 65 |
Allowance Individually Evaluated for Impairment | 0 | ||
Allowance Collectively Evaluated for Impairment | 52 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 57 | ||
Loans Ending Balance | 20,617 | ||
Total loans | 17,923 | ||
Loans Individually Evaluated for Impairment | 0 | ||
Loans Collectively Evaluated for Impairment | 20,617 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 17,923 | ||
Consumer and other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 57 | 97 | |
Allowance Ending Balance | 57 | 97 | |
Allowance Individually Evaluated for Impairment | 1 | ||
Allowance Collectively Evaluated for Impairment | 96 | ||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 57 | ||
Loans Ending Balance | 4,038 | ||
Total loans | 4,265 | ||
Loans Individually Evaluated for Impairment | 21 | ||
Loans Collectively Evaluated for Impairment | 4,017 | ||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 4,265 | ||
Consumer and other | Commercial and industrial loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Total Allowance for credit losses | 36 | 37 | 29 |
Allowance Ending Balance | 36 | 37 | $ 29 |
Loans Ending Balance | $ 4,038 | ||
Total loans | $ 4,265 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment | $ 24,300 | $ 23,741 |
Less: Accumulated depreciation and amortization | (12,540) | (11,993) |
Premises and equipment, net | 11,760 | 11,748 |
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 | 11,448 | 11,444 |
Furniture fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total premises and equipment | $ 8,500 | $ 7,945 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Premises and Equipment | ||
Depreciation, Depletion and Amortization | $ 604,000 | $ 546,000 |
Investment in Bank Owned Life_2
Investment in Bank Owned Life Insurance - (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investment in Bank Owned Life Insurance. | ||
Bank owned life insurance, face amount | $ 21,844,000 | |
Cash surrender value | $ 13,120,000 | $ 12,798,000 |
Investment in Bank Owned Life_3
Investment in Bank Owned Life Insurance - narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Investment in bank owned life insurance [Abstract] | ||
Bank owned life insurance, face amount | $ 21,844,000 | |
Cash surrender value | $ 13,120,000 | $ 12,798,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposit Liability [Line Items] | ||
Demand accounts | $ 247,624 | $ 255,236 |
Interest checking accounts | 76,289 | 90,252 |
Money market accounts | 195,249 | 179,036 |
Savings accounts | 39,633 | 55,695 |
Other time deposits | 37,405 | 39,784 |
Total | $ 605,345 | $ 624,743 |
Percentage of individual deposits to deposit liability | ||
Demand accounts (in hundredths) | 40.90% | 40.90% |
Interest checking accounts (in hundredths) | 12.60% | 14.40% |
Money market accounts (in hundredths) | 32.30% | 28.60% |
Savings account (in hundredths) | 6.50% | 8.90% |
Time deposits of $250,000 and over (in hundredths) | 1.50% | 0.80% |
Other time deposits (in hundredths) | 6.20% | 6.40% |
Total (in hundredths) | 100% | 100% |
Geographic Distribution, Domestic [Member] | ||
Deposit Liability [Line Items] | ||
Time deposits of $250,000 and over | $ 9,145 | $ 4,740 |
Deposits - Maturities of time d
Deposits - Maturities of time deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Time deposit [Line Items] | |
2022 | $ 38,603 |
2023 | 3,442 |
2024 | 2,443 |
2025 | 1,417 |
2026 | 645 |
Time Deposits | 46,550 |
Less Than 250,000 [Member] | |
Time deposit [Line Items] | |
2022 | 29,997 |
2023 | 3,442 |
2024 | 2,443 |
2025 | 878 |
2026 | 645 |
Time Deposits | 37,405 |
Greater than or Equal to 250,000 [Member] | |
Time deposit [Line Items] | |
2022 | 8,606 |
2025 | 539 |
2026 | 0 |
Time Deposits | $ 9,145 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Related Party Deposit Liabilities Percentage | 5% | |
Related Party Deposit Liabilities | $ 10,868,000 | $ 15,366,000 |
