Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 08, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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, par value $4.00 per share | |
Trading Symbol | VBFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,473,469 | |
Entity Central Index Key | 0001290476 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 14,362,000 | $ 12,709,000 |
Federal funds sold | 49,918,000 | 30,742,000 |
Total cash and cash equivalents | 64,280,000 | 43,451,000 |
Investment securities available for sale, at fair value | 88,549,000 | 40,844,000 |
Restricted stock, at cost | 694,000 | 825,000 |
Loans held for sale | 13,275,000 | 34,421,000 |
Loans | ||
Outstandings | 534,306,000 | 561,003,000 |
Allowance for loan losses | (3,443,000) | (3,970,000) |
Deferred fees and costs, net | (1,401,000) | (2,048,000) |
Total loans, net | 529,462,000 | 554,985,000 |
Other real estate owned, net of valuation allowance | 336,000 | |
Premises and equipment, net | 11,940,000 | 11,779,000 |
Bank owned life insurance | 12,416,000 | 7,806,000 |
Accrued interest receivable | 3,569,000 | 4,943,000 |
Other assets | 5,876,000 | 6,846,000 |
Total Assets | 730,061,000 | 706,236,000 |
Deposits | ||
Noninterest bearing demand | 270,397,000 | 222,305,000 |
Interest bearing | 375,655,000 | 366,077,000 |
Total deposits | 646,052,000 | 588,382,000 |
Long-term debt - trust preferred securities | 8,764,000 | 8,764,000 |
Subordinated debt, net | 5,652,000 | 5,628,000 |
Other borrowings | 41,529,000 | |
Accrued interest payable | 71,000 | 194,000 |
Other liabilities | 7,792,000 | 9,743,000 |
Total liabilities | 668,331,000 | 654,240,000 |
Shareholders' equity | ||
Common stock, $4 par value, 10,000,000 shares authorized; 1,466,765 shares issued and outstanding at September 30, 2021 and 1,435,009 shares issued and outstanding at December 31, 2020 | 5,822,000 | 5,794,000 |
Additional paid-in capital | 54,700,000 | 54,510,000 |
Retained earnings (accumulated deficit) | 1,352,000 | (8,738,000) |
Stock in directors rabbi trust | (730,000) | (771,000) |
Directors deferred fees obligation | 730,000 | 771,000 |
Accumulated other comprehensive income (loss) | (144,000) | 430,000 |
Total shareholders' equity | 61,730,000 | 51,996,000 |
Total liabilities and shareholders' equity | $ 730,061,000 | $ 706,236,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 4 | $ 4 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 1,466,765 | 1,435,009 |
Common stock, shares outstanding (in shares) | 1,466,765 | 1,435,009 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income | ||||
Loans | $ 6,655,000 | $ 6,307,000 | $ 20,148,000 | $ 17,622,000 |
Investment securities | 244,000 | 230,000 | 743,000 | 740,000 |
Federal funds sold | 22,000 | 3,000 | 32,000 | 55,000 |
Total interest income | 6,921,000 | 6,540,000 | 20,923,000 | 18,417,000 |
Interest expense | ||||
Deposits | 349,000 | 728,000 | 1,275,000 | 2,502,000 |
Borrowed funds | 143,000 | 341,000 | 453,000 | 1,073,000 |
Total interest expense | 492,000 | 1,069,000 | 1,728,000 | 3,575,000 |
Net interest income | 6,429,000 | 5,471,000 | 19,195,000 | 14,842,000 |
Provision for (recovery of) loan losses | 250,000 | (500,000) | 950,000 | |
Net interest income after provision for (recovery of) loan losses | 6,429,000 | 5,221,000 | 19,695,000 | 13,892,000 |
Noninterest income | ||||
Service charges and fees | 580,000 | 535,000 | 1,711,000 | 1,502,000 |
Mortgage banking income, net | 2,171,000 | 2,859,000 | 7,827,000 | 6,517,000 |
Gain on sale of asset held for sale | 1,000 | 1,000 | ||
Gain on sale of investment securities, net | 12,000 | |||
Gain on sale of Small Business Administration loans | 86,000 | |||
Other | 108,000 | 86,000 | 344,000 | 238,000 |
Total noninterest income | 2,859,000 | 3,481,000 | 9,882,000 | 8,356,000 |
Noninterest expense | ||||
Salaries and benefits | 3,607,000 | 3,644,000 | 10,541,000 | 9,278,000 |
Occupancy | 315,000 | 326,000 | 948,000 | 965,000 |
Equipment | 267,000 | 225,000 | 788,000 | 640,000 |
Supplies | 49,000 | 50,000 | 138,000 | 141,000 |
Professional and outside services | 730,000 | 835,000 | 2,085,000 | 2,276,000 |
Advertising and marketing | 99,000 | 90,000 | 347,000 | 261,000 |
Foreclosed assets, net | 4,000 | (8,000) | (152,000) | |
FDIC insurance premium | 38,000 | 47,000 | 142,000 | 167,000 |
Other operating expense | 532,000 | 534,000 | 1,716,000 | 1,588,000 |
Total noninterest expense | 5,637,000 | 5,755,000 | 16,697,000 | 15,164,000 |
Income before income tax expense | 3,651,000 | 2,947,000 | 12,880,000 | 7,084,000 |
Income tax expense | 752,000 | 678,000 | 2,790,000 | 1,582,000 |
Net income | $ 2,899,000 | $ 2,269,000 | $ 10,090,000 | $ 5,502,000 |
Earnings per share, basic | $ 1.97 | $ 1.55 | $ 6.88 | $ 3.78 |
Earnings per share, diluted | $ 1.97 | $ 1.55 | $ 6.88 | $ 3.78 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 2,899 | $ 2,269 | $ 10,090 | $ 5,502 |
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period | (237) | (52) | (736) | 386 |
Tax effect | 50 | 11 | 156 | (81) |
Net change in unrealized holding gains (losses) on securities available for sale, net of tax | (187) | (41) | (580) | 305 |
Reclassification adjustment | ||||
Reclassification adjustment for gains realized in income | (12) | |||
Tax effect | 3 | |||
Reclassification for gains included in net income, net of tax | (9) | |||
Minimum pension adjustment | 3 | 3 | 9 | 9 |
Tax effect | (1) | (1) | (3) | (3) |
Minimum pension adjustment, net of tax | 2 | 2 | 6 | 6 |
Total other comprehensive income (loss) | (185) | (39) | (574) | 302 |
Total comprehensive income | $ 2,714 | $ 2,230 | $ 9,516 | $ 5,804 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Stock in Directors Rabbi Trust [Member] | Directors Deferred Fees Obligation [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2019 | $ 5,779 | $ 54,285 | $ (17,292) | $ (856) | $ 856 | $ 142 | $ 42,914 |
Vesting of restricted stock | 11 | (11) | 0 | 85 | (85) | 0 | 0 |
Stock based compensation | 0 | 157 | 0 | 0 | 0 | 0 | 157 |
Net income | 0 | 0 | 5,502 | 0 | 0 | 0 | 5,502 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 302 | 302 |
Balance at Sep. 30, 2020 | 5,790 | 54,431 | (11,790) | (771) | 771 | 444 | 48,875 |
Balance at Jun. 30, 2020 | 5,779 | 54,414 | (14,059) | (771) | 771 | 483 | 46,617 |
Vesting of restricted stock | 11 | (11) | 0 | 0 | 0 | 0 | |
Stock based compensation | 0 | 28 | 0 | 0 | 0 | 0 | 28 |
Net income | 0 | 0 | 2,269 | 0 | 0 | 0 | 2,269 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (39) | (39) |
Balance at Sep. 30, 2020 | 5,790 | 54,431 | (11,790) | (771) | 771 | 444 | 48,875 |
Balance at Dec. 31, 2020 | 5,794 | 54,510 | (8,738) | (771) | 771 | 430 | 51,996 |
Vesting of restricted stock | 28 | (28) | 41 | (41) | |||
Stock based compensation | 218 | 218 | |||||
Net income | 10,090 | 10,090 | |||||
Other comprehensive income (loss) | (574) | (574) | |||||
Balance at Sep. 30, 2021 | 5,822 | 54,700 | 1,352 | (730) | 730 | (144) | 61,730 |
Balance at Jun. 30, 2021 | 5,796 | 54,691 | (1,547) | (730) | 730 | 41 | 58,981 |
Vesting of restricted stock | 26 | (26) | 0 | 0 | 0 | 0 | |
Stock based compensation | 0 | 35 | 0 | 0 | 0 | 0 | 35 |
Net income | 0 | 0 | 2,899 | 0 | 0 | 0 | 2,899 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (185) | (185) |
Balance at Sep. 30, 2021 | $ 5,822 | $ 54,700 | $ 1,352 | $ (730) | $ 730 | $ (144) | $ 61,730 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 10,090,000 | $ 5,502,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 447,000 | 442,000 |
Amortization of debt issuance costs | 24,000 | 25,000 |
Deferred income taxes | 499,000 | 905,000 |
Provision for (recovery of) loan losses | (500,000) | 950,000 |
Write-down of other real estate owned | 10,000 | 16,000 |
Gain on sale of investment securities | (12,000) | |
Gain on sales of loans held for sale | (9,608,000) | (6,517,000) |
Gain on sale of assets held for sale | (1,000) | |
Gain on sale of other real estate owned | (18,000) | (175,000) |
Loss on sale and disposal of premises and equipment | 10,000 | |
Stock compensation expense | 218,000 | 157,000 |
Proceeds from sale of mortgage loans | 271,454,000 | 247,205,000 |
Origination of mortgage loans held for sale | (240,700,000) | (255,491,000) |
Amortization of premiums and accretion of discounts on securities, net | 189,000 | 159,000 |
Increase in bank owned life insurance | (202,000) | (144,000) |
Net change in: | ||
Interest receivable | 1,374,000 | (2,283,000) |
Other assets | 633,000 | 1,669,000 |
Interest payable | (123,000) | 10,000 |
Other liabilities | (1,951,000) | 608,000 |
Net cash provided by (used in) operating activities | 31,846,000 | (6,975,000) |
Cash Flows from Investing Activities | ||
Purchases of available for sale securities | (62,613,000) | (3,387,000) |
Proceeds from the sale of available for sale securities | 7,936,000 | |
Proceeds from the sale of assets held for sale | 515,000 | |
Proceeds from maturities, calls and paydowns of available for sale securities | 13,983,000 | 6,309,000 |
Net decrease (increase) in loans | 26,023,000 | (166,510,000) |
Proceeds from sale of other real estate owned | 344,000 | 349,000 |
Purchases of premises and equipment, net | (618,000) | (117,000) |
Purchase of bank owned life insurance | (4,408,000) | |
Redemptions (purchase) of restricted stock, net | 131,000 | (447,000) |
Net cash used in investing activities | (27,158,000) | (155,352,000) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 57,670,000 | 130,644,000 |
Repayments of Federal Home Loan Bank advances | 10,000,000 | |
Net (decrease) increase in other borrowings | (41,529,000) | 39,803,000 |
Net cash provided by financing activities | 16,141,000 | 180,447,000 |
Net increase in cash and cash equivalents | 20,829,000 | 18,120,000 |
Cash and cash equivalents, beginning of period | 43,451,000 | 19,967,000 |
Cash and cash equivalents, end of period | 64,280,000 | 38,087,000 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 1,851,000 | 3,565,000 |
Supplemental Schedule of Non-Cash Activities | ||
Unrealized gains on securities available for sale | (736,000) | 373,000 |
Right of use assets obtained in exchange for new operating lease liabilities | 243,000 | |
Minimum pension adjustment | $ 9,000 | $ 9,000 |
Principles of presentation
Principles of presentation | 9 Months Ended |
Sep. 30, 2021 | |
Principles of presentation | |
Principles of presentation | Note 1 – Principles of presentation Village Bank and Trust Financial Corp. (the “Company”) is the holding company of Village Bank (the “Bank”). The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s subsidiary, Village Bank Mortgage Corporation. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements of the Company have been prepared on the accrual basis in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, all adjustments that are, in the opinion of management, necessary for a fair presentation have been included. The results of operations for the three and nine month periods ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. The unaudited interim financial statements should be read in conjunction with the audited financial statements and notes to financial statements that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission (“SEC”). |
Use of estimates
Use of estimates | 9 Months Ended |
Sep. 30, 2021 | |
Use of estimates | |
Use of estimates | Note 2 – Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheets and statements of income for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision including impaired loans and troubled debt restructurings (“TDRs”). |
Earnings per common share
Earnings per common share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings per common share | |
Earnings per common share | Note 3 – Earnings per common share The following table presents the basic and diluted earnings per common share computation (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator Net income - basic and diluted $ 2,899 $ 2,269 $ 10,090 $ 5,502 Denominator Weighted average shares outstanding - basic 1,468 1,462 1,467 1,456 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted 1,468 1,462 1,467 1,456 Earnings per share - basic $ 1.97 $ 1.55 $ 6.88 $ 3.78 Earnings per share - diluted $ 1.97 $ 1.55 $ 6.88 $ 3.78 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 5,793 and 6,573 at September 30, 2021 and 2020, respectively, of the unvested restricted units included in Note 10 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of September 30, 2021 and 2020, it was indeterminable whether these unvested restricted units would vest and as such the underlying shares were excluded from common shares issued and outstanding at such date and were not included in the computation of earnings per share for such period. |
Investment securities available
Investment securities available for sale | 9 Months Ended |
Sep. 30, 2021 | |
Investment securities available for sale | |
Investment securities available for sale | Note 4 – Investment securities available for sale The amortized cost and fair value of investment securities available for sale as of September 30, 2021 and December 31, 2020 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2021 U.S. Government agency obligations $ 41,791 $ 41 $ (2) $ 41,830 Mortgage-backed securities 35,861 389 (434) 35,816 Municipals 2,272 — (90) 2,182 Subordinated debt 8,772 65 (116) 8,721 $ 88,696 $ 495 $ (642) $ 88,549 December 31, 2020 U.S. Government agency obligations $ 8,048 $ 94 $ — $ 8,142 Mortgage-backed securities 23,412 645 (51) 24,006 Subordinated debt 8,795 37 (136) 8,696 $ 40,255 $ 776 $ (187) $ 40,844 At September 30, 2021 and December 31, 2020, the Company had no investment securities pledged to secure borrowings from the Federal Home Loan Bank of Atlanta ("FHLB"). Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Gross realized gains $ — $ — $ — $ 39 Gross realized losses — — — (27) $ — $ — $ — $ 12 The Company sold approximately $7,900,000 of investment securities available for sale at a net gain of $12,000 for the nine months ended September 30, 2020. The sales of these securities, which had fixed interest rates, allowed the Company to decrease its exposure to upward movement in interest rates that would result in unrealized losses being recognized in shareholders’ equity. Investment securities available for sale that have an unrealized loss position at September 30, 2021 and December 31, 2020 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2021 U.S. Government agency obligations $ 29,812 $ (2) $ — $ — $ 29,812 $ (2) Mortgage-backed securities 24,075 (412) 1,730 (22) 25,805 (434) Municipals 2,181 (90) — — 2,181 (90) Subordinated debt 929 (71) 959 (45) 1,888 (116) $ 56,997 $ (575) $ 2,689 $ (67) $ 59,686 $ (642) December 31, 2020 Mortgage-backed securities 5,475 (51) — — 5,475 (51) Subordinated debt 1,747 (11) 2,807 (125) 4,554 (136) $ 7,222 $ (62) $ 2,807 $ (125) $ 10,029 $ (187) As of September 30, 2021, there were 19 investments available for sale totaling $56,997,000 that were in a continuous loss position for less than 12 months and had an unrealized loss of $575,000. There were three investments available for sale totaling $2,689,000 that had been in a continuous loss position for more than 12 months and had an unrealized loss of $67,000. All of the unrealized losses are attributable to movements in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other than temporarily impaired at September 30, 2021. The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2021, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 40,158 $ 40,157 One to five years 165 166 Five to ten years 11,127 11,160 More than ten years 37,246 37,066 Total $ 88,696 $ 88,549 |
Loans and allowance for loan lo
Loans and allowance for loan losses | 9 Months Ended |
Sep. 30, 2021 | |
Loans and allowance for loan losses | |
Loans and allowance for loan losses | 30 ‑ 59 Days 60 ‑ 89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing September 30, 2021 Construction and land development Residential $ — $ — $ — $ — $ 8,981 $ 8,981 $ — Commercial — — — — 41,810 41,810 — — — — — 50,791 50,791 — Commercial real estate Owner occupied — — — — 106,499 106,499 — Non-owner occupied — — — — 130,867 130,867 — Multifamily — — — — 12,027 12,027 — Farmland — — — — 1,099 1,099 — — — — — 250,492 250,492 — Consumer real estate Home equity lines — — — — 17,194 17,194 — Secured by 1‑4 family residential First deed of trust 92 — — 92 55,826 55,918 — Second deed of trust — — — — 14,172 14,172 — 92 — — 92 87,192 87,284 — Commercial and industrial loans (except those secured by real estate) — 412 — 412 114,717 115,129 — Guaranteed student loans 1,092 393 2,496 3,981 23,643 27,624 2,496 Consumer and other — — — — 2,986 2,986 — Total loans $ 1,184 $ 805 $ 2,496 $ 4,485 $ 529,821 $ 534,306 $ 2,496 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,103 $ 8,103 $ — Commercial — — — — 21,466 21,466 — — — — — 29,569 29,569 — Commercial real estate Owner occupied 86 — — 86 99,698 99,784 — Non-owner occupied — — — — 121,184 121,184 — Multifamily — — — — 9,889 9,889 — Farmland — — — — 367 367 — 86 — — 86 231,138 231,224 — Consumer real estate Home equity lines — — — — 18,394 18,394 — Secured by 1-4 family residential First deed of trust 133 — — 133 56,956 57,089 — Second deed of trust — 57 — 57 11,040 11,097 — 133 57 — 190 86,390 86,580 — Commercial and industrial loans (except those secured by real estate) 25 — — 25 181,063 181,088 — Guaranteed student loans 1,428 1,009 2,193 4,630 25,027 29,657 2,193 Consumer and other 1 — — 1 2,884 2,885 — Total loans $ 1,673 $ 1,066 $ 2,193 $ 4,932 $ 556,071 $ 561,003 $ 2,193 Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be impaired. Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, non-guaranteed loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 5,106 $ 5,121 $ — $ 2,780 $ 2,795 $ — Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 4,771 4,786 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 1,850 1,850 — 1,937 1,940 — Second deed of trust 692 776 — 699 992 — 2,842 2,926 — 2,936 3,232 — Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — 9,985 10,084 — 7,848 8,159 — With an allowance recorded Commercial real estate Owner occupied — — — 1,125 1,125 9 — — — 1,125 1,125 9 Consumer real estate Secured by 1-4 family residential First deed of trust 148 148 7 74 74 8 148 148 7 74 74 8 Total Commercial real estate Owner occupied 5,106 5,121 — 3,905 3,920 9 Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 5,896 5,911 9 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 1,998 1,998 7 2,011 2,014 8 Second deed of trust 692 776 — 699 992 — 2,990 3,074 7 3,010 3,306 8 Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — $ 10,133 $ 10,232 $ 7 $ 9,047 $ 9,358 $ 17 The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Owner occupied $ 5,176 $ 40 $ 4,569 $ 136 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,469 222 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential First deed of trust 1,942 20 1,940 65 Second deed of trust 882 20 690 39 3,124 46 2,930 123 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 10,369 113 9,583 346 With an allowance recorded Commercial real estate Owner occupied — — 281 15 — — 281 15 Consumer real estate Secured by 1-4 family residential First deed of trust 150 5 131 7 150 5 131 7 Total Commercial real estate Owner occupied 5,176 40 4,850 151 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,750 237 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential, First deed of trust 2,092 25 2,071 72 Second deed of trust 882 20 690 39 3,274 51 3,061 130 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 $ 10,519 $ 118 $ 9,995 $ 368 Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance September 30, 2021 Commercial real estate Owner occupied $ 3,287 $ 3,287 $ — $ — Non-owner occupied 1,843 1,551 292 — 5,130 4,838 292 — Consumer real estate Secured by 1-4 family residential First deeds of trust 1,679 1,140 539 7 Second deeds of trust 511 452 59 — 2,190 1,592 598 7 Commercial and industrial loans (except those secured by real estate) 22 — 22 — $ 7,342 $ 6,430 $ 912 $ 7 Number of loans 32 25 7 2 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2020 Commercial real estate Owner occupied $ 3,396 $ 3,396 $ — $ 9 Non-owner occupied 1,991 1,688 303 — 5,387 5,084 303 9 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,460 910 550 8 Second deeds of trust 617 556 61 — 2,077 1,466 611 8 Commercial and industrial loans (except those secured by real estate) 27 — 27 — $ 7,491 $ 6,550 $ 941 $ 17 Number of loans 34 27 7 2 The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Non-owner occupied — $ — $ — 1 $ 311 $ 311 Secured by 1-4 family residential First deed of trust 1 267 267 — — — 1 $ 267 $ 267 1 $ 311 $ 311 There were no TDR’s identified during the three months ended September 30, 2021 and 2020. There were no defaults on TDR’s that were modified as TDRs during the prior 12 month period ended September 30, 2021 and 2020. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as amended by the Consolidated Appropriations Act 2021 (“CAA”), permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of January 1, 2022 or 60 days after the end of the COVID-19 emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make prudent loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. As of September 30, 2021, all previously modified loans had returned to contractual payment terms. As of December 31, 2020, the Company had approximately $38.0 million in loans still under their modified terms. The Company’s modification program primarily included payment deferrals and interest only modifications. Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2021 Construction and land development Residential $ 66 $ 10 $ — $ — $ 76 Commercial 203 28 — — 231 269 38 — — 307 Commercial real estate Owner occupied 802 58 — — 860 Non-owner occupied 1,059 30 — — 1,089 Multifamily 35 1 — — 36 Farmland 2 — — — 2 1,898 89 — — 1,987 Consumer real estate Home equity lines 11 — — — 11 Secured by 1-4 family residential First deed of trust 113 (3) — 1 111 Second deed of trust 72 (3) — 21 90 196 (6) — 22 212 Commercial and industrial loans (except those secured by real estate) 422 55 — 3 480 Student loans 80 1 (11) — 70 Consumer and other 36 (4) — — 32 Unallocated 528 (173) — — 355 $ 3,429 $ — $ (11) $ 25 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2021 Construction and land development Residential $ 214 $ (138) $ — $ — $ 76 Commercial 285 (54) — — 231 499 (192) — — 307 Commercial real estate Owner occupied 1,047 (187) — — 860 Non-owner occupied 1,421 (346) — 14 1,089 Multifamily 47 (11) — — 36 Farmland 2 — — — 2 2,517 (544) — 14 1,987 Consumer real estate Home equity lines 24 (23) — 10 11 Secured by 1-4 family residential First deed of trust 166 (65) — 10 111 Second deed of trust 79 57 (84) 38 90 269 (31) (84) 58 212 Commercial and industrial loans (except those secured by real estate) 408 45 — 27 480 Student loans 87 7 (24) — 70 Consumer and other 36 14 (18) — 32 Unallocated 154 201 — — 355 $ 3,970 $ (500) $ (126) $ 99 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2020 Construction and land development Residential $ 48 $ 141 $ — $ 25 $ 214 Commercial 137 148 — — 285 185 289 — 25 499 Commercial real estate Owner occupied 671 376 — — 1,047 Non-owner occupied 831 590 — — 1,421 Multifamily 85 (38) — — 47 Farmland 2 — — — 2 1,589 928 — — 2,517 Consumer real estate Home equity lines 271 (247) — — 24 Secured by 1-4 family residential First deed of trust 343 (190) — 13 166 Second deed of trust 64 45 (85) 55 79 678 (392) (85) 68 269 Commercial and industrial loans (except those secured by real estate) 572 (58) (135) 29 408 Student loans 108 27 (48) — 87 Consumer and other 30 26 (24) 4 36 Unallocated 24 130 — — 154 $ 3,186 $ 950 $ (292) $ 126 $ 3,970 The amount of the loan loss provision (recovery) is determined by an evaluation of the level of loans outstanding, the level of nonperforming loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. Loans originated under PPP are not considered in the evaluation of the allowance for loan losses because these loans carry a 100% guarantee from the SBA; however, if the collectability on the guarantee on a loan is at risk that loan will be included in the evaluation of the allowance for loan losses. The level of the allowance reflects changes in the size of the portfolio or in any of its components as well as management’s continuing evaluation of industry concentrations, specific credit risk, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgement, should be charged off. While management utilizes its best judgement and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company recorded a recovery of provision expense of $500,000 for the nine month period ended September 30, 2021 compared to a provision expense of $950,000 for the nine month period ended September 30, 2020. The recovery of provision for the nine month period ended September 30, 2021 resulted from a reduction in qualitative factors which was driven by improving economic factors, improved credit metrics, and reductions in loan deferrals. The provision expense for the nine month period ended September 30, 2020 was the result of an increase in the qualitative factors driven by economic uncertainty surrounding the COVID-19 pandemic. While the Delta variant of the COVID-19 virus remains a risk to credit quality, we believe our current level of allowance for loan losses is sufficient. The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and the variability related to the factors used in calculation of the allowance. The allowance for loan losses included an unallocated portion of approximately $355,000, $154,000, and $273,000 at September 30, 2021, December 31, 2020, and September 30, 2020, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2021 Construction and land development Residential $ 76 $ — $ 76 $ 8,981 $ — $ 8,981 Commercial 231 — 231 41,810 — 41,810 307 — 307 50,791 — 50,791 Commercial real estate Owner occupied 860 — 860 106,499 5,106 101,393 Non-owner occupied 1,089 — 1,089 130,867 1,843 129,024 Multifamily 36 — 36 12,027 — 12,027 Farmland 2 — 2 1,099 — 1,099 1,987 — 1,987 250,492 6,949 243,543 Consumer real estate Home equity lines 11 — 11 17,194 300 16,894 Secured by 1-4 family residential First deed of trust 111 7 104 55,918 1,998 53,920 Second deed of trust 90 — 90 14,172 692 13,480 212 7 205 87,284 2,990 84,294 Commercial and industrial loans (except those secured by real estate) 480 — 480 115,129 194 114,935 Student loans 70 — 70 27,624 — 27,624 Consumer and other 387 — 387 2,986 — 2,986 $ 3,443 $ 7 $ 3,436 $ 534,306 $ 10,133 $ 524,173 Year Ended December 31, 2020 Construction and land development Residential $ 214 $ — $ 214 $ 8,103 $ — $ 8,103 Commercial 285 — 285 21,466 — 21,466 499 — 499 29,569 — 29,569 Commercial real estate Owner occupied 1,047 9 1,038 99,784 3,905 95,879 Non-owner occupied 1,421 — 1,421 121,184 1,991 119,193 Multifamily 47 — 47 9,889 — 9,889 Farmland 2 — 2 367 — 367 2,517 9 2,508 231,224 5,896 225,328 Consumer real estate Home equity lines 24 — 24 18,394 300 18,094 Secured by 1-4 family residential First deed of trust 166 8 158 57,089 2,011 55,078 Second deed of trust 79 — 79 11,097 699 10,398 269 8 261 86,580 3,010 83,570 Commercial and industrial loans (except those secured by real estate) 408 — 408 181,088 141 180,947 Student loans 87 — 87 29,657 — 29,657 Consumer and other 190 — 190 2,885 — 2,885 $ 3,970 $ 17 $ 3,953 $ 561,003 $ 9,047 $ 551,956 " id="sjs-B4">Note 5 – Loans and allowance for loan losses Loans classified by type as of September 30, 2021 and December 31, 2020 are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Amount % Amount % Construction and land development Residential $ 8,981 1.68 % $ 8,103 1.44 % Commercial 41,810 7.82 % 21,466 3.82 % 50,791 9.50 % 29,569 5.26 % Commercial real estate Owner occupied 106,499 19.93 % 99,784 17.79 % Non-owner occupied 130,867 24.49 % 121,184 21.60 % Multifamily 12,027 2.25 % 9,889 1.75 % Farmland 1,099 0.21 % 367 0.07 % 250,492 46.88 % 231,224 41.21 % Consumer real estate Home equity lines 17,194 3.22 % 18,394 3.28 % Secured by 1-4 family residential, First deed of trust 55,918 10.47 % 57,089 10.18 % Second deed of trust 14,172 2.65 % 11,097 1.98 % 87,284 16.34 % 86,580 15.44 % Commercial and industrial loans (except those secured by real estate) 115,129 21.55 % 181,088 32.28 % Guaranteed student loans 27,624 5.17 % 29,657 5.29 % Consumer and other 2,986 0.56 % 2,885 0.51 % Total loans 534,306 100.0 % 561,003 100.0 % Deferred fees and costs, net (1,401) (2,048) Less: allowance for loan losses (3,443) (3,970) $ 529,462 $ 554,985 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the Department of Education (“DOE”). The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans, included in commercial and industrial loans in the above table, were $56,809,000 and $136,674,000 as of September 30, 2021 and December 31, 2020, respectively. Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $41,571,000 and $65,587,000 as of September 30, 2021 and December 31, 2020, respectively. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): September 30, December 31, 2021 2020 Commercial real estate Non-owner occupied $ 292 $ 303 292 303 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 618 630 Second deed of trust 240 317 1,158 1,247 Commercial and industrial loans (except those secured by real estate) 22 27 Total loans $ 1,472 $ 1,577 The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: ● Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; ● Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention; ● Risk rated 6 loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; and ● Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans September 30, 2021 Construction and land development Residential $ 8,981 $ — $ — $ — $ 8,981 Commercial 39,173 2,637 — — 41,810 48,154 2,637 — — 50,791 Commercial real estate Owner occupied 95,415 7,496 3,588 — 106,499 Non-owner occupied 121,446 9,129 292 — 130,867 Multifamily 12,027 — — — 12,027 Farmland 1,099 — — — 1,099 229,987 16,625 3,880 — 250,492 Consumer real estate Home equity lines 16,269 625 300 — 17,194 Secured by 1-4 family residential First deed of trust 52,798 2,316 804 — 55,918 Second deed of trust 13,473 432 267 — 14,172 82,540 3,373 1,371 — 87,284 Commercial and industrial loans (except those secured by real estate) 112,959 1,890 280 — 115,129 Guaranteed student loans 27,624 — — — 27,624 Consumer and other 2,952 34 — — 2,986 Total loans $ 504,216 $ 24,559 $ 5,531 $ — $ 534,306 Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans December 31, 2020 Construction and land development Residential $ 8,103 $ — $ — $ — $ 8,103 Commercial 21,370 96 — — 21,466 29,473 96 — — 29,569 Commercial real estate Owner occupied 88,066 9,405 2,313 — 99,784 Non-owner occupied 116,161 4,244 779 — 121,184 Multifamily 9,889 — — — 9,889 Farmland 367 — — — 367 214,483 13,649 3,092 — 231,224 Consumer real estate Home equity lines 17,298 796 300 — 18,394 Secured by 1-4 family residential First deed of trust 53,731 2,212 1,146 — 57,089 Second deed of trust 9,425 1,236 436 — 11,097 80,454 4,244 1,882 — 86,580 Commercial and industrial loans (except those secured by real estate) 178,217 2,602 269 — 181,088 Guaranteed student loans 29,657 — — — 29,657 Consumer and other 2,844 41 — — 2,885 Total loans $ 535,128 $ 20,632 $ 5,243 $ — $ 561,003 The following table presents the aging of the recorded investment in past due loans and leases 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 September 30, 2021 Construction and land development Residential $ — $ — $ — $ — $ 8,981 $ 8,981 $ — Commercial — — — — 41,810 41,810 — — — — — 50,791 50,791 — Commercial real estate Owner occupied — — — — 106,499 106,499 — Non-owner occupied — — — — 130,867 130,867 — Multifamily — — — — 12,027 12,027 — Farmland — — — — 1,099 1,099 — — — — — 250,492 250,492 — Consumer real estate Home equity lines — — — — 17,194 17,194 — Secured by 1‑4 family residential First deed of trust 92 — — 92 55,826 55,918 — Second deed of trust — — — — 14,172 14,172 — 92 — — 92 87,192 87,284 — Commercial and industrial loans (except those secured by real estate) — 412 — 412 114,717 115,129 — Guaranteed student loans 1,092 393 2,496 3,981 23,643 27,624 2,496 Consumer and other — — — — 2,986 2,986 — Total loans $ 1,184 $ 805 $ 2,496 $ 4,485 $ 529,821 $ 534,306 $ 2,496 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,103 $ 8,103 $ — Commercial — — — — 21,466 21,466 — — — — — 29,569 29,569 — Commercial real estate Owner occupied 86 — — 86 99,698 99,784 — Non-owner occupied — — — — 121,184 121,184 — Multifamily — — — — 9,889 9,889 — Farmland — — — — 367 367 — 86 — — 86 231,138 231,224 — Consumer real estate Home equity lines — — — — 18,394 18,394 — Secured by 1-4 family residential First deed of trust 133 — — 133 56,956 57,089 — Second deed of trust — 57 — 57 11,040 11,097 — 133 57 — 190 86,390 86,580 — Commercial and industrial loans (except those secured by real estate) 25 — — 25 181,063 181,088 — Guaranteed student loans 1,428 1,009 2,193 4,630 25,027 29,657 2,193 Consumer and other 1 — — 1 2,884 2,885 — Total loans $ 1,673 $ 1,066 $ 2,193 $ 4,932 $ 556,071 $ 561,003 $ 2,193 Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be impaired. Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, non-guaranteed loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 5,106 $ 5,121 $ — $ 2,780 $ 2,795 $ — Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 4,771 4,786 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 1,850 1,850 — 1,937 1,940 — Second deed of trust 692 776 — 699 992 — 2,842 2,926 — 2,936 3,232 — Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — 9,985 10,084 — 7,848 8,159 — With an allowance recorded Commercial real estate Owner occupied — — — 1,125 1,125 9 — — — 1,125 1,125 9 Consumer real estate Secured by 1-4 family residential First deed of trust 148 148 7 74 74 8 148 148 7 74 74 8 Total Commercial real estate Owner occupied 5,106 5,121 — 3,905 3,920 9 Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 5,896 5,911 9 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 1,998 1,998 7 2,011 2,014 8 Second deed of trust 692 776 — 699 992 — 2,990 3,074 7 3,010 3,306 8 Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — $ 10,133 $ 10,232 $ 7 $ 9,047 $ 9,358 $ 17 The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Owner occupied $ 5,176 $ 40 $ 4,569 $ 136 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,469 222 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential First deed of trust 1,942 20 1,940 65 Second deed of trust 882 20 690 39 3,124 46 2,930 123 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 10,369 113 9,583 346 With an allowance recorded Commercial real estate Owner occupied — — 281 15 — — 281 15 Consumer real estate Secured by 1-4 family residential First deed of trust 150 5 131 7 150 5 131 7 Total Commercial real estate Owner occupied 5,176 40 4,850 151 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,750 237 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential, First deed of trust 2,092 25 2,071 72 Second deed of trust 882 20 690 39 3,274 51 3,061 130 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 $ 10,519 $ 118 $ 9,995 $ 368 Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance September 30, 2021 Commercial real estate Owner occupied $ 3,287 $ 3,287 $ — $ — Non-owner occupied 1,843 1,551 292 — 5,130 4,838 292 — Consumer real estate Secured by 1-4 family residential First deeds of trust 1,679 1,140 539 7 Second deeds of trust 511 452 59 — 2,190 1,592 598 7 Commercial and industrial loans (except those secured by real estate) 22 — 22 — $ 7,342 $ 6,430 $ 912 $ 7 Number of loans 32 25 7 2 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2020 Commercial real estate Owner occupied $ 3,396 $ 3,396 $ — $ 9 Non-owner occupied 1,991 1,688 303 — 5,387 5,084 303 9 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,460 910 550 8 Second deeds of trust 617 556 61 — 2,077 1,466 611 8 Commercial and industrial loans (except those secured by real estate) 27 — 27 — $ 7,491 $ 6,550 $ 941 $ 17 Number of loans 34 27 7 2 The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Non-owner occupied — $ — $ — 1 $ 311 $ 311 Secured by 1-4 family residential First deed of trust 1 267 267 — — — 1 $ 267 $ 267 1 $ 311 $ 311 There were no TDR’s identified during the three months ended September 30, 2021 and 2020. There were no defaults on TDR’s that were modified as TDRs during the prior 12 month period ended September 30, 2021 and 2020. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as amended by the Consolidated Appropriations Act 2021 (“CAA”), permits financial institutions to suspend requirements under GAAP for loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs and suspend any determination related thereto if (i) the loan modification is made between March 1, 2020 and the earlier of January 1, 2022 or 60 days after the end of the COVID-19 emergency declaration and (ii) the applicable loan was not more than 30 days past due as of December 31, 2019. In addition, federal bank regulatory authorities have issued guidance to encourage financial institutions to make prudent loan modifications for borrowers affected by COVID-19 and have assured financial institutions that they will neither receive supervisory criticism for such prudent loan modifications, nor be required by examiners to automatically categorize COVID-19-related loan modifications as TDRs. As of September 30, 2021, all previously modified loans had returned to contractual payment terms. As of December 31, 2020, the Company had approximately $38.0 million in loans still under their modified terms. The Company’s modification program primarily included payment deferrals and interest only modifications. Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2021 Construction and land development Residential $ 66 $ 10 $ — $ — $ 76 Commercial 203 28 — — 231 269 38 — — 307 Commercial real estate Owner occupied 802 58 — — 860 Non-owner occupied 1,059 30 — — 1,089 Multifamily 35 1 — — 36 Farmland 2 — — — 2 1,898 89 — — 1,987 Consumer real estate Home equity lines 11 — — — 11 Secured by 1-4 family residential First deed of trust 113 (3) — 1 111 Second deed of trust 72 (3) — 21 90 196 (6) — 22 212 Commercial and industrial loans (except those secured by real estate) 422 55 — 3 480 Student loans 80 1 (11) — 70 Consumer and other 36 (4) — — 32 Unallocated 528 (173) — — 355 $ 3,429 $ — $ (11) $ 25 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2021 Construction and land development Residential $ 214 $ (138) $ — $ — $ 76 Commercial 285 (54) — — 231 499 (192) — — 307 Commercial real estate Owner occupied 1,047 (187) — — 860 Non-owner occupied 1,421 (346) — 14 1,089 Multifamily 47 (11) — — 36 Farmland 2 — — — 2 2,517 (544) — 14 1,987 Consumer real estate Home equity lines 24 (23) — 10 11 Secured by 1-4 family residential First deed of trust 166 (65) — 10 111 Second deed of trust 79 57 (84) 38 90 269 (31) (84) 58 212 Commercial and industrial loans (except those secured by real estate) 408 45 — 27 480 Student loans 87 7 (24) — 70 Consumer and other 36 14 (18) — 32 Unallocated 154 201 — — 355 $ 3,970 $ (500) $ (126) $ 99 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2020 Construction and land development Residential $ 48 $ 141 $ — $ 25 $ 214 Commercial 137 148 — — 285 185 289 — 25 499 Commercial real estate Owner occupied 671 376 — — 1,047 Non-owner occupied 831 590 — — 1,421 Multifamily 85 (38) — — 47 Farmland 2 — — — 2 1,589 928 — — 2,517 Consumer real estate Home equity lines 271 (247) — — 24 Secured by 1-4 family residential First deed of trust 343 (190) — 13 166 Second deed of trust 64 45 (85) 55 79 678 (392) (85) 68 269 Commercial and industrial loans (except those secured by real estate) 572 (58) (135) 29 408 Student loans 108 27 (48) — 87 Consumer and other 30 26 (24) 4 36 Unallocated 24 130 — — 154 $ 3,186 $ 950 $ (292) $ 126 $ 3,970 The amount of the loan loss provision (recovery) is determined by an evaluation of the level of loans outstanding, the level of nonperforming loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. Loans originated under PPP are not considered in the evaluation of the allowance for loan losses because these loans carry a 100% guarantee from the SBA; however, if the collectability on the guarantee on a loan is at risk that loan will be included in the evaluation of the allowance for loan losses. The level of the allowance reflects changes in the size of the portfolio or in any of its components as well as management’s continuing evaluation of industry concentrations, specific credit risk, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgement, should be charged off. While management utilizes its best judgement and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company recorded a recovery of provision expense of $500,000 for the nine month period ended September 30, 2021 compared to a provision expense of $950,000 for the nine month period ended September 30, 2020. The recovery of provision for the nine month period ended September 30, 2021 resulted from a reduction in qualitative factors which was driven by improving economic factors, improved credit metrics, and reductions in loan deferrals. The provision expense for the nine month period ended September 30, 2020 was the result of an increase in the qualitative factors driven by economic uncertainty surrounding the COVID-19 pandemic. While the Delta variant of the COVID-19 virus remains a risk to credit quality, we believe our current level of allowance for loan losses is sufficient. The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and the variability related to the factors used in calculation of the allowance. The allowance for loan losses included an unallocated portion of approximately $355,000, $154,000, and $273,000 at September 30, 2021, December 31, 2020, and September 30, 2020, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2021 Construction and land development Residential $ 76 $ — $ 76 $ 8,981 $ — $ 8,981 Commercial 231 — 231 41,810 — 41,810 307 — 307 50,791 — 50,791 Commercial real estate Owner occupied 860 — 860 106,499 5,106 101,393 Non-owner occupied 1,089 — 1,089 130,867 1,843 129,024 Multifamily 36 — 36 12,027 — 12,027 Farmland 2 — 2 1,099 — 1,099 1,987 — 1,987 250,492 6,949 243,543 Consumer real estate Home equity lines 11 — 11 17,194 300 16,894 Secured by 1-4 family residential First deed of trust 111 7 104 55,918 1,998 53,920 Second deed of trust 90 — 90 14,172 692 13,480 212 7 205 87,284 2,990 84,294 Commercial and industrial loans (except those secured by real estate) 480 — 480 115,129 194 114,935 Student loans 70 — 70 27,624 — 27,624 Consumer and other 387 — 387 2,986 — 2,986 $ 3,443 $ 7 $ 3,436 $ 534,306 $ 10,133 $ 524,173 Year Ended December 31, 2020 Construction and land development Residential $ 214 $ — $ 214 $ 8,103 $ — $ 8,103 Commercial 285 — 285 21,466 — 21,466 499 — 499 29,569 — 29,569 Commercial real estate Owner occupied 1,047 9 1,038 99,784 3,905 95,879 Non-owner occupied 1,421 — 1,421 121,184 1,991 119,193 Multifamily 47 — 47 9,889 — 9,889 Farmland 2 — 2 367 — 367 2,517 9 2,508 231,224 5,896 225,328 Consumer real estate Home equity lines 24 — 24 18,394 300 18,094 Secured by 1-4 family residential First deed of trust 166 8 158 57,089 2,011 55,078 Second deed of trust 79 — 79 11,097 699 10,398 269 8 261 86,580 3,010 83,570 Commercial and industrial loans (except those secured by real estate) 408 — 408 181,088 141 180,947 Student loans 87 — 87 29,657 — 29,657 Consumer and other 190 — 190 2,885 — 2,885 $ 3,970 $ 17 $ 3,953 $ 561,003 $ 9,047 $ 551,956 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Deposits | Note 6 – Deposits Deposits as of September 30, 2021 and December 31, 2020 were as follows (dollars in thousands): September 30, 2021 December 31, 2020 Amount % Amount % Demand accounts $ 270,397 41.9 % $ 222,305 37.8 % Interest checking accounts 76,693 11.9 % 70,342 11.9 % Money market accounts 183,096 28.3 % 152,726 26.0 % Savings accounts 46,750 7.2 % 38,083 6.5 % Time deposits of $250,000 and over 8,189 1.3 % 16,014 2.7 % Other time deposits 60,927 9.4 % 88,912 15.1 % Total $ 646,052 100.0 % $ 588,382 100.0 % |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Borrowings | |
Borrowings | Note 7 – Borrowings The Company uses both short-term and long-term borrowings to supplement deposits when they are available at a lower overall cost to the Company or they can be invested at a positive rate of return. As a member of the Federal Home Loan Bank of Atlanta, the Bank is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. The Company held $353,000 in FHLB stock at September 30, 2021 and $484,000 at December 31, 2020, which is held at cost. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of commercial, 1-4 family residential loans. The Company had no outstanding FHLB advances at September 30, 2021 or December 31, 2020. Through the Federal Reserve Bank of Richmond, the Company could borrow funds through the Paycheck Protection Program Liquidity Fund (“PPPLF”), which were secured by the Company’s PPP loans. The PPPLF ceased extending credit on July 30, 2021. The Company did not have outstanding advances under the PPPLF at September 30, 2021 and had $41.5 million in outstanding advances under the PPPLF at December 31, 2020. The Company’s available borrowing capacity under the PPPLF was $95.2 million as of December 31, 2020. 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 September 30, 2021 or December 31, 2020. The Company’s unused lines of credit for future borrowings total approximately $73.1 million at September 30, 2021, which consists of $30.3 million available from the FHLB, $10 million on revolving bank line of credit, $7.8 million under secured federal funds agreements with third party financial institutions, and $25 million in repurchase lines of credit with third party financial institutions. Additional loans and securities are available that can be pledged as collateral for future borrowings from the Federal Reserve Bank of Richmond or the FHLB above the current lendable collateral value. |
Trust preferred securities
Trust preferred securities | 9 Months Ended |
Sep. 30, 2021 | |
Trust preferred securities | |
Trust preferred securities | Note 8 – Trust preferred securities During the first quarter of 2005, Southern Community Financial Capital Trust I, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On February 24, 2005, $5.2 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have a 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 at September 30, 2021 was 2.27%. The securities were redeemable at par beginning on March 15, 2010 and each quarter after such date until the securities mature on March 15, 2035. No amounts have been redeemed at September 30, 2021 and there are no plans to do so. The principal asset of the Trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. During the third quarter of 2007, Village Financial Statutory Trust II, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On September 20, 2007, $3.6 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have LIBOR-indexed floating rate of interest (three-month LIBOR plus 1.4)% which adjusts, and is also payable, quarterly. The interest rate at September 30, 2021 was 1.52%. The securities may be redeemed at par at any time commencing in December 2012 until the securities mature in 2037 The Trust Preferred Capital Notes may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. The portion of the Trust Preferred Capital Notes not considered as Tier 1 capital may be included in Tier 2 capital. The obligations of the Company with respect to the issuance of the Trust Preferred Capital Notes constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the Trust Preferred Capital Notes. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Trust Preferred Capital Notes and require a deferral of common dividends. The Company is current on these interest payments. |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Sep. 30, 2021 | |
Subordinated Debt. | |
Subordinated Debt | Note 9 – Subordinated Debt On March 21, 2018, the Company issued $5,700,000 of fixed-to-floating rate subordinated notes due March 31, 2028 in a private placement. The Company received $5,539,000 in net proceeds after deducting issuance costs. The subordinated notes accrue interest at a fixed rate of 6.50% for the first five years until March 31, 2023; thereafter, the subordinated notes will accrue interest at an annual floating rate equal to three-month LIBOR plus a spread of 3.73% until maturity or early redemption. The Company may redeem the subordinated notes in whole or in part, on or after March 31, 2023. The subordinated notes are unsecured and subordinated in right of payment to all of the Company’s existing and future senior indebtedness, whether secured or unsecured, including claims of depositors and general creditors, and rank equally in right of payment with any unsecured, subordinated indebtedness that the Company may incur in the future. The carrying value of the notes totaled $5,652,000 and $5,628,000 at September 30, 2021 and December 31, 2020, respectively. |
Stock incentive plan
Stock incentive plan | 9 Months Ended |
Sep. 30, 2021 | |
Stock incentive plan | |
Stock incentive plan | Note 10 – Stock incentive plan In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award rather than disclosed in the financial statements. The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Nine Months Ended September 30, 2021 2020 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734 During 2020, we granted certain officers time-based restricted shares of common stock and performance-based restricted stock units. The time-based restricted shares vest ratably over a three year period provided the officer is employed with the Company on the applicable vesting date. The performance-based units, which have a two-year performance period that began on January 2, 2021, vest based on the Company’s achievement of performance targets related to return on tangible common equity and the adversely classified items ratio over the performance period with possible payouts ranging from 0% to 150% of the target awards. The total number of shares underlying non-vested restricted stock was 17,077 and 24,736 at September 30, 2021 and 2020, respectively. The fair value of the stock is based on the grant date of the award and the expense is recognized over the vesting period. Unamortized stock-based compensation related to non-vested share-based compensation arrangements granted under the stock incentive plan as of September 30, 2021 and 2020 was $437,600 and $271,600, respectively. The time-based unrecognized compensation of $297,500 is expected to be recognized over a weighted average period of 1.60 years A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2021 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2020 25,247 $ 30.88 $ 1,305,270 Granted — — — Vested (8,771) 31.23 (453,461) Forfeited — — — Other 601 31.86 31,072 September 30, 2021 17,077 $ 30.73 $ 882,881 Stock-based compensation expense was approximately $35,000 and $218,000 for the three and nine months ended September 30, 2021, respectively compared to $28,000 and $157,000 for the three and nine months ended September 30, 2020, respectively. |
Fair value
Fair value | 9 Months Ended |
Sep. 30, 2021 | |
Fair value | |
Fair value | Note 11 – Fair value The Company determines the fair value of its financial instruments based on the requirements established in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("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 Impaired loans Loans held for sale: Derivative asset – interest rate lock commitments (“IRLCs”): Derivative asset/liability – forward sale commitments: Other Real Estate Owned ("OREO"): Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at September 30, 2021 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 41,830 $ 40,157 $ 1,673 $ — Mortgage-backed securities 35,816 — 35,816 — Municipals 2,182 — 2,182 — Subordinated debt 8,721 250 7,921 550 Loans held for sale 13,275 — 13,275 — IRLC 513 — 513 — Financial Liabilities - Recurring Forward sales commitment 842 — 842 — Fair Value Measurement at December 31, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 8,142 $ — $ 8,142 $ — Mortgage-backed securities 24,006 — 24,006 — Subordinated debt 8,696 — 8,446 250 Loans held for sale 34,421 — 34,421 — IRLC 1,552 — 1,552 — Financial Liabilities - Recurring Forward sales commitment 3,105 — 3,105 — Financial Assets - Non-Recurring Other real estate owned 336 — — 336 The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis at fair value at December 31, 2020, there were no outstanding level 3 instruments at September 30, 2021 (dollars in thousands): December 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Other real estate owned $ 336 Appraisal (1) or Internal Valuation (2) Selling costs 6%-10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not identifiable. (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances. ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. In accordance with Accounting Standards Update ("ASU") 2016-01, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. September 30, December 31, 2021 2020 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 14,362 $ 14,362 $ 12,709 $ 12,709 Cash equivalents Level 2 49,918 49,918 30,742 30,742 Investment securities available for sale Level 1 40,407 40,157 1,193 1,193 Investment securities available for sale Level 2 47,592 48,142 39,401 39,401 Investment securities available for sale Level 3 550 250 250 250 Federal Home Loan Bank stock Level 2 353 353 484 484 Loans held for sale Level 2 13,275 13,275 34,421 34,421 Loans Level 3 534,306 535,555 561,003 562,362 Other real estate owned Level 3 — — 336 336 Bank owned life insurance Level 3 12,416 12,416 7,806 7,806 Accrued interest receivable Level 2 3,569 3,569 4,943 4,943 Interest rate lock commitments Level 2 513 513 1,552 1,552 Financial liabilities Deposits Level 2 646,052 645,989 588,382 589,017 Trust preferred securities Level 2 8,764 9,601 8,764 9,697 Other borrowings Level 2 5,652 5,652 47,157 47,157 Accrued interest payable Level 2 71 71 194 194 Forward sales commitment Level 2 842 842 3,105 3,105 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Segment Reporting | Note 12 – Segment Reporting The Company has two reportable segments: traditional commercial banking and mortgage banking. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income. The Commercial Banking Segment provides the Mortgage Banking Segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the Mortgage Banking Segment interest based on the Commercial Banking Segment’s cost of funds. Additionally, the Mortgage Banking Segment leases premises from the Commercial Banking Segment. These transactions are eliminated in the consolidation process. The following table presents segment information as of and for the three and nine months ended September 30, 2021 and 2020 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2021 Revenues Interest income $ 6,818 $ 104 $ (1) $ 6,921 Gain on sale of loans — 2,704 — 2,704 Other revenues 733 228 (70) 891 Total revenues 7,551 3,036 (71) 10,516 Expenses Interest expense 493 — (1) 492 Salaries and benefits 2,632 975 — 3,607 Commissions — 736 — 736 Other expenses 1,738 362 (70) 2,030 Total operating expenses 4,863 2,073 (71) 6,865 Income before income taxes 2,688 963 — 3,651 Income tax expense 550 202 — 752 Net income $ 2,138 $ 761 $ — $ 2,899 Total assets $ 733,611 $ 19,417 $ (22,967) $ 730,061 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2020 Revenues Interest income $ 6,430 $ 156 $ (46) $ 6,540 Gain on sale of loans — 3,585 — 3,585 Other revenues 666 346 (62) 950 Total revenues 7,096 4,087 (108) 11,075 Expenses Provision for loan losses 250 — — 250 Interest expense 1,069 46 (46) 1,069 Salaries and benefits 2,526 1,118 — 3,644 Commissions — 1,054 — 1,054 Other expenses 1,873 300 (62) 2,111 Total operating expenses 5,718 2,518 (108) 8,128 Income before income taxes 1,378 1,569 — 2,947 Income tax expense 349 329 — 678 Net income $ 1,029 $ 1,240 $ — $ 2,269 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2021 Revenues Interest income $ 20,606 $ 341 $ (24) $ 20,923 Gain on sale of loans — 9,608 — 9,608 Other revenues 2,190 694 (205) 2,679 Total revenues 22,796 10,643 (229) 33,210 Expenses Provision for (recovery of) loan losses (500) — — (500) Interest expense 1,728 24 (24) 1,728 Salaries and benefits 7,274 3,267 — 10,541 Commissions — 2,405 — 2,405 Other expenses 5,372 989 (205) 6,156 Total operating expenses 13,874 6,685 (229) 20,330 Income before income taxes 8,922 3,958 — 12,880 Income tax expense 1,959 831 — 2,790 Net income $ 6,963 $ 3,127 $ — $ 10,090 Total assets $ 733,611 $ 19,417 $ (22,967) $ 730,061 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2020 Revenues Interest income $ 18,107 $ 401 $ (91) $ 18,417 Gain on sale of loans — 8,014 — 8,014 Other revenues 1,970 820 (179) 2,611 Total revenues 20,077 9,235 (270) 29,042 Expenses Provision for loan losses 950 — — 950 Interest expense 3,575 91 (91) 3,575 Salaries and benefits 6,362 2,916 — 9,278 Commissions — 2,269 — 2,269 Other expenses 5,187 878 (179) 5,886 Total operating expenses 16,074 6,154 (270) 21,958 Income before income taxes 4,003 3,081 — 7,084 Income tax expense 935 647 — 1,582 Net income $ 3,068 $ 2,434 $ — $ 5,502 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 |
Shareholders' Equity and Regula
Shareholders' Equity and Regulatory Matters | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity and Regulatory Matters | |