Borrowings - (Details)
Borrowings - (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank Stock | $ 2,644,000 | $ 1,223,000 |
Long-term Federal Home Loan Bank Advances | 45,000,000 | 20,000,000 |
Borrowings | 0 | $ 0 |
Lines of credit for future borrowings | 26,200,000 | |
FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | 3,400,000 | |
Revolving Credit Facility [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | 20,000,000 | |
Secured Debt [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | $ 2,800,000 |
Borrowings - Information relate
Borrowings - Information related to borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Maximum outstanding during the year FHLB advances | $ 6,498 | $ 6,000 |
Balance outstanding at end of year FHLB advances | 0 | |
Average amount outstanding during the year FHLB advances | $ 207 | $ 2 |
Average interest rate during the year FHLB advances | 4.25% | 4.61% |
Average interest rate at end of year FHLB advances | 0% | 0% |
FHLB advances | ||
Debt Instrument [Line Items] | ||
Maximum outstanding during the year FHLB advances | $ 45,000 | $ 20,000 |
Balance outstanding at end of year FHLB advances | 45,000 | 20,000 |
Average amount outstanding during the year FHLB advances | $ 33,356 | $ 164 |
Average interest rate during the year FHLB advances | 4.71% | 4.65% |
Average interest rate at end of year FHLB advances | 4.89% | 4.57% |
Income Taxes - Tax effects of t
Income Taxes - Tax effects of temporary differences that comprise deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Capital loss carryforward | $ 25 | $ 25 |
Allowance for loan losses | 719 | 708 |
Unfunded commitment liability | 64 | |
Unrealized loss on available-for-sale securities | 1,489 | 2,887 |
Interest on nonaccrual loans | 18 | 18 |
Stock compensation | 81 | 78 |
Employee benefits | 764 | 836 |
Depreciation | 21 | 24 |
Lease obligation | 6 | 5 |
Other, net | 35 | 63 |
Total deferred tax assets | 3,222 | 4,644 |
Deferred tax liabilities | ||
Unrealized gain on available for sale securities | 169 | 123 |
Pension expense | 10 | 6 |
Total deferred tax liabilities | 179 | 129 |
Net deferred tax asset | $ 3,043 | $ 4,515 |
Income Taxes - Income tax expen
Income Taxes - Income tax expense charged to operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Current tax expense | $ 146 | $ 1,844 |
Deferred tax expense | 101 | 146 |
Provision for income taxes | $ 247 | $ 1,990 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Income (loss) before income taxes | $ 2,165 | $ 10,295 |
Computed "expected" tax expense | 455 | 2,162 |
State taxes, net of fed | (121) | (67) |
Cash surrender value of life insurance | (68) | (64) |
Other | (19) | (41) |
Provision for income taxes | $ 247 | $ 1,990 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes | ||
Taxes, Other | $ 671,000 | $ 640,000 |
Earnings per common share (Deta
Earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator | ||
Net income (loss) - basic and diluted | $ 1,918 | $ 8,305 |
Denominator | ||
Weighted average shares outstanding - basic ( in shares) | 1,486 | 1,477 |
Dilutive effect of common stock options (in shares) | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 1,486 | 1,477 |
Earnings (Loss) per share - basic (in dollars per share) | $ 1.29 | $ 5.62 |
Earnings (Loss) per share - diluted (in dollars per share) | $ 1.29 | $ 5.62 |
Earnings per common share - Add
Earnings per common share - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 15,130 | 12,834 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Commitments | ||
Lease liabilities | $ 847 | $ 1,122 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. |
Right-of-use assets | $ 818 | $ 1,100 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets. | Other Assets. |
Weighted average remaining lease term | 3 years 7 months 28 days | 4 years 4 months 24 days |
Weighted average discount rate | 2.80% | 2.51% |
Lease cost | ||
Operating lease cost | $ 309 | $ 301 |
Total lease cost | $ 309 | $ 301 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Commitments | ||
Operating Lease, Expense | $ 309,000 | $ 301,000 |
Operating Lease, Payments | $ 307,000 | $ 293,000 |
Lease Commitments - Summary of
Lease Commitments - Summary of maturity analysis of operating lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lease payments due | ||
Twelve months ending December 31, 2023 | $ 313 | |
Twelve months ending December 31, 2024 | 214 | |
Twelve months ending December 31, 2025 | 163 | |
Twelve months ending December 31, 2026 | 146 | |
Twelve months ending December 31, 2027 | 52 | |
Thereafter | 8 | |
Total undiscounted cash flows | 896 | |
Discount | 49 | |
Lease liabilities | $ 847 | $ 1,122 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | Other Liabilities. |
Commitments and contingencies_2
Commitments and contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 136,583 | $ 130,275 |
Standby letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 1,202 | 922 |
Undisbursed credit lines | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 127,918 | 119,454 |
Commitments to extend or originate credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 7,463 | $ 9,899 |
Shareholders' Equity and Regu_3
Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Shareholders' Equity and Regulatory Matters | |||
Net unrealized losses on securities | $ (5,603,000) | $ (10,862,000) | |
Net unrecognized losses on defined benefit plan | (10,000) | (19,000) | |
Total accumulated other comprehensive loss | $ (5,613,000) | $ (10,881,000) | $ (744,000) |
Shareholders' Equity and Regu_4
Shareholders' Equity and Regulatory Matters - Detailed AOCI Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated other comprehensive loss, Beginning balance | $ (10,881) | $ (744) |
Other comprehensive loss before reclassification - AFS | 1,320 | (10,146) |
Other comprehensive loss before reclassification - benefits | (9) | (9) |
Other comprehensive loss before reclassification - AFS and benefits | 1,329 | (10,137) |
Amounts reclassified from AOCI into earnings | 3,939 | |
Net current period other comprehensive income | 5,268 | (10,137) |
Accumulated other comprehensive loss, Ending balance | (5,613) | (10,881) |
Unrealized Losses on AFS Securities | ||
Accumulated other comprehensive loss, Beginning balance | (10,863) | (717) |
Other comprehensive loss before reclassification - AFS | 1,320 | (10,146) |
Amounts reclassified from AOCI into earnings | 3,939 | |
Net current period other comprehensive income | 5,259 | (10,146) |
Accumulated other comprehensive loss, Ending balance | (5,604) | (10,863) |
Defined Benefit Plan | ||
Accumulated other comprehensive loss, Beginning balance | (18) | (27) |
Other comprehensive loss before reclassification - benefits | 9 | 9 |
Net current period other comprehensive income | 9 | 9 |
Accumulated other comprehensive loss, Ending balance | $ (9) | $ (18) |
Shareholders' Equity and Regu_5
Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.080 | |
To be Well Capitalized (in percentage) | 0.010 | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.060 | |
To be Well Capitalized (in percentage) | 0.080 | |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.040 | |
To be Well Capitalized (in percentage) | 0.05 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
To Be Well Capitalized (in percentage) | 0.065 | |
Common equity tier one risk based capital ratio capital adequacy minimum | 0.045 | |
Capital conservation buffer common equity tier one risk based capital actual | 0.025 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.060 | |
Capital conservation buffer tier one risk based capital actual | 0.025 | |
Capital required for capital adequacy to risk weighted assets | 0.080 | |