Shareholders' Equity and Regulatory Matters | Note 13 – Shareholders’ Equity and Regulatory Matters Accumulated Other Comprehensive Income The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss) , net of deferred taxes of $38,000 and $114,000 as of September 30, 2021 and December 31, 2020, respectively (in thousands): September 30, December 31, 2021 2020 Net unrealized gains (losses) on securities $ (114) $ 466 Net unrecognized losses on defined benefit plan (30) (36) Total accumulated other comprehensive income (loss) $ (144) $ 430 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 (“Federal Reserve”) Small Bank Holding Company Policy Statement (the “SBHC Policy Statement”). On August 28, 2018, the Federal Reserve issued an interim final rule required by the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, which was signed into law on May 24, 2018 (the “EGRRCPA”), that expands the applicability of the SBHC Policy Statement to bank holding companies with total consolidated assets of less than $3 billion (up from the prior $1 billion threshold). Under the SBHC Policy Statement, qualifying bank holding companies, such as the Company, have additional flexibility in the amount of debt they can issue and are also exempt from the Basel III capital framework as outlined by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the "Basel III Capital Rules"). The SBHC Policy Statement does not apply to the Bank and the Bank must comply with the Basel III Capital Rules. The Basel III Capital Rules require banks to comply with the following minimum capital ratios: (1) a ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (effectively resulting in a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 7)%; (2) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5)%; (3) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5)%; and (4) a leverage ratio of 4%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures (computed as the average for each quarter of the month-end ratios for the quarter). The phase-in of the capital conservation buffer requirement began on January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking organizations with a ratio of common equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. As of September 30, 2021, the Bank exceeded the minimum ratios under the Basel III Capital Rules. The Bank must also comply with the capital requirements set forth in the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act of 1950. To be well capitalized under these regulations, a bank must have the following minimum capital ratios: (1) a common equity Tier 1 capital ratio of at least 6.5%; (2) a Tier 1 risk-based capital ratio of at least 8.0%; (3) a total risk-based capital ratio of at least 10.0%; and (4) a leverage ratio of at least 5.0%. As of September 30, 2021, the Bank exceeded the minimum ratios to be classified as well capitalized. On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or “CBLR”). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the “prompt corrective action” framework. In April 2020, as required by the CARES Act, which was passed in response to the COVID-19 pandemic, federal bank regulators issued two interim final rules related to the CBLR framework. One interim final rule provides that, as of the second quarter of 2020, banking organizations with leverage ratios of 8% or greater (and that meet the other existing qualifying criteria) may elect to use the CBLR framework. It also establishes a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall below the 8% CBLR requirement, so long as the banking organization maintains a leverage ratio of 7% or greater. The second interim final rule provides a transition from the temporary 8% CBLR requirement to a 9% CBLR requirement. It establishes a minimum CBLR of 8% for the second through fourth quarters of 2020, 8.5% for 2021, and 9% thereafter, and maintains a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall no more than 100 basis points below the applicable CBLR requirement. The Bank elected not to opt into the CBLR framework as of September 30, 2021 and December 31, 2020. The capital amounts and ratios at September 30, 2021 and December 31, 2020 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Total capital (to risk- weighted assets) Village Bank $ 75,416 14.63 % $ 41,250 8.00 % $ 51,563 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 71,973 13.96 % 30,938 6.00 % 41,250 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 71,973 9.96 % 28,914 4.00 % 36,142 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 71,973 13.96 % 23,203 4.50 % 33,516 6.50 % December 31, 2020 Total capital (to risk- weighted assets) Village Bank $ 65,723 14.20 % $ 37,015 8.00 % $ 46,269 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 61,753 13.35 % 27,761 6.00 % 37,015 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 61,753 9.28 % 26,607 4.00 % 33,259 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 61,753 13.35 % 20,821 4.50 % 30,075 6.50 % |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | Note 14 – Commitments and contingencies Off-balance-sheet risk The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, and to potential credit loss associated with letters of credit issued, is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans and other such on-balance sheet instruments. At September 30, 2021 and December 31, 2020, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2021 2020 Undisbursed credit lines $ 101,428 $ 107,130 Commitments to extend or originate credit 22,737 38,910 Standby letters of credit 4,877 4,934 Total commitments to extend credit $ 129,042 $ 150,974 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Historically, many commitments expire without being drawn upon; therefore, the total commitment amounts shown in the above table are not necessarily indicative of future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include personal or income-producing commercial real estate, accounts receivable, inventory and equipment. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Concentrations of credit risk |
Mortgage Banking and Derivative
Mortgage Banking and Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Banking and Derivatives | |
Mortgage Banking and Derivatives | Note 15 – Mortgage Banking and Derivatives Loans held for sale. 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 September 30, 2021, and totaled $842,000, with a notional amount of $35.7 million and total positions of 134, and was reported in “Other Liabilities” at December 31, 2020, and totaled $3.1 million, with a notional amount of $71.7 million and total positions of 289. |
Recent accounting pronouncement
Recent accounting pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Recent accounting pronouncements | |
Recent accounting pronouncements | Note 16 – Recent accounting pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. While the Company is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, and evaluating its current IT systems. The Company is currently assessing the impact that ASU 2016-13 will have on the Company’s consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin ("SAB") 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, "Financial Instruments - Credit Losses." It covers topics including (1) measuring current expected credit losses; (2) development governance, and documentation of systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. ASU 2019-12 was effective for the Company on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-01 amends ASU 2016-01, which made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments in ASU 2020-01 clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. ASU 2020-01 was effective for the Company on January 1, 2021. The adoption of ASU 2020-01 did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 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. In August 2020, the FASB issued ASU 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, including the Company, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Company on January 1, 2021. The adoption of ASU 2020-08 did not have a material impact on the Company’s consolidated financial statements. In December 2020, the CAA was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. As of September 30, 2021, the Company had no loans modified under the CAA. The Company’s modification program primarily included payment deferrals and interest only modifications. For more financial data and other information about loan deferrals refer to Note 5 “Loans and allowance for loan losses” in the “Notes to Consolidated Financial Statements” contained in Item 1 of this Form 10-Q. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity – Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” The ASU addresses how an issuer should account for modifications or an exchange of freestanding written call options classified as equity that is not within the scope of another Topic. For both public and private companies, the ASU is effective for fiscal years beginning after December 15, 2021. Transition is prospective. Early adoption is permitted. The Company does not expect the adoption of ASU 2021-04 to have a material impact on its consolidated financial statements. In August 2021, the FASB issued ASU 2021-06, “'Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants”. The ASU is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2021-06 to have a material impact on its consolidated financial statements. |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings per common share | |
Schedule of basic and diluted earnings per common share | The following table presents the basic and diluted earnings per common share computation (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator Net income - basic and diluted $ 2,899 $ 2,269 $ 10,090 $ 5,502 Denominator Weighted average shares outstanding - basic 1,468 1,462 1,467 1,456 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted 1,468 1,462 1,467 1,456 Earnings per share - basic $ 1.97 $ 1.55 $ 6.88 $ 3.78 Earnings per share - diluted $ 1.97 $ 1.55 $ 6.88 $ 3.78 |
Investment securities availab_2
Investment securities available for sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investment securities available for sale | |
Schedule of amortized cost and fair value of investment securities available for sale | The amortized cost and fair value of investment securities available for sale as of September 30, 2021 and December 31, 2020 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2021 U.S. Government agency obligations $ 41,791 $ 41 $ (2) $ 41,830 Mortgage-backed securities 35,861 389 (434) 35,816 Municipals 2,272 — (90) 2,182 Subordinated debt 8,772 65 (116) 8,721 $ 88,696 $ 495 $ (642) $ 88,549 December 31, 2020 U.S. Government agency obligations $ 8,048 $ 94 $ — $ 8,142 Mortgage-backed securities 23,412 645 (51) 24,006 Subordinated debt 8,795 37 (136) 8,696 $ 40,255 $ 776 $ (187) $ 40,844 |
Schedule of gross realized gains and losses pertaining to available for sale securities | Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Gross realized gains $ — $ — $ — $ 39 Gross realized losses — — — (27) $ — $ — $ — $ 12 |
Schedule of investment securities available for sale | Investment securities available for sale that have an unrealized loss position at September 30, 2021 and December 31, 2020 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2021 U.S. Government agency obligations $ 29,812 $ (2) $ — $ — $ 29,812 $ (2) Mortgage-backed securities 24,075 (412) 1,730 (22) 25,805 (434) Municipals 2,181 (90) — — 2,181 (90) Subordinated debt 929 (71) 959 (45) 1,888 (116) $ 56,997 $ (575) $ 2,689 $ (67) $ 59,686 $ (642) December 31, 2020 Mortgage-backed securities 5,475 (51) — — 5,475 (51) Subordinated debt 1,747 (11) 2,807 (125) 4,554 (136) $ 7,222 $ (62) $ 2,807 $ (125) $ 10,029 $ (187) |
Schedule of investment by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2021, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 40,158 $ 40,157 One to five years 165 166 Five to ten years 11,127 11,160 More than ten years 37,246 37,066 Total $ 88,696 $ 88,549 |
Loans and allowance for loan _2
Loans and allowance for loan losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and allowance for loan losses | |
Schedule of composition of loan portfolio (excluding mortgage loans held for sale) | Loans classified by type as of September 30, 2021 and December 31, 2020 are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Amount % Amount % Construction and land development Residential $ 8,981 1.68 % $ 8,103 1.44 % Commercial 41,810 7.82 % 21,466 3.82 % 50,791 9.50 % 29,569 5.26 % Commercial real estate Owner occupied 106,499 19.93 % 99,784 17.79 % Non-owner occupied 130,867 24.49 % 121,184 21.60 % Multifamily 12,027 2.25 % 9,889 1.75 % Farmland 1,099 0.21 % 367 0.07 % 250,492 46.88 % 231,224 41.21 % Consumer real estate Home equity lines 17,194 3.22 % 18,394 3.28 % Secured by 1-4 family residential, First deed of trust 55,918 10.47 % 57,089 10.18 % Second deed of trust 14,172 2.65 % 11,097 1.98 % 87,284 16.34 % 86,580 15.44 % Commercial and industrial loans (except those secured by real estate) 115,129 21.55 % 181,088 32.28 % Guaranteed student loans 27,624 5.17 % 29,657 5.29 % Consumer and other 2,986 0.56 % 2,885 0.51 % Total loans 534,306 100.0 % 561,003 100.0 % Deferred fees and costs, net (1,401) (2,048) Less: allowance for loan losses (3,443) (3,970) $ 529,462 $ 554,985 |
Schedule of information on nonaccrual loans | The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): September 30, December 31, 2021 2020 Commercial real estate Non-owner occupied $ 292 $ 303 292 303 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 618 630 Second deed of trust 240 317 1,158 1,247 Commercial and industrial loans (except those secured by real estate) 22 27 Total loans $ 1,472 $ 1,577 |
Schedule of information on the risk rating of loans | The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans September 30, 2021 Construction and land development Residential $ 8,981 $ — $ — $ — $ 8,981 Commercial 39,173 2,637 — — 41,810 48,154 2,637 — — 50,791 Commercial real estate Owner occupied 95,415 7,496 3,588 — 106,499 Non-owner occupied 121,446 9,129 292 — 130,867 Multifamily 12,027 — — — 12,027 Farmland 1,099 — — — 1,099 229,987 16,625 3,880 — 250,492 Consumer real estate Home equity lines 16,269 625 300 — 17,194 Secured by 1-4 family residential First deed of trust 52,798 2,316 804 — 55,918 Second deed of trust 13,473 432 267 — 14,172 82,540 3,373 1,371 — 87,284 Commercial and industrial loans (except those secured by real estate) 112,959 1,890 280 — 115,129 Guaranteed student loans 27,624 — — — 27,624 Consumer and other 2,952 34 — — 2,986 Total loans $ 504,216 $ 24,559 $ 5,531 $ — $ 534,306 Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans December 31, 2020 Construction and land development Residential $ 8,103 $ — $ — $ — $ 8,103 Commercial 21,370 96 — — 21,466 29,473 96 — — 29,569 Commercial real estate Owner occupied 88,066 9,405 2,313 — 99,784 Non-owner occupied 116,161 4,244 779 — 121,184 Multifamily 9,889 — — — 9,889 Farmland 367 — — — 367 214,483 13,649 3,092 — 231,224 Consumer real estate Home equity lines 17,298 796 300 — 18,394 Secured by 1-4 family residential First deed of trust 53,731 2,212 1,146 — 57,089 Second deed of trust 9,425 1,236 436 — 11,097 80,454 4,244 1,882 — 86,580 Commercial and industrial loans (except those secured by real estate) 178,217 2,602 269 — 181,088 Guaranteed student loans 29,657 — — — 29,657 Consumer and other 2,844 41 — — 2,885 Total loans $ 535,128 $ 20,632 $ 5,243 $ — $ 561,003 |
Schedule of aging of recorded investment in past due loans and leases | The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Greater Investment > 30 ‑ 59 Days 60 ‑ 89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing September 30, 2021 Construction and land development Residential $ — $ — $ — $ — $ 8,981 $ 8,981 $ — Commercial — — — — 41,810 41,810 — — — — — 50,791 50,791 — Commercial real estate Owner occupied — — — — 106,499 106,499 — Non-owner occupied — — — — 130,867 130,867 — Multifamily — — — — 12,027 12,027 — Farmland — — — — 1,099 1,099 — — — — — 250,492 250,492 — Consumer real estate Home equity lines — — — — 17,194 17,194 — Secured by 1‑4 family residential First deed of trust 92 — — 92 55,826 55,918 — Second deed of trust — — — — 14,172 14,172 — 92 — — 92 87,192 87,284 — Commercial and industrial loans (except those secured by real estate) — 412 — 412 114,717 115,129 — Guaranteed student loans 1,092 393 2,496 3,981 23,643 27,624 2,496 Consumer and other — — — — 2,986 2,986 — Total loans $ 1,184 $ 805 $ 2,496 $ 4,485 $ 529,821 $ 534,306 $ 2,496 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,103 $ 8,103 $ — Commercial — — — — 21,466 21,466 — — — — — 29,569 29,569 — Commercial real estate Owner occupied 86 — — 86 99,698 99,784 — Non-owner occupied — — — — 121,184 121,184 — Multifamily — — — — 9,889 9,889 — Farmland — — — — 367 367 — 86 — — 86 231,138 231,224 — Consumer real estate Home equity lines — — — — 18,394 18,394 — Secured by 1-4 family residential First deed of trust 133 — — 133 56,956 57,089 — Second deed of trust — 57 — 57 11,040 11,097 — 133 57 — 190 86,390 86,580 — Commercial and industrial loans (except those secured by real estate) 25 — — 25 181,063 181,088 — Guaranteed student loans 1,428 1,009 2,193 4,630 25,027 29,657 2,193 Consumer and other 1 — — 1 2,884 2,885 — Total loans $ 1,673 $ 1,066 $ 2,193 $ 4,932 $ 556,071 $ 561,003 $ 2,193 |
Schedule of impaired loans | September 30, 2021 December 31, 2020 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 5,106 $ 5,121 $ — $ 2,780 $ 2,795 $ — Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 4,771 4,786 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1‑4 family residential First deed of trust 1,850 1,850 — 1,937 1,940 — Second deed of trust 692 776 — 699 992 — 2,842 2,926 — 2,936 3,232 — Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — 9,985 10,084 — 7,848 8,159 — With an allowance recorded Commercial real estate Owner occupied — — — 1,125 1,125 9 — — — 1,125 1,125 9 Consumer real estate Secured by 1-4 family residential First deed of trust 148 148 7 74 74 8 148 148 7 74 74 8 Total Commercial real estate Owner occupied 5,106 5,121 — 3,905 3,920 9 Non-owner occupied 1,843 1,843 — 1,991 1,991 — 6,949 6,964 — 5,896 5,911 9 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 1,998 1,998 7 2,011 2,014 8 Second deed of trust 692 776 — 699 992 — 2,990 3,074 7 3,010 3,306 8 Commercial and industrial loans (except those secured by real estate) 194 194 — 141 141 — $ 10,133 $ 10,232 $ 7 $ 9,047 $ 9,358 $ 17 |
Schedule of average recorded investment in impaired loans | The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2021 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Owner occupied $ 5,176 $ 40 $ 4,569 $ 136 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,469 222 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential First deed of trust 1,942 20 1,940 65 Second deed of trust 882 20 690 39 3,124 46 2,930 123 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 10,369 113 9,583 346 With an allowance recorded Commercial real estate Owner occupied — — 281 15 — — 281 15 Consumer real estate Secured by 1-4 family residential First deed of trust 150 5 131 7 150 5 131 7 Total Commercial real estate Owner occupied 5,176 40 4,850 151 Non-owner occupied 1,870 27 1,900 86 7,046 67 6,750 237 Consumer real estate Home equity lines 300 6 300 19 Secured by 1-4 family residential, First deed of trust 2,092 25 2,071 72 Second deed of trust 882 20 690 39 3,274 51 3,061 130 Commercial and industrial loans (except those secured by real estate) 199 — 184 1 $ 10,519 $ 118 $ 9,995 $ 368 |