Capital conservation buffer total risk based capital actual | 0.025 | |
Maximum | ||
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.080 | |
Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.0105 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Banking Regulation Common Equity Tier One Risk Based Capital Ratio Capital Adequacy Minimum Including Conservation Buffer (in percentage) | 0.07 | |
Capital required for capital adequacy to risk weighted assets | 0.080 | |
Minimum | ||
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.060 | |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.085 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Common equity tier one risk based capital ratio capital adequacy minimum | 0.045 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.060 | |
Subsidiaries [Member] | ||
Total capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 86,493 | $ 84,982 |
Capital Required For Capital Adequacy Including Conservation Buffer | 62,679 | 60,267 |
To be Well Capitalized Amount | $ 59,695 | $ 57,398 |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 0.1481 | 0.1466 |
Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.1050 | 0.1050 |
To be Well Capitalized (in percentage) | 0.1000 | 0.1000 |
Tier 1 capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 82,764 | $ 81,612 |
Tier One Risk Based Capital Required For Capital Adequacy Including Conservation Buffer | 50,740 | 48,788 |
To be Well Capitalized Amount | $ 47,756 | $ 45,918 |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 0.1422 | 0.1401 |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.0850 | 0.0850 |
To be Well Capitalized (in percentage) | 0.0800 | 0.0800 |
Leverage ratio (Tier 1 capital to average assets), Amount | ||
Actual Amount | $ 82,764 | $ 81,612 |
Tier One Leverage Capital Required For Capital Adequacy Including Conservation Buffer | 29,706 | 29,805 |
To be Well Capitalized Amount | $ 37,133 | $ 37,256 |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 0.1095 | 0.0986 |
For Capital Adequacy Purposes (in percentage) | 0.0400 | 0.0400 |
To be Well Capitalized (in percentage) | 0.0500 | 0.0500 |
Common equity (Tier 1 risk based capital to risk weighted assets), Amount | ||
Actual Amount | $ 82,764 | $ 81,612 |
Common Equity Tier One Capital Required For Capital Adequacy Including Conservation Buffer | 41,786 | 40,178 |
To Be Well Capitalized Amount | $ 38,801 | $ 37,308 |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Actual Ratio (in percentage) | 13.86% | 14.22% |
Banking Regulation Common Equity Tier One Risk Based Capital Ratio Capital Adequacy Minimum Including Conservation Buffer (in percentage) | 0.0700 | 0.0700 |
To Be Well Capitalized (in percentage) | 0.0650 | 0.0650 |
Shareholders' Equity and Regu_6
Shareholders' Equity and Regulatory Matters - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shareholders' Equity and Regulatory Matters | ||
Deferred tax benefits | $ 101 | $ 146 |
Deferred Tax Liabilities, Gross | 179 | 129 |
Deferred Tax Assets, Gross | $ 3,222 | $ 4,644 |
Stock incentive plans - Options
Stock incentive plans - Options outstanding under company's stock incentive plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Options | ||
Options outstanding, beginning of period | 14 | 734 |
Granted | 0 | 0 |
Forfeited | (14) | |
Exercised | (720) | |
Options outstanding, end of period | 14 | |
Options exercisable, end of period | 14 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning of period | $ 25.28 | $ 25.63 |
Granted | 0 | 0 |
Forfeited | 25.28 | |
Exercised | 25.63 | |
Options outstanding, end of period | 25.28 | |
Fair Value Per Share | ||
Options outstanding, beginning of period | 9.76 | 9.76 |
Granted | 0 | 0 |
Forfeited | $ 9.76 | |
Exercised | 9.76 | |
Options outstanding, end of period | $ 9.76 | |
Intrinsic Value Options outstanding | $ 0 | $ 0 |
Stock incentive plans - Non ves
Stock incentive plans - Non vested restricted stock award (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | 12,834 |
Ending Balance | 15,130 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | 28,296 |
Shares, Granted | 13,877 |
Shares, Vested | (12,581) |
Shares, Forfeited | (924) |
Shares, Other | (1,485) |
Ending Balance | 31,077 |
Weighted-Average Grant-Date Fair-Value, Beginning Balance | $ / shares | $ 46.60 |
Weighted-Average Grant-Date Fair-Value, Granted | $ / shares | 39.18 |
Weighted-Average Grant-Date Fair-Value, Vested | $ / shares | 38 |
Weighted-Average Grant Date Fair Value, Other | $ / shares | 29 |
Weighted-Average Grant-Date Fair-Value, Ending Balance | $ / shares | $ 45.93 |
Aggregate Intrinsic Value, Beginning Balance | $ | $ 1,127,879 |
Aggregate Intrinsic Value, Granted | $ | 553,137 |
Aggregate Intrinsic Value, Vested | $ | (501,479) |
Aggregate Intrinsic Value, Other | $ | (59,192) |
Aggregate Intrinsic Value, Ending Balance | $ | $ 1,238,729 |
Stock incentive plans - Stock o
Stock incentive plans - Stock options outstanding (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
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 | 14 |
Outstanding Weighted Average Remaining Years of Contractual Life | 6 months 14 days |
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 25.28 |
Exercisable Number of Options (in shares) | shares | 14 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 25.28 |
$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 | 14 |
Outstanding Weighted Average Remaining Years of Contractual Life | 6 months 14 days |
Outstanding Weighted Average Exercise Price (in dollars per share) | $ 25.28 |
Exercisable Number of Options (in shares) | shares | 14 |
Exercisable Weighted Average Exercise Price (in dollars per share) | $ 25.28 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
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 | 15,130 | 12,834 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 645,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months 15 days | |
Allocated Share-based Compensation Expense | $ 359,000 | $ 381,000 |
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 | 31,077 | 28,296 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 914,000 | $ 1,022,000 |
Shares, Forfeited | 924 | |
Performance Based Restricted Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
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% | |
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% |
Trust preferred securities (Det
Trust preferred securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 20, 2007 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 24, 2005 | |
Debt Instrument [Line Items] | ||||
Trust preferred capital notes | $ 8,764 | $ 8,764 | ||
Percentage of Tier one risk based capital required for capital adequacy (in hundredths) | 25% | |||
Southern Community Financial Capital Trust I [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Feb. 24, 2005 | |||
Trust preferred capital notes | $ 5,200 | |||
Interest rate (in hundredths) | 7.78% | 6.89% | ||
Principal assets of the trust | $ 5,200 | |||
Southern Community Financial Capital Trust I [Member] | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |||
Village Financial Statutory Trust II [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Issuance Date | Sep. 20, 2007 | |||
Trust preferred capital notes | $ 3,600 | |||
Interest rate (in hundredths) | 7.03% | 6.14% | ||
Principal assets of the trust | $ 3,600 | |||
Village Financial Statutory Trust II [Member] | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | Mar. 21, 2018 | Dec. 31, 2023 | Dec. 31, 2022 |
Subordinated Debt. | $ 5,700,000 | $ 5,692,000 | |
Fixed-to-floating rate subordinated notes | |||
Debt Instrument, Face Amount | $ 5,700,000 | ||
Proceeds from Issuance of Subordinated Long-term Debt | $ 5,539,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 9.37% | |