Schedule of troubled debt restructurings on financing receivables | Specific Valuation Total Performing Nonaccrual Allowance September 30, 2021 Commercial real estate Owner occupied $ 3,287 $ 3,287 $ — $ — Non-owner occupied 1,843 1,551 292 — 5,130 4,838 292 — Consumer real estate Secured by 1-4 family residential First deeds of trust 1,679 1,140 539 7 Second deeds of trust 511 452 59 — 2,190 1,592 598 7 Commercial and industrial loans (except those secured by real estate) 22 — 22 — $ 7,342 $ 6,430 $ 912 $ 7 Number of loans 32 25 7 2 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2020 Commercial real estate Owner occupied $ 3,396 $ 3,396 $ — $ 9 Non-owner occupied 1,991 1,688 303 — 5,387 5,084 303 9 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,460 910 550 8 Second deeds of trust 617 556 61 — 2,077 1,466 611 8 Commercial and industrial loans (except those secured by real estate) 27 — 27 — $ 7,491 $ 6,550 $ 941 $ 17 Number of loans 34 27 7 2 |
Schedule of troubled debt restructurings on financing receivables modification | The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Non-owner occupied — $ — $ — 1 $ 311 $ 311 Secured by 1-4 family residential First deed of trust 1 267 267 — — — 1 $ 267 $ 267 1 $ 311 $ 311 There were no TDR’s identified during the three months ended September 30, 2021 and 2020. |
Schedule of activity in the allowance for loan losses | Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2021 Construction and land development Residential $ 66 $ 10 $ — $ — $ 76 Commercial 203 28 — — 231 269 38 — — 307 Commercial real estate Owner occupied 802 58 — — 860 Non-owner occupied 1,059 30 — — 1,089 Multifamily 35 1 — — 36 Farmland 2 — — — 2 1,898 89 — — 1,987 Consumer real estate Home equity lines 11 — — — 11 Secured by 1-4 family residential First deed of trust 113 (3) — 1 111 Second deed of trust 72 (3) — 21 90 196 (6) — 22 212 Commercial and industrial loans (except those secured by real estate) 422 55 — 3 480 Student loans 80 1 (11) — 70 Consumer and other 36 (4) — — 32 Unallocated 528 (173) — — 355 $ 3,429 $ — $ (11) $ 25 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2020 Construction and land development Residential $ 213 $ (23) $ — $ 14 $ 204 Commercial 295 23 — — 318 508 — — 14 522 Commercial real estate Owner occupied 904 118 — — 1,022 Non-owner occupied 1,202 171 — — 1,373 Multifamily 47 1 — — 48 Farmland — 2 — — 2 2,153 292 — — 2,445 Consumer real estate Home equity lines 40 (30) — — 10 Secured by 1-4 family residential First deed of trust 166 (7) — 1 160 Second deed of trust 75 38 — 44 157 281 1 — 45 327 Commercial and industrial loans (except those secured by real estate) 317 27 — 4 348 Student loans 101 6 (10) — 97 Consumer and other 40 10 (13) 1 38 Unallocated 359 (86) — — 273 $ 3,759 $ 250 $ (23) $ 64 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2021 Construction and land development Residential $ 214 $ (138) $ — $ — $ 76 Commercial 285 (54) — — 231 499 (192) — — 307 Commercial real estate Owner occupied 1,047 (187) — — 860 Non-owner occupied 1,421 (346) — 14 1,089 Multifamily 47 (11) — — 36 Farmland 2 — — — 2 2,517 (544) — 14 1,987 Consumer real estate Home equity lines 24 (23) — 10 11 Secured by 1-4 family residential First deed of trust 166 (65) — 10 111 Second deed of trust 79 57 (84) 38 90 269 (31) (84) 58 212 Commercial and industrial loans (except those secured by real estate) 408 45 — 27 480 Student loans 87 7 (24) — 70 Consumer and other 36 14 (18) — 32 Unallocated 154 201 — — 355 $ 3,970 $ (500) $ (126) $ 99 $ 3,443 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2020 Construction and land development Residential $ 48 $ 139 $ — $ 17 $ 204 Commercial 137 181 — — 318 185 320 — 17 522 Commercial real estate Owner occupied 671 351 — — 1,022 Non-owner occupied 831 542 — — 1,373 Multifamily 85 (37) — — 48 Farmland 2 — — — 2 1,589 856 — — 2,445 Consumer real estate Home equity lines 271 (261) — — 10 Secured by 1-4 family residential First deed of trust 343 (188) — 5 160 Second deed of trust 64 42 — 51 157 678 (407) — 56 327 Commercial and industrial loans (except those secured by real estate) 572 (114) (135) 25 348 Student loans 108 25 (36) — 97 Consumer and other 30 21 (17) 4 38 Unallocated 24 249 — — 273 $ 3,186 $ 950 $ (188) $ 102 $ 4,050 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2020 Construction and land development Residential $ 48 $ 141 $ — $ 25 $ 214 Commercial 137 148 — — 285 185 289 — 25 499 Commercial real estate Owner occupied 671 376 — — 1,047 Non-owner occupied 831 590 — — 1,421 Multifamily 85 (38) — — 47 Farmland 2 — — — 2 1,589 928 — — 2,517 Consumer real estate Home equity lines 271 (247) — — 24 Secured by 1-4 family residential First deed of trust 343 (190) — 13 166 Second deed of trust 64 45 (85) 55 79 678 (392) (85) 68 269 Commercial and industrial loans (except those secured by real estate) 572 (58) (135) 29 408 Student loans 108 27 (48) — 87 Consumer and other 30 26 (24) 4 36 Unallocated 24 130 — — 154 $ 3,186 $ 950 $ (292) $ 126 $ 3,970 |
Schedule of loans evaluated for impairment | Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2021 Construction and land development Residential $ 76 $ — $ 76 $ 8,981 $ — $ 8,981 Commercial 231 — 231 41,810 — 41,810 307 — 307 50,791 — 50,791 Commercial real estate Owner occupied 860 — 860 106,499 5,106 101,393 Non-owner occupied 1,089 — 1,089 130,867 1,843 129,024 Multifamily 36 — 36 12,027 — 12,027 Farmland 2 — 2 1,099 — 1,099 1,987 — 1,987 250,492 6,949 243,543 Consumer real estate Home equity lines 11 — 11 17,194 300 16,894 Secured by 1-4 family residential First deed of trust 111 7 104 55,918 1,998 53,920 Second deed of trust 90 — 90 14,172 692 13,480 212 7 205 87,284 2,990 84,294 Commercial and industrial loans (except those secured by real estate) 480 — 480 115,129 194 114,935 Student loans 70 — 70 27,624 — 27,624 Consumer and other 387 — 387 2,986 — 2,986 $ 3,443 $ 7 $ 3,436 $ 534,306 $ 10,133 $ 524,173 Year Ended December 31, 2020 Construction and land development Residential $ 214 $ — $ 214 $ 8,103 $ — $ 8,103 Commercial 285 — 285 21,466 — 21,466 499 — 499 29,569 — 29,569 Commercial real estate Owner occupied 1,047 9 1,038 99,784 3,905 95,879 Non-owner occupied 1,421 — 1,421 121,184 1,991 119,193 Multifamily 47 — 47 9,889 — 9,889 Farmland 2 — 2 367 — 367 2,517 9 2,508 231,224 5,896 225,328 Consumer real estate Home equity lines 24 — 24 18,394 300 18,094 Secured by 1-4 family residential First deed of trust 166 8 158 57,089 2,011 55,078 Second deed of trust 79 — 79 11,097 699 10,398 269 8 261 86,580 3,010 83,570 Commercial and industrial loans (except those secured by real estate) 408 — 408 181,088 141 180,947 Student loans 87 — 87 29,657 — 29,657 Consumer and other 190 — 190 2,885 — 2,885 $ 3,970 $ 17 $ 3,953 $ 561,003 $ 9,047 $ 551,956 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits | |
Schedule of deposits | Deposits as of September 30, 2021 and December 31, 2020 were as follows (dollars in thousands): September 30, 2021 December 31, 2020 Amount % Amount % Demand accounts $ 270,397 41.9 % $ 222,305 37.8 % Interest checking accounts 76,693 11.9 % 70,342 11.9 % Money market accounts 183,096 28.3 % 152,726 26.0 % Savings accounts 46,750 7.2 % 38,083 6.5 % Time deposits of $250,000 and over 8,189 1.3 % 16,014 2.7 % Other time deposits 60,927 9.4 % 88,912 15.1 % Total $ 646,052 100.0 % $ 588,382 100.0 % |
Stock incentive plan (Tables)
Stock incentive plan (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock incentive plan | |
Schedule of options outstanding under company's stock incentive plan | The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Nine Months Ended September 30, 2021 2020 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734 |
Schedule of company's non vested restricted stock awards | A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2021 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2020 25,247 $ 30.88 $ 1,305,270 Granted — — — Vested (8,771) 31.23 (453,461) Forfeited — — — Other 601 31.86 31,072 September 30, 2021 17,077 $ 30.73 $ 882,881 |
Fair value (Tables)
Fair value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair value | |
Schedule of recurring and Non recurring basis | Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at September 30, 2021 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 41,830 $ 40,157 $ 1,673 $ — Mortgage-backed securities 35,816 — 35,816 — Municipals 2,182 — 2,182 — Subordinated debt 8,721 250 7,921 550 Loans held for sale 13,275 — 13,275 — IRLC 513 — 513 — Financial Liabilities - Recurring Forward sales commitment 842 — 842 — Fair Value Measurement at December 31, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 8,142 $ — $ 8,142 $ — Mortgage-backed securities 24,006 — 24,006 — Subordinated debt 8,696 — 8,446 250 Loans held for sale 34,421 — 34,421 — IRLC 1,552 — 1,552 — Financial Liabilities - Recurring Forward sales commitment 3,105 — 3,105 — Financial Assets - Non-Recurring Other real estate owned 336 — — 336 |
Schedule of financial instruments measured at fair value | The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis at fair value at December 31, 2020, there were no outstanding level 3 instruments at September 30, 2021 (dollars in thousands): December 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Other real estate owned $ 336 Appraisal (1) or Internal Valuation (2) Selling costs 6%-10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not identifiable. (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances. |
Schedule of company's financial instruments whether or not recognized | The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. September 30, December 31, 2021 2020 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 14,362 $ 14,362 $ 12,709 $ 12,709 Cash equivalents Level 2 49,918 49,918 30,742 30,742 Investment securities available for sale Level 1 40,407 40,157 1,193 1,193 Investment securities available for sale Level 2 47,592 48,142 39,401 39,401 Investment securities available for sale Level 3 550 250 250 250 Federal Home Loan Bank stock Level 2 353 353 484 484 Loans held for sale Level 2 13,275 13,275 34,421 34,421 Loans Level 3 534,306 535,555 561,003 562,362 Other real estate owned Level 3 — — 336 336 Bank owned life insurance Level 3 12,416 12,416 7,806 7,806 Accrued interest receivable Level 2 3,569 3,569 4,943 4,943 Interest rate lock commitments Level 2 513 513 1,552 1,552 Financial liabilities Deposits Level 2 646,052 645,989 588,382 589,017 Trust preferred securities Level 2 8,764 9,601 8,764 9,697 Other borrowings Level 2 5,652 5,652 47,157 47,157 Accrued interest payable Level 2 71 71 194 194 Forward sales commitment Level 2 842 842 3,105 3,105 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Schedule of segment information | The following table presents segment information as of and for the three and nine months ended September 30, 2021 and 2020 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2021 Revenues Interest income $ 6,818 $ 104 $ (1) $ 6,921 Gain on sale of loans — 2,704 — 2,704 Other revenues 733 228 (70) 891 Total revenues 7,551 3,036 (71) 10,516 Expenses Interest expense 493 — (1) 492 Salaries and benefits 2,632 975 — 3,607 Commissions — 736 — 736 Other expenses 1,738 362 (70) 2,030 Total operating expenses 4,863 2,073 (71) 6,865 Income before income taxes 2,688 963 — 3,651 Income tax expense 550 202 — 752 Net income $ 2,138 $ 761 $ — $ 2,899 Total assets $ 733,611 $ 19,417 $ (22,967) $ 730,061 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2020 Revenues Interest income $ 6,430 $ 156 $ (46) $ 6,540 Gain on sale of loans — 3,585 — 3,585 Other revenues 666 346 (62) 950 Total revenues 7,096 4,087 (108) 11,075 Expenses Provision for loan losses 250 — — 250 Interest expense 1,069 46 (46) 1,069 Salaries and benefits 2,526 1,118 — 3,644 Commissions — 1,054 — 1,054 Other expenses 1,873 300 (62) 2,111 Total operating expenses 5,718 2,518 (108) 8,128 Income before income taxes 1,378 1,569 — 2,947 Income tax expense 349 329 — 678 Net income $ 1,029 $ 1,240 $ — $ 2,269 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2021 Revenues Interest income $ 20,606 $ 341 $ (24) $ 20,923 Gain on sale of loans — 9,608 — 9,608 Other revenues 2,190 694 (205) 2,679 Total revenues 22,796 10,643 (229) 33,210 Expenses Provision for (recovery of) loan losses (500) — — (500) Interest expense 1,728 24 (24) 1,728 Salaries and benefits 7,274 3,267 — 10,541 Commissions — 2,405 — 2,405 Other expenses 5,372 989 (205) 6,156 Total operating expenses 13,874 6,685 (229) 20,330 Income before income taxes 8,922 3,958 — 12,880 Income tax expense 1,959 831 — 2,790 Net income $ 6,963 $ 3,127 $ — $ 10,090 Total assets $ 733,611 $ 19,417 $ (22,967) $ 730,061 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2020 Revenues Interest income $ 18,107 $ 401 $ (91) $ 18,417 Gain on sale of loans — 8,014 — 8,014 Other revenues 1,970 820 (179) 2,611 Total revenues 20,077 9,235 (270) 29,042 Expenses Provision for loan losses 950 — — 950 Interest expense 3,575 91 (91) 3,575 Salaries and benefits 6,362 2,916 — 9,278 Commissions — 2,269 — 2,269 Other expenses 5,187 878 (179) 5,886 Total operating expenses 16,074 6,154 (270) 21,958 Income before income taxes 4,003 3,081 — 7,084 Income tax expense 935 647 — 1,582 Net income $ 3,068 $ 2,434 $ — $ 5,502 Total assets $ 728,707 $ 13,789 $ (15,132) $ 727,364 |
Shareholders' Equity and Regu_2
Shareholders' Equity and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Shareholders' Equity and Regulatory Matters | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss) , net of deferred taxes of $38,000 and $114,000 as of September 30, 2021 and December 31, 2020, respectively (in thousands): September 30, December 31, 2021 2020 Net unrealized gains (losses) on securities $ (114) $ 466 Net unrecognized losses on defined benefit plan (30) (36) Total accumulated other comprehensive income (loss) $ (144) $ 430 |
Schedule of capital amounts and ratios | The capital amounts and ratios at September 30, 2021 and December 31, 2020 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Total capital (to risk- weighted assets) Village Bank $ 75,416 14.63 % $ 41,250 8.00 % $ 51,563 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 71,973 13.96 % 30,938 6.00 % 41,250 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 71,973 9.96 % 28,914 4.00 % 36,142 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 71,973 13.96 % 23,203 4.50 % 33,516 6.50 % December 31, 2020 Total capital (to risk- weighted assets) Village Bank $ 65,723 14.20 % $ 37,015 8.00 % $ 46,269 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 61,753 13.35 % 27,761 6.00 % 37,015 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 61,753 9.28 % 26,607 4.00 % 33,259 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 61,753 13.35 % 20,821 4.50 % 30,075 6.50 % |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and contingencies | |
Schedule of off balance sheet financial instruments | At September 30, 2021 and December 31, 2020, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2021 2020 Undisbursed credit lines $ 101,428 $ 107,130 Commitments to extend or originate credit 22,737 38,910 Standby letters of credit 4,877 4,934 Total commitments to extend credit $ 129,042 $ 150,974 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator | ||||
Net income - basic and diluted | $ 2,899 | $ 2,269 | $ 10,090 | $ 5,502 |
Denominator | ||||
Weighted average shares outstanding - basic (in shares) | 1,468 | 1,462 | 1,467 | 1,456 |
Weighted average shares outstanding - diluted (in shares) | 1,468 | 1,462 | 1,467 | 1,456 |
Earnings per share - basic (in dollars per share) | $ 1.97 | $ 1.55 | $ 6.88 | $ 3.78 |
Earnings per share - diluted (in dollars per share) | $ 1.97 | $ 1.55 | $ 6.88 | $ 3.78 |
Earnings per share - Additional
Earnings per share - Additional Information (Details) - shares | Sep. 30, 2021 | Sep. 30, 2020 |
Earnings per common share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 5,793 | 6,573 |
Investment securities availab_3
Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 88,696 | $ 40,255 |
Gross Unrealized Gains | 495 | 776 |
Gross Unrealized Losses | (642) | (187) |
Fair Value | 88,549 | 40,844 |
U.S. Government agencies obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41,791 | 8,048 |
Gross Unrealized Gains | 41 | 94 |
Gross Unrealized Losses | (2) | |
Fair Value | 41,830 | 8,142 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 35,861 | 23,412 |
Gross Unrealized Gains | 389 | 645 |
Gross Unrealized Losses | (434) | (51) |
Fair Value | 35,816 | 24,006 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,272 | |
Gross Unrealized Losses | (90) | |
Fair Value | 2,182 | |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,772 | 8,795 |
Gross Unrealized Gains | 65 | 37 |
Gross Unrealized Losses | (116) | (136) |
Fair Value | $ 8,721 | $ 8,696 |
Investment securities availab_4
Investment securities available for sale - Summary of gross realized gains and losses to available for sale securities (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Investment securities available for sale | |
Gross realized gains | $ 39,000 |
Gross realized losses | (27,000) |
Available-for-sale Securities, Gross Realized Gain (Loss), Total | $ 12,000 |
Investment securities availab_5
Investment securities available for sale - Summary of investment securities available for sale having fair value and unrealized loss position (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | $ 56,997,000 | $ 7,222,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (575,000) | (62,000) |
Securities in a loss position for more than 12 Months, Fair Value | 2,689,000 | 2,807,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (67,000) | (125,000) |
Total Fair Value | 59,686,000 | 10,029,000 |
Total Unrealized Losses | (642,000) | (187,000) |
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 | 29,812,000 | |
Securities in a loss position for less than 12 Months, Unrealized Losses | (2,000) | |
Total Fair Value | 29,812,000 | |
Total Unrealized Losses | (2,000) | |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 24,075,000 | 5,475,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (412,000) | (51,000) |
Securities in a loss position for more than 12 Months, Fair Value | 1,730,000 | 0 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (22,000) | 0 |
Total Fair Value | 25,805,000 | 5,475,000 |
Total Unrealized Losses | (434,000) | (51,000) |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 2,181,000 | |
Securities in a loss position for less than 12 Months, Unrealized Losses | (90,000) | |
Total Fair Value | 2,181,000 | |
Total Unrealized Losses | (90,000) | |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 929,000 | 1,747,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (71,000) | (11,000) |
Securities in a loss position for more than 12 Months, Fair Value | 959,000 | 2,807,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (45,000) | (125,000) |
Total Fair Value | 1,888,000 | 4,554,000 |
Total Unrealized Losses | $ (116,000) | $ (136,000) |
Investment securities availab_6
Investment securities available for sale - Summary of amortized cost and estimated fair value of investment securities available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Less than one year | $ 40,158 | |
One to five years | 165 | |
Five to ten years | 11,127 | |
More than ten years | 37,246 | |