LIBOR | Fixed-to-floating rate subordinated notes | |||
Debt Instrument, Basis Spread on Variable Rate | 3.73% |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Contribution Plan Contributions Made by Employer and Employee | $ 391,000 | $ 417,000 |
Bank Owned Life Insurance Income | $ 322,000 | 304,000 |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100% | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | $ 9,000 | 9,000 |
Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Bank Owned Life Insurance Income | $ 322,000 | 304,000 |
Defined Contribution Retirement Plan Participant Approval Period | 60 days | |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | |
Liability, Defined Benefit Plan | $ 2,468,000 | 2,532,000 |
Defined Contribution Plan, Cost | 154,000 | 192,000 |
Directors Deferral Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Liability, Defined Benefit Plan | 704,000 | 771,000 |
Defined Contribution Plan, Cost | 122,000 | 146,000 |
Common Stock, Shares Held in Employee Trust | $ 467,000 | $ 689,000 |
Common Stock, Shares Held in Employee Trust, Shares | 21,674 | 32,785 |
Fair value - Recurring and non
Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 5,000 | $ 2,300 |
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 | 4,983 | 2,268 |
IRLC | 271 | 142 |
Forward sales commitment | 506 | 207 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government Agencies | 20,615 | 60,902 |
Mortgage-backed securities | 72,537 | 60,560 |
Municipals | 1,656 | 1,550 |
Subordinated debt | 10,277 | 8,841 |
Loans held for sale | 4,983 | 2,268 |
IRLC | 271 | 142 |
Forward sales commitment | 506 | 207 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated debt | 500 | 2,000 |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government Agencies | 20,615 | 60,902 |
Mortgage-backed securities | 72,537 | 60,560 |
Municipals | 1,656 | 1,550 |
Subordinated debt | 10,777 | 10,841 |
Loans held for sale | 4,983 | 2,268 |
IRLC | 271 | 142 |
Forward sales commitment | $ 506 | $ 207 |
Fair value - Carrying amounts a
Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Investment securities available for sale, at fair value | $ 105,585 | $ 133,853 |
Loans held for sale | 5,000 | 2,300 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash | 10,383 | 12,062 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash | 10,383 | 12,062 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 7,331 | 4,616 |
Investment securities available for sale, at fair value | 105,085 | 131,853 |
Federal Home Loan Bank stock | 2,644 | 1,223 |
Loans held for sale | 4,983 | 2,268 |
Accrued interest receivable | 3,827 | 3,651 |
Interest rate lock commitments | 271 | 142 |
Financial liabilities | ||
Deposits | 605,345 | 624,743 |
FHLB borrowings | 45,000 | 20,000 |
Trust preferred securities | 8,764 | 8,764 |
Other borrowings | 5,700 | 5,692 |
Accrued interest payable | 210 | 70 |
Forward sales commitment | 506 | 207 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 7,331 | 4,616 |
Investment securities available for sale, at fair value | 105,085 | 131,853 |
Federal Home Loan Bank stock | 2,644 | 1,223 |
Loans held for sale | 4,983 | 2,268 |
Accrued interest receivable | 3,827 | 3,651 |
Interest rate lock commitments | 271 | 142 |
Financial liabilities | ||
Deposits | 605,226 | 625,037 |
FHLB borrowings | 44,999 | 20,000 |
Trust preferred securities | 8,848 | 7,066 |
Other borrowings | 5,700 | 5,692 |
Accrued interest payable | 210 | 70 |
Forward sales commitment | 506 | 207 |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 500 | 2,000 |
Loans | 575,008 | 538,427 |
Bank owned life insurance | 13,120 | 12,798 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 500 | 2,000 |
Loans | 547,935 | 521,150 |
Bank owned life insurance | $ 13,120 | $ 12,798 |
Segment Reporting - Segment inf
Segment Reporting - Segment information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | segment | 2 | |
Revenues | ||
Interest income | $ 33,274,000 | $ 27,487,000 |
Mortgage banking income, net | 1,690,000 | 3,427,000 |
Gain on sale of loans | 1,690,000 | 3,448,000 |
Other revenues | 3,260,000 | 3,155,000 |
Total revenues | 38,224,000 | 34,090,000 |
Expenses | ||
Recovery of credit losses | (300,000) | |
Recovery of credit losses | 50,000 | (300,000) |
Interest expense | 7,986,000 | 1,781,000 |
Salaries and benefits | 13,389,000 | 13,768,000 |
Loss on sale of investment securities | 4,986,000 | |
Commissions | 4,986,000 | |
Other expenses | 9,648,000 | 8,546,000 |
Total operating expenses | 36,059,000 | 23,795,000 |
Income (loss) before income taxes | 2,165,000 | 10,295,000 |
Income tax expense (benefit) | 247,000 | 1,990,000 |
Net Income (Loss) | 1,918,000 | 8,305,000 |
Total assets | 736,616,000 | 723,270,000 |
Eliminations [Member] | ||
Revenues | ||
Interest income | 0 | 0 |
Gain on sale of loans | (522,000) | (94,000) |
Other revenues | (173,000) | (180,000) |
Total revenues | (695,000) | (274,000) |
Expenses | ||
Recovery of credit losses | 0 | |
Recovery of credit losses | 0 | |
Interest expense | 0 | 0 |
Salaries and benefits | 0 | 0 |
Commissions | 0 | |
Other expenses | (695,000) | (274,000) |
Total operating expenses | (695,000) | (274,000) |
Income (loss) before income taxes | 0 | 0 |
Income tax expense (benefit) | 0 | 0 |
Net Income (Loss) | 0 | 0 |
Total assets | (28,042,000) | (32,714,000) |
Commercial Banking | Operating Segments [Member] | ||
Revenues | ||
Interest income | 32,900,000 | 27,250,000 |
Gain on sale of loans | 0 | 0 |
Other revenues | 3,433,000 | 3,335,000 |
Total revenues | 36,333,000 | 30,585,000 |
Expenses | ||
Recovery of credit losses | (300,000) | |
Recovery of credit losses | 50,000 | |
Interest expense | 7,986,000 | 1,781,000 |
Salaries and benefits | 10,585,000 | 10,585,000 |
Commissions | 4,986,000 | |
Other expenses | 9,251,000 | 7,625,000 |
Total operating expenses | 32,858,000 | 19,691,000 |
Income (loss) before income taxes | 3,475,000 | 10,894,000 |
Income tax expense (benefit) | 522,000 | 2,116,000 |
Net Income (Loss) | 2,953,000 | 8,778,000 |
Total assets | 747,711,000 | 738,110,000 |
Mortgage Banking | Operating Segments [Member] | ||
Revenues | ||
Interest income | 374,000 | 237,000 |
Gain on sale of loans | 2,212,000 | 3,542,000 |
Other revenues | 0 | 0 |
Total revenues | 2,586,000 | 3,779,000 |
Expenses | ||
Recovery of credit losses | 0 | |
Recovery of credit losses | 0 | |
Interest expense | 0 | 0 |
Salaries and benefits | 2,804,000 | 3,183,000 |
Commissions | 0 | |
Other expenses | 1,092,000 | 1,195,000 |
Total operating expenses | 3,896,000 | 4,378,000 |
Income (loss) before income taxes | (1,310,000) | (599,000) |
Income tax expense (benefit) | (275,000) | (126,000) |
Net Income (Loss) | (1,035,000) | (473,000) |
Total assets | $ 16,947,000 | $ 17,874,000 |
Parent Corporation Only Finan_3
Parent Corporation Only Financial Statements - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Cash and due from banks | $ 10,383 | $ 12,062 | |
Total Assets | 736,616 | 723,270 | |
Liabilities | |||
Other borrowings | 45,000 | 20,000 | |
Accrued interest payable | 210 | 70 | |
Other liabilities | 4,041 | 2,890 | |
Total liabilities | 669,060 | 662,159 | |
Shareholders' equity | |||
Common stock | 5,908 | 5,868 | |
Additional paid-in capital | 55,486 | 55,167 | |
Retained earnings | 11,775 | 10,957 | |
Accumulated other comprehensive loss | (5,613) | (10,881) | $ (744) |
Total shareholders' equity | 67,556 | 61,111 | $ 63,401 |
Total liabilities and shareholders' equity | 736,616 | 723,270 | |
Parent Company [Member] | |||
Assets | |||
Cash and due from banks | 1,666 | 1,868 | |
Investment in subsidiaries | 77,151 | 70,731 | |
Investment in special purpose subsidiary | 264 | 264 | |