Total | 88,696 | |
Fair Value | ||
Less than one year | 40,157 | |
One to five years | 166 | |
Five to ten years | 11,160 | |
More than ten years | 37,066 | |
Total | $ 88,549 | $ 40,844 |
Investment securities availab_7
Investment securities available for sale - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale of Available-for-sale Securities, Debt | $ 7,936,000 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 12,000 | ||
Number of positions, less than 12 months | item | 19 | ||
Number of positions, more than 12 months | item | 3 | ||
Securities in a loss position for more than 12 Months, Fair Value | $ 2,689,000 | $ 2,807,000 | |
Securities in a loss Position for more than 12 Months, Unrealized Losses | 67,000 | 125,000 | |
Securities in a loss position for less than 12 Months, Fair Value | 56,997,000 | 7,222,000 | |
Securities in a loss position for less than 12 Months, Unrealized Losses | 575,000 | 62,000 | |
Investment Pledged As Security For Debt [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | $ 0 | $ 0 |
Loans and allowance for loan _3
Loans and allowance for loan losses - Classified by type (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 534,306 | $ 561,003 | ||||
Deferred fees and costs, net | (1,401) | (2,048) | ||||
Less: allowance for loan losses | (3,443) | $ (3,429) | (3,970) | $ (4,050) | $ (3,759) | $ (3,186) |
Total loans, net | $ 529,462 | $ 554,985 | ||||
Percentage of class of loans to loan portfolio (in percent) | 100.00% | 100.00% | ||||
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 50,791 | $ 29,569 | ||||
Less: allowance for loan losses | $ (307) | (269) | $ (499) | (522) | (508) | (185) |
Percentage of class of loans to loan portfolio (in percent) | 9.50% | 5.26% | ||||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 250,492 | $ 231,224 | ||||
Less: allowance for loan losses | $ (1,987) | (1,898) | $ (2,517) | (2,445) | (2,153) | (1,589) |
Percentage of class of loans to loan portfolio (in percent) | 46.88% | 41.21% | ||||
Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 87,284 | $ 86,580 | ||||
Less: allowance for loan losses | $ (212) | (196) | $ (269) | (327) | (281) | (678) |
Percentage of class of loans to loan portfolio (in percent) | 16.34% | 15.44% | ||||
Residential | Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 8,981 | $ 8,103 | ||||
Less: allowance for loan losses | $ (76) | (66) | $ (214) | (204) | (213) | (48) |
Percentage of class of loans to loan portfolio (in percent) | 1.68% | 1.44% | ||||
Commercial | Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 41,810 | $ 21,466 | ||||
Less: allowance for loan losses | $ (231) | (203) | $ (285) | (318) | (295) | (137) |
Percentage of class of loans to loan portfolio (in percent) | 7.82% | 3.82% | ||||
Owner occupied | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 106,499 | $ 99,784 | ||||
Less: allowance for loan losses | $ (860) | (802) | $ (1,047) | (1,022) | (904) | (671) |
Percentage of class of loans to loan portfolio (in percent) | 19.93% | 17.79% | ||||
Non-owner occupied | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 130,867 | $ 121,184 | ||||
Less: allowance for loan losses | $ (1,089) | (1,059) | $ (1,421) | (1,373) | (1,202) | (831) |
Percentage of class of loans to loan portfolio (in percent) | 24.49% | 21.60% | ||||
Multifamily | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 12,027 | $ 9,889 | ||||
Less: allowance for loan losses | $ (36) | (35) | $ (47) | (48) | (47) | (85) |
Percentage of class of loans to loan portfolio (in percent) | 2.25% | 1.75% | ||||
Farmland | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 1,099 | $ 367 | ||||
Less: allowance for loan losses | $ (2) | (2) | $ (2) | (2) | (2) | |
Percentage of class of loans to loan portfolio (in percent) | 0.21% | 0.07% | ||||
Home equity lines | Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 17,194 | $ 18,394 | ||||
Less: allowance for loan losses | $ (11) | (11) | $ (24) | (10) | (40) | (271) |
Percentage of class of loans to loan portfolio (in percent) | 3.22% | 3.28% | ||||
First deed of trust | Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 55,918 | $ 57,089 | ||||
Less: allowance for loan losses | $ (111) | (113) | $ (166) | (160) | (166) | (343) |
Percentage of class of loans to loan portfolio (in percent) | 10.47% | 10.18% | ||||
Second deed of trust | Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 14,172 | $ 11,097 | ||||
Less: allowance for loan losses | $ (90) | (72) | $ (79) | (157) | (75) | (64) |
Percentage of class of loans to loan portfolio (in percent) | 2.65% | 1.98% | ||||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 115,129 | $ 181,088 | ||||
Less: allowance for loan losses | $ (480) | (422) | $ (408) | (348) | (317) | (572) |
Percentage of class of loans to loan portfolio (in percent) | 21.55% | 32.28% | ||||
Guaranteed student loans | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 27,624 | $ 29,657 | ||||
Less: allowance for loan losses | $ (70) | (80) | $ (87) | (97) | (101) | (108) |
Percentage of class of loans to loan portfolio (in percent) | 5.17% | 5.29% | ||||
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 2,986 | $ 2,885 | ||||
Less: allowance for loan losses | (387) | (190) | ||||
Consumer and other | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 2,986 | 2,885 | ||||
Less: allowance for loan losses | $ (32) | $ (36) | $ (36) | $ (38) | $ (40) | $ (30) |
Percentage of class of loans to loan portfolio (in percent) | 0.56% | 0.51% |
Loans and allowance for loan _4
Loans and allowance for loan losses - Information on nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 1,472 | $ 1,577 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 292 | 303 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 292 | 303 |
Consumer real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 1,158 | 1,247 |
Consumer real estate | Home equity lines | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 300 | 300 |
Consumer real estate | First deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 618 | 630 |
Consumer real estate | Second deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 240 | 317 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 22 | $ 27 |
Loans and allowance for loan _5
Loans and allowance for loan losses - Information on the risk rating of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 534,306 | $ 561,003 |
Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,986 | 2,885 |
Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 504,216 | 535,128 |
Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,559 | 20,632 |
Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,531 | 5,243 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 50,791 | 29,569 |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,981 | 8,103 |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 41,810 | 21,466 |
Construction and land development | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48,154 | 29,473 |
Construction and land development | Risk Rated 1-4 | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,981 | 8,103 |
Construction and land development | Risk Rated 1-4 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 39,173 | 21,370 |
Construction and land development | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637 | 96 |
Construction and land development | Risk Rated 5 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637 | 96 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 250,492 | 231,224 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 106,499 | 99,784 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 130,867 | 121,184 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,027 | 9,889 |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,099 | 367 |
Commercial real estate | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 229,987 | 214,483 |
Commercial real estate | Risk Rated 1-4 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 95,415 | 88,066 |
Commercial real estate | Risk Rated 1-4 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 121,446 | 116,161 |
Commercial real estate | Risk Rated 1-4 | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,027 | 9,889 |
Commercial real estate | Risk Rated 1-4 | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,099 | 367 |
Commercial real estate | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,625 | 13,649 |
Commercial real estate | Risk Rated 5 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,496 | 9,405 |
Commercial real estate | Risk Rated 5 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,129 | 4,244 |
Commercial real estate | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,880 | 3,092 |
Commercial real estate | Risk Rated 6 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,588 | 2,313 |
Commercial real estate | Risk Rated 6 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 292 | 779 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 87,284 | 86,580 |
Consumer real estate | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,194 | 18,394 |
Consumer real estate | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 55,918 | 57,089 |
Consumer real estate | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,172 | 11,097 |
Consumer real estate | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 82,540 | 80,454 |
Consumer real estate | Risk Rated 1-4 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 16,269 | 17,298 |
Consumer real estate | Risk Rated 1-4 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 52,798 | 53,731 |
Consumer real estate | Risk Rated 1-4 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,473 | 9,425 |
Consumer real estate | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,373 | 4,244 |
Consumer real estate | Risk Rated 5 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 625 | 796 |
Consumer real estate | Risk Rated 5 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,316 | 2,212 |
Consumer real estate | Risk Rated 5 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 432 | 1,236 |
Consumer real estate | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,371 | 1,882 |
Consumer real estate | Risk Rated 6 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | 300 |
Consumer real estate | Risk Rated 6 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 804 | 1,146 |
Consumer real estate | Risk Rated 6 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 267 | 436 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 115,129 | 181,088 |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,624 | 29,657 |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,986 | 2,885 |
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 | 112,959 | 178,217 |
Commercial and industrial loans | Risk Rated 1-4 | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,624 | 29,657 |
Commercial and industrial loans | Risk Rated 1-4 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,952 | 2,844 |
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 | 1,890 | 2,602 |
Commercial and industrial loans | Risk Rated 5 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 34 | 41 |
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 | $ 280 | $ 269 |
Loans and allowance for loan _6
Loans and allowance for loan losses - Aging of recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 534,306 | $ 561,003 |
Recorded Investment, 90 Days and Accruing | 2,496 | 2,193 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 529,821 | 556,071 |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,485 | 4,932 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,184 | 1,673 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 805 | 1,066 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,496 | 2,193 |
Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,986 | 2,885 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50,791 | 29,569 |
Construction and land development | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50,791 | 29,569 |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 8,981 | 8,103 |
Construction and land development | Residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 8,981 | 8,103 |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 41,810 | 21,466 |
Construction and land development | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 41,810 | 21,466 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 250,492 | 231,224 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 250,492 | 231,138 |
Commercial real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 86 | |
Commercial real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 86 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 106,499 | 99,784 |
Commercial real estate | Owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 106,499 | 99,698 |
Commercial real estate | Owner occupied | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 86 | |
Commercial real estate | Owner occupied | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 86 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 130,867 | 121,184 |
Commercial real estate | Non-owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 130,867 | 121,184 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 12,027 | 9,889 |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 12,027 | 9,889 |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,099 | 367 |
Commercial real estate | Farmland | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,099 | 367 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 87,284 | 86,580 |
Consumer real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 87,192 | 86,390 |
Consumer real estate | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 92 | 190 |
Consumer real estate | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 92 | 133 |
Consumer real estate | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 57 | |
Consumer real estate | Home equity lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 17,194 | 18,394 |
Consumer real estate | Home equity lines | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 17,194 | 18,394 |
Consumer real estate | First deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 55,918 | 57,089 |
Consumer real estate | First deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 55,826 | 56,956 |
Consumer real estate | First deed of trust | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 92 | 133 |
Consumer real estate | First deed of trust | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 92 | 133 |
Consumer real estate | Second deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 14,172 | 11,097 |
Consumer real estate | Second deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 14,172 | 11,040 |
Consumer real estate | Second deed of trust | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 57 | |
Consumer real estate | Second deed of trust | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 57 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 115,129 | 181,088 |
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 | 114,717 | 181,063 |
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 | 412 | 25 |
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 | 25 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 412 | |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 27,624 | 29,657 |
Recorded Investment, 90 Days and Accruing | 2,496 | 2,193 |
Commercial and industrial loans | Guaranteed student loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 23,643 | 25,027 |
Commercial and industrial loans | Guaranteed student loans | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 3,981 | 4,630 |
Commercial and industrial loans | Guaranteed student loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,092 | 1,428 |
Commercial and industrial loans | Guaranteed student loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 393 | 1,009 |
Commercial and industrial loans | Guaranteed student loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,496 | 2,193 |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,986 | 2,885 |
Commercial and industrial loans | Consumer and other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 2,986 | 2,884 |
Commercial and industrial loans | Consumer and other | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1 | |
Commercial and industrial loans | Consumer and other | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 1 |
Loans and allowance for loan _7
Loans and allowance for loan losses - Impaired loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
With no related allowance recorded | ||
Recorded Investment | $ 9,985 | $ 7,848 |
Unpaid Principal Balance | 10,084 | 8,159 |
Total | ||
Recorded Investment | 10,133 | 9,047 |
Unpaid Principal Balance | 10,232 | 9,358 |
Related Allowance | 7 | 17 |
Commercial real estate | ||
With no related allowance recorded | ||
Recorded Investment | 6,949 | 4,771 |
Unpaid Principal Balance | 6,964 | 4,786 |
With an allowance recorded | ||
Recorded Investment | 1,125 | |
Unpaid Principal Balance | 1,125 | |
Related Allowance | 9 | |
Total | ||
Recorded Investment | 6,949 | 5,896 |
Unpaid Principal Balance | 6,964 | 5,911 |
Related Allowance | 9 | |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 5,106 | 2,780 |
Unpaid Principal Balance | 5,121 | 2,795 |
With an allowance recorded | ||
Recorded Investment | 1,125 | |
Unpaid Principal Balance | 1,125 | |
Related Allowance | 9 | |
Total | ||
Recorded Investment | 5,106 | 3,905 |
Unpaid Principal Balance | 5,121 | 3,920 |
Related Allowance | 9 | |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 1,843 | 1,991 |
Unpaid Principal Balance | 1,843 | 1,991 |
Total | ||
Recorded Investment | 1,843 | 1,991 |
Unpaid Principal Balance | 1,843 | 1,991 |
Consumer real estate | ||
With no related allowance recorded | ||
Recorded Investment | 2,842 | 2,936 |
Unpaid Principal Balance | 2,926 | 3,232 |
With an allowance recorded | ||
Recorded Investment | 148 | 74 |
Unpaid Principal Balance | 148 | 74 |
Related Allowance | 7 | 8 |
Total | ||
Recorded Investment | 2,990 | 3,010 |
Unpaid Principal Balance | 3,074 | 3,306 |
Related Allowance | 7 | 8 |
Consumer real estate | Home equity lines | ||
With no related allowance recorded | ||
Recorded Investment | 300 | 300 |
Unpaid Principal Balance | 300 | 300 |
Total | ||
Recorded Investment | 300 | 300 |
Unpaid Principal Balance | 300 | 300 |
Consumer real estate | First deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 1,850 | 1,937 |
Unpaid Principal Balance | 1,850 | 1,940 |
With an allowance recorded | ||
Recorded Investment | 148 | 74 |
Unpaid Principal Balance | 148 | 74 |
Related Allowance | 7 | 8 |
Total | ||
Recorded Investment | 1,998 | 2,011 |
Unpaid Principal Balance | 1,998 | 2,014 |
Related Allowance | 7 | 8 |
Consumer real estate | Second deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 692 | 699 |
Unpaid Principal Balance | 776 | 992 |
Total | ||
Recorded Investment | 692 | 699 |
Unpaid Principal Balance | 776 | 992 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Recorded Investment | 194 | 141 |
Unpaid Principal Balance | 194 | 141 |
Total | ||
Recorded Investment | 194 | 141 |
Unpaid Principal Balance | $ 194 | $ 141 |
Loans and allowance for loan _8
Loans and allowance for loan losses - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
With no related allowance recorded | ||
Average Recorded Investment | $ 10,369 | $ 9,583 |
Interest Income Recognized | 113 | 346 |
With an allowance recorded | ||
Average Recorded Investment | 150 | 131 |
Interest Income Recognized | 5 | 7 |
Total | ||
Average Recorded Investment | 10,519 | 9,995 |
Interest Income Recognized | 118 | 368 |
Commercial real estate | ||
With no related allowance recorded | ||
Average Recorded Investment | 7,046 | 6,469 |
Interest Income Recognized | 67 | 222 |
With an allowance recorded | ||
Average Recorded Investment | 281 | |
Interest Income Recognized | 15 | |
Total | ||
Average Recorded Investment | 7,046 | 6,750 |
Interest Income Recognized | 67 | 237 |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 5,176 | 4,569 |
Interest Income Recognized | 40 | 136 |
With an allowance recorded | ||
Average Recorded Investment | 281 | |
Interest Income Recognized | 15 | |
Total | ||
Average Recorded Investment | 5,176 | 4,850 |
Interest Income Recognized | 40 | 151 |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 1,870 | 1,900 |
Interest Income Recognized | 27 | 86 |
Total | ||
Average Recorded Investment | 1,870 | 1,900 |
Interest Income Recognized | 27 | 86 |
Consumer real estate | ||
With no related allowance recorded | ||
Average Recorded Investment | 3,124 | 2,930 |
Interest Income Recognized | 46 | 123 |
Total | ||
Average Recorded Investment | 3,274 | 3,061 |
Interest Income Recognized | 51 | 130 |
Consumer real estate | Home equity lines | ||
With no related allowance recorded | ||
Average Recorded Investment | 300 | 300 |
Interest Income Recognized | 6 | 19 |
Total | ||
Average Recorded Investment | 300 | 300 |
Interest Income Recognized | 6 | 19 |
Consumer real estate | First deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 1,942 | 1,940 |
Interest Income Recognized | 20 | 65 |
With an allowance recorded | ||
Average Recorded Investment | 150 | 131 |
Interest Income Recognized | 5 | 7 |
Total | ||
Average Recorded Investment | 2,092 | 2,071 |
Interest Income Recognized | 25 | 72 |
Consumer real estate | Second deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 882 | 690 |
Interest Income Recognized | 20 | 39 |
Total | ||
Average Recorded Investment | 882 | 690 |
Interest Income Recognized | 20 | 39 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Average Recorded Investment | 199 | |
Interest Income Recognized | 1 | |
Total | ||
Average Recorded Investment | $ 199 | 184 |
Interest Income Recognized | $ 1 |
Loans and allowance for loan _9
Loans and allowance for loan losses - Nonaccrual TDRs and the related specific valuation allowance by portfolio segment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020loan | Dec. 31, 2020USD ($)loan | |
Information concerning Troubled Debt Restructurings | |||||
Number of Loans | loan | 0 | 0 | 1 | 1 | |
Specific Valuation Allowance | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | $ 7 | $ 7 | $ 17 | ||
Number of Loans | loan | 2 | 2 | |||
Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 7,342 | $ 7,342 | $ 7,491 | ||
Number of Loans | loan | 32 | 34 | |||
Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 6,430 | $ 6,430 | $ 6,550 | ||
Number of Loans | loan | 25 | 27 | |||
Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 912 | $ 912 | $ 941 | ||
Number of Loans | loan | 7 | 7 | |||
Commercial real estate | Specific Valuation Allowance | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | $ 9 | ||||
Commercial real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 5,130 | $ 5,130 | 5,387 | ||
Commercial real estate | Non-owner occupied | |||||
Information concerning Troubled Debt Restructurings | |||||
Number of Loans | loan | 1 | ||||
Commercial real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 4,838 | 4,838 | 5,084 | ||
Commercial real estate | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 292 | 292 | 303 | ||
Consumer real estate | Specific Valuation Allowance | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 7 | 7 | 8 | ||
Consumer real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 2,190 | 2,190 | 2,077 | ||
Consumer real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 1,592 | 1,592 | 1,466 | ||
Consumer real estate | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 598 | 598 | 611 | ||
Owner occupied | Commercial real estate | Specific Valuation Allowance | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 9 | ||||
Owner occupied | Commercial real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 3,287 | 3,287 | 3,396 | ||
Owner occupied | Commercial real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 3,287 | 3,287 | 3,396 | ||
Non-owner occupied | Commercial real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 1,843 | 1,843 | 1,991 | ||
Non-owner occupied | Commercial real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 1,551 | 1,551 | 1,688 | ||
Non-owner occupied | Commercial real estate | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 292 | $ 292 | 303 | ||
First deed of trust | Consumer real estate | |||||
Information concerning Troubled Debt Restructurings | |||||
Number of Loans | loan | 1 | ||||
First deed of trust | Consumer real estate | Specific Valuation Allowance | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 7 | $ 7 | 8 | ||
First deed of trust | Consumer real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 1,679 | 1,679 | 1,460 | ||
First deed of trust | Consumer real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 1,140 | 1,140 | 910 | ||
First deed of trust | Consumer real estate | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 539 | 539 | 550 | ||
Second deed of trust | Consumer real estate | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 511 | 511 | 617 | ||
Second deed of trust | Consumer real estate | Performing Financing Receivable | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 452 | 452 | 556 | ||
Second deed of trust | Consumer real estate | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 59 | 59 | 61 | ||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Portfolio Segment [Member] | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | 22 | 22 | 27 | ||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Nonperforming Financial Instruments | |||||
Information concerning Troubled Debt Restructurings | |||||
Recorded Investment | $ 22 | $ 22 | $ 27 |
Loans and allowance for loan_10
Loans and allowance for loan losses - Information about TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021loan | Sep. 30, 2020loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Information About Tdrs Identified During Period Line Items [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 1 |
Pre-Modification Recorded Investment | $ 267 | $ 311 | ||
Post-Modification Recorded Investment | $ 267 | $ 311 | ||
Commercial real estate | Non-owner occupied | ||||
Information About Tdrs Identified During Period Line Items [Line Items] | ||||
Number of Loans | loan | 1 | |||
Pre-Modification Recorded Investment | $ 311 | |||
Post-Modification Recorded Investment | $ 311 | |||
Consumer real estate | First deed of trust | ||||
Information About Tdrs Identified During Period Line Items [Line Items] | ||||
Number of Loans | loan | 1 | |||
Pre-Modification Recorded Investment | $ 267 | |||
Post-Modification Recorded Investment | $ 267 |
Loans and allowance for loan_11
Loans and allowance for loan losses - Allowance for loan losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 3,429,000 | $ 3,759,000 | $ 3,970,000 | $ 3,186,000 | $ 3,186,000 |
Provision for (Recovery of) Loan Losses | 250,000 | (500,000) | 950,000 | 950,000 | |
Charge-offs | (11,000) | (23,000) | (126,000) | (188,000) | (292,000) |
Recoveries | 25,000 | 64,000 | 99,000 | 102,000 | 126,000 |
Ending Balance | 3,443,000 | 4,050,000 | 3,443,000 | 4,050,000 | 3,970,000 |
Consumer and other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 190,000 | ||||
Ending Balance | 387,000 | 387,000 | 190,000 | ||
Construction and land development | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 269,000 | 508,000 | 499,000 | 185,000 | 185,000 |
Provision for (Recovery of) Loan Losses | 38,000 | (192,000) | 320,000 | 289,000 | |
Recoveries | 14,000 | 17,000 | 25,000 | ||
Ending Balance | 307,000 | 522,000 | 307,000 | 522,000 | 499,000 |
Construction and land development | Residential | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 66,000 | 213,000 | 214,000 | 48,000 | 48,000 |
Provision for (Recovery of) Loan Losses | 10,000 | (23,000) | (138,000) | 139,000 | 141,000 |
Recoveries | 14,000 | 17,000 | 25,000 | ||
Ending Balance | 76,000 | 204,000 | 76,000 | 204,000 | 214,000 |
Construction and land development | Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 203,000 | 295,000 | 285,000 | 137,000 | 137,000 |
Provision for (Recovery of) Loan Losses | 28,000 | 23,000 | (54,000) | 181,000 | 148,000 |
Ending Balance | 231,000 | 318,000 | 231,000 | 318,000 | 285,000 |
Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,898,000 | 2,153,000 | 2,517,000 | 1,589,000 | 1,589,000 |
Provision for (Recovery of) Loan Losses | 89,000 | 292,000 | (544,000) | 856,000 | 928,000 |
Recoveries | 14,000 | ||||
Ending Balance | 1,987,000 | 2,445,000 | 1,987,000 | 2,445,000 | 2,517,000 |
Commercial real estate | Owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 802,000 | 904,000 | 1,047,000 | 671,000 | 671,000 |
Provision for (Recovery of) Loan Losses | 58,000 | 118,000 | (187,000) | 351,000 | 376,000 |
Ending Balance | 860,000 | 1,022,000 | 860,000 | 1,022,000 | 1,047,000 |
Commercial real estate | Non-owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,059,000 | 1,202,000 | 1,421,000 | 831,000 | 831,000 |
Provision for (Recovery of) Loan Losses | 30,000 | 171,000 | (346,000) | 542,000 | 590,000 |
Recoveries | 14,000 | ||||
Ending Balance | 1,089,000 | 1,373,000 | 1,089,000 | 1,373,000 | 1,421,000 |
Commercial real estate | Multifamily | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 35,000 | 47,000 | 47,000 | 85,000 | 85,000 |
Provision for (Recovery of) Loan Losses | 1,000 | 1,000 | (11,000) | (37,000) | (38,000) |
Ending Balance | 36,000 | 48,000 | 36,000 | 48,000 | 47,000 |
Commercial real estate | Farmland | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 2,000 | 2,000 | 2,000 | 2,000 | |
Provision for (Recovery of) Loan Losses | 2,000 | ||||
Ending Balance | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
Consumer real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 196,000 | 281,000 | 269,000 | 678,000 | 678,000 |
Provision for (Recovery of) Loan Losses | (6,000) | 1,000 | (31,000) | (407,000) | (392,000) |
Charge-offs | (84,000) | (85,000) | |||
Recoveries | 22,000 | 45,000 | 58,000 | 56,000 | 68,000 |
Ending Balance | 212,000 | 327,000 | 212,000 | 327,000 | 269,000 |
Consumer real estate | Home equity lines | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 11,000 | 40,000 | 24,000 | 271,000 | 271,000 |
Provision for (Recovery of) Loan Losses | (30,000) | (23,000) | (261,000) | (247,000) | |
Recoveries | 10,000 | ||||
Ending Balance | 11,000 | 10,000 | 11,000 | 10,000 | 24,000 |
Consumer real estate | First deed of trust | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 113,000 | 166,000 | 166,000 | 343,000 | 343,000 |
Provision for (Recovery of) Loan Losses | (3,000) | (7,000) | (65,000) | (188,000) | (190,000) |
Recoveries | 1,000 | 1,000 | 10,000 | 5,000 | 13,000 |
Ending Balance | 111,000 | 160,000 | 111,000 | 160,000 | 166,000 |
Consumer real estate | Second deed of trust | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 72,000 | 75,000 | 79,000 | 64,000 | 64,000 |
Provision for (Recovery of) Loan Losses | (3,000) | 38,000 | 57,000 | 42,000 | 45,000 |
Charge-offs | (84,000) | (85,000) | |||
Recoveries | 21,000 | 44,000 | 38,000 | 51,000 | 55,000 |
Ending Balance | 90,000 | 157,000 | 90,000 | 157,000 | 79,000 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 422,000 | 317,000 | 408,000 | 572,000 | 572,000 |
Provision for (Recovery of) Loan Losses | 55,000 | 27,000 | 45,000 | (114,000) | (58,000) |
Charge-offs | (135,000) | (135,000) | |||
Recoveries | 3,000 | 4,000 | 27,000 | 25,000 | 29,000 |
Ending Balance | 480,000 | 348,000 | 480,000 | 348,000 | 408,000 |
Commercial and industrial loans | Guaranteed student loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 80,000 | 101,000 | 87,000 | 108,000 | 108,000 |
Provision for (Recovery of) Loan Losses | 1,000 | 6,000 | 7,000 | 25,000 | 27,000 |
Charge-offs | (11,000) | (10,000) | (24,000) | (36,000) | (48,000) |
Ending Balance | 70,000 | 97,000 | 70,000 | 97,000 | 87,000 |
Commercial and industrial loans | Consumer and other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 36,000 | 40,000 | 36,000 | 30,000 | 30,000 |
Provision for (Recovery of) Loan Losses | (4,000) | 10,000 | 14,000 | 21,000 | 26,000 |
Charge-offs | (13,000) | (18,000) | (17,000) | (24,000) | |
Recoveries | 1,000 | 4,000 | 4,000 | ||
Ending Balance | 32,000 | 38,000 | 32,000 | 38,000 | 36,000 |
Commercial and industrial loans | Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 528,000 | 359,000 | 154,000 | 24,000 | 24,000 |
Provision for (Recovery of) Loan Losses | (173,000) | (86,000) | 201,000 | 249,000 | 130,000 |
Ending Balance | $ 355,000 | $ 273,000 | $ 355,000 | $ 273,000 | $ 154,000 |
Loans and allowance for loan_12
Loans and allowance for loan losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | $ 3,443 | $ 3,429 | $ 3,970 | $ 4,050 | $ 3,759 | $ 3,186 |
Allowance Individually Evaluated for Impairment | 7 | 17 | ||||
Allowance Collectively Evaluated for Impairment | 3,436 | 3,953 | ||||
Loans Ending Balance | 534,306 | 561,003 | ||||
Loans Individually Evaluated for Impairment | 10,133 | 9,047 | ||||
Loans Collectively Evaluated for Impairment | 524,173 | 551,956 | ||||
Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 307 | 269 | 499 | 522 | 508 | 185 |
Allowance Collectively Evaluated for Impairment | 307 | 499 | ||||
Loans Ending Balance | 50,791 | 29,569 | ||||
Loans Collectively Evaluated for Impairment | 50,791 | 29,569 | ||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 1,987 | 1,898 | 2,517 | 2,445 | 2,153 | 1,589 |
Allowance Individually Evaluated for Impairment | 9 | |||||
Allowance Collectively Evaluated for Impairment | 1,987 | 2,508 | ||||
Loans Ending Balance | 250,492 | 231,224 | ||||
Loans Individually Evaluated for Impairment | 6,949 | 5,896 | ||||
Loans Collectively Evaluated for Impairment | 243,543 | 225,328 | ||||
Consumer real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 212 | 196 | 269 | 327 | 281 | 678 |
Allowance Individually Evaluated for Impairment | 7 | 8 | ||||
Allowance Collectively Evaluated for Impairment | 205 | 261 | ||||
Loans Ending Balance | 87,284 | 86,580 | ||||
Loans Individually Evaluated for Impairment | 2,990 | 3,010 | ||||
Loans Collectively Evaluated for Impairment | 84,294 | 83,570 | ||||
Residential | Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 76 | 66 | 214 | 204 | 213 | 48 |
Allowance Collectively Evaluated for Impairment | 76 | 214 | ||||
Loans Ending Balance | 8,981 | 8,103 | ||||
Loans Collectively Evaluated for Impairment | 8,981 | 8,103 | ||||
Commercial | Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 231 | 203 | 285 | 318 | 295 | 137 |
Allowance Collectively Evaluated for Impairment | 231 | 285 | ||||
Loans Ending Balance | 41,810 | 21,466 | ||||
Loans Collectively Evaluated for Impairment | 41,810 | 21,466 | ||||
Owner occupied | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 860 | 802 | 1,047 | 1,022 | 904 | 671 |
Allowance Individually Evaluated for Impairment | 9 | |||||
Allowance Collectively Evaluated for Impairment | 860 | 1,038 | ||||
Loans Ending Balance | 106,499 | 99,784 | ||||
Loans Individually Evaluated for Impairment | 5,106 | 3,905 | ||||
Loans Collectively Evaluated for Impairment | 101,393 | 95,879 | ||||
Non-owner occupied | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 1,089 | 1,059 | 1,421 | 1,373 | 1,202 | 831 |
Allowance Collectively Evaluated for Impairment | 1,089 | 1,421 | ||||
Loans Ending Balance | 130,867 | 121,184 | ||||
Loans Individually Evaluated for Impairment | 1,843 | 1,991 | ||||
Loans Collectively Evaluated for Impairment | 129,024 | 119,193 | ||||
Multifamily | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 36 | 35 | 47 | 48 | 47 | 85 |
Allowance Collectively Evaluated for Impairment | 36 | 47 | ||||
Loans Ending Balance | 12,027 | 9,889 | ||||
Loans Collectively Evaluated for Impairment | 12,027 | 9,889 | ||||
Farmland | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 2 | 2 | 2 | 2 | 2 | |
Allowance Collectively Evaluated for Impairment | 2 | 2 | ||||
Loans Ending Balance | 1,099 | 367 | ||||
Loans Collectively Evaluated for Impairment | 1,099 | 367 | ||||
Home equity lines | Consumer real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 11 | 11 | 24 | 10 | 40 | 271 |
Allowance Collectively Evaluated for Impairment | 11 | 24 | ||||
Loans Ending Balance | 17,194 | 18,394 | ||||
Loans Individually Evaluated for Impairment | 300 | 300 | ||||
Loans Collectively Evaluated for Impairment | 16,894 | 18,094 | ||||
First deed of trust | Consumer real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 111 | 113 | 166 | 160 | 166 | 343 |
Allowance Individually Evaluated for Impairment | 7 | 8 | ||||
Allowance Collectively Evaluated for Impairment | 104 | 158 | ||||
Loans Ending Balance | 55,918 | 57,089 | ||||
Loans Individually Evaluated for Impairment | 1,998 | 2,011 | ||||
Loans Collectively Evaluated for Impairment | 53,920 | 55,078 | ||||
Second deed of trust | Consumer real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 90 | 72 | 79 | 157 | 75 | 64 |
Allowance Collectively Evaluated for Impairment | 90 | 79 | ||||
Loans Ending Balance | 14,172 | 11,097 | ||||
Loans Individually Evaluated for Impairment | 692 | 699 | ||||
Loans Collectively Evaluated for Impairment | 13,480 | 10,398 | ||||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 480 | 422 | 408 | 348 | 317 | 572 |
Allowance Collectively Evaluated for Impairment | 480 | 408 | ||||
Loans Ending Balance | 115,129 | 181,088 | ||||
Loans Individually Evaluated for Impairment | 194 | 141 | ||||
Loans Collectively Evaluated for Impairment | 114,935 | 180,947 | ||||
Guaranteed student loans | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 70 | 80 | 87 | 97 | 101 | 108 |
Allowance Collectively Evaluated for Impairment | 70 | 87 | ||||
Loans Ending Balance | 27,624 | 29,657 | ||||
Loans Collectively Evaluated for Impairment | 27,624 | 29,657 | ||||
Consumer and other | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 387 | 190 | ||||
Allowance Collectively Evaluated for Impairment | 387 | 190 | ||||
Loans Ending Balance | 2,986 | 2,885 | ||||
Loans Collectively Evaluated for Impairment | 2,986 | 2,885 | ||||
Consumer and other | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 32 | $ 36 | 36 | $ 38 | $ 40 | $ 30 |
Loans Ending Balance | $ 2,986 | $ 2,885 |
Loans and allowance for loan_13
Loans and allowance for loan losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan amount | $ 529,462,000 | $ 529,462,000 | $ 554,985,000 | |||||
SBA fee earned | 6,655,000 | $ 6,307,000 | 20,148,000 | $ 17,622,000 | ||||
Loans pledged as collateral | 41,571,000 | $ 41,571,000 | 65,587,000 | |||||
Defaults on TDRs that were modified as TDRs | loan | 0 | 0 | ||||||
Amount of loans under modified terms | 38,000,000 | |||||||
Provision for (recovery of) loan losses | 250,000 | $ (500,000) | $ 950,000 | 950,000 | ||||
Loans and leases receivable, allowance | $ 3,443,000 | 4,050,000 | $ 3,443,000 | 4,050,000 | 3,970,000 | $ 3,429,000 | $ 3,759,000 | $ 3,186,000 |
Guaranteed student loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Percentage Of Recovery Loss On Portfolio From Historical Experience | 98.00% | 98.00% | ||||||
Unallocated Financing Receivable [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans and leases receivable, allowance | $ 355,000 | $ 273,000 | $ 355,000 | $ 273,000 | 154,000 | |||
PPP Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan amount | $ 56,809,000 | $ 56,809,000 | $ 136,674,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposit Liability [Line Items] | ||
Demand accounts | $ 270,397 | $ 222,305 |
Interest checking accounts | 76,693 | 70,342 |
Money market accounts | 183,096 | 152,726 |
Savings accounts | 46,750 | 38,083 |
Other time deposits | 60,927 | 88,912 |
Total | $ 646,052 | $ 588,382 |
Percentage of individual deposits to deposit liability | ||
Demand accounts (in hundredths) | 41.90% | 37.80% |
Interest checking accounts(in hundredths) | 11.90% | 11.90% |
Money market accounts (in hundredths) | 28.30% | 26.00% |
Savings account (in hundredths) | 7.20% | 6.50% |
Time deposits of $250,000 and over (in hundredths) | 1.30% | 2.70% |
Other time deposits (in hundredths) | 9.40% | 15.10% |
Total (in hundredths) | 100.00% | 100.00% |
Geographic Distribution, Domestic [Member] | ||
Deposit Liability [Line Items] | ||
Time deposits of $250,000 and over | $ 8,189 | $ 16,014 |
Borrowings - (Details)
Borrowings - (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank Stock | $ 353,000 | $ 484,000 |
Long-term Federal Home Loan Bank Advances | 0 | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | 73,100,000 | |
PPPLF | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Current borrowing capacity | 0 | 41,500,000 |
Unused borrowing capacity | $ 95,200,000 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 30,300,000 | |
Revolving Credit Facility [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 10,000,000 | |
Secured Debt [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 7,800,000 | |
Line of Credit [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 25,000,000 |
Trust preferred securities (Det
Trust preferred securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Trust preferred capital notes | $ 8,764 | $ 8,764 |
Percentage of Tier one risk based capital required for capital adequacy (in hundredths) | 25.00% | |
Southern Community Financial Capital Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Feb. 24, 2005 | |
Trust preferred capital notes | $ 5,200 | |
Interest rate (in hundredths) | 2.27% | |
Maturity date | Mar. 15, 2035 | |
Principal assets of the trust | $ 5,200 | |
Southern Community Financial Capital Trust I [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |
Village Financial Statutory Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Sep. 20, 2007 | |
Trust preferred capital notes | $ 3,600 | |
Interest rate (in hundredths) | 1.52% | |
Maturity date | Dec. 31, 2037 | |
Principal assets of the trust | $ 3,600 | |
Village Financial Statutory Trust II [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.40% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | Mar. 21, 2018 | Sep. 30, 2021 | Dec. 31, 2020 |
Proceeds from Issuance of Subordinated Long-term Debt | $ 5,539,000 | ||
Subordinated Debt | $ 5,652,000 | $ 5,628,000 | |
Subordinated debt | |||
Debt Instrument, Face Amount | $ 5,700,000 | ||
Debt Instrument, Maturity Date | Mar. 31, 2028 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||
Debt Instrument, Basis Spread on Variable Rate | 3.73% |
Stock incentive plan - Options
Stock incentive plan - Options outstanding under company's stock incentive plan (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Options | ||
Options outstanding, beginning of period | 734 | 734 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | 734 | 734 |
Options exercisable, end of period | 734 | 734 |
Weighted Average Exercise Price | ||
Options outstanding, beginning of period | $ 25.63 | $ 25.63 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | 25.63 | 25.63 |
Fair Value Per Share | ||
Options outstanding, beginning of period | 9.76 | 9.76 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | $ 9.76 | $ 9.76 |
Intrinsic Value Options outstanding | $ 0 | $ 0 |
Stock incentive plan - Non vest
Stock incentive plan - Non vested restricted stock award (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ending Balance | 5,793 | 6,573 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance | 25,247 | |
Shares, Vested | (8,771) | |
Shares, Forfeited | 0 | (1,094) |
Shares, Other | 601 | |
Ending Balance | 17,077 | 24,736 |
Weighted-Average Grant-Date Fair-Value, Beginning Balance | $ 30.88 | |
Weighted-Average Grant-Date Fair-Value, Granted | 0 | |
Weighted-Average Grant-Date Fair-Value, Vested | 31.23 | |
Weighted-Average Grant-Date Fair-Value, Forfeited | 0 | |
Weighted-Average Grant Date Fair Value, Other | 31.86 | |
Weighted-Average Grant-Date Fair-Value, Ending Balance | $ 30.73 | |
Aggregate Intrinsic Value, Beginning Balance | $ 1,305,270 | |
Aggregate Intrinsic Value, Granted | 0 | |
Aggregate Intrinsic Value, Vested | (453,461) | |
Aggregate Intrinsic Value, Forfeited | 0 | |
Aggregate Intrinsic Value, Other | 31,072 | |
Aggregate Intrinsic Value, Ending Balance | $ 882,881 |
Stock incentive plan - Addition
Stock incentive plan - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
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 | 5,793 | 6,573 | 5,793 | 6,573 | |
Allocated Share-based Compensation Expense | $ 35,000 | $ 28,000 | $ 218,000 | $ 157,000 | |
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 | 17,077 | 24,736 | 17,077 | 24,736 | 25,247 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 437,600 | $ 271,600 | $ 437,600 | $ 271,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 1,094 | |||
Time Based Restricted Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 297,500 | $ 297,500 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | ||||
Performance Shares [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio | 150.00% | ||||
Performance Shares [Member] | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio | 0.00% |
Fair value - Recurring and non
Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 13,300 | $ 34,400 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 13,275 | 34,421 |
IRLC | 513 | 1,552 |
Financial Liabilities-Recurring Forward sales commitment | 842 | 3,105 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 336 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Government Agencies | 40,157 | 0 |
Mortgage-backed securities | 0 | |
Subordinated debt | 250 | 0 |
Loans held for sale | 0 | |
IRLC | 0 | |
Financial Liabilities-Recurring Forward sales commitment | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Government Agencies | 1,673 | 8,142 |
Mortgage-backed securities | 35,816 | 24,006 |
Municipals | 2,182 | |
Subordinated debt | 7,921 | 8,446 |
Loans held for sale | 13,275 | 34,421 |
IRLC | 513 | 1,552 |
Financial Liabilities-Recurring Forward sales commitment | 842 | 3,105 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Government Agencies | 0 | |
Mortgage-backed securities | 0 | |
Municipals | 0 | |
Subordinated debt | 550 | 250 |
Loans held for sale | 0 | |
IRLC | 0 | |
Financial Liabilities-Recurring Forward sales commitment | 0 | |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Government Agencies | 41,830 | 8,142 |
Mortgage-backed securities | 35,816 | 24,006 |
Municipals | 2,182 | |
Subordinated debt | 8,721 | 8,696 |
Loans held for sale | 13,275 | 34,421 |
IRLC | 513 | 1,552 |
Financial Liabilities-Recurring Forward sales commitment | $ 842 | 3,105 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 336 | |
Fair Value, Measurements, Nonrecurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 336 |
Fair value - Financial instrume
Fair value - Financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 336 | |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 0 | |
Fair Value Measurements, Valuation Techniques | Appraisal (1) or Internal Valuation (2) | |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 6.00% | |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 10.00% | |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 7.00% |
Fair value - Carrying amounts a
Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets | ||
Investment securities available for sale, at fair value | $ 88,549 | $ 40,844 |
Loans held for sale | 13,300 | 34,400 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash | 14,362 | 12,709 |
Investment securities available for sale, at fair value | 40,407 | 1,193 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash | 14,362 | 12,709 |
Investment securities available for sale, at fair value | 40,157 | 1,193 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 49,918 | 30,742 |
Investment securities available for sale, at fair value | 47,592 | 39,401 |
Federal Home Loan Bank stock | 353 | 484 |
Loans held for sale | 13,275 | 34,421 |
Accrued interest receivable | 3,569 | 4,943 |
Interest rate lock commitments | 513 | 1,552 |
Financial liabilities | ||
Deposits | 646,052 | 588,382 |
Trust preferred securities | 8,764 | 8,764 |
Other borrowings | 5,652 | 47,157 |
Accrued interest payable | 71 | 194 |
Forward sales commitment | 842 | 3,105 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 49,918 | 30,742 |
Investment securities available for sale, at fair value | 48,142 | 39,401 |
Federal Home Loan Bank stock | 353 | 484 |
Loans held for sale | 13,275 | 34,421 |
Accrued interest receivable | 3,569 | 4,943 |
Interest rate lock commitments | 513 | 1,552 |
Financial liabilities | ||
Deposits | 645,989 | 589,017 |
Trust preferred securities | 9,601 | 9,697 |
Other borrowings | 5,652 | 47,157 |
Accrued interest payable | 71 | 194 |
Forward sales commitment | 842 | 3,105 |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 550 | 250 |
Loans | 534,306 | 561,003 |
Other real estate owned | 336 | |
Bank owned life insurance | 12,416 | 7,806 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 250 | 250 |
Loans | 535,555 | 562,362 |
Other real estate owned | 336 | |
Bank owned life insurance | $ 12,416 | $ 7,806 |
Segment Reporting - Segment inf
Segment Reporting - Segment information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | segment | 2 | ||||
Revenues | |||||
Interest income | $ 6,921,000 | $ 6,540,000 | $ 20,923,000 | $ 18,417,000 | |
Gain on sale of loans | 2,704,000 | 3,585,000 | 9,608,000 | 8,014,000 | |
Other revenues | 891,000 | 950,000 | 2,679,000 | 2,611,000 | |
Total revenues | 10,516,000 | 11,075,000 | 33,210,000 | 29,042,000 | |
Expenses | |||||
Provision for loan losses | 250,000 | (500,000) | 950,000 | $ 950,000 | |
Interest expense | 492,000 | 1,069,000 | 1,728,000 | 3,575,000 | |
Salaries and benefits | 3,607,000 | 3,644,000 | 10,541,000 | 9,278,000 | |
Commissions | 736,000 | 1,054,000 | 2,405,000 | 2,269,000 | |
Other expenses | 2,030,000 | 2,111,000 | 6,156,000 | 5,886,000 | |
Total operating expenses | 6,865,000 | 8,128,000 | 20,330,000 | 21,958,000 | |
Income before income taxes | 3,651,000 | 2,947,000 | 12,880,000 | 7,084,000 | |
Income tax expense | 752,000 | 678,000 | 2,790,000 | 1,582,000 | |
Net income | 2,899,000 | 2,269,000 | 10,090,000 | 5,502,000 | |
Total assets | 730,061,000 | 727,364,000 | 730,061,000 | 727,364,000 | $ 706,236,000 |
Eliminations [Member] | |||||
Revenues | |||||
Interest income | (1,000) | (46,000) | (24,000) | (91,000) | |
Gain on sale of loans | 0 | 0 | |||
Other revenues | (70,000) | (62,000) | (205,000) | (179,000) | |
Total revenues | (71,000) | (108,000) | (229,000) | (270,000) | |
Expenses | |||||
Provision for loan losses | 0 | 0 | |||
Interest expense | (1,000) | (46,000) | (24,000) | (91,000) | |
Salaries and benefits | 0 | 0 | |||
Commissions | 0 | 0 | |||
Other expenses | (70,000) | (62,000) | (205,000) | (179,000) | |
Total operating expenses | (71,000) | (108,000) | (229,000) | (270,000) | |
Income before income taxes | 0 | 0 | |||
Income tax expense | 0 | 0 | |||
Net income | 0 | 0 | |||
Total assets | (22,967,000) | (15,132,000) | (22,967,000) | (15,132,000) | |
Mortgage Banking [Member] | |||||
Revenues | |||||
Interest income | 104,000 | 156,000 | 341,000 | 401,000 | |
Gain on sale of loans | 2,704,000 | 3,585,000 | 9,608,000 | 8,014,000 | |
Other revenues | 228,000 | 346,000 | 694,000 | 820,000 | |
Total revenues | 3,036,000 | 4,087,000 | 10,643,000 | 9,235,000 | |
Expenses | |||||
Provision for loan losses | 0 | 0 | |||
Interest expense | 46,000 | 24,000 | 91,000 | ||
Salaries and benefits | 975,000 | 1,118,000 | 3,267,000 | 2,916,000 | |
Commissions | 736,000 | 1,054,000 | 2,405,000 | 2,269,000 | |
Other expenses | 362,000 | 300,000 | 989,000 | 878,000 | |
Total operating expenses | 2,073,000 | 2,518,000 | 6,685,000 | 6,154,000 | |
Income before income taxes | 963,000 | 1,569,000 | 3,958,000 | 3,081,000 | |
Income tax expense | 202,000 | 329,000 | 831,000 | 647,000 | |
Net income | 761,000 | 1,240,000 | 3,127,000 | 2,434,000 | |
Total assets | 19,417,000 | 13,789,000 | 19,417,000 | 13,789,000 | |
Commercial Banking [Member] | |||||
Revenues | |||||
Interest income | 6,818,000 | 6,430,000 | 20,606,000 | 18,107,000 | |
Gain on sale of loans | 0 | 0 | |||
Other revenues | 733,000 | 666,000 | 2,190,000 | 1,970,000 | |
Total revenues | 7,551,000 | 7,096,000 | 22,796,000 | 20,077,000 | |
Expenses | |||||
Provision for loan losses | 250,000 | (500,000) | 950,000 | ||
Interest expense | 493,000 | 1,069,000 | 1,728,000 | 3,575,000 | |
Salaries and benefits | 2,632,000 | 2,526,000 | 7,274,000 | 6,362,000 | |
Commissions | 0 | 0 | |||
Other expenses | 1,738,000 | 1,873,000 | 5,372,000 | 5,187,000 | |
Total operating expenses | 4,863,000 | 5,718,000 | 13,874,000 | 16,074,000 | |
Income before income taxes | 2,688,000 | 1,378,000 | 8,922,000 | 4,003,000 | |
Income tax expense | 550,000 | 349,000 | 1,959,000 | 935,000 | |
Net income | 2,138,000 | 1,029,000 | 6,963,000 | 3,068,000 | |
Total assets | $ 733,611,000 | $ 728,707,000 | $ 733,611,000 | $ 728,707,000 |
Shareholders' Equity and Regu_3
Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Shareholders' Equity and Regulatory Matters | ||
Net unrealized gains (losses) on securities | $ (114) | $ 466 |
Net unrecognized losses on defined benefit plan | (30) | (36) |
Total accumulated other comprehensive income (loss) | $ (144) | $ 430 |
Shareholders' Equity and Regu_4
Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
To be Well Capitalized (in percentage) | 10 | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
To be Well Capitalized (in percentage) | 8 | |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 4 | |
To be Well Capitalized (in percentage) | 5 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
To be Well Capitalized (in percentage) | 6.50% | |
Maximum | ||
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 10.5 | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 8 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 7.00% | |
Minimum | ||
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 8.5 | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 6 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 4.50% | |
Subsidiaries [Member] | ||
Total capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 75,416 | $ 65,723 |
For Capital Adequacy Purposes | 41,250 | 37,015 |
To be Well Capitalized Amount | $ 51,563 | $ 46,269 |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 14.63 | 14.20 |
For Capital Adequacy Purposes (in percentage) | 8 | 8 |
To be Well Capitalized (in percentage) | 10 | 10 |
Tier 1 capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 71,973 | $ 61,753 |
For Capital Adequacy Purposes | 30,938 | 27,761 |
To be Well Capitalized Amount | $ 41,250 | $ 37,015 |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 13.96 | 13.35 |
For Capital Adequacy Purposes (in percentage) | 6 | 6 |
To be Well Capitalized (in percentage) | 8 | 8 |
Leverage ratio (Tier 1 capital to average assets), Amount | ||
Actual Amount | $ 71,973 | $ 61,753 |
For Capital Adequacy Purposes | 28,914 | 26,607 |
To be Well Capitalized Amount | $ 36,142 | $ 33,259 |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 9.96 | 9.28 |
For Capital Adequacy Purposes (in percentage) | 4 | 4 |
To be Well Capitalized (in percentage) | 5 | 5 |
Common equity (Tier 1 risk based capital to risk weighted assets), Amount | ||
Actual Amount | $ 71,973 | $ 61,753 |
For Capital Adequacy Purposes | 23,203 | 20,821 |
To be Well Capitalized Amount | $ 33,516 | $ 30,075 |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Actual Ratio (in percentage) | 13.96% | 13.35% |
For Capital Adequacy Purposes (in percentage) | 4.50% | 4.50% |
To be Well Capitalized (in percentage) | 6.50% | 6.50% |
Shareholders' Equity and Regu_5
Shareholders' Equity and Regulatory Matters - Additional Information (Details) | Jan. 01, 2019 | Jan. 01, 2016 | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Shareholders' Equity and Regulatory Matters | ||||
Deferred Tax Liabilities, Gross | $ 38,000 | $ 114,000 | ||
Common Equity Tier One Risk Based Capital Required To Be Well Capitalized To Risk Weighted Assets | 6.50% | |||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8 | |||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10 | |||
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5 | |||
Description of Regulatory Requirements, Prompt Corrective Action | On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or “CBLR”). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the “prompt corrective action” framework. | |||
Capital Conservation Buffer Percentage | 2.5 | 0.625 | 2.5 |
Commitments and contingencies_2
Commitments and contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 129,042 | $ 150,974 |
Standby letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 4,877 | 4,934 |
Undisbursed credit lines | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 101,428 | 107,130 |
Commitments to extend or originate credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 22,737 | $ 38,910 |
Mortgage Banking and Derivati_2
Mortgage Banking and Derivatives (Details) | Sep. 30, 2021USD ($)position | Dec. 31, 2020USD ($)position |
Participating Mortgage Loans [Line Items] | ||
Fair value of LHFS | $ 13,300,000 | $ 34,400,000 |
Unpaid principal balance | 13,000,000 | 32,900,000 |
Other Assets | ||
Participating Mortgage Loans [Line Items] | ||
Fair value of IRLC | 513,000 | 1,600,000 |
IRLC notional amount | $ 22,737,000 | $ 38,900,000 |
IRLC total positions | position | 85 | 150 |
Other Liabilities | ||
Participating Mortgage Loans [Line Items] | ||
Fair value of forward sales commitments | $ 842,000 | $ 3,100,000 |
Forward sales commitments notional amount | $ 35,700,000 | $ 71,700,000 |
Forward sales commitments total positions | position | 134 | 289 |
Recent accounting pronounceme_2
Recent accounting pronouncements (Details) $ in Millions | Sep. 30, 2021USD ($) |
PPP Loans | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Loans under CAA modified terms | $ 0 |