Prepaid expenses and other assets | 3,008 | 2,756 | |
Total Assets | 82,089 | 75,619 | |
Liabilities | |||
Balance due to nonbank subsidiaries | 8,764 | 8,764 | |
Other borrowings | 5,700 | 5,692 | |
Accrued interest payable | 69 | 46 | |
Other liabilities | 0 | 6 | |
Total liabilities | 14,533 | 14,508 | |
Shareholders' equity | |||
Common stock | 5,908 | 5,868 | |
Additional paid-in capital | 55,486 | 55,167 | |
Retained earnings | 11,775 | 10,957 | |
Stock in directors rabbi trust | (467) | (689) | |
Directors deferred fees obligation | 467 | 689 | |
Accumulated other comprehensive loss | (5,613) | (10,881) | |
Total shareholders' equity | 67,556 | 61,111 | |
Total liabilities and shareholders' equity | $ 82,089 | $ 75,619 |
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, 2023 | Dec. 31, 2022 | |
Income | ||
Total interest income | $ 33,274 | $ 27,487 |
Interest expense | ||
Interest on borrowed funds | 2,691 | 702 |
Total interest expense | 7,986 | 1,781 |
Net interest income | 25,288 | 25,706 |
Noninterest expense | ||
Supplies | 162 | 158 |
Professional and outside services | 1,598 | 1,387 |
Other | 2,889 | 2,670 |
Total noninterest expense | 23,037 | 22,313 |
Income (loss) before income taxes | 2,165 | 10,295 |
Income tax expense (benefit) | 247 | 1,990 |
Net Income (Loss) | 1,918 | 8,305 |
Total comprehensive income (loss) | 5,268 | (10,137) |
Parent Company [Member] | ||
Income | ||
Interest Income | 4 | 3 |
Dividends received from subsidiaries | 1,975 | 1,835 |
Total interest income | 1,979 | 1,838 |
Interest expense | ||
Interest on borrowed funds | 1,111 | 694 |
Total interest expense | 1,111 | 694 |
Net interest income | 868 | 1,144 |
Noninterest expense | ||
Supplies | 30 | 30 |
Professional and outside services | 42 | 42 |
Other | 47 | 45 |
Total noninterest expense | 119 | 117 |
Net income before undistributed income of subsidiary | 749 | 1,027 |
Undistributed income (loss) of subsidiary | 911 | 7,108 |
Income (loss) before income taxes | 1,660 | 8,135 |
Income tax expense (benefit) | (258) | (170) |
Net Income (Loss) | 1,918 | 8,305 |
Total comprehensive income (loss) | $ 7,186 | $ (1,832) |
Parent Corporation Only Finan_5
Parent Corporation Only Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 1,918 | $ 8,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 8 | 32 |
Net change in: | ||
Other assets | 649 | (2,582) |
Interest payable | 140 | 2 |
Other liabilities | 874 | (3,570) |
Net cash used in operating activities | 4,957 | 10,269 |
Cash Flows from Investing Activities | ||
Net cash provided by investing activities | (8,542) | (66,063) |
Cash Flows from Financing Activities | ||
Proceeds from exercise of stock options | 0 | 18 |
Net cash provided by financing activities | 4,621 | (20,144) |
Parent Company [Member] | ||
Cash Flows from Operating Activities | ||
Net Income (Loss) | 1,918 | 8,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 8 | 32 |
Undistributed income of subsidiary | (911) | (7,108) |
Net change in: | ||
Other assets | (253) | (170) |
Interest payable | 23 | 0 |
Other liabilities | (6) | 1 |
Net cash used in operating activities | 779 | 1,060 |
Cash Flows from Investing Activities | ||
Net cash provided by investing activities | 0 | 0 |
Cash Flows from Financing Activities | ||
Proceeds from exercise of stock options | 0 | 18 |
Cash dividends paid | (981) | (857) |
Net cash provided by financing activities | (981) | (839) |
Net increase in cash | (202) | 221 |
Cash, beginning of year | 1,868 | 1,647 |
Cash, end of year | $ 1,666 | $ 1,868 |
Document Information
Document Information | 12 Months Ended |
Dec. 31, 2023 | |
Document Information: | |
Document Type | 10-K |
Amendment | false |
CIK | 0001290476 |
Registrant Name | Village Bank & Trust Financial Corp. |
Period End Date | Dec. 31, 2023 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 1,918 | $ 8,305 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |