Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-50765 | |
Entity Registrant Name | Village Bank & Trust Financial Corp. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 16-1694602 | |
Entity Address, Address Line One | 13319 Midlothian Turnpike | |
Entity Address, City or Town | Midlothian | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23113 | |
City Area Code | 804 | |
Local Phone Number | 897-3900 | |
Title of 12(b) Security | Common Stock, par value $4.00 per share | |
Trading Symbol | VBFC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,484,837 | |
Entity Central Index Key | 0001290476 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 14,055,000 | $ 12,062,000 |
Federal funds sold | 5,276,000 | 4,616,000 |
Total cash and cash equivalents | 19,331,000 | 16,678,000 |
Investment securities available for sale, at fair value | 104,046,000 | 133,853,000 |
Restricted stock, at cost | 1,788,000 | 1,564,000 |
Loans held for sale | 5,425,000 | 2,268,000 |
Loans | ||
Outstandings | 538,427,000 | |
Allowance for credit losses | (3,370,000) | |
Deferred costs, net | 588,000 | |
Total loans, net | 535,645,000 | |
Loans | ||
Outstandings | 566,101,000 | |
Allowance for credit losses | (3,353,000) | |
Deferred costs, net | 701,000 | |
Total loans, net | 563,449,000 | |
Premises and equipment, net | 11,853,000 | 11,748,000 |
Bank owned life insurance | 13,031,000 | 12,798,000 |
Accrued interest receivable | 3,536,000 | 3,651,000 |
Other assets | 5,045,000 | 5,065,000 |
Total Assets | 727,504,000 | 723,270,000 |
Deposits | ||
Noninterest bearing demand | 243,390,000 | 255,236,000 |
Interest bearing | 383,384,000 | 369,507,000 |
Total deposits | 626,774,000 | 624,743,000 |
Long-term debt - trust preferred securities | 8,764,000 | 8,764,000 |
Subordinated debt, net | 5,700,000 | 5,692,000 |
Federal Home Loan Bank advances | 20,000,000 | 20,000,000 |
Accrued interest payable | 213,000 | 70,000 |
Other liabilities | 2,368,000 | 2,890,000 |
Total liabilities | 663,819,000 | 662,159,000 |
Shareholders' equity | ||
Common stock, $4 par value, 10,000,000 shares authorized; 1,485,813 shares issued and outstanding at June 30, 2023 and 1,482,790 shares issued and outstanding at December 31, 2022 | 5,894,000 | 5,868,000 |
Additional paid-in capital | 55,499,000 | 55,167,000 |
Retained earnings | 10,352,000 | 10,957,000 |
Stock in directors rabbi trust | (467,000) | (689,000) |
Directors deferred fees obligation | 467,000 | 689,000 |
Accumulated other comprehensive loss | (8,060,000) | (10,881,000) |
Total shareholders' equity | 63,685,000 | 61,111,000 |
Total liabilities and shareholders' equity | $ 727,504,000 | $ 723,270,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 4 | $ 4 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 1,485,813 | 1,482,790 |
Common stock, shares outstanding (in shares) | 1,485,813 | 1,482,790 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | ||||
Loans | $ 7,571,000 | $ 6,210,000 | $ 21,599,000 | $ 18,101,000 |
Investment securities | 745,000 | 559,000 | 2,192,000 | 1,535,000 |
Federal funds sold | 146,000 | 186,000 | 353,000 | 318,000 |
Total interest income | 8,462,000 | 6,955,000 | 24,144,000 | 19,954,000 |
Interest expense | ||||
Deposits | 1,563,000 | 240,000 | 3,372,000 | 755,000 |
Borrowed funds | 785,000 | 180,000 | 2,169,000 | 483,000 |
Total interest expense | 2,348,000 | 420,000 | 5,541,000 | 1,238,000 |
Net interest income | 6,114,000 | 6,535,000 | 18,603,000 | 18,716,000 |
Provision for (recovery of) credit losses | 100,000 | (300,000) | ||
Net interest income after provision for (recovery of) credit losses | 6,114,000 | 6,435,000 | 18,603,000 | 19,016,000 |
Noninterest income | ||||
Service charges and fees | 694,000 | 670,000 | 2,074,000 | 1,960,000 |
Mortgage banking income, net | 489,000 | 973,000 | 1,353,000 | 2,942,000 |
Loss on sale of investment securities, net | (4,986,000) | (4,986,000) | ||
Gain on sale of Small Business Administration loans | 79,000 | |||
Other | 134,000 | 107,000 | 368,000 | 336,000 |
Total noninterest income (loss) | (3,669,000) | 1,750,000 | (1,191,000) | 5,317,000 |
Noninterest expense | ||||
Salaries and benefits | 3,310,000 | 3,446,000 | 10,173,000 | 10,394,000 |
Occupancy | 314,000 | 305,000 | 932,000 | 919,000 |
Equipment | 288,000 | 260,000 | 854,000 | 818,000 |
Supplies | 35,000 | 46,000 | 119,000 | 120,000 |
Professional and outside services | 894,000 | 655,000 | 2,543,000 | 2,118,000 |
Advertising and marketing | 89,000 | 67,000 | 340,000 | 271,000 |
FDIC insurance premium | 81,000 | 64,000 | 215,000 | 187,000 |
Other operating expense | 741,000 | 681,000 | 2,165,000 | 1,893,000 |
Total noninterest expense | 5,752,000 | 5,524,000 | 17,341,000 | 16,720,000 |
Income (loss) before income tax expense (benefit) | (3,307,000) | 2,661,000 | 71,000 | 7,613,000 |
Income tax expense (benefit) | (754,000) | 508,000 | (155,000) | 1,470,000 |
Net income (loss) | $ (2,553,000) | $ 2,153,000 | $ 226,000 | $ 6,143,000 |
Earnings (loss) per share, basic | $ (1.72) | $ 1.46 | $ 0.15 | $ 4.16 |
Earnings (loss) per share, diluted | $ (1.72) | $ 1.46 | $ 0.15 | $ 4.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Comprehensive Income (Loss) | ||||
Net income/loss | $ (2,553) | $ 2,153 | $ 226 | $ 6,143 |
Other comprehensive income (loss) | ||||
Unrealized holding gains (losses) arising during the period | (1,987) | (4,672) | (1,424) | (13,709) |
Tax effect | 417 | 981 | 300 | 2,879 |
Net change in unrealized holding gains (losses) on securities available for sale, net of tax | (1,570) | (3,691) | (1,124) | (10,830) |
Reclassification adjustment | ||||
Reclassification adjustment for losses realized in income | 4,986 | 4,986 | ||
Tax effect | (1,047) | (1,047) | ||
Reclassification for gains included in net income, net of tax | 3,939 | 3,939 | ||
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) | 2,371 | (3,689) | 2,821 | (10,824) |
Total comprehensive income (loss) | $ (182) | $ (1,536) | $ 3,047 | $ (4,681) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Adoption of ASC 326 | Retained Earnings | Stock in Directors Rabbi Trust | Directors Deferred Fees Obligation. | Accumulated Other Comprehensive Income (Loss) | Adoption of ASC 326 | Total |
Balance at Dec. 31, 2021 | $ 5,822 | $ 54,814 | $ 3,509 | $ (730) | $ 730 | $ (744) | $ 63,401 | ||
Vesting of restricted stock | 33 | (33) | 41 | (41) | |||||
Exercise of stock options | 6 | (6) | |||||||
Stock based compensation | 272 | 272 | |||||||
Cash dividend declared | (620) | (620) | |||||||
Net income/loss | 6,143 | 6,143 | |||||||
Other comprehensive income/loss | (10,824) | (10,824) | |||||||
Balance at Sep. 30, 2022 | 5,861 | 55,047 | 9,032 | (689) | 689 | (11,568) | 58,372 | ||
Balance at Jun. 30, 2022 | 5,837 | 55,009 | 7,086 | (689) | 689 | (7,879) | 60,053 | ||
Vesting of restricted stock | 19 | (19) | |||||||
Exercise of stock options | 5 | 5 | 10 | ||||||
Stock based compensation | 52 | 52 | |||||||
Cash dividend declared | (207) | (207) | |||||||
Net income/loss | 2,153 | 2,153 | |||||||
Other comprehensive income/loss | (3,689) | (3,689) | |||||||
Balance at Sep. 30, 2022 | 5,861 | 55,047 | 9,032 | (689) | 689 | (11,568) | 58,372 | ||
Balance at Dec. 31, 2022 | 5,868 | 55,167 | 10,957 | (689) | 689 | (10,881) | 61,111 | ||
Restricted stock redemption | 222 | (222) | |||||||
Vesting of restricted stock | 26 | (26) | |||||||
Stock based compensation | 358 | 358 | |||||||
Cash dividend declared | (712) | (712) | |||||||
Net income/loss | 226 | 226 | |||||||
Other comprehensive income/loss | 2,821 | 2,821 | |||||||
Balance at Sep. 30, 2023 | 5,894 | 55,499 | $ (119) | 10,352 | (467) | 467 | (8,060) | $ (119) | 63,685 |
Balance at Jun. 30, 2023 | 5,883 | 55,420 | 13,142 | (467) | 467 | (10,431) | 64,014 | ||
Vesting of restricted stock | 11 | (11) | |||||||
Stock based compensation | 90 | 90 | |||||||
Cash dividend declared | (237) | (237) | |||||||
Net income/loss | (2,553) | (2,553) | |||||||
Other comprehensive income/loss | 2,371 | 2,371 | |||||||
Balance at Sep. 30, 2023 | $ 5,894 | $ 55,499 | $ (119) | $ 10,352 | $ (467) | $ 467 | $ (8,060) | $ (119) | $ 63,685 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consolidated Statements of Shareholders' Equity | ||||
Cash dividends declared, per share | $ 0.16 | $ 0.14 | $ 0.48 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | |||||
Net income/loss | $ (2,553,000) | $ 2,153,000 | $ 226,000 | $ 6,143,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 445,000 | 409,000 | |||
Amortization of debt issuance costs | 8,000 | 24,000 | |||
Deferred income taxes | 76,000 | 159,000 | |||
Recovery of credit losses | 100,000 | (300,000) | $ (300,000) | ||
Gain on sale of Small Business Administration loans | (79,000) | ||||
Loss on sale of investment securities | 4,986,000 | 4,986,000 | |||
Gain on sales of loans held for sale | (1,950,000) | (4,018,000) | |||
Loss on disposal of premises and equipment | 3,000 | ||||
Stock compensation expense | 358,000 | 272,000 | |||
Proceeds from sale of mortgage loans | 89,222,000 | 143,011,000 | |||
Origination of mortgage loans held for sale | (90,429,000) | (138,928,000) | |||
Amortization of premiums and accretion of discounts on securities, net | (124,000) | 103,000 | |||
Increase in bank owned life insurance | (233,000) | (224,000) | |||
Net change in: | |||||
Interest receivable | 115,000 | (96,000) | |||
Other assets | (798,000) | 3,314,000 | |||
Interest payable | 143,000 | (10,000) | |||
Other liabilities | (522,000) | (4,454,000) | |||
Net cash provided by operating activities | 1,523,000 | 5,329,000 | |||
Cash Flows from Investing Activities | |||||
Purchases of available for sale securities | (38,747,000) | (64,488,000) | |||
Proceeds from the sale of available-for-sale securities | 0 | 50,079,000 | 0 | ||
Proceeds from maturities, calls and paydowns of available for sale securities | 17,176,000 | 10,871,000 | |||
Net increase in loans | (27,923,000) | (14,925,000) | |||
Purchases of premises and equipment, net | (550,000) | (353,000) | |||
Purchase of restricted stock, net | (224,000) | (20,000) | |||
Net cash provided by (used in) investing activities | (189,000) | (68,915,000) | |||
Cash Flows from Financing Activities | |||||
Cash dividends paid | (712,000) | (620,000) | |||
Net increase in deposits | 2,031,000 | 3,771,000 | |||
Net cash provided by financing activities | 1,319,000 | 3,151,000 | |||
Net increase (decrease) in cash and cash equivalents | 2,653,000 | (60,435,000) | |||
Cash and cash equivalents, beginning of period | 16,678,000 | 92,616,000 | 92,616,000 | ||
Cash and cash equivalents, end of period | $ 19,331,000 | $ 32,181,000 | 19,331,000 | 32,181,000 | $ 16,678,000 |
Supplemental Disclosure of Cash Flow Information | |||||
Cash payments for interest | 5,398,000 | 1,248,000 | |||
Cash payments for taxes | 503,000 | 480,000 | |||
Supplemental Schedule of Non-Cash Activities | |||||
Unrealized gains (losses) on securities available for sale | 3,563,000 | (13,710,000) | |||
Right of use assets obtained in exchange for new operating lease liabilities | 263,000 | ||||
Minimum pension adjustment | $ 9,000 | $ 9,000 |
Principles of presentation
Principles of presentation | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. 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, 2022 as filed with the Securities and Exchange Commission (“SEC”). New Accounting Standards Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. The company adopted ASU 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. This standard is commonly referred to as the current expected credit loss (“CECL”) methodology. As a result of adoption of Accounting Standards of Codification (“ASC”) 326, the Company recorded a net decrease to retained earnings of $119,000, net of taxes, which consisted of adjustments to the allowance for credit losses on loans as well as an adjustment to the Company’s reserve for unfunded loan commitments. Subsequent to adoption, the Company will record adjustments to its allowance for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using a weighted average remaining maturity (“WARM”) methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, and collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. The Company’s CECL implementation process was overseen by the Chief Financial Officer and included an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, an assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company’s historical loss experience. During 2022, the Company calculated its current expected credit losses model in parallel to its incurred loss model to further refine the methodology and model. In addition, the Company utilized internal personnel who were not involved in the development of the model to perform a comprehensive model validation. The following table illustrates the impact of ASC 326 adoption (in thousands): December 31, January 1, January 1, 2022 2023 2023 As Previously Reported Impact of As Reported (Incurred Loss) CECL Adoption Under CECL Assets: Loans Construction and land development Residential $ 79 $ 3 $ 82 Commercial 192 34 226 271 37 308 Commercial real estate Owner occupied 867 (475) 392 Non-owner occupied 1,289 192 1,481 Multifamily 33 7 40 Farmland — — — 2,189 (276) 1,913 Consumer real estate Home equity lines 11 24 35 Secured by 1-4 family residential First deed of trust 131 76 207 Second deed of trust 43 25 68 185 125 310 Commercial and industrial loans (except those secured by real estate) 576 1 577 Student loans 52 — 52 Consumer and other 37 (5) 32 Unallocated 60 (9) 51 Allowance for credit losses 3,370 (127) 3,243 Liabilities Allowance for credit losses on unfunded credit exposure — 277 277 Total Allowance for credit losses $ 3,370 $ 150 $ 3,520 On January 1, 2023, the Company adopted ASU 2022-02 “Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures,” which removed the recognition and measurement guidance on troubled debt restructurings (“TDRs”) and added disclosures on the financial effect and subsequent performance of certain types of modifications made to borrowers experiencing financial difficulties. Upon adoption of the standard, the Company recorded a reduction of $8,000 in the allowance for credit losses for the impact of changes in methodology used to estimate the allowance for credit losses for non-collateral dependent TDRs. There was no impact to the valuation of loans previously classified as collateral dependent TDRs. The allowance for loan and lease losses for modified loans is determined in a manner consistent with the methodology for loans under ASC 326. |
Use of estimates
Use of estimates | 9 Months Ended |
Sep. 30, 2023 | |
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 credit losses and its related provision including collateral dependent loans. |
Earnings per common share
Earnings per common share | 9 Months Ended |
Sep. 30, 2023 | |
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 (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator Net income (loss) - basic and diluted $ (2,553) $ 2,153 $ 226 $ 6,143 Denominator Weighted average shares outstanding - basic 1,485 1,476 1,485 1,475 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted 1,485 1,476 1,485 1,475 Earnings (Loss) per share - basic $ (1.72) $ 1.46 $ 0.15 $ 4.16 Earnings (Loss) per share - diluted $ (1.72) $ 1.46 $ 0.15 $ 4.16 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 10,658 and 5,514 at September 30, 2023 and 2022, respectively, of the unvested restricted units included in Note 10 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of September 30, 2023 and 2022, 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, 2023 | |
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, 2023 and December 31, 2022 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2023 U.S. Government agency obligations $ 20,755 $ — $ (306) $ 20,449 Mortgage-backed securities 78,767 3 (7,179) 71,591 Municipals 2,265 — (722) 1,543 Subordinated debt 12,446 19 (2,002) 10,463 $ 114,233 $ 22 $ (10,209) $ 104,046 December 31, 2022 U.S. Government agency obligations $ 64,631 $ 5 $ (3,734) $ 60,902 Mortgage-backed securities 69,151 6 (8,597) 60,560 Municipals 2,268 — (718) 1,550 Subordinated debt 11,553 29 (741) 10,841 $ 147,603 $ 40 $ (13,790) $ 133,853 There were no investments pledged at September 30, 2023. At December 31, 2022, the Company had investment securities with a fair value of $5,613,000, pledged to secure borrowings from the Federal Home Loan Bank of Atlanta ("FHLB"). The Company executed a securities repositioning and balance sheet deleveraging strategy by selling available for sale securities with a total book value of $55,195,000 and a weighted average yield of 1.48% at a pre-tax loss of $4,986,000. The net proceeds from the sale were used to reduce FHLB borrowings by $15.0 million costing 5.57% and the remaining funds were reinvested back into the securities portfolio with a weighted average yield of 5.48%, with a duration of 3.4 5.0 Investment securities available for sale that have an unrealized loss position at September 30, 2023 and December 31, 2022 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2023 U.S. Government agency obligations $ — $ — $ 20,083 $ (306) $ 20,083 $ (306) Mortgage-backed securities 15,759 (296) 29,660 (6,883) 45,419 (7,179) Municipals — — 1,543 (722) 1,543 (722) Subordinated debt 4,096 (636) 5,685 (1,366) 9,781 (2,002) $ 19,855 $ (932) $ 56,971 $ (9,277) $ 76,826 $ (10,209) December 31, 2022 U.S. Government agency obligations $ 21,848 $ (723) $ 37,256 $ (3,011) $ 59,104 $ (3,734) Mortgage-backed securities 36,089 (3,588) 22,549 (5,009) 58,638 (8,597) Municipals — — 1,549 (718) 1,549 (718) Subordinated debt 5,305 (498) 2,007 (243) 7,312 (741) $ 63,242 $ (4,809) $ 63,361 $ (8,981) $ 126,603 $ (13,790) As of September 30, 2023, there were 62 investments available for sale totaling $76,826,000 that were in a loss position and had an unrealized loss of $10,209,000. 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 impaired at September 30, 2023. The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2023, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 19,962 $ 19,681 One to five years 10,797 10,756 Five to ten years 17,446 15,375 More than ten years 66,028 58,234 Total $ 114,233 $ 104,046 |
Loans and allowance for credit
Loans and allowance for credit losses | 9 Months Ended |
Sep. 30, 2023 | |
Loans and allowance for credit losses | |
Loans and allowance for credit losses | Note 5 – Loans and allowance for credit losses On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1 in this Quarterly report. All information presented as of September 30, 2023 is in accordance with ASC 326. All loan information presented prior to January 1, 2023 is in accordance with previous applicable GAAP. Loans classified by type as of September 30, 2023 and December 31, 2022 are as follows (dollars in thousands): September 30, 2023 December 31, 2022 Amount % Amount % Construction and land development Residential $ 8,848 1.56 % $ 9,727 1.81 % Commercial 47,412 8.38 % 35,400 6.57 % 56,260 9.94 % 45,127 8.38 % Commercial real estate Owner occupied 121,652 21.49 % 119,643 22.22 % Non-owner occupied 151,445 26.75 % 153,610 28.53 % Multifamily 12,827 2.27 % 11,291 2.10 % Farmland 357 0.06 % 73 0.01 % 286,281 50.57 % 284,617 52.86 % Consumer real estate Home equity lines 18,299 3.23 % 18,421 3.42 % Secured by 1-4 family residential, First deed of trust 88,182 15.58 % 67,495 12.54 % Second deed of trust 10,533 1.86 % 7,764 1.44 % 117,014 20.67 % 93,680 17.40 % Commercial and industrial loans (except those secured by real estate) 83,045 14.67 % 90,348 16.78 % Guaranteed student loans 18,923 3.34 % 20,617 3.83 % Consumer and other 4,578 0.81 % 4,038 0.75 % Total loans 566,101 100.0 % 538,427 100.0 % Deferred and costs, net 701 588 Less: allowance for credit losses (3,353) (3,370) $ 563,449 $ 535,645 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the U.S. 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. Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $36,439,000 and $33,706,000 as of September 30, 2023 and December 31, 2022, 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, 2023 2022 Consumer real estate Home equity lines $ — $ 300 Secured by 1-4 family residential First deed of trust 162 164 Second deed of trust 107 171 269 635 Commercial and industrial loans (except those secured by real estate) 30 19 Total loans $ 299 $ 654 The Company recognized $11,000 of interest on nonaccrual loans outstanding as of September 30, 2023. The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: ● Risk rated 1 to 4 (Pass) 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 (Special Mention) loans are defined as having potential weaknesses that deserve management’s close attention; ● Risk rated 6 (Substandard) 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 (Doubtful) loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans December 31, 2022 Construction and land development Residential $ 9,727 $ — $ — $ — $ 9,727 Commercial 32,763 2,637 — — 35,400 42,490 2,637 — — 45,127 Commercial real estate Owner occupied 115,825 2,583 1,235 — 119,643 Non-owner occupied 143,458 10,152 — — 153,610 Multifamily 11,291 — — — 11,291 Farmland 73 — — — 73 270,647 12,735 1,235 — 284,617 Consumer real estate Home equity lines 17,507 614 300 — 18,421 Secured by 1-4 family residential First deed of trust 66,616 407 472 — 67,495 Second deed of trust 7,517 72 175 — 7,764 91,640 1,093 947 — 93,680 Commercial and industrial loans (except those secured by real estate) 83,848 6,481 19 — 90,348 Guaranteed student loans 20,617 — — — 20,617 Consumer and other 4,017 — 21 — 4,038 Total loans $ 513,259 $ 22,946 $ 2,222 $ — $ 538,427 Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal of loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. As of September 30, 2023, based on the most recent analysis performed, the risk category of loans based on year of origination is as follows (in thousands): Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans September 30, 2023 Construction and land development Residential Pass $ 4,016 $ 3,948 $ 884 $ — $ — $ — $ — $ — $ 8,848 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Residential $ 4,016 $ 3,948 $ 884 $ — $ — $ — $ — $ — $ 8,848 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass 3,390 18,657 14,525 242 — 5,332 5,266 — 47,412 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial $ 3,390 $ 18,657 $ 14,525 $ 242 $ — $ 5,332 $ 5,266 $ — $ 47,412 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Owner occupied Pass 8,415 19,649 26,080 9,994 12,309 41,033 803 — 118,283 Special Mention — 203 — — — — — — 203 Substandard — — — — 1,229 1,937 — — 3,166 Total Owner occupied $ 8,415 $ 19,852 $ 26,080 $ 9,994 $ 13,538 $ 42,970 $ 803 $ — $ 121,652 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied Pass 6,635 25,782 26,080 23,783 10,026 48,432 3,302 — 144,040 Special Mention — — 2,186 — — 5,219 — — 7,405 Substandard — — — — — — — — — Total Non-owner occupied $ 6,635 $ 25,782 $ 28,266 $ 23,783 $ 10,026 $ 53,651 $ 3,302 $ — $ 151,445 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily Pass 1,300 — 2,572 554 891 6,198 1,312 — 12,827 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Multifamily $ 1,300 $ — $ 2,572 $ 554 $ 891 $ 6,198 $ 1,312 $ — $ 12,827 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland Pass — — 28 — — 29 300 — 357 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Farmland $ — $ — $ 28 $ — $ — $ 29 $ 300 $ — $ 357 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate Home equity lines Pass — 446 — — — — 17,803 — 18,249 Special Mention — — — — — — 50 — 50 Substandard — — — — — — — — — Total Home equity lines $ — $ 446 $ — $ — $ — $ — $ 17,853 $ — $ 18,299 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Secured by 1-4 family residential First deed of trust Pass 25,854 13,365 15,750 8,672 3,004 18,348 2,125 — 87,118 Special Mention — — — 171 — 731 — — 902 Substandard — — — — — 162 — — 162 Total First deed of trust $ 25,854 $ 13,365 $ 15,750 $ 8,843 $ 3,004 $ 19,241 $ 2,125 $ — $ 88,182 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Second deed of trust Pass 3,475 3,349 1,046 406 1,156 685 195 — 10,312 Special Mention — — — — 45 69 — — 114 Substandard — — — — — 107 — — 107 Total Second deed of trust $ 3,475 $ 3,349 $ 1,046 $ 406 $ 1,201 $ 861 $ 195 $ $ 10,533 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans (except those secured by real estate) Pass 11,947 12,521 16,893 5,982 3,052 4,176 22,219 — 76,790 Special Mention — 4,003 — — 357 — 1,797 — 6,157 Substandard 39 — — — — 15 44 — 98 Total Commercial and industrial $ 11,986 $ 16,524 $ 16,893 $ 5,982 $ 3,409 $ 4,191 $ 24,060 $ — $ 83,045 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Guaranteed student loans Pass — — — — — 18,923 — — 18,923 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Guaranteed student loans $ — $ — $ — $ — $ — $ 18,923 $ — $ — $ 18,923 Current period gross writeoff $ 7 $ — $ — $ — $ — $ — $ — $ — $ 7 Consumer and other Pass 303 561 144 67 9 14 3,467 — 4,565 Special Mention — — — — 13 — — — 13 Substandard — — — — — — — — — Total Consumer and other $ 303 $ 561 $ 144 $ 67 $ 22 $ 14 $ 3,467 $ $ 4,578 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Current period gross writeoff $ 7 $ — $ — $ — $ — $ — $ — $ — $ 7 Total loans $ 65,374 $ 102,484 $ 106,188 $ 49,871 $ 32,091 $ 151,410 $ 58,683 $ — $ 566,101 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, 2023 Construction and land development Residential $ — $ — $ — $ — $ 8,848 $ 8,848 $ — Commercial — — — — 47,412 47,412 — — — — — 56,260 56,260 — Commercial real estate Owner occupied — — — — 121,652 121,652 — Non-owner occupied — — — — 151,445 151,445 — Multifamily — — — — 12,827 12,827 — Farmland — — — — 357 357 — — — — — 286,281 286,281 — Consumer real estate Home equity lines — 200 — 200 18,099 18,299 — Secured by 1‑4 family residential First deed of trust 69 — — 69 88,113 88,182 — Second deed of trust 33 — — 33 10,500 10,533 — 102 200 — 302 116,712 117,014 — Commercial and industrial loans (except those secured by real estate) — — 47 47 82,998 83,045 47 Guaranteed student loans 783 515 2,398 3,696 15,227 18,923 2,398 Consumer and other 2 — — 2 4,576 4,578 — Total loans $ 887 $ 715 $ 2,445 $ 4,047 $ 562,054 $ 566,101 $ 2,445 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2022 Construction and land development Residential $ — $ — $ — $ — $ 9,727 $ 9,727 $ — Commercial — — — — 35,400 35,400 — — — — — 45,127 45,127 — Commercial real estate Owner occupied — — — — 119,643 119,643 — Non-owner occupied — — — — 153,610 153,610 — Multifamily — — — — 11,291 11,291 — Farmland — — — — 73 73 — — — — — 284,617 284,617 — Consumer real estate Home equity lines — 50 — 50 18,371 18,421 — Secured by 1-4 family residential First deed of trust — — — — 67,495 67,495 — Second deed of trust 54 — — 54 7,710 7,764 — 54 50 — 104 93,576 93,680 — Commercial and industrial loans (except those secured by real estate) 1,022 — 377 1,399 88,949 90,348 — Guaranteed student loans 831 390 1,725 2,946 17,671 20,617 1,725 Consumer and other — — — — 4,038 4,038 — Total loans $ 1,907 $ 440 $ 2,102 $ 4,449 $ 533,978 $ 538,427 $ 1,725 Loans greater than 90 days past due are United States Department of Agriculture loans which carry a 100% guarantee of the principal and interest and 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 collateral dependent. Loans that are individually evaluated for credit losses are limited to loans that have specific risk characteristics that are not shared by other loans and based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. The repayment of these loans is expected to be substantially through the operations or the sale of the collateral. The allowance for credit losses on loans that are individually evaluated will be measured based on the fair value of the collateral either through operations or the sale of the collateral. When repayment is expected through the sale of the collateral, the allowance will be based on the fair value of the collateral less estimated costs to sell. Collateral dependent loans, or portions thereof, are charged off when deemed uncollectible. Collateral dependent loans are set forth in the following table as of the dates indicated (in thousands): September 30, 2023 December 31, 2022 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 1,714 $ 1,714 $ — $ 4,332 $ 4,347 $ — Non-owner occupied — — — 312 312 — 1,714 1,714 — 4,644 4,659 — Consumer real estate Home equity lines — — — 300 300 — Secured by 1‑4 family residential First deed of trust 162 162 — 1,745 1,745 — Second deed of trust 107 107 — 195 300 — 269 269 — 2,240 2,345 — Commercial and industrial loans (except those secured by real estate) 97 97 — 19 19 — 2,080 2,080 — 6,903 7,023 — With an allowance recorded Commercial real estate Owner occupied — — — 251 251 2 — — — 251 251 2 Consumer real estate Secured by 1-4 family residential First deed of trust — — — 136 136 6 — — — 136 136 6 Consumer and other — — — 21 21 1 — — — 408 408 9 Total Owner occupied 1,714 1,714 — 4,583 4,598 2 Non-owner occupied — — — 312 312 — 1,714 1,714 — 4,895 4,910 2 Consumer real estate Home equity lines — — — 300 300 — Secured by 1-4 family residential, First deed of trust 162 162 — 1,881 1,881 6 Second deed of trust 107 107 — 195 300 — 269 269 — 2,376 2,481 6 Commercial and industrial loans (except those secured by real estate) 97 97 — 19 19 — Consumer and other — — — 21 21 1 $ 2,080 $ 2,080 $ — $ 7,311 $ 7,431 $ 9 The following is a summary of average recorded investment in collateral dependent 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, 2023 September 30, 2023 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Commercial real estate Owner occupied $ 1,714 $ 177 $ 2,249 $ 208 Non-owner occupied — — 78 — 1,714 177 2,327 208 Consumer real estate Home equity lines — — 150 — Secured by 1-4 family residential First deed of trust 162 1 565 5 Second deed of trust 108 3 130 4 270 4 845 9 Commercial and industrial loans (except those secured by real estate) 92 7 55 5 2,076 188 3,227 222 With an allowance recorded Commercial real estate Owner occupied — — 63 — — — 63 — — — 63 — Total Commercial real estate Owner occupied 1,714 177 2,312 208 Non-owner occupied — — 78 — 1,714 177 2,390 208 Consumer real estate Home equity lines — — 150 — Secured by 1-4 family residential, First deed of trust 162 1 565 5 Second deed of trust 108 3 130 4 270 4 845 9 Commercial and industrial loans (except those secured by real estate) 92 7 55 5 Consumer and other — — — — $ 2,076 $ 188 $ 3,290 $ 222 Loan Modifications to Borrowers in Financial Difficulty As part of its credit risk management, the Company may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement. There were no modified loans identified during the nine months ended September 30, 2023. Prior Period Troubled Debt Restructuring Disclosures Prior to adopting the new accounting standard on loan modifications, the Company accounted for modifications of loans to borrowers experiencing financial difficulties as TDRs, when the modification resulted in a concession. The following discussion reflects loans that are considered TDRs prior to January 1, 2023. Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance December 31, 2022 Commercial real estate Owner occupied $ 3,348 $ 3,348 $ — $ 2 Non-owner occupied 312 312 — — 3,660 3,660 — 2 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,409 1,409 — 6 Second deeds of trust 75 19 56 — 1,484 1,428 56 6 Commercial and industrial loans (except those secured by real estate) 19 — 19 — $ 5,163 $ 5,088 $ 75 $ 8 Number of loans 24 22 2 3 There were no new TDRs identified for the year ended December 31, 2022. A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no defaults on TDRs that were modified as TDRs during the prior 12 month periods ended September 30, 2023 and 2022. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics by call report code. The Company’s forecast of estimated expected losses is based on a twelve-month forecast of the national rate of unemployment and external observations of historical loan losses. The Company uses the Federal Open Market Committee’s projection of unemployment for its reasonable and supportable forecasting of current expected credit losses. For the periods beyond the reasonable and supportable forecast period, projections of expected credit losses are based on a reversion to the long-run mean for the national unemployment rate. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes in lending policies and procedures including changes in underwriting standards, and collections, charge-offs, and recovery practices, changes in international, national, regional, and local conditions, changes in the nature and volume of the portfolio and terms of loans, changes in experience, depth, and ability of lending management, changes in the volume and severity of past due loans and other similar conditions, changes in the quality of the organization’s loan review system, changes in the value of underlying collateral for collateral dependent loans, the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses. Activity in the allowance for credit losses is as follows for the periods indicated (in thousands): Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2023 Construction and land development Residential $ 61 $ — $ 12 $ — $ — $ 73 Commercial 268 — 24 — — 292 329 — 36 — — 365 Commercial real estate Owner occupied 379 — 18 — — 397 Non-owner occupied 1,376 — 59 — — 1,435 Multifamily 44 — — — — 44 Farmland — — 3 — — 3 1,799 — 80 — — 1,879 Consumer real estate Home equity lines 32 — 2 — — 34 Secured by 1-4 family residential — First deed of trust 245 — 24 — 1 270 Second deed of trust 84 — 3 — 5 92 361 — 29 — 6 396 Commercial and industrial loans (except those secured by real estate) 673 — (223) — 160 610 Student loans 44 — 16 (14) — 46 Consumer and other 34 — 3 (2) — 35 Unallocated 16 — 6 — — 22 $ 3,256 $ — $ (53) $ (16) $ 166 $ 3,353 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2022 Construction and land development Residential $ 57 $ 12 $ — $ — $ 69 Commercial 171 4 — — 175 228 16 — — 244 Commercial real estate Owner occupied 868 7 — — 875 Non-owner occupied 1,267 40 — — 1,307 Multifamily 50 (17) — — 33 Farmland 2 (1) — — 1 2,187 29 — — 2,216 Consumer real estate Home equity lines 12 — — — 12 Secured by 1-4 family residential First deed of trust 114 13 — 2 129 Second deed of trust 49 (11) (27) 27 38 175 2 (27) 29 179 Commercial and industrial loans (except those secured by real estate) 533 201 (157) 5 582 Student loans 60 9 (2) — 67 Consumer and other 45 (7) (1) — 37 Unallocated 195 (150) — — 45 $ 3,423 $ 100 $ (187) $ 34 $ 3,370 Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2023 Construction and land development Residential $ 79 $ 3 $ (9) $ — $ — $ 73 Commercial 192 34 66 — — 292 271 37 57 — — 365 Commercial real estate Owner occupied 867 (475) 5 — — 397 Non-owner occupied 1,289 192 (46) — — 1,435 Multifamily 33 7 4 — — 44 Farmland — — 3 — — 3 2,189 (276) (34) — — 1,879 Consumer real estate Home equity lines 11 24 (1) — — 34 Secured by 1-4 family residential First deed of trust 131 76 61 — 2 270 Second deed of trust 43 25 13 — 11 92 185 125 73 — 13 396 Commercial and industrial loans (except those secured by real estate) 576 1 (139) — 172 610 Student loans 52 — 15 (21) — 46 Consumer and other 37 (5) 5 (2) — 35 Unallocated 60 (9) (29) — — 22 $ 3,370 $ (127) $ (52) $ (23) $ 185 $ 3,353 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2022 Construction and land development Residential $ 57 $ 12 $ — $ — $ 69 Commercial 229 (54) — — 175 286 (42) — — 244 Commercial real estate Owner occupied 833 42 — — 875 Non-owner occupied 1,083 224 — — 1,307 Multifamily 35 (2) — — 33 Farmland 2 (1) — — 1 1,953 263 — — 2,216 Consumer real estate Home equity lines 12 (58) — 58 12 Secured by 1-4 family residential First deed of trust 123 2 — 4 129 Second deed of trust 47 (312) (27) 330 38 182 (368) (27) 392 179 Commercial and industrial loans (except those secured by real estate) 486 189 (157) 64 582 Student loans 65 26 (24) — 67 Consumer and other 29 9 (1) — 37 Unallocated 422 (377) — — 45 $ 3,423 $ (300) $ (209) $ 456 $ 3,370 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2022 Construction and land development Residential $ 57 $ 22 $ — $ — $ 79 Commercial 229 (37) — — 192 286 (15) — — 271 Commercial real estate Owner occupied 833 34 — — 867 Non-owner occupied 1,083 206 — — 1,289 Multifamily 35 (2) — — 33 Farmland 2 (2) — — — 1,953 236 — — 2,189 Consumer real estate Home equity lines 12 (59) — 58 11 Secured by 1-4 family residential First deed of trust 123 3 — 5 131 Second deed of trust 47 (311) (27) 334 43 182 (367) (27) 397 185 Commercial and industrial loans (except those secured by real estate) |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Deposits | Note 6 – Deposits Deposits as of September 30, 2023 and December 31, 2022 were as follows (dollars in thousands): September 30, 2023 December 31, 2022 Amount % Amount % Demand accounts $ 243,390 38.8 % $ 255,236 40.9 % Interest checking accounts 81,779 13.0 % 90,252 14.4 % Money market accounts 210,439 33.6 % 179,036 28.6 % Savings accounts 42,367 6.8 % 55,695 8.9 % Time deposits of $250,000 and over 11,813 1.9 % 4,740 0.8 % Other time deposits 36,986 5.9 % 39,784 6.4 % Total $ 626,774 100.0 % $ 624,743 100.0 % |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
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 $1,447,000 in FHLB stock at September 30, 2023 and $1,223,000 at December 31, 2022, which is held at cost. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of commercial and 1-4 family residential loans and investment securities. The Company had FHLB advances of $20,000,000 at September 30, 2023 and December 31, 2022, respectively. The Company uses federal funds purchased and repurchase agreements for short-term borrowing needs. Securities sold under agreements to repurchase are classified as borrowings and generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. There were no borrowings against the lines at September 30, 2023 or December 31, 2022. The Company’s unused lines of credit for future borrowings total approximately $47.3 million at September 30, 2023, which consists of $2.7 million available from the FHLB based on current pledged assets, $15 million on revolving bank line of credit, $2.8 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, 2023 | |
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, 2023 was 7.81%. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term Secured Overnight Funding Rate (“SOFR”) plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. The securities were redeemable at par beginning on March 15, 2010 and each quarter after such date until the securities mature on March 15, 2035. No amounts have been redeemed at September 30, 2023 and there are no plans to do so. The principal asset of the Trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. During the third quarter of 2007, Village Financial Statutory Trust II, a wholly-owned 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, 2023 was 7.06%. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term SOFR plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. The securities may be redeemed at par at any time commencing in December 2012 until the securities mature in 2037. No amounts have been redeemed at September 30, 2023 and there are no plans to do so. The principal asset of the Trust is $3.6 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. The Trust Preferred Capital Notes may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. The portion of the Trust Preferred Capital Notes not considered as Tier 1 capital may be included in Tier 2 capital. The obligations of the Company with respect to the issuance of the Trust Preferred Capital Notes constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the Trust Preferred Capital Notes. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Trust Preferred Capital Notes and require a deferral of common dividends. The Company is current on these interest payments. |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Sep. 30, 2023 | |
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 accrued interest at a fixed rate of 6.50% for the first five years until March 21, 2023. The subordinated notes have a LIBOR-indexed floating rate of interest (three-month LIBOR plus 3.73%) which adjusts and is also payable quarterly. The interest rate at September 30, 2023 was 9.05%. As a result of the discontinuation of the 3-month LIBOR on June 30, 2023, the Company is replaced the 3-month LIBOR leg of the calculated floating rate with the three-month term SOFR plus the applicable tenor spread adjustment for 3-month LIBOR of 0.26161 percent as per the guidelines outlined within the final rulings under the Adjustable Interest Rate (LIBOR) Act published by the Board of Governors of the Federal Reserve System. The Company may redeem the subordinated notes in whole or in part, on or after March 31, 2023. The subordinated notes are unsecured and subordinated in right of payment to all of the Company’s existing and future senior indebtedness, whether secured or unsecured, including claims of depositors and general creditors, and rank equally in right of payment with any unsecured, subordinated indebtedness that the Company may incur in the future. The carrying value of the notes totaled $5,700,000 and $5,692,000 at September 30, 2023 and December 31, 2022, respectively. |
Stock incentive plan
Stock incentive plan | 9 Months Ended |
Sep. 30, 2023 | |
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 option activity under the Company's stock incentive plans during the indicated periods: Nine Months Ended September 30, 2023 2022 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 14 $ 25.28 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — $ — (345) 25.50 9.76 Options outstanding, end of period 14 $ 25.28 $ 9.76 $ — 389 $ 25.74 $ 9.76 $ — Options exercisable, end of period 14 389 During the nine months ended September 30, 2023, we granted certain officers time-based restricted shares of common stock. 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. During the nine months ended September 30, 2022, we granted certain officers time-based restricted shares of common stock and performance-based restricted stock units. The time-based restricted shares vest ratably over a three year period provided the officer is employed with the Company on the applicable vesting date. The performance-based units, which have a two-year performance period that began on January 2, 2022, vest based on the Company’s achievement of a performance target related to return on tangible common equity over the performance period, with possible payouts ranging from 0% to 150% of the target awards. The total number of shares underlying non-vested restricted stock was 21,930 and 16,316 at September 30, 2023 and 2022, respectively. The fair value of the stock is based on the grant date of the award and the expense is recognized over the vesting period. Unamortized stock-based compensation related to non-vested share-based compensation arrangements granted under the stock incentive plan as of September 30, 2023 and 2022 was $583,220 and $551,691, respectively. The time-based unrecognized compensation of $371,600 is expected to be recognized over a weighted average period of 1.77 years. For the period ended September 30, 2023, there were no forfeitures, and there were 924 forfeitures of restricted stock and restricted stock units for the period ended September 30, 2022. A summary of changes in the Company’s non-vested restricted stock and restricted stock unit awards for the nine months ended September 30, 2023 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2022 28,296 $ 46.60 $ 1,290,298 Granted 370 52.00 16,872 Vested (8,221) 30.60 (374,878) Forfeited — — — Other (1) 1,485 29.00 67,716 September 30, 2023 21,930 $ 51.50 $ 1,000,008 (1) Represents the incremental increase in shares that vested based on the restricted stock units vesting at the maximum potential value as opposed to the targeted value of the award. Stock-based compensation expense was approximately $358,000 and $272,000 for the nine months ended September 30, 2023 and 2022, respectively. |
Fair value
Fair value | 9 Months Ended |
Sep. 30, 2023 | |
Fair value | |
Fair value | Note 11 – Fair value The Company determines the fair value of its financial instruments based on the requirements established in ASC 820: Fair Value Measurements, ASC 820 establishes a hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair values hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs The Company used the following methods to determine the fair value of each type of financial instrument: Securities Collateral dependent Loans held for sale: Derivative asset – interest rate lock commitments (“IRLCs”): Forward sale commitments: The best efforts commitments are valued using the committed price to the counter-party against the current market price of the interest rate lock commitment or mortgage loan held for sale. All of the Company’s forward sale commitments are classified as Level 2. Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (in thousands): Fair Value Measurement at September 30, 2023 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring U.S. Government Agencies $ 20,449 $ — $ 20,449 $ — Mortgage-backed securities 71,591 — 71,591 — Municipals 1,543 — 1,543 — Subordinated debt 10,463 — 9,963 500 Loans held for sale 5,425 — 5,425 — IRLC 183 — 183 — Financial Liabilities - Recurring Forward sales commitment 262 — 262 — Fair Value Measurement at December 31, 2022 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring U.S. Government Agencies $ 60,902 $ — $ 60,902 $ — Mortgage-backed securities 60,560 — 60,560 — Municipals 1,550 — 1,550 — Subordinated debt 10,841 — 8,841 2,000 Loans held for sale 2,268 — 2,268 — IRLC 142 — 142 — Financial Liabilities - Recurring Forward sales commitment 207 — 207 — There were no Level 3 fair value measurements for financial instruments measured on a non-recurring basis at fair value at September 30, 2023 and December 31, 2022. ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. In accordance with ASU 2016-01, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The following table reflects 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 (in thousands). September 30, December 31, 2023 2022 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value Financial assets Cash Level 1 $ 14,055 $ 14,055 $ 12,062 $ 12,062 Cash equivalents Level 2 5,276 5,276 4,616 4,616 Investment securities available for sale Level 2 103,546 103,546 131,853 131,853 Investment securities available for sale Level 3 500 500 2,000 2,000 Federal Home Loan Bank stock Level 2 1,447 1,447 1,223 1,223 Loans held for sale Level 2 5,425 5,425 2,268 2,268 Loans Level 3 566,101 535,409 538,427 521,150 Bank owned life insurance Level 2 13,031 13,031 12,798 12,798 Accrued interest receivable Level 2 3,536 3,536 3,651 3,651 Interest rate lock commitments Level 2 183 183 142 142 Financial liabilities Deposits Level 2 626,774 626,916 624,743 625,037 FHLB borrowings Level 2 20,000 19,740 20,000 20,000 Trust preferred securities Level 2 8,764 8,926 8,764 7,066 Other borrowings Level 2 5,700 5,700 5,692 5,692 Accrued interest payable Level 2 213 213 70 70 Forward sales commitment Level 2 262 262 207 207 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2023 Revenues Interest income $ 8,334 $ 128 $ — $ 8,462 Mortgage banking income, net — 570 (81) 489 Other revenues 871 — (43) 828 Total revenues 9,205 698 (124) 9,779 Expenses Recovery of provision for credit losses — — — — Interest expense 2,348 — — 2,348 Salaries and benefits 2,611 699 — 3,310 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 2,279 287 (124) 2,442 Total operating expenses 12,224 986 (124) 13,086 Loss before income taxes (3,019) (288) — (3,307) Income tax benefit (693) (61) — (754) Net loss $ (2,326) $ (227) $ — $ (2,553) Total assets $ 738,452 $ 17,151 $ (28,099) $ 727,504 — Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2022 Revenues Interest income $ 6,885 $ 70 $ — $ 6,955 Mortgage banking income, net — 999 (26) 973 Other revenues 822 — (45) 777 Total revenues 7,707 1,069 (71) 8,705 Expenses Recovery of provision for loan losses 100 — — 100 Interest expense 420 — — 420 Salaries and benefits 2,646 800 — 3,446 Other expenses 1,853 296 (71) 2,078 Total operating expenses 5,019 1,096 (71) 6,044 Income (loss) before income taxes 2,688 (27) — 2,661 Income tax expense (benefit) 514 (6) — 508 Net income (loss) $ 2,174 $ (21) $ — $ 2,153 Total assets $ 755,071 $ 18,281 $ (30,649) $ 742,703 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2023 Revenues Interest income $ 23,876 $ 268 $ — $ 24,144 Mortgage banking income, net — 1,718 (365) 1,353 Other revenues 2,572 — (130) 2,442 Total revenues 26,448 1,986 (495) 27,939 Expenses Recovery of provision for credit losses — — — — Interest expense 5,541 — — 5,541 Salaries and benefits 8,048 2,125 — 10,173 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 6,809 854 (495) 7,168 Total operating expenses 25,384 2,979 (495) 27,868 Income (loss) before income taxes 1,064 (993) — 71 Income tax expense (benefit) 54 (209) — (155) Net income (loss) $ 1,010 $ (784) $ — $ 226 Total assets $ 738,452 $ 17,151 $ (28,099) $ 727,504 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2022 Revenues Interest income $ 19,762 $ 192 $ — $ 19,954 Mortgage banking income, net — 3,026 (84) 2,942 Other revenues 2,510 — (64) 2,446 Total revenues 22,272 3,218 (148) 25,342 Expenses Recovery of provision for loan losses (300) — — (300) Interest expense 1,238 — — 1,238 Salaries and benefits 7,900 2,494 — 10,394 Other expenses 5,610 935 (148) 6,397 Total operating expenses 14,448 3,429 (148) 17,729 Income (loss) before income taxes 7,824 (211) — 7,613 Income tax expense (benefit) 1,514 (44) — 1,470 Net income (loss) $ 6,310 $ (167) $ — $ 6,143 Total assets $ 755,071 $ 18,281 $ (30,649) $ 742,703 |
Shareholders' Equity and Regula
Shareholders' Equity and Regulatory Matters | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity and Regulatory Matters | |
Shareholders' Equity and Regulatory Matters | Note 13 – Shareholders’ Equity and Regulatory Matters Accumulated Other Comprehensive Loss The following table presents the change in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 and is summarized as follows, net of tax (dollars in thousands): Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss June 30, 2023 $ (10,417) $ (14) $ (10,431) Other comprehensive (loss) income Other comprehensive loss before reclassification (1,570) 2 (1,568) Amounts reclassifed from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 2,369 2 2,371 Accumulated other comprehensive loss September 30, 2023 $ (8,048) $ (12) $ (8,060) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) Other comprehensive (loss) income Other comprehensive loss before reclassification (1,124) 6 (1,118) Amounts reclassifed from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 2,815 6 2,821 Accumulated other comprehensive loss September 30, 2023 $ (8,048) $ (12) $ (8,060) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss June 30, 2022 $ (7,856) $ (23) $ (7,879) Other comprehensive (loss) income Other comprehensive loss before reclassification (3,691) 2 (3,689) Amounts reclassifed from AOCI into earnings - - - Net current period other comprehensive income (3,691) 2 (3,689) Accumulated other comprehensive loss September 30, 2022 $ (11,547) $ (21) $ (11,568) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2021 $ (717) $ (27) $ (744) Other comprehensive (loss) income Other comprehensive loss before reclassification (10,830) 6 (10,824) Amounts reclassifed from AOCI into earnings - - - Net current period other comprehensive income (10,830) 6 (10,824) Accumulated other comprehensive loss September 30, 2022 $ (11,547) $ (21) $ (11,568) 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”). Under the SBHC Policy Statement, qualifying bank holding companies, such as the Company, have additional flexibility in the amount of debt they can issue and are also exempt from the Basel III capital framework as outlined by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the "Basel III Capital Rules"). The SBHC Policy Statement does not apply to the Bank and the Bank must comply with the Basel III Capital Rules. The Bank is required to comply with the capital adequacy standards established by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC has adopted rules to implement the Basel III Capital Rules. The Basel III Capital Rules establish minimum capital ratios and risk weightings that are applied to many classes of assets held by community banks, including applying higher risk weightings to certain commercial real estate loans. The Basel III Capital Rules require banks to comply with the following minimum capital ratios: (1) a ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (effectively resulting in a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 7%); (2) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%); (3) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%); and (4) a leverage ratio of 4%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures (computed as the average for each quarter of the month-end ratios for the quarter). The capital conservation buffer is designed to absorb losses during periods of economic stress. 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, 2023, 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, 2023, the Bank exceeded the minimum ratios to be classified as well capitalized. The capital amounts and ratios at September 30, 2023 and December 31, 2022 for the Bank are presented in the table below (dollars in thousands): Minimum Capital Requirements Actual Including Conservation Buffer (1) To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Total capital (to risk- weighted assets) Village Bank $ 85,021 14.19 % $ 62,912 10.50 % $ 59,917 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,339 13.58 % 50,929 8.50 % 47,933 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,339 10.74 % 30,280 4.00 % 37,850 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,339 13.58 % 41,942 7.00 % 38,032 6.50 % December 31, 2022 Total capital (to risk- weighted assets) Village Bank $ 84,982 14.81 % $ 60,267 10.50 % $ 57,398 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,612 14.22 % 48,788 8.50 % 45,918 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,612 10.95 % 29,805 4.00 % 37,256 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,612 14.22 % 40,178 7.00 % 37,308 6.50 % (1) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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, 2023 and December 31, 2022, the Company had the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2023 2022 Undisbursed credit lines $ 138,311 $ 119,454 Commitments to extend or originate credit 10,166 9,899 Standby letters of credit 1,164 922 Total commitments to extend credit $ 149,641 $ 130,275 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Historically, 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, 2023 | |
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. September 30, 2023 and 2022. The Company’s IRLCs are classified as Level 2. At September 30, 2023 and December 31, 2022, each IRLC and all LHFS were subject to a forward sales commitment on a best efforts basis. 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, 2023, and totaled $262,000 with a notional amount of $15.6 million and total positions of 60 and was reported in “Other Liabilities” at December 31, 2022, and totaled $207,000, with a notional amount of $12.1 million and total positions of 38. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 16 Recent Accounting Pronouncements In July 2023, the FASB issued ASU 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718)”. This ASU amends the FASB ASC pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. ASU 2023-03 is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2023-03 to have a material impact on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”. ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company does not expect the adoption of ASU 2020-04 to have a material impact on its consolidated financial statements. |
Principles of presentation (Tab
Principles of presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Principles of presentation | |
Schedule of impact of ASC 326 adoption | The following table illustrates the impact of ASC 326 adoption (in thousands): December 31, January 1, January 1, 2022 2023 2023 As Previously Reported Impact of As Reported (Incurred Loss) CECL Adoption Under CECL Assets: Loans Construction and land development Residential $ 79 $ 3 $ 82 Commercial 192 34 226 271 37 308 Commercial real estate Owner occupied 867 (475) 392 Non-owner occupied 1,289 192 1,481 Multifamily 33 7 40 Farmland — — — 2,189 (276) 1,913 Consumer real estate Home equity lines 11 24 35 Secured by 1-4 family residential First deed of trust 131 76 207 Second deed of trust 43 25 68 185 125 310 Commercial and industrial loans (except those secured by real estate) 576 1 577 Student loans 52 — 52 Consumer and other 37 (5) 32 Unallocated 60 (9) 51 Allowance for credit losses 3,370 (127) 3,243 Liabilities Allowance for credit losses on unfunded credit exposure — 277 277 Total Allowance for credit losses $ 3,370 $ 150 $ 3,520 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 (dollars in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator Net income (loss) - basic and diluted $ (2,553) $ 2,153 $ 226 $ 6,143 Denominator Weighted average shares outstanding - basic 1,485 1,476 1,485 1,475 Dilutive effect of common stock options — — — — Weighted average shares outstanding - diluted 1,485 1,476 1,485 1,475 Earnings (Loss) per share - basic $ (1.72) $ 1.46 $ 0.15 $ 4.16 Earnings (Loss) per share - diluted $ (1.72) $ 1.46 $ 0.15 $ 4.16 |
Investment securities availab_2
Investment securities available for sales (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment securities available for sale | |
Schedule of amortized cost and fair value of investment securities available for sale | The amortized cost and fair value of investment securities available for sale as of September 30, 2023 and December 31, 2022 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value September 30, 2023 U.S. Government agency obligations $ 20,755 $ — $ (306) $ 20,449 Mortgage-backed securities 78,767 3 (7,179) 71,591 Municipals 2,265 — (722) 1,543 Subordinated debt 12,446 19 (2,002) 10,463 $ 114,233 $ 22 $ (10,209) $ 104,046 December 31, 2022 U.S. Government agency obligations $ 64,631 $ 5 $ (3,734) $ 60,902 Mortgage-backed securities 69,151 6 (8,597) 60,560 Municipals 2,268 — (718) 1,550 Subordinated debt 11,553 29 (741) 10,841 $ 147,603 $ 40 $ (13,790) $ 133,853 |
Schedule of investment securities available for sale | Investment securities available for sale that have an unrealized loss position at September 30, 2023 and December 31, 2022 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2023 U.S. Government agency obligations $ — $ — $ 20,083 $ (306) $ 20,083 $ (306) Mortgage-backed securities 15,759 (296) 29,660 (6,883) 45,419 (7,179) Municipals — — 1,543 (722) 1,543 (722) Subordinated debt 4,096 (636) 5,685 (1,366) 9,781 (2,002) $ 19,855 $ (932) $ 56,971 $ (9,277) $ 76,826 $ (10,209) December 31, 2022 U.S. Government agency obligations $ 21,848 $ (723) $ 37,256 $ (3,011) $ 59,104 $ (3,734) Mortgage-backed securities 36,089 (3,588) 22,549 (5,009) 58,638 (8,597) Municipals — — 1,549 (718) 1,549 (718) Subordinated debt 5,305 (498) 2,007 (243) 7,312 (741) $ 63,242 $ (4,809) $ 63,361 $ (8,981) $ 126,603 $ (13,790) |
Schedule of investment by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2023, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 19,962 $ 19,681 One to five years 10,797 10,756 Five to ten years 17,446 15,375 More than ten years 66,028 58,234 Total $ 114,233 $ 104,046 |
Loans and allowance for credi_2
Loans and allowance for credit losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and allowance for credit losses | |
Schedule of composition of loan portfolio (excluding mortgage loans held for sale) | Loans classified by type as of September 30, 2023 and December 31, 2022 are as follows (dollars in thousands): September 30, 2023 December 31, 2022 Amount % Amount % Construction and land development Residential $ 8,848 1.56 % $ 9,727 1.81 % Commercial 47,412 8.38 % 35,400 6.57 % 56,260 9.94 % 45,127 8.38 % Commercial real estate Owner occupied 121,652 21.49 % 119,643 22.22 % Non-owner occupied 151,445 26.75 % 153,610 28.53 % Multifamily 12,827 2.27 % 11,291 2.10 % Farmland 357 0.06 % 73 0.01 % 286,281 50.57 % 284,617 52.86 % Consumer real estate Home equity lines 18,299 3.23 % 18,421 3.42 % Secured by 1-4 family residential, First deed of trust 88,182 15.58 % 67,495 12.54 % Second deed of trust 10,533 1.86 % 7,764 1.44 % 117,014 20.67 % 93,680 17.40 % Commercial and industrial loans (except those secured by real estate) 83,045 14.67 % 90,348 16.78 % Guaranteed student loans 18,923 3.34 % 20,617 3.83 % Consumer and other 4,578 0.81 % 4,038 0.75 % Total loans 566,101 100.0 % 538,427 100.0 % Deferred and costs, net 701 588 Less: allowance for credit losses (3,353) (3,370) $ 563,449 $ 535,645 |
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, 2023 2022 Consumer real estate Home equity lines $ — $ 300 Secured by 1-4 family residential First deed of trust 162 164 Second deed of trust 107 171 269 635 Commercial and industrial loans (except those secured by real estate) 30 19 Total loans $ 299 $ 654 |
Schedule of information on the risk rating of loans | The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1 ‑ 4 5 6 7 Loans December 31, 2022 Construction and land development Residential $ 9,727 $ — $ — $ — $ 9,727 Commercial 32,763 2,637 — — 35,400 42,490 2,637 — — 45,127 Commercial real estate Owner occupied 115,825 2,583 1,235 — 119,643 Non-owner occupied 143,458 10,152 — — 153,610 Multifamily 11,291 — — — 11,291 Farmland 73 — — — 73 270,647 12,735 1,235 — 284,617 Consumer real estate Home equity lines 17,507 614 300 — 18,421 Secured by 1-4 family residential First deed of trust 66,616 407 472 — 67,495 Second deed of trust 7,517 72 175 — 7,764 91,640 1,093 947 — 93,680 Commercial and industrial loans (except those secured by real estate) 83,848 6,481 19 — 90,348 Guaranteed student loans 20,617 — — — 20,617 Consumer and other 4,017 — 21 — 4,038 Total loans $ 513,259 $ 22,946 $ 2,222 $ — $ 538,427 |
Schedule of information on the risk rating of loans by period | Revolving- Total 2023 2022 2021 2020 2019 Prior Revolving Term Loans September 30, 2023 Construction and land development Residential Pass $ 4,016 $ 3,948 $ 884 $ — $ — $ — $ — $ — $ 8,848 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Residential $ 4,016 $ 3,948 $ 884 $ — $ — $ — $ — $ — $ 8,848 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Pass 3,390 18,657 14,525 242 — 5,332 5,266 — 47,412 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Commercial $ 3,390 $ 18,657 $ 14,525 $ 242 $ — $ 5,332 $ 5,266 $ — $ 47,412 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Owner occupied Pass 8,415 19,649 26,080 9,994 12,309 41,033 803 — 118,283 Special Mention — 203 — — — — — — 203 Substandard — — — — 1,229 1,937 — — 3,166 Total Owner occupied $ 8,415 $ 19,852 $ 26,080 $ 9,994 $ 13,538 $ 42,970 $ 803 $ — $ 121,652 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Non-owner occupied Pass 6,635 25,782 26,080 23,783 10,026 48,432 3,302 — 144,040 Special Mention — — 2,186 — — 5,219 — — 7,405 Substandard — — — — — — — — — Total Non-owner occupied $ 6,635 $ 25,782 $ 28,266 $ 23,783 $ 10,026 $ 53,651 $ 3,302 $ — $ 151,445 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Multifamily Pass 1,300 — 2,572 554 891 6,198 1,312 — 12,827 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Multifamily $ 1,300 $ — $ 2,572 $ 554 $ 891 $ 6,198 $ 1,312 $ — $ 12,827 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland Pass — — 28 — — 29 300 — 357 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Farmland $ — $ — $ 28 $ — $ — $ 29 $ 300 $ — $ 357 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer real estate Home equity lines Pass — 446 — — — — 17,803 — 18,249 Special Mention — — — — — — 50 — 50 Substandard — — — — — — — — — Total Home equity lines $ — $ 446 $ — $ — $ — $ — $ 17,853 $ — $ 18,299 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Secured by 1-4 family residential First deed of trust Pass 25,854 13,365 15,750 8,672 3,004 18,348 2,125 — 87,118 Special Mention — — — 171 — 731 — — 902 Substandard — — — — — 162 — — 162 Total First deed of trust $ 25,854 $ 13,365 $ 15,750 $ 8,843 $ 3,004 $ 19,241 $ 2,125 $ — $ 88,182 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Second deed of trust Pass 3,475 3,349 1,046 406 1,156 685 195 — 10,312 Special Mention — — — — 45 69 — — 114 Substandard — — — — — 107 — — 107 Total Second deed of trust $ 3,475 $ 3,349 $ 1,046 $ 406 $ 1,201 $ 861 $ 195 $ $ 10,533 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans (except those secured by real estate) Pass 11,947 12,521 16,893 5,982 3,052 4,176 22,219 — 76,790 Special Mention — 4,003 — — 357 — 1,797 — 6,157 Substandard 39 — — — — 15 44 — 98 Total Commercial and industrial $ 11,986 $ 16,524 $ 16,893 $ 5,982 $ 3,409 $ 4,191 $ 24,060 $ — $ 83,045 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Guaranteed student loans Pass — — — — — 18,923 — — 18,923 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total Guaranteed student loans $ — $ — $ — $ — $ — $ 18,923 $ — $ — $ 18,923 Current period gross writeoff $ 7 $ — $ — $ — $ — $ — $ — $ — $ 7 Consumer and other Pass 303 561 144 67 9 14 3,467 — 4,565 Special Mention — — — — 13 — — — 13 Substandard — — — — — — — — — Total Consumer and other $ 303 $ 561 $ 144 $ 67 $ 22 $ 14 $ 3,467 $ $ 4,578 Current period gross writeoff $ — $ — $ — $ — $ — $ — $ — $ — $ — Total Current period gross writeoff $ 7 $ — $ — $ — $ — $ — $ — $ — $ 7 Total loans $ 65,374 $ 102,484 $ 106,188 $ 49,871 $ 32,091 $ 151,410 $ 58,683 $ — $ 566,101 |
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, 2023 Construction and land development Residential $ — $ — $ — $ — $ 8,848 $ 8,848 $ — Commercial — — — — 47,412 47,412 — — — — — 56,260 56,260 — Commercial real estate Owner occupied — — — — 121,652 121,652 — Non-owner occupied — — — — 151,445 151,445 — Multifamily — — — — 12,827 12,827 — Farmland — — — — 357 357 — — — — — 286,281 286,281 — Consumer real estate Home equity lines — 200 — 200 18,099 18,299 — Secured by 1‑4 family residential First deed of trust 69 — — 69 88,113 88,182 — Second deed of trust 33 — — 33 10,500 10,533 — 102 200 — 302 116,712 117,014 — Commercial and industrial loans (except those secured by real estate) — — 47 47 82,998 83,045 47 Guaranteed student loans 783 515 2,398 3,696 15,227 18,923 2,398 Consumer and other 2 — — 2 4,576 4,578 — Total loans $ 887 $ 715 $ 2,445 $ 4,047 $ 562,054 $ 566,101 $ 2,445 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2022 Construction and land development Residential $ — $ — $ — $ — $ 9,727 $ 9,727 $ — Commercial — — — — 35,400 35,400 — — — — — 45,127 45,127 — Commercial real estate Owner occupied — — — — 119,643 119,643 — Non-owner occupied — — — — 153,610 153,610 — Multifamily — — — — 11,291 11,291 — Farmland — — — — 73 73 — — — — — 284,617 284,617 — Consumer real estate Home equity lines — 50 — 50 18,371 18,421 — Secured by 1-4 family residential First deed of trust — — — — 67,495 67,495 — Second deed of trust 54 — — 54 7,710 7,764 — 54 50 — 104 93,576 93,680 — Commercial and industrial loans (except those secured by real estate) 1,022 — 377 1,399 88,949 90,348 — Guaranteed student loans 831 390 1,725 2,946 17,671 20,617 1,725 Consumer and other — — — — 4,038 4,038 — Total loans $ 1,907 $ 440 $ 2,102 $ 4,449 $ 533,978 $ 538,427 $ 1,725 |
Schedule of impaired loans, after ASU 2016-13 | September 30, 2023 December 31, 2022 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial real estate Owner occupied $ 1,714 $ 1,714 $ — $ 4,332 $ 4,347 $ — Non-owner occupied — — — 312 312 — 1,714 1,714 — 4,644 4,659 — Consumer real estate Home equity lines — — — 300 300 — Secured by 1‑4 family residential First deed of trust 162 162 — 1,745 1,745 — Second deed of trust 107 107 — 195 300 — 269 269 — 2,240 2,345 — Commercial and industrial loans (except those secured by real estate) 97 97 — 19 19 — 2,080 2,080 — 6,903 7,023 — With an allowance recorded Commercial real estate Owner occupied — — — 251 251 2 — — — 251 251 2 Consumer real estate Secured by 1-4 family residential First deed of trust — — — 136 136 6 — — — 136 136 6 Consumer and other — — — 21 21 1 — — — 408 408 9 Total Owner occupied 1,714 1,714 — 4,583 4,598 2 Non-owner occupied — — — 312 312 — 1,714 1,714 — 4,895 4,910 2 Consumer real estate Home equity lines — — — 300 300 — Secured by 1-4 family residential, First deed of trust 162 162 — 1,881 1,881 6 Second deed of trust 107 107 — 195 300 — 269 269 — 2,376 2,481 6 Commercial and industrial loans (except those secured by real estate) 97 97 — 19 19 — Consumer and other — — — 21 21 1 $ 2,080 $ 2,080 $ — $ 7,311 $ 7,431 $ 9 |
Schedule of average recorded investment in impaired loans | The following is a summary of average recorded investment in collateral dependent 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, 2023 September 30, 2023 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Commercial real estate Owner occupied $ 1,714 $ 177 $ 2,249 $ 208 Non-owner occupied — — 78 — 1,714 177 2,327 208 Consumer real estate Home equity lines — — 150 — Secured by 1-4 family residential First deed of trust 162 1 565 5 Second deed of trust 108 3 130 4 270 4 845 9 Commercial and industrial loans (except those secured by real estate) 92 7 55 5 2,076 188 3,227 222 With an allowance recorded Commercial real estate Owner occupied — — 63 — — — 63 — — — 63 — Total Commercial real estate Owner occupied 1,714 177 2,312 208 Non-owner occupied — — 78 — 1,714 177 2,390 208 Consumer real estate Home equity lines — — 150 — Secured by 1-4 family residential, First deed of trust 162 1 565 5 Second deed of trust 108 3 130 4 270 4 845 9 Commercial and industrial loans (except those secured by real estate) 92 7 55 5 Consumer and other — — — — $ 2,076 $ 188 $ 3,290 $ 222 |
Schedule of troubled debt restructurings on financing receivables | Specific Valuation Total Performing Nonaccrual Allowance December 31, 2022 Commercial real estate Owner occupied $ 3,348 $ 3,348 $ — $ 2 Non-owner occupied 312 312 — — 3,660 3,660 — 2 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,409 1,409 — 6 Second deeds of trust 75 19 56 — 1,484 1,428 56 6 Commercial and industrial loans (except those secured by real estate) 19 — 19 — $ 5,163 $ 5,088 $ 75 $ 8 Number of loans 24 22 2 3 |
Schedule of activity in the allowance for loan losses | Activity in the allowance for credit losses is as follows for the periods indicated (in thousands): Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2023 Construction and land development Residential $ 61 $ — $ 12 $ — $ — $ 73 Commercial 268 — 24 — — 292 329 — 36 — — 365 Commercial real estate Owner occupied 379 — 18 — — 397 Non-owner occupied 1,376 — 59 — — 1,435 Multifamily 44 — — — — 44 Farmland — — 3 — — 3 1,799 — 80 — — 1,879 Consumer real estate Home equity lines 32 — 2 — — 34 Secured by 1-4 family residential — First deed of trust 245 — 24 — 1 270 Second deed of trust 84 — 3 — 5 92 361 — 29 — 6 396 Commercial and industrial loans (except those secured by real estate) 673 — (223) — 160 610 Student loans 44 — 16 (14) — 46 Consumer and other 34 — 3 (2) — 35 Unallocated 16 — 6 — — 22 $ 3,256 $ — $ (53) $ (16) $ 166 $ 3,353 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2022 Construction and land development Residential $ 57 $ 12 $ — $ — $ 69 Commercial 171 4 — — 175 228 16 — — 244 Commercial real estate Owner occupied 868 7 — — 875 Non-owner occupied 1,267 40 — — 1,307 Multifamily 50 (17) — — 33 Farmland 2 (1) — — 1 2,187 29 — — 2,216 Consumer real estate Home equity lines 12 — — — 12 Secured by 1-4 family residential First deed of trust 114 13 — 2 129 Second deed of trust 49 (11) (27) 27 38 175 2 (27) 29 179 Commercial and industrial loans (except those secured by real estate) 533 201 (157) 5 582 Student loans 60 9 (2) — 67 Consumer and other 45 (7) (1) — 37 Unallocated 195 (150) — — 45 $ 3,423 $ 100 $ (187) $ 34 $ 3,370 Impact of Provision for Beginning adopting (Recovery of) Ending Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2023 Construction and land development Residential $ 79 $ 3 $ (9) $ — $ — $ 73 Commercial 192 34 66 — — 292 271 37 57 — — 365 Commercial real estate Owner occupied 867 (475) 5 — — 397 Non-owner occupied 1,289 192 (46) — — 1,435 Multifamily 33 7 4 — — 44 Farmland — — 3 — — 3 2,189 (276) (34) — — 1,879 Consumer real estate Home equity lines 11 24 (1) — — 34 Secured by 1-4 family residential First deed of trust 131 76 61 — 2 270 Second deed of trust 43 25 13 — 11 92 185 125 73 — 13 396 Commercial and industrial loans (except those secured by real estate) 576 1 (139) — 172 610 Student loans 52 — 15 (21) — 46 Consumer and other 37 (5) 5 (2) — 35 Unallocated 60 (9) (29) — — 22 $ 3,370 $ (127) $ (52) $ (23) $ 185 $ 3,353 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Nine Months Ended September 30, 2022 Construction and land development Residential $ 57 $ 12 $ — $ — $ 69 Commercial 229 (54) — — 175 286 (42) — — 244 Commercial real estate Owner occupied 833 42 — — 875 Non-owner occupied 1,083 224 — — 1,307 Multifamily 35 (2) — — 33 Farmland 2 (1) — — 1 1,953 263 — — 2,216 Consumer real estate Home equity lines 12 (58) — 58 12 Secured by 1-4 family residential First deed of trust 123 2 — 4 129 Second deed of trust 47 (312) (27) 330 38 182 (368) (27) 392 179 Commercial and industrial loans (except those secured by real estate) 486 189 (157) 64 582 Student loans 65 26 (24) — 67 Consumer and other 29 9 (1) — 37 Unallocated 422 (377) — — 45 $ 3,423 $ (300) $ (209) $ 456 $ 3,370 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2022 Construction and land development Residential $ 57 $ 22 $ — $ — $ 79 Commercial 229 (37) — — 192 286 (15) — — 271 Commercial real estate Owner occupied 833 34 — — 867 Non-owner occupied 1,083 206 — — 1,289 Multifamily 35 (2) — — 33 Farmland 2 (2) — — — 1,953 236 — — 2,189 Consumer real estate Home equity lines 12 (59) — 58 11 Secured by 1-4 family residential First deed of trust 123 3 — 5 131 Second deed of trust 47 (311) (27) 334 43 182 (367) (27) 397 185 Commercial and industrial loans (except those secured by real estate) 486 180 (157) 67 576 Student loans 65 18 (31) — 52 Consumer and other 29 10 (2) — 37 Unallocated 422 (362) — — 60 $ 3,423 $ (300) $ (217) $ 464 $ 3,370 |
Schedule of provision for credit losses | The following table presents a breakdown of the provision for credit losses for the periods indicated (in thousands): Three Months Ended September 30, 2023 2022 Provision for credit losses: Provision (recovery) for loans $ (53) $ 100 Provision (recovery) for unfunded commitments 53 — Total $ — $ 100 Nine Months Ended September 30, 2023 2022 Provision for credit losses: Provision (recovery) for loans $ (52) $ (300) Provision (recovery) for unfunded commitments 52 — Total $ — $ (300) |
Schedule of loans evaluated for impairment | Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Nine Months Ended September 30, 2023 Construction and land development Residential $ 73 $ — $ 73 $ 8,848 $ — $ 8,848 Commercial 292 — 292 47,412 — 47,412 365 — 365 56,260 — 56,260 Commercial real estate Owner occupied 397 — 397 121,652 1,714 119,938 Non-owner occupied 1,435 — 1,435 151,445 — 151,445 Multifamily 44 — 44 12,827 — 12,827 Farmland 3 — 3 357 — 357 1,879 — 1,879 286,281 1,714 284,567 Consumer real estate Home equity lines 34 — 34 18,299 — 18,299 Secured by 1-4 family residential First deed of trust 270 — 270 88,182 162 88,020 Second deed of trust 92 — 92 10,533 107 10,426 396 — 396 117,014 269 116,745 Commercial and industrial loans (except those secured by real estate) 610 — 610 83,045 97 82,948 Student loans 46 — 46 18,923 — 18,923 Consumer and other 57 — 57 4,578 — 4,578 $ 3,353 $ — $ 3,353 $ 566,101 $ 2,080 $ 564,021 Year Ended December 31, 2022 Construction and land development Residential $ 79 $ — $ 79 $ 9,727 $ — $ 9,727 Commercial 192 — 192 35,400 — 35,400 271 — 271 45,127 — 45,127 Commercial real estate Owner occupied 867 2 865 119,643 4,583 115,060 Non-owner occupied 1,289 — 1,289 153,610 312 153,298 Multifamily 33 — 33 11,291 — 11,291 Farmland — — — 73 — 73 2,189 2 2,187 284,617 4,895 279,722 Consumer real estate Home equity lines 11 — 11 18,421 300 18,121 Secured by 1-4 family residential — First deed of trust 131 6 125 67,495 1,881 65,614 Second deed of trust 43 — 43 7,764 195 7,569 185 6 179 93,680 2,376 91,304 Commercial and industrial loans (except those secured by real estate) 576 — 576 90,348 19 90,329 Student loans 52 — 52 20,617 — 20,617 Consumer and other 97 1 96 4,038 21 4,017 $ 3,370 $ 9 $ 3,361 $ 538,427 $ 7,311 $ 531,116 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Schedule of deposits | Deposits as of September 30, 2023 and December 31, 2022 were as follows (dollars in thousands): September 30, 2023 December 31, 2022 Amount % Amount % Demand accounts $ 243,390 38.8 % $ 255,236 40.9 % Interest checking accounts 81,779 13.0 % 90,252 14.4 % Money market accounts 210,439 33.6 % 179,036 28.6 % Savings accounts 42,367 6.8 % 55,695 8.9 % Time deposits of $250,000 and over 11,813 1.9 % 4,740 0.8 % Other time deposits 36,986 5.9 % 39,784 6.4 % Total $ 626,774 100.0 % $ 624,743 100.0 % |
Stock incentive plan (Tables)
Stock incentive plan (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock incentive plan | |
Schedule of options outstanding under company's stock incentive plan | The following table summarizes option activity under the Company's stock incentive plans during the indicated periods: Nine Months Ended September 30, 2023 2022 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 14 $ 25.28 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — $ — (345) 25.50 9.76 Options outstanding, end of period 14 $ 25.28 $ 9.76 $ — 389 $ 25.74 $ 9.76 $ — Options exercisable, end of period 14 389 |
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, 2023 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2022 28,296 $ 46.60 $ 1,290,298 Granted 370 52.00 16,872 Vested (8,221) 30.60 (374,878) Forfeited — — — Other (1) 1,485 29.00 67,716 September 30, 2023 21,930 $ 51.50 $ 1,000,008 (1) Represents the incremental increase in shares that vested based on the restricted stock units vesting at the maximum potential value as opposed to the targeted value of the award. |
Fair value (Tables)
Fair value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair value | |
Schedule of recurring and Non recurring basis | Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (in thousands): Fair Value Measurement at September 30, 2023 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring U.S. Government Agencies $ 20,449 $ — $ 20,449 $ — Mortgage-backed securities 71,591 — 71,591 — Municipals 1,543 — 1,543 — Subordinated debt 10,463 — 9,963 500 Loans held for sale 5,425 — 5,425 — IRLC 183 — 183 — Financial Liabilities - Recurring Forward sales commitment 262 — 262 — Fair Value Measurement at December 31, 2022 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring U.S. Government Agencies $ 60,902 $ — $ 60,902 $ — Mortgage-backed securities 60,560 — 60,560 — Municipals 1,550 — 1,550 — Subordinated debt 10,841 — 8,841 2,000 Loans held for sale 2,268 — 2,268 — IRLC 142 — 142 — Financial Liabilities - Recurring Forward sales commitment 207 — 207 — |
Schedule of company's financial instruments whether or not recognized | September 30, December 31, 2023 2022 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value Financial assets Cash Level 1 $ 14,055 $ 14,055 $ 12,062 $ 12,062 Cash equivalents Level 2 5,276 5,276 4,616 4,616 Investment securities available for sale Level 2 103,546 103,546 131,853 131,853 Investment securities available for sale Level 3 500 500 2,000 2,000 Federal Home Loan Bank stock Level 2 1,447 1,447 1,223 1,223 Loans held for sale Level 2 5,425 5,425 2,268 2,268 Loans Level 3 566,101 535,409 538,427 521,150 Bank owned life insurance Level 2 13,031 13,031 12,798 12,798 Accrued interest receivable Level 2 3,536 3,536 3,651 3,651 Interest rate lock commitments Level 2 183 183 142 142 Financial liabilities Deposits Level 2 626,774 626,916 624,743 625,037 FHLB borrowings Level 2 20,000 19,740 20,000 20,000 Trust preferred securities Level 2 8,764 8,926 8,764 7,066 Other borrowings Level 2 5,700 5,700 5,692 5,692 Accrued interest payable Level 2 213 213 70 70 Forward sales commitment Level 2 262 262 207 207 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting | |
Schedule of segment information | The following table presents segment information as of and for the three and nine months ended September 30, 2023 and 2022 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2023 Revenues Interest income $ 8,334 $ 128 $ — $ 8,462 Mortgage banking income, net — 570 (81) 489 Other revenues 871 — (43) 828 Total revenues 9,205 698 (124) 9,779 Expenses Recovery of provision for credit losses — — — — Interest expense 2,348 — — 2,348 Salaries and benefits 2,611 699 — 3,310 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 2,279 287 (124) 2,442 Total operating expenses 12,224 986 (124) 13,086 Loss before income taxes (3,019) (288) — (3,307) Income tax benefit (693) (61) — (754) Net loss $ (2,326) $ (227) $ — $ (2,553) Total assets $ 738,452 $ 17,151 $ (28,099) $ 727,504 — Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended September 30, 2022 Revenues Interest income $ 6,885 $ 70 $ — $ 6,955 Mortgage banking income, net — 999 (26) 973 Other revenues 822 — (45) 777 Total revenues 7,707 1,069 (71) 8,705 Expenses Recovery of provision for loan losses 100 — — 100 Interest expense 420 — — 420 Salaries and benefits 2,646 800 — 3,446 Other expenses 1,853 296 (71) 2,078 Total operating expenses 5,019 1,096 (71) 6,044 Income (loss) before income taxes 2,688 (27) — 2,661 Income tax expense (benefit) 514 (6) — 508 Net income (loss) $ 2,174 $ (21) $ — $ 2,153 Total assets $ 755,071 $ 18,281 $ (30,649) $ 742,703 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2023 Revenues Interest income $ 23,876 $ 268 $ — $ 24,144 Mortgage banking income, net — 1,718 (365) 1,353 Other revenues 2,572 — (130) 2,442 Total revenues 26,448 1,986 (495) 27,939 Expenses Recovery of provision for credit losses — — — — Interest expense 5,541 — — 5,541 Salaries and benefits 8,048 2,125 — 10,173 Loss on sale of investment securities, net 4,986 — — 4,986 Other expenses 6,809 854 (495) 7,168 Total operating expenses 25,384 2,979 (495) 27,868 Income (loss) before income taxes 1,064 (993) — 71 Income tax expense (benefit) 54 (209) — (155) Net income (loss) $ 1,010 $ (784) $ — $ 226 Total assets $ 738,452 $ 17,151 $ (28,099) $ 727,504 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Nine Months Ended September 30, 2022 Revenues Interest income $ 19,762 $ 192 $ — $ 19,954 Mortgage banking income, net — 3,026 (84) 2,942 Other revenues 2,510 — (64) 2,446 Total revenues 22,272 3,218 (148) 25,342 Expenses Recovery of provision for loan losses (300) — — (300) Interest expense 1,238 — — 1,238 Salaries and benefits 7,900 2,494 — 10,394 Other expenses 5,610 935 (148) 6,397 Total operating expenses 14,448 3,429 (148) 17,729 Income (loss) before income taxes 7,824 (211) — 7,613 Income tax expense (benefit) 1,514 (44) — 1,470 Net income (loss) $ 6,310 $ (167) $ — $ 6,143 Total assets $ 755,071 $ 18,281 $ (30,649) $ 742,703 |
Shareholders' Equity and Regu_2
Shareholders' Equity and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity and Regulatory Matters | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the change in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022 and is summarized as follows, net of tax (dollars in thousands): Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss June 30, 2023 $ (10,417) $ (14) $ (10,431) Other comprehensive (loss) income Other comprehensive loss before reclassification (1,570) 2 (1,568) Amounts reclassifed from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 2,369 2 2,371 Accumulated other comprehensive loss September 30, 2023 $ (8,048) $ (12) $ (8,060) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2022 $ (10,863) $ (18) $ (10,881) Other comprehensive (loss) income Other comprehensive loss before reclassification (1,124) 6 (1,118) Amounts reclassifed from AOCI into earnings 3,939 - 3,939 Net current period other comprehensive income 2,815 6 2,821 Accumulated other comprehensive loss September 30, 2023 $ (8,048) $ (12) $ (8,060) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss June 30, 2022 $ (7,856) $ (23) $ (7,879) Other comprehensive (loss) income Other comprehensive loss before reclassification (3,691) 2 (3,689) Amounts reclassifed from AOCI into earnings - - - Net current period other comprehensive income (3,691) 2 (3,689) Accumulated other comprehensive loss September 30, 2022 $ (11,547) $ (21) $ (11,568) Unrealized Defined (Losses on AFS Benefit Securities Plan Total Accumulated other comprehensive loss December 31, 2021 $ (717) $ (27) $ (744) Other comprehensive (loss) income Other comprehensive loss before reclassification (10,830) 6 (10,824) Amounts reclassifed from AOCI into earnings - - - Net current period other comprehensive income (10,830) 6 (10,824) Accumulated other comprehensive loss September 30, 2022 $ (11,547) $ (21) $ (11,568) |
Schedule of capital amounts and ratios | The capital amounts and ratios at September 30, 2023 and December 31, 2022 for the Bank are presented in the table below (dollars in thousands): Minimum Capital Requirements Actual Including Conservation Buffer (1) To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2023 Total capital (to risk- weighted assets) Village Bank $ 85,021 14.19 % $ 62,912 10.50 % $ 59,917 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,339 13.58 % 50,929 8.50 % 47,933 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,339 10.74 % 30,280 4.00 % 37,850 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,339 13.58 % 41,942 7.00 % 38,032 6.50 % December 31, 2022 Total capital (to risk- weighted assets) Village Bank $ 84,982 14.81 % $ 60,267 10.50 % $ 57,398 10.00 % Tier 1 capital (to risk- weighted assets) Village Bank 81,612 14.22 % 48,788 8.50 % 45,918 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 81,612 10.95 % 29,805 4.00 % 37,256 5.00 % Common equity tier 1 (to risk- weighted assets) Village Bank 81,612 14.22 % 40,178 7.00 % 37,308 6.50 % (1) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and contingencies | |
Schedule of off balance sheet financial instruments | At September 30, 2023 and December 31, 2022, the Company had the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): September 30, December 31, 2023 2022 Undisbursed credit lines $ 138,311 $ 119,454 Commitments to extend or originate credit 10,166 9,899 Standby letters of credit 1,164 922 Total commitments to extend credit $ 149,641 $ 130,275 |
Principles of presentation - Im
Principles of presentation - Impact of ASC 326 (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for credit losses | $ 3,370,000 | $ 3,370,000 | $ 3,423,000 | $ 3,423,000 | |||
Total Allowance for credit losses | $ 3,353,000 | $ 3,256,000 | |||||
Allowance for credit losses on unfunded credit exposure | 329,000 | ||||||
Total Allowance for credit losses | 3,680,000 | ||||||
Retained earnings | 10,352,000 | 10,957,000 | |||||
Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 127,000 | ||||||
Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | $ (127,000) | ||||||
Allowance for credit losses on unfunded credit exposure | 277,000 | ||||||
Total Allowance for credit losses | 150,000 | ||||||
Retained earnings | (119,000) | ||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 3,243,000 | ||||||
Allowance for credit losses on unfunded credit exposure | 277,000 | ||||||
Total Allowance for credit losses | 3,520,000 | ||||||
Accounting Standards Update 2022-02 | |||||||
Allowance for credit loss on financing receivable, non-collateral dependent troubled debt restructuring loans | (8,000) | ||||||
Construction and land development | |||||||
Allowance for credit losses | 271,000 | 244,000 | 228,000 | 286,000 | |||
Total Allowance for credit losses | 365,000 | 329,000 | |||||
Construction and land development | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (37,000) | ||||||
Construction and land development | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 37,000 | ||||||
Construction and land development | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 308,000 | ||||||
Construction and land development | Residential | |||||||
Allowance for credit losses | 79,000 | 69,000 | 57,000 | 57,000 | |||
Total Allowance for credit losses | 73,000 | 61,000 | |||||
Construction and land development | Residential | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (3,000) | ||||||
Construction and land development | Residential | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 3,000 | ||||||
Construction and land development | Residential | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 82,000 | ||||||
Construction and land development | Commercial | |||||||
Allowance for credit losses | 192,000 | 175,000 | 171,000 | 229,000 | |||
Total Allowance for credit losses | 292,000 | 268,000 | |||||
Construction and land development | Commercial | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (34,000) | ||||||
Construction and land development | Commercial | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 34,000 | ||||||
Construction and land development | Commercial | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 226,000 | ||||||
Commercial real estate | |||||||
Allowance for credit losses | 2,189,000 | 2,216,000 | 2,187,000 | 1,953,000 | |||
Total Allowance for credit losses | 1,879,000 | 1,799,000 | |||||
Commercial real estate | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 276,000 | ||||||
Commercial real estate | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (276,000) | ||||||
Commercial real estate | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 1,913,000 | ||||||
Commercial real estate | Owner occupied | |||||||
Allowance for credit losses | 867,000 | 875,000 | 868,000 | 833,000 | |||
Total Allowance for credit losses | 397,000 | 379,000 | |||||
Commercial real estate | Owner occupied | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 475,000 | ||||||
Commercial real estate | Owner occupied | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (475,000) | ||||||
Commercial real estate | Owner occupied | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 392,000 | ||||||
Commercial real estate | Non-owner occupied | |||||||
Allowance for credit losses | 1,289,000 | 1,307,000 | 1,267,000 | 1,083,000 | |||
Total Allowance for credit losses | 1,435,000 | 1,376,000 | |||||
Commercial real estate | Non-owner occupied | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (192,000) | ||||||
Commercial real estate | Non-owner occupied | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 192,000 | ||||||
Commercial real estate | Non-owner occupied | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 1,481,000 | ||||||
Commercial real estate | Multifamily | |||||||
Allowance for credit losses | 33,000 | 33,000 | 50,000 | 35,000 | |||
Total Allowance for credit losses | 44,000 | 44,000 | |||||
Commercial real estate | Multifamily | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (7,000) | ||||||
Commercial real estate | Multifamily | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 7,000 | ||||||
Commercial real estate | Multifamily | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 40,000 | ||||||
Commercial real estate | Farmland | |||||||
Allowance for credit losses | 1,000 | 2,000 | 2,000 | ||||
Total Allowance for credit losses | 3,000 | ||||||
Consumer real estate secured by 1-4 family residential | |||||||
Allowance for credit losses | 185,000 | 179,000 | 175,000 | 182,000 | |||
Total Allowance for credit losses | 396,000 | 361,000 | |||||
Consumer real estate secured by 1-4 family residential | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (125,000) | ||||||
Consumer real estate secured by 1-4 family residential | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 125,000 | ||||||
Consumer real estate secured by 1-4 family residential | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 310,000 | ||||||
Consumer real estate secured by 1-4 family residential | Home equity lines | |||||||
Allowance for credit losses | 11,000 | 12,000 | 12,000 | 12,000 | |||
Total Allowance for credit losses | 34,000 | 32,000 | |||||
Consumer real estate secured by 1-4 family residential | Home equity lines | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (24,000) | ||||||
Consumer real estate secured by 1-4 family residential | Home equity lines | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 24,000 | ||||||
Consumer real estate secured by 1-4 family residential | Home equity lines | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 35,000 | ||||||
Consumer real estate secured by 1-4 family residential | First deed of trust | |||||||
Allowance for credit losses | 131,000 | 129,000 | 114,000 | 123,000 | |||
Total Allowance for credit losses | 270,000 | 245,000 | |||||
Consumer real estate secured by 1-4 family residential | First deed of trust | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (76,000) | ||||||
Consumer real estate secured by 1-4 family residential | First deed of trust | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 76,000 | ||||||
Consumer real estate secured by 1-4 family residential | First deed of trust | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 207,000 | ||||||
Consumer real estate secured by 1-4 family residential | Second deed of trust | |||||||
Allowance for credit losses | 43,000 | 38,000 | 49,000 | 47,000 | |||
Total Allowance for credit losses | 92,000 | 84,000 | |||||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (25,000) | ||||||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 25,000 | ||||||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 68,000 | ||||||
Consumer real estate secured by 1-4 family residential | Consumer and other | |||||||
Allowance for credit losses | 97,000 | ||||||
Total Allowance for credit losses | 57,000 | ||||||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | |||||||
Allowance for credit losses | 576,000 | 582,000 | 533,000 | 486,000 | |||
Total Allowance for credit losses | 610,000 | 673,000 | |||||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (1,000) | ||||||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 1,000 | ||||||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 577,000 | ||||||
Commercial and industrial loans | Guaranteed student loans | |||||||
Allowance for credit losses | 52,000 | 67,000 | 60,000 | 65,000 | |||
Total Allowance for credit losses | 46,000 | 44,000 | |||||
Commercial and industrial loans | Guaranteed student loans | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 52,000 | ||||||
Commercial and industrial loans | Consumer and other | |||||||
Allowance for credit losses | 37,000 | 37,000 | 45,000 | 29,000 | |||
Total Allowance for credit losses | 35,000 | 34,000 | |||||
Commercial and industrial loans | Consumer and other | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | 5,000 | ||||||
Commercial and industrial loans | Consumer and other | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (5,000) | ||||||
Commercial and industrial loans | Consumer and other | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | 32,000 | ||||||
Commercial and industrial loans | Unallocated | |||||||
Allowance for credit losses | $ 60,000 | $ 45,000 | $ 195,000 | $ 422,000 | |||
Total Allowance for credit losses | 22,000 | $ 16,000 | |||||
Commercial and industrial loans | Unallocated | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | $ 9,000 | ||||||
Commercial and industrial loans | Unallocated | Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||
Total Allowance for credit losses | (9,000) | ||||||
Commercial and industrial loans | Unallocated | Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||
Total Allowance for credit losses | $ 51,000 |
Earnings per common share (Deta
Earnings per common share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income (loss) - basic and diluted | $ (2,553) | $ 2,153 | $ 226 | $ 6,143 |
Denominator | ||||
Weighted average shares outstanding - basic ( in shares) | 1,485 | 1,476 | 1,485 | 1,475 |
Weighted average shares outstanding - diluted (in shares) | 1,485 | 1,476 | 1,485 | 1,475 |
Earnings (Loss) per share - basic (in dollars per share) | $ (1.72) | $ 1.46 | $ 0.15 | $ 4.16 |
Earnings (Loss) per share - diluted (in dollars per share) | $ (1.72) | $ 1.46 | $ 0.15 | $ 4.16 |
Earnings per common share - Add
Earnings per common share - Additional Information (Details) - shares | Sep. 30, 2023 | Sep. 30, 2022 |
Earnings per common share | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 10,658 | 5,514 |
Investment securities availab_3
Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 114,233 | $ 147,603 |
Gross Unrealized Gains | 22 | 40 |
Gross Unrealized Losses | (10,209) | (13,790) |
Fair Value | 104,046 | 133,853 |
U.S. Government agencies obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,755 | 64,631 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (306) | (3,734) |
Fair Value | 20,449 | 60,902 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 78,767 | 69,151 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | (7,179) | (8,597) |
Fair Value | 71,591 | 60,560 |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,265 | 2,268 |
Gross Unrealized Losses | (722) | (718) |
Fair Value | 1,543 | 1,550 |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,446 | 11,553 |
Gross Unrealized Gains | 19 | 29 |
Gross Unrealized Losses | (2,002) | (741) |
Fair Value | $ 10,463 | $ 10,841 |
Investment securities availab_4
Investment securities available for sale - Summary of investment securities available for sale having fair value and unrealized loss position (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | $ 63,242,000 | $ 19,855,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (4,809,000) | (932,000) |
Securities in a loss position for more than 12 Months, Fair Value | 63,361,000 | 56,971,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (8,981,000) | (9,277,000) |
Total Fair Value | 126,603,000 | 76,826,000 |
Total Unrealized Losses | (13,790,000) | (10,209,000) |
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 | 21,848,000 | |
Securities in a loss position for less than 12 Months, Unrealized Losses | (723,000) | |
Securities in a loss position for more than 12 Months, Fair Value | 37,256,000 | 20,083,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (3,011,000) | (306,000) |
Total Fair Value | 59,104,000 | 20,083,000 |
Total Unrealized Losses | (3,734,000) | (306,000) |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 36,089,000 | 15,759,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (3,588,000) | (296,000) |
Securities in a loss position for more than 12 Months, Fair Value | 22,549,000 | 29,660,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (5,009,000) | (6,883,000) |
Total Fair Value | 58,638,000 | 45,419,000 |
Total Unrealized Losses | (8,597,000) | (7,179,000) |
Municipals | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for more than 12 Months, Fair Value | 1,549,000 | 1,543,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (718,000) | (722,000) |
Total Fair Value | 1,549,000 | 1,543,000 |
Total Unrealized Losses | (718,000) | (722,000) |
Subordinated debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 5,305,000 | 4,096,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (498,000) | (636,000) |
Securities in a loss position for more than 12 Months, Fair Value | 2,007,000 | 5,685,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (243,000) | (1,366,000) |
Total Fair Value | 7,312,000 | 9,781,000 |
Total Unrealized Losses | $ (741,000) | $ (2,002,000) |
Investment securities availab_5
Investment securities available for sale - Summary of amortized cost and estimated fair value of investment securities available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Less than one year | $ 19,962 | |
One to five years | 10,797 | |
Five to ten years | 17,446 | |
More than ten years | 66,028 | |
Total | 114,233 | |
Fair Value | ||
Less than one year | 19,681 | |
One to five years | 10,756 | |
Five to ten years | 15,375 | |
More than ten years | 58,234 | |
Total | $ 104,046 | $ 133,853 |
Investment securities availab_6
Investment securities available for sale - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) item | Dec. 31, 2022 USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | $ 114,233,000 | $ 114,233,000 | $ 147,603,000 | ||
Proceeds from the sale of available-for-sale securities | $ 0 | $ 50,079,000 | $ 0 | ||
Weighted average yield | 1.48% | 1.48% | |||
Loss on sale of investment securities, net | $ (4,986,000) | $ (4,986,000) | |||
Reduction of FHLB borrowings | $ 15,000,000 | ||||
FLBH Borrowings rate | 5.57% | 5.57% | |||
Number of positions, Total months | item | 62 | 62 | |||
Total Fair Value | $ 76,826,000 | $ 76,826,000 | 126,603,000 | ||
Total Unrealized Losses | $ 10,209,000 | $ 10,209,000 | 13,790,000 | ||
FHLB advances | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | $ 5,613,000 | ||||
Securities Sold, Available For Sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | $ 55,195,000 | $ 55,195,000 | |||
Securities Sold, Reinvested, Available For Sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Weighted average yield | 5.48% | 5.48% | |||
Duration of reinvested proceeds | 3 years 5 months 26 days | ||||
Weighted average life of reinvested proceeds | 5 years |
Loans and allowance for credi_3
Loans and allowance for credit losses - Classified by type (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 538,427 | |||||
Deferred (fees) and costs, net | 588 | |||||
Less: allowance for loan losses | (3,370) | $ (3,370) | $ (3,423) | $ (3,423) | ||
Total loans, net | $ 535,645 | |||||
Percentage of class of loans to loan portfolio (in percent) | 100% | 100% | ||||
Loans | ||||||
Total loans | $ 566,101 | |||||
Deferred (fees) and costs, net | 701 | |||||
Less: allowance for credit losses | (3,353) | $ (3,256) | ||||
Total loans, net | $ 563,449 | |||||
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 45,127 | |||||
Less: allowance for loan losses | $ (271) | (244) | (228) | (286) | ||
Percentage of class of loans to loan portfolio (in percent) | 9.94% | 8.38% | ||||
Loans | ||||||
Total loans | $ 56,260 | |||||
Less: allowance for credit losses | $ (365) | (329) | ||||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 284,617 | |||||
Less: allowance for loan losses | $ (2,189) | (2,216) | (2,187) | (1,953) | ||
Percentage of class of loans to loan portfolio (in percent) | 50.57% | 52.86% | ||||
Loans | ||||||
Total loans | $ 286,281 | |||||
Less: allowance for credit losses | $ (1,879) | (1,799) | ||||
Consumer real estate secured by 1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 93,680 | |||||
Less: allowance for loan losses | $ (185) | (179) | (175) | (182) | ||
Percentage of class of loans to loan portfolio (in percent) | 20.67% | 17.40% | ||||
Loans | ||||||
Total loans | $ 117,014 | |||||
Less: allowance for credit losses | $ (396) | (361) | ||||
Residential | Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 9,727 | |||||
Less: allowance for loan losses | $ (79) | (69) | (57) | (57) | ||
Percentage of class of loans to loan portfolio (in percent) | 1.56% | 1.81% | ||||
Loans | ||||||
Total loans | $ 8,848 | |||||
Less: allowance for credit losses | $ (73) | (61) | ||||
Commercial | Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 35,400 | |||||
Less: allowance for loan losses | $ (192) | (175) | (171) | (229) | ||
Percentage of class of loans to loan portfolio (in percent) | 8.38% | 6.57% | ||||
Loans | ||||||
Total loans | $ 47,412 | |||||
Less: allowance for credit losses | $ (292) | (268) | ||||
Owner occupied | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 119,643 | |||||
Less: allowance for loan losses | $ (867) | (875) | (868) | (833) | ||
Percentage of class of loans to loan portfolio (in percent) | 21.49% | 22.22% | ||||
Loans | ||||||
Total loans | $ 121,652 | |||||
Less: allowance for credit losses | $ (397) | (379) | ||||
Non-owner occupied | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 153,610 | |||||
Less: allowance for loan losses | $ (1,289) | (1,307) | (1,267) | (1,083) | ||
Percentage of class of loans to loan portfolio (in percent) | 26.75% | 28.53% | ||||
Loans | ||||||
Total loans | $ 151,445 | |||||
Less: allowance for credit losses | $ (1,435) | (1,376) | ||||
Multifamily | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 11,291 | |||||
Less: allowance for loan losses | $ (33) | (33) | (50) | (35) | ||
Percentage of class of loans to loan portfolio (in percent) | 2.27% | 2.10% | ||||
Loans | ||||||
Total loans | $ 12,827 | |||||
Less: allowance for credit losses | $ (44) | (44) | ||||
Farmland | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 73 | |||||
Less: allowance for loan losses | (1) | (2) | (2) | |||
Percentage of class of loans to loan portfolio (in percent) | 0.06% | 0.01% | ||||
Loans | ||||||
Total loans | $ 357 | |||||
Less: allowance for credit losses | $ (3) | |||||
Home equity lines | Consumer real estate secured by 1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 18,421 | |||||
Less: allowance for loan losses | $ (11) | (12) | (12) | (12) | ||
Percentage of class of loans to loan portfolio (in percent) | 3.23% | 3.42% | ||||
Loans | ||||||
Total loans | $ 18,299 | |||||
Less: allowance for credit losses | $ (34) | (32) | ||||
First deed of trust | Consumer real estate secured by 1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 67,495 | |||||
Less: allowance for loan losses | $ (131) | (129) | (114) | (123) | ||
Percentage of class of loans to loan portfolio (in percent) | 15.58% | 12.54% | ||||
Loans | ||||||
Total loans | $ 88,182 | |||||
Less: allowance for credit losses | $ (270) | (245) | ||||
Second deed of trust | Consumer real estate secured by 1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 7,764 | |||||
Less: allowance for loan losses | $ (43) | (38) | (49) | (47) | ||
Percentage of class of loans to loan portfolio (in percent) | 1.86% | 1.44% | ||||
Loans | ||||||
Total loans | $ 10,533 | |||||
Less: allowance for credit losses | $ (92) | (84) | ||||
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 90,348 | |||||
Less: allowance for loan losses | $ (576) | (582) | (533) | (486) | ||
Percentage of class of loans to loan portfolio (in percent) | 14.67% | 16.78% | ||||
Loans | ||||||
Total loans | $ 83,045 | |||||
Less: allowance for credit losses | $ (610) | (673) | ||||
Guaranteed student loans | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 20,617 | |||||
Less: allowance for loan losses | $ (52) | (67) | (60) | (65) | ||
Percentage of class of loans to loan portfolio (in percent) | 3.34% | 3.83% | ||||
Loans | ||||||
Total loans | $ 18,923 | |||||
Less: allowance for credit losses | (46) | (44) | ||||
Consumer and other | Consumer real estate secured by 1-4 family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 4,038 | |||||
Less: allowance for loan losses | (97) | |||||
Loans | ||||||
Total loans | 4,578 | |||||
Less: allowance for credit losses | $ (57) | |||||
Consumer and other | Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 4,038 | |||||
Less: allowance for loan losses | $ (37) | $ (37) | $ (45) | $ (29) | ||
Percentage of class of loans to loan portfolio (in percent) | 0.81% | 0.75% | ||||
Loans | ||||||
Total loans | $ 4,578 | |||||
Less: allowance for credit losses | $ (35) | $ (34) |
Loans and allowance for credi_4
Loans and allowance for credit losses - Information on nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 299 | $ 654 |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 269 | 635 |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 300 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 162 | 164 |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 107 | 171 |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | $ 30 | $ 19 |
Loans and allowance for credi_5
Loans and allowance for credit losses - Information on the risk rating of loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 538,427 | |
Total loans | $ 566,101 | |
Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 513,259 | |
Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22,946 | |
Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,222 | |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 45,127 | |
Total loans | 56,260 | |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,727 | |
Total loans | 8,848 | |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 35,400 | |
Total loans | 47,412 | |
Construction and land development | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 42,490 | |
Construction and land development | Risk Rated 1-4 | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,727 | |
Construction and land development | Risk Rated 1-4 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,763 | |
Construction and land development | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637 | |
Construction and land development | Risk Rated 5 | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,637 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 284,617 | |
Total loans | 286,281 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 119,643 | |
Total loans | 121,652 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 153,610 | |
Total loans | 151,445 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,291 | |
Total loans | 12,827 | |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73 | |
Total loans | 357 | |
Commercial real estate | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 270,647 | |
Commercial real estate | Risk Rated 1-4 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 115,825 | |
Commercial real estate | Risk Rated 1-4 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 143,458 | |
Commercial real estate | Risk Rated 1-4 | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,291 | |
Commercial real estate | Risk Rated 1-4 | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 73 | |
Commercial real estate | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,735 | |
Commercial real estate | Risk Rated 5 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,583 | |
Commercial real estate | Risk Rated 5 | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,152 | |
Commercial real estate | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,235 | |
Commercial real estate | Risk Rated 6 | Owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,235 | |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 93,680 | |
Total loans | 117,014 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,421 | |
Total loans | 18,299 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 67,495 | |
Total loans | 88,182 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,764 | |
Total loans | 10,533 | |
Consumer real estate secured by 1-4 family residential | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,038 | |
Total loans | 4,578 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 91,640 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,507 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 66,616 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 1-4 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,517 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,093 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 614 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 407 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 5 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 72 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 947 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | Home equity lines | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | First deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 472 | |
Consumer real estate secured by 1-4 family residential | Risk Rated 6 | Second deed of trust | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 175 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 90,348 | |
Total loans | 83,045 | |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,617 | |
Total loans | 18,923 | |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,038 | |
Total loans | $ 4,578 | |
Commercial and industrial loans | Risk Rated 1-4 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 83,848 | |
Commercial and industrial loans | Risk Rated 1-4 | Guaranteed student loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,617 | |
Commercial and industrial loans | Risk Rated 1-4 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,017 | |
Commercial and industrial loans | Risk Rated 5 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,481 | |
Commercial and industrial loans | Risk Rated 6 | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19 | |
Commercial and industrial loans | Risk Rated 6 | Consumer and other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 21 |
Loans and allowance for credi_6
Loans and allowance for credit losses - Risk category of loans (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | $ 65,374 |
2022 | 102,484 |
2021 | 106,188 |
2020 | 49,871 |
2019 | 32,091 |
Prior | 151,410 |
Revolving | 58,683 |
Total loans | 566,101 |
Current-period gross write-offs | |
2023 | 7 |
Total Current period gross writeoff | 7 |
Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 56,260 |
Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 286,281 |
Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 117,014 |
Residential | Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 4,016 |
2022 | 3,948 |
2021 | 884 |
Total loans | 8,848 |
Residential | Construction and land development | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 4,016 |
2022 | 3,948 |
2021 | 884 |
Total loans | 8,848 |
Commercial | Construction and land development | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 3,390 |
2022 | 18,657 |
2021 | 14,525 |
2020 | 242 |
Prior | 5,332 |
Revolving | 5,266 |
Total loans | 47,412 |
Commercial | Construction and land development | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 3,390 |
2022 | 18,657 |
2021 | 14,525 |
2020 | 242 |
Prior | 5,332 |
Revolving | 5,266 |
Total loans | 47,412 |
Owner occupied | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 8,415 |
2022 | 19,852 |
2021 | 26,080 |
2020 | 9,994 |
2019 | 13,538 |
Prior | 42,970 |
Revolving | 803 |
Total loans | 121,652 |
Owner occupied | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 8,415 |
2022 | 19,649 |
2021 | 26,080 |
2020 | 9,994 |
2019 | 12,309 |
Prior | 41,033 |
Revolving | 803 |
Total loans | 118,283 |
Owner occupied | Commercial real estate | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 203 |
Total loans | 203 |
Owner occupied | Commercial real estate | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2019 | 1,229 |
Prior | 1,937 |
Total loans | 3,166 |
Non-owner occupied | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 6,635 |
2022 | 25,782 |
2021 | 28,266 |
2020 | 23,783 |
2019 | 10,026 |
Prior | 53,651 |
Revolving | 3,302 |
Total loans | 151,445 |
Non-owner occupied | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 6,635 |
2022 | 25,782 |
2021 | 26,080 |
2020 | 23,783 |
2019 | 10,026 |
Prior | 48,432 |
Revolving | 3,302 |
Total loans | 144,040 |
Non-owner occupied | Commercial real estate | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | 2,186 |
Prior | 5,219 |
Total loans | 7,405 |
Multifamily | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 1,300 |
2021 | 2,572 |
2020 | 554 |
2019 | 891 |
Prior | 6,198 |
Revolving | 1,312 |
Total loans | 12,827 |
Multifamily | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 1,300 |
2021 | 2,572 |
2020 | 554 |
2019 | 891 |
Prior | 6,198 |
Revolving | 1,312 |
Total loans | 12,827 |
Farmland | Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | 28 |
Prior | 29 |
Revolving | 300 |
Total loans | 357 |
Farmland | Commercial real estate | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2021 | 28 |
Prior | 29 |
Revolving | 300 |
Total loans | 357 |
Home equity lines | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 446 |
Revolving | 17,853 |
Total loans | 18,299 |
Home equity lines | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 446 |
Revolving | 17,803 |
Total loans | 18,249 |
Home equity lines | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Revolving | 50 |
Total loans | 50 |
First deed of trust | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 25,854 |
2022 | 13,365 |
2021 | 15,750 |
2020 | 8,843 |
2019 | 3,004 |
Prior | 19,241 |
Revolving | 2,125 |
Total loans | 88,182 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 25,854 |
2022 | 13,365 |
2021 | 15,750 |
2020 | 8,672 |
2019 | 3,004 |
Prior | 18,348 |
Revolving | 2,125 |
Total loans | 87,118 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2020 | 171 |
Prior | 731 |
Total loans | 902 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 162 |
Total loans | 162 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 3,475 |
2022 | 3,349 |
2021 | 1,046 |
2020 | 406 |
2019 | 1,201 |
Prior | 861 |
Revolving | 195 |
Total loans | 10,533 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 3,475 |
2022 | 3,349 |
2021 | 1,046 |
2020 | 406 |
2019 | 1,156 |
Prior | 685 |
Revolving | 195 |
Total loans | 10,312 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2019 | 45 |
Prior | 69 |
Total loans | 114 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 107 |
Total loans | 107 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 11,986 |
2022 | 16,524 |
2021 | 16,893 |
2020 | 5,982 |
2019 | 3,409 |
Prior | 4,191 |
Revolving | 24,060 |
Total loans | 83,045 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 11,947 |
2022 | 12,521 |
2021 | 16,893 |
2020 | 5,982 |
2019 | 3,052 |
Prior | 4,176 |
Revolving | 22,219 |
Total loans | 76,790 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2022 | 4,003 |
2019 | 357 |
Revolving | 1,797 |
Total loans | 6,157 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Substandard | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 39 |
Prior | 15 |
Revolving | 44 |
Total loans | 98 |
Guaranteed student loans | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 18,923 |
Total loans | 18,923 |
Current-period gross write-offs | |
2023 | 7 |
Total Current period gross writeoff | 7 |
Guaranteed student loans | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Prior | 18,923 |
Total loans | 18,923 |
Consumer and other | Consumer real estate secured by 1-4 family residential | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total loans | 4,578 |
Consumer and other | Commercial and industrial loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 303 |
2022 | 561 |
2021 | 144 |
2020 | 67 |
2019 | 22 |
Prior | 14 |
Revolving | 3,467 |
Total loans | 4,578 |
Consumer and other | Commercial and industrial loans | Pass | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2023 | 303 |
2022 | 561 |
2021 | 144 |
2020 | 67 |
2019 | 9 |
Prior | 14 |
Revolving | 3,467 |
Total loans | 4,565 |
Consumer and other | Commercial and industrial loans | Special Mention | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
2019 | 13 |
Total loans | $ 13 |
Loans and allowance for credi_7
Loans and allowance for credit losses - Aging of recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 538,427 | |
Total loans | $ 566,101 | |
Recorded Investment, 90 Days and Accruing | 1,725 | |
Recorded Investment, 90 Days and Accruing | 2,445 | |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 533,978 | |
Total loans | 562,054 | |
Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,449 | |
Total loans | 4,047 | |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,907 | |
Total loans | 887 | |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 440 | |
Total loans | 715 | |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,102 | |
Total loans | 2,445 | |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 45,127 | |
Total loans | 56,260 | |
Construction and land development | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 45,127 | |
Total loans | 56,260 | |
Construction and land development | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 9,727 | |
Total loans | 8,848 | |
Construction and land development | Residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 9,727 | |
Total loans | 8,848 | |
Construction and land development | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 35,400 | |
Total loans | 47,412 | |
Construction and land development | Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 35,400 | |
Total loans | 47,412 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 284,617 | |
Total loans | 286,281 | |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 284,617 | |
Total loans | 286,281 | |
Commercial real estate | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 119,643 | |
Total loans | 121,652 | |
Commercial real estate | Owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 119,643 | |
Total loans | 121,652 | |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 153,610 | |
Total loans | 151,445 | |
Commercial real estate | Non-owner occupied | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 153,610 | |
Total loans | 151,445 | |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 11,291 | |
Total loans | 12,827 | |
Commercial real estate | Multifamily | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 11,291 | |
Total loans | 12,827 | |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 73 | |
Total loans | 357 | |
Commercial real estate | Farmland | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 73 | |
Total loans | 357 | |
Consumer real estate secured by 1-4 family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 93,680 | |
Total loans | 117,014 | |
Consumer real estate secured by 1-4 family residential | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 93,576 | |
Total loans | 116,712 | |
Consumer real estate secured by 1-4 family residential | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 104 | |
Total loans | 302 | |
Consumer real estate secured by 1-4 family residential | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 102 | |
Consumer real estate secured by 1-4 family residential | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 200 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 18,421 | |
Total loans | 18,299 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 18,371 | |
Total loans | 18,099 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 200 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 50 | |
Total loans | 200 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 67,495 | |
Total loans | 88,182 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 67,495 | |
Total loans | 88,113 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 69 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 69 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 7,764 | |
Total loans | 10,533 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 7,710 | |
Total loans | 10,500 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 33 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 54 | |
Total loans | 33 | |
Consumer real estate secured by 1-4 family residential | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,038 | |
Total loans | 4,578 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 90,348 | |
Total loans | 83,045 | |
Recorded Investment, 90 Days and Accruing | 47 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 88,949 | |
Total loans | 82,998 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,399 | |
Total loans | 47 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,022 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 377 | |
Total loans | 47 | |
Commercial and industrial loans | Guaranteed student loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 20,617 | |
Total loans | 18,923 | |
Recorded Investment, 90 Days and Accruing | 1,725 | |
Recorded Investment, 90 Days and Accruing | 2,398 | |
Commercial and industrial loans | Guaranteed student loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 17,671 | |
Total loans | 15,227 | |
Commercial and industrial loans | Guaranteed student loans | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2,946 | |
Total loans | 3,696 | |
Commercial and industrial loans | Guaranteed student loans | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 831 | |
Total loans | 783 | |
Commercial and industrial loans | Guaranteed student loans | 60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 390 | |
Total loans | 515 | |
Commercial and industrial loans | Guaranteed student loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,725 | |
Total loans | 2,398 | |
Commercial and industrial loans | Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 4,038 | |
Total loans | 4,578 | |
Commercial and industrial loans | Consumer and other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 4,038 | |
Total loans | 4,576 | |
Commercial and industrial loans | Consumer and other | Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 2 | |
Commercial and industrial loans | Consumer and other | 30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 2 |
Loans and allowance for credi_8
Loans and allowance for credit losses - Impaired loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
With no related allowance recorded | ||
Recorded Investment | $ 6,903 | |
Recorded Investment, after ASU 2016-13 | $ 2,080 | |
Unpaid Principal Balance | 7,023 | |
Unpaid Principle Balance, after ASU 2016-13 | 2,080 | |
With an allowance recorded | ||
Recorded Investment | 408 | |
Unpaid Principal Balance | 408 | |
Related Allowance | 9 | |
Total | ||
Recorded Investment | 7,311 | |
Recorded Investment, after ASU 2016-13 | 2,080 | |
Unpaid Principal Balance | 7,431 | |
Unpaid Principle Balance, after ASU 2016-13 | 2,080 | |
Related Allowance | 9 | |
Commercial real estate | ||
With no related allowance recorded | ||
Recorded Investment | 4,644 | |
Recorded Investment, after ASU 2016-13 | 1,714 | |
Unpaid Principal Balance | 4,659 | |
Unpaid Principle Balance, after ASU 2016-13 | 1,714 | |
With an allowance recorded | ||
Recorded Investment | 251 | |
Unpaid Principal Balance | 251 | |
Related Allowance | 2 | |
Total | ||
Recorded Investment | 4,895 | |
Recorded Investment, after ASU 2016-13 | 1,714 | |
Unpaid Principal Balance | 4,910 | |
Unpaid Principle Balance, after ASU 2016-13 | 1,714 | |
Related Allowance | 2 | |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 4,332 | |
Recorded Investment, after ASU 2016-13 | 1,714 | |
Unpaid Principal Balance | 4,347 | |
Unpaid Principle Balance, after ASU 2016-13 | 1,714 | |
With an allowance recorded | ||
Recorded Investment | 251 | |
Unpaid Principal Balance | 251 | |
Related Allowance | 2 | |
Total | ||
Recorded Investment | 4,583 | |
Recorded Investment, after ASU 2016-13 | 1,714 | |
Unpaid Principal Balance | 4,598 | |
Unpaid Principle Balance, after ASU 2016-13 | 1,714 | |
Related Allowance | 2 | |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Recorded Investment | 312 | |
Unpaid Principal Balance | 312 | |
Total | ||
Recorded Investment | 312 | |
Unpaid Principal Balance | 312 | |
Consumer real estate secured by 1-4 family residential | ||
With no related allowance recorded | ||
Recorded Investment | 2,240 | |
Recorded Investment, after ASU 2016-13 | 269 | |
Unpaid Principal Balance | 2,345 | |
Unpaid Principle Balance, after ASU 2016-13 | 269 | |
With an allowance recorded | ||
Recorded Investment | 136 | |
Unpaid Principal Balance | 136 | |
Related Allowance | 6 | |
Total | ||
Recorded Investment | 2,376 | |
Recorded Investment, after ASU 2016-13 | 269 | |
Unpaid Principal Balance | 2,481 | |
Unpaid Principle Balance, after ASU 2016-13 | 269 | |
Related Allowance | 6 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
With no related allowance recorded | ||
Recorded Investment | 300 | |
Unpaid Principal Balance | 300 | |
Total | ||
Recorded Investment | 300 | |
Unpaid Principal Balance | 300 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 1,745 | |
Recorded Investment, after ASU 2016-13 | 162 | |
Unpaid Principal Balance | 1,745 | |
Unpaid Principle Balance, after ASU 2016-13 | 162 | |
With an allowance recorded | ||
Recorded Investment | 136 | |
Unpaid Principal Balance | 136 | |
Related Allowance | 6 | |
Total | ||
Recorded Investment | 1,881 | |
Recorded Investment, after ASU 2016-13 | 162 | |
Unpaid Principal Balance | 1,881 | |
Unpaid Principle Balance, after ASU 2016-13 | 162 | |
Related Allowance | 6 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
With no related allowance recorded | ||
Recorded Investment | 195 | |
Recorded Investment, after ASU 2016-13 | 107 | |
Unpaid Principal Balance | 300 | |
Unpaid Principle Balance, after ASU 2016-13 | 107 | |
Total | ||
Recorded Investment | 195 | |
Recorded Investment, after ASU 2016-13 | 107 | |
Unpaid Principal Balance | 300 | |
Unpaid Principle Balance, after ASU 2016-13 | 107 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Recorded Investment | 19 | |
Recorded Investment, after ASU 2016-13 | 97 | |
Unpaid Principal Balance | 19 | |
Unpaid Principle Balance, after ASU 2016-13 | 97 | |
Total | ||
Recorded Investment | 19 | |
Recorded Investment, after ASU 2016-13 | 97 | |
Unpaid Principal Balance | 19 | |
Unpaid Principle Balance, after ASU 2016-13 | $ 97 | |
Consumer and other | ||
With no related allowance recorded | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
With an allowance recorded | ||
Related Allowance | 1 | |
Total | ||
Recorded Investment | 21 | |
Unpaid Principal Balance | 21 | |
Related Allowance | $ 1 |
Loans and allowance for credi_9
Loans and allowance for credit losses - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
With an allowance recorded | ||
Average Recorded Investment | $ 63 | |
Total | ||
Average Recorded Investment | 3,290 | |
Average Recorded Investment, after ASU 2016-13 | $ 2,076 | |
Interest Income Recognized | 222 | |
Interest Income Recognized, after ASU 2016-13 | 188 | |
Commercial real estate | ||
With no related allowance recorded | ||
Average Recorded Investment | 2,327 | |
Average Recorded Investment, after ASU 2016-13 | 1,714 | |
Interest Income Recognized | 208 | |
Interest Income Recognized, after ASU 2016-13 | 177 | |
With an allowance recorded | ||
Average Recorded Investment | 63 | |
Total | ||
Average Recorded Investment | 2,390 | |
Average Recorded Investment, after ASU 2016-13 | 1,714 | |
Interest Income Recognized | 208 | |
Interest Income Recognized, after ASU 2016-13 | 177 | |
Commercial real estate | Owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 2,249 | |
Average Recorded Investment, after ASU 2016-13 | 1,714 | |
Interest Income Recognized | 208 | |
Interest Income Recognized, after ASU 2016-13 | 177 | |
With an allowance recorded | ||
Average Recorded Investment | 63 | |
Total | ||
Average Recorded Investment | 2,312 | |
Average Recorded Investment, after ASU 2016-13 | 1,714 | |
Interest Income Recognized | 208 | |
Interest Income Recognized, after ASU 2016-13 | 177 | |
Commercial real estate | Non-owner occupied | ||
With no related allowance recorded | ||
Average Recorded Investment | 78 | |
Total | ||
Average Recorded Investment | 78 | |
Consumer real estate secured by 1-4 family residential | ||
With no related allowance recorded | ||
Average Recorded Investment | 845 | |
Average Recorded Investment, after ASU 2016-13 | 270 | |
Interest Income Recognized | 9 | |
Interest Income Recognized, after ASU 2016-13 | 4 | |
Total | ||
Average Recorded Investment | 845 | |
Average Recorded Investment, after ASU 2016-13 | 270 | |
Interest Income Recognized | 9 | |
Interest Income Recognized, after ASU 2016-13 | 4 | |
Consumer real estate secured by 1-4 family residential | Home equity lines | ||
With no related allowance recorded | ||
Average Recorded Investment | 150 | |
Total | ||
Average Recorded Investment | 150 | |
Consumer real estate secured by 1-4 family residential | First deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 565 | |
Average Recorded Investment, after ASU 2016-13 | 162 | |
Interest Income Recognized | 5 | |
Interest Income Recognized, after ASU 2016-13 | 1 | |
Total | ||
Average Recorded Investment | 565 | |
Average Recorded Investment, after ASU 2016-13 | 162 | |
Interest Income Recognized | 5 | |
Interest Income Recognized, after ASU 2016-13 | 1 | |
Consumer real estate secured by 1-4 family residential | Second deed of trust | ||
With no related allowance recorded | ||
Average Recorded Investment | 130 | |
Average Recorded Investment, after ASU 2016-13 | 108 | |
Interest Income Recognized | 4 | |
Interest Income Recognized, after ASU 2016-13 | 3 | |
Total | ||
Average Recorded Investment | 130 | |
Average Recorded Investment, after ASU 2016-13 | 108 | |
Interest Income Recognized | 4 | |
Interest Income Recognized, after ASU 2016-13 | 3 | |
Commercial and industrial loans | ||
With no related allowance recorded | ||
Average Recorded Investment | 3,227 | |
Average Recorded Investment, after ASU 2016-13 | 2,076 | |
Interest Income Recognized | 222 | |
Interest Income Recognized, after ASU 2016-13 | 188 | |
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Average Recorded Investment | 55 | |
Average Recorded Investment, after ASU 2016-13 | 92 | |
Interest Income Recognized | 5 | |
Interest Income Recognized, after ASU 2016-13 | 7 | |
Total | ||
Average Recorded Investment | 55 | |
Average Recorded Investment, after ASU 2016-13 | 92 | |
Interest Income Recognized | $ 5 | |
Interest Income Recognized, after ASU 2016-13 | $ 7 |
Loans and allowance for cred_10
Loans and allowance for credit losses - Nonaccrual TDRs and the related specific valuation allowance by portfolio segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) loan | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 5,163 |
New TDR identifications | loan | 0 |
Number of Loans | loan | 24 |
Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 8 |
Number of Loans | loan | 3 |
Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 5,088 |
Number of Loans | loan | 22 |
Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 75 |
Number of Loans | loan | 2 |
Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 3,660 |
Commercial real estate | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 2 |
Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,660 |
Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,484 |
Consumer real estate secured by 1-4 family residential | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 6 |
Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,428 |
Consumer real estate secured by 1-4 family residential | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 56 |
Owner occupied | Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,348 |
Owner occupied | Commercial real estate | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 2 |
Owner occupied | Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 3,348 |
Non-owner occupied | Commercial real estate | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 312 |
Non-owner occupied | Commercial real estate | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 312 |
First deed of trust | Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,409 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Specific Valuation Allowance | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 6 |
First deed of trust | Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 1,409 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 75 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Performing Financing Receivable | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 19 |
Second deed of trust | Consumer real estate secured by 1-4 family residential | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 56 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | 19 |
Commercial and industrial loans (except those secured by real estate) | Commercial and industrial loans | Nonperforming Financial Instruments | |
Information concerning Troubled Debt Restructurings | |
Recorded Investment | $ 19 |
Loans and allowance for cred_11
Loans and allowance for credit losses - Allowance for loan losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | $ 3,423,000 | $ 3,370,000 | $ 3,423,000 | $ 3,423,000 | |
Provision for (Recovery of) Loan Losses | 100,000 | (300,000) | (300,000) | ||
Charge-offs | (187,000) | (209,000) | (217,000) | ||
Recoveries | 34,000 | 456,000 | 464,000 | ||
Ending Balance | 3,370,000 | 3,370,000 | 3,370,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 3,256,000 | ||||
Provision for (Recovery of) Credit Losses | (53,000) | (52,000) | |||
Charge-offs | (7,000) | ||||
Charge-offs | (16,000) | (23,000) | |||
Recoveries | 166,000 | 185,000 | |||
Ending Balance | 3,353,000 | 3,353,000 | |||
Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | 127,000 | 127,000 | |||
Construction and land development | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 228,000 | 271,000 | 286,000 | 286,000 | |
Provision for (Recovery of) Loan Losses | 16,000 | (42,000) | (15,000) | ||
Ending Balance | 244,000 | 244,000 | 271,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 329,000 | ||||
Provision for (Recovery of) Credit Losses | 36,000 | 57,000 | |||
Ending Balance | 365,000 | 365,000 | |||
Construction and land development | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (37,000) | (37,000) | |||
Construction and land development | Residential | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 57,000 | 79,000 | 57,000 | 57,000 | |
Provision for (Recovery of) Loan Losses | 12,000 | 12,000 | 22,000 | ||
Ending Balance | 69,000 | 69,000 | 79,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 61,000 | ||||
Provision for (Recovery of) Credit Losses | 12,000 | (9,000) | |||
Ending Balance | 73,000 | 73,000 | |||
Construction and land development | Residential | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (3,000) | (3,000) | |||
Construction and land development | Commercial | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 171,000 | 192,000 | 229,000 | 229,000 | |
Provision for (Recovery of) Loan Losses | 4,000 | (54,000) | (37,000) | ||
Ending Balance | 175,000 | 175,000 | 192,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 268,000 | ||||
Provision for (Recovery of) Credit Losses | 24,000 | 66,000 | |||
Ending Balance | 292,000 | 292,000 | |||
Construction and land development | Commercial | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (34,000) | (34,000) | |||
Commercial real estate | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 2,187,000 | 2,189,000 | 1,953,000 | 1,953,000 | |
Provision for (Recovery of) Loan Losses | 29,000 | 263,000 | 236,000 | ||
Ending Balance | 2,216,000 | 2,216,000 | 2,189,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,799,000 | ||||
Provision for (Recovery of) Credit Losses | 80,000 | (34,000) | |||
Ending Balance | 1,879,000 | 1,879,000 | |||
Commercial real estate | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | 276,000 | 276,000 | |||
Commercial real estate | Owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 868,000 | 867,000 | 833,000 | 833,000 | |
Provision for (Recovery of) Loan Losses | 7,000 | 42,000 | 34,000 | ||
Ending Balance | 875,000 | 875,000 | 867,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 379,000 | ||||
Provision for (Recovery of) Credit Losses | 18,000 | 5,000 | |||
Ending Balance | 397,000 | 397,000 | |||
Commercial real estate | Owner occupied | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | 475,000 | 475,000 | |||
Commercial real estate | Non-owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 1,267,000 | 1,289,000 | 1,083,000 | 1,083,000 | |
Provision for (Recovery of) Loan Losses | 40,000 | 224,000 | 206,000 | ||
Ending Balance | 1,307,000 | 1,307,000 | 1,289,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 1,376,000 | ||||
Provision for (Recovery of) Credit Losses | 59,000 | (46,000) | |||
Ending Balance | 1,435,000 | 1,435,000 | |||
Commercial real estate | Non-owner occupied | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (192,000) | (192,000) | |||
Commercial real estate | Multifamily | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 50,000 | 33,000 | 35,000 | 35,000 | |
Provision for (Recovery of) Loan Losses | (17,000) | (2,000) | (2,000) | ||
Ending Balance | 33,000 | 33,000 | 33,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 44,000 | ||||
Provision for (Recovery of) Credit Losses | 4,000 | ||||
Ending Balance | 44,000 | 44,000 | |||
Commercial real estate | Multifamily | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (7,000) | (7,000) | |||
Commercial real estate | Farmland | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 2,000 | 2,000 | 2,000 | ||
Provision for (Recovery of) Loan Losses | (1,000) | (1,000) | (2,000) | ||
Ending Balance | 1,000 | 1,000 | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Provision for (Recovery of) Credit Losses | 3,000 | 3,000 | |||
Ending Balance | 3,000 | 3,000 | |||
Consumer real estate secured by 1-4 family residential | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 175,000 | 185,000 | 182,000 | 182,000 | |
Provision for (Recovery of) Loan Losses | 2,000 | (368,000) | (367,000) | ||
Charge-offs | (27,000) | (27,000) | (27,000) | ||
Recoveries | 29,000 | 392,000 | 397,000 | ||
Ending Balance | 179,000 | 179,000 | 185,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 361,000 | ||||
Provision for (Recovery of) Credit Losses | 29,000 | 73,000 | |||
Recoveries | 6,000 | 13,000 | |||
Ending Balance | 396,000 | 396,000 | |||
Consumer real estate secured by 1-4 family residential | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (125,000) | (125,000) | |||
Consumer real estate secured by 1-4 family residential | Home equity lines | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 12,000 | 11,000 | 12,000 | 12,000 | |
Provision for (Recovery of) Loan Losses | (58,000) | (59,000) | |||
Recoveries | 58,000 | 58,000 | |||
Ending Balance | 12,000 | 12,000 | 11,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 32,000 | ||||
Provision for (Recovery of) Credit Losses | 2,000 | (1,000) | |||
Ending Balance | 34,000 | 34,000 | |||
Consumer real estate secured by 1-4 family residential | Home equity lines | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (24,000) | (24,000) | |||
Consumer real estate secured by 1-4 family residential | First deed of trust | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 114,000 | 131,000 | 123,000 | 123,000 | |
Provision for (Recovery of) Loan Losses | 13,000 | 2,000 | 3,000 | ||
Recoveries | 2,000 | 4,000 | 5,000 | ||
Ending Balance | 129,000 | 129,000 | 131,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 245,000 | ||||
Provision for (Recovery of) Credit Losses | 24,000 | 61,000 | |||
Recoveries | 1,000 | 2,000 | |||
Ending Balance | 270,000 | 270,000 | |||
Consumer real estate secured by 1-4 family residential | First deed of trust | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (76,000) | (76,000) | |||
Consumer real estate secured by 1-4 family residential | Second deed of trust | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 49,000 | 43,000 | 47,000 | 47,000 | |
Provision for (Recovery of) Loan Losses | (11,000) | (312,000) | (311,000) | ||
Charge-offs | (27,000) | (27,000) | (27,000) | ||
Recoveries | 27,000 | 330,000 | 334,000 | ||
Ending Balance | 38,000 | 38,000 | 43,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 84,000 | ||||
Provision for (Recovery of) Credit Losses | 3,000 | 13,000 | |||
Recoveries | 5,000 | 11,000 | |||
Ending Balance | 92,000 | 92,000 | |||
Consumer real estate secured by 1-4 family residential | Second deed of trust | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (25,000) | (25,000) | |||
Consumer real estate secured by 1-4 family residential | Consumer and other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 97,000 | ||||
Ending Balance | 97,000 | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | 57,000 | 57,000 | |||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 533,000 | 576,000 | 486,000 | 486,000 | |
Provision for (Recovery of) Loan Losses | 201,000 | 189,000 | 180,000 | ||
Charge-offs | (157,000) | (157,000) | (157,000) | ||
Recoveries | 5,000 | 64,000 | 67,000 | ||
Ending Balance | 582,000 | 582,000 | 576,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 673,000 | ||||
Provision for (Recovery of) Credit Losses | (223,000) | (139,000) | |||
Recoveries | 160,000 | 172,000 | |||
Ending Balance | 610,000 | 610,000 | |||
Commercial and industrial loans | Commercial and industrial loans (except those secured by real estate) | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | (1,000) | (1,000) | |||
Commercial and industrial loans | Student loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 60,000 | 52,000 | 65,000 | 65,000 | |
Provision for (Recovery of) Loan Losses | 9,000 | 26,000 | 18,000 | ||
Charge-offs | (2,000) | (24,000) | (31,000) | ||
Ending Balance | 67,000 | 67,000 | 52,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 44,000 | ||||
Provision for (Recovery of) Credit Losses | 16,000 | 15,000 | |||
Charge-offs | (7,000) | ||||
Charge-offs | (14,000) | (21,000) | |||
Ending Balance | 46,000 | 46,000 | |||
Commercial and industrial loans | Consumer and other | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 45,000 | 37,000 | 29,000 | 29,000 | |
Provision for (Recovery of) Loan Losses | (7,000) | 9,000 | 10,000 | ||
Charge-offs | (1,000) | (1,000) | (2,000) | ||
Ending Balance | 37,000 | 37,000 | 37,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 34,000 | ||||
Provision for (Recovery of) Credit Losses | 3,000 | 5,000 | |||
Charge-offs | (2,000) | (2,000) | |||
Ending Balance | 35,000 | 35,000 | |||
Commercial and industrial loans | Consumer and other | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | 5,000 | 5,000 | |||
Commercial and industrial loans | Unallocated | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning Balance | 195,000 | 60,000 | 422,000 | 422,000 | |
Provision for (Recovery of) Loan Losses | (150,000) | (377,000) | (362,000) | ||
Ending Balance | $ 45,000 | $ 45,000 | $ 60,000 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 16,000 | ||||
Provision for (Recovery of) Credit Losses | 6,000 | (29,000) | |||
Ending Balance | 22,000 | 22,000 | |||
Commercial and industrial loans | Unallocated | Adoption of ASC 326 | |||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||||
Ending Balance | $ 9,000 | $ 9,000 |
Loans and allowance for cred_12
Loans and allowance for credit losses - Provision for credit losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Provision for Loan, Lease, and Other Losses [Abstract] | ||||
Provision (recovery) for loans | $ (53,000) | $ 100,000 | $ (52,000) | $ (300,000) |
Provision (recovery) for unfunded commitments | $ 53,000 | $ 52,000 | ||
Total | $ 100,000 | $ (300,000) |
Loans and allowance for cred_13
Loans and allowance for credit losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | $ 3,370 | $ 3,370 | $ 3,423 | $ 3,423 | ||
Allowance Ending Balance | $ 3,353 | $ 3,256 | ||||
Allowance Individually Evaluated for Impairment | 9 | |||||
Allowance Collectively Evaluated for Impairment | 3,361 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 3,353 | |||||
Loans Ending Balance | 538,427 | |||||
Total loans | 566,101 | |||||
Loans Individually Evaluated for Impairment | 7,311 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 2,080 | |||||
Loans Collectively Evaluated for Impairment | 531,116 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 564,021 | |||||
Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 271 | 244 | 228 | 286 | ||
Allowance Ending Balance | 365 | 329 | ||||
Allowance Collectively Evaluated for Impairment | 271 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 365 | |||||
Loans Ending Balance | 45,127 | |||||
Total loans | 56,260 | |||||
Loans Collectively Evaluated for Impairment | 45,127 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 56,260 | |||||
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 2,189 | 2,216 | 2,187 | 1,953 | ||
Allowance Ending Balance | 1,879 | 1,799 | ||||
Allowance Individually Evaluated for Impairment | 2 | |||||
Allowance Collectively Evaluated for Impairment | 2,187 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 1,879 | |||||
Loans Ending Balance | 284,617 | |||||
Total loans | 286,281 | |||||
Loans Individually Evaluated for Impairment | 4,895 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 1,714 | |||||
Loans Collectively Evaluated for Impairment | 279,722 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 284,567 | |||||
Consumer real estate secured by 1-4 family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 185 | 179 | 175 | 182 | ||
Allowance Ending Balance | 396 | 361 | ||||
Allowance Individually Evaluated for Impairment | 6 | |||||
Allowance Collectively Evaluated for Impairment | 179 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 396 | |||||
Loans Ending Balance | 93,680 | |||||
Total loans | 117,014 | |||||
Loans Individually Evaluated for Impairment | 2,376 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 269 | |||||
Loans Collectively Evaluated for Impairment | 91,304 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 116,745 | |||||
Residential | Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 79 | 69 | 57 | 57 | ||
Allowance Ending Balance | 73 | 61 | ||||
Allowance Collectively Evaluated for Impairment | 79 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 73 | |||||
Loans Ending Balance | 9,727 | |||||
Total loans | 8,848 | |||||
Loans Collectively Evaluated for Impairment | 9,727 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 8,848 | |||||
Commercial | Construction and land development | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 192 | 175 | 171 | 229 | ||
Allowance Ending Balance | 292 | 268 | ||||
Allowance Collectively Evaluated for Impairment | 192 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 292 | |||||
Loans Ending Balance | 35,400 | |||||
Total loans | 47,412 | |||||
Loans Collectively Evaluated for Impairment | 35,400 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 47,412 | |||||
Owner occupied | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 867 | 875 | 868 | 833 | ||
Allowance Ending Balance | 397 | 379 | ||||
Allowance Individually Evaluated for Impairment | 2 | |||||
Allowance Collectively Evaluated for Impairment | 865 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 397 | |||||
Loans Ending Balance | 119,643 | |||||
Total loans | 121,652 | |||||
Loans Individually Evaluated for Impairment | 4,583 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 1,714 | |||||
Loans Collectively Evaluated for Impairment | 115,060 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 119,938 | |||||
Non-owner occupied | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 1,289 | 1,307 | 1,267 | 1,083 | ||
Allowance Ending Balance | 1,435 | 1,376 | ||||
Allowance Collectively Evaluated for Impairment | 1,289 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 1,435 | |||||
Loans Ending Balance | 153,610 | |||||
Total loans | 151,445 | |||||
Loans Individually Evaluated for Impairment | 312 | |||||
Loans Collectively Evaluated for Impairment | 153,298 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 151,445 | |||||
Multifamily | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 33 | 33 | 50 | 35 | ||
Allowance Ending Balance | 44 | 44 | ||||
Allowance Collectively Evaluated for Impairment | 33 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 44 | |||||
Loans Ending Balance | 11,291 | |||||
Total loans | 12,827 | |||||
Loans Collectively Evaluated for Impairment | 11,291 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 12,827 | |||||
Farmland | Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 1 | 2 | 2 | |||
Allowance Ending Balance | 3 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 3 | |||||
Loans Ending Balance | 73 | |||||
Total loans | 357 | |||||
Loans Collectively Evaluated for Impairment | 73 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 357 | |||||
Home equity lines | Consumer real estate secured by 1-4 family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 11 | 12 | 12 | 12 | ||
Allowance Ending Balance | 34 | 32 | ||||
Allowance Collectively Evaluated for Impairment | 11 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 34 | |||||
Loans Ending Balance | 18,421 | |||||
Total loans | 18,299 | |||||
Loans Individually Evaluated for Impairment | 300 | |||||
Loans Collectively Evaluated for Impairment | 18,121 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 18,299 | |||||
First deed of trust | Consumer real estate secured by 1-4 family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 131 | 129 | 114 | 123 | ||
Allowance Ending Balance | 270 | 245 | ||||
Allowance Individually Evaluated for Impairment | 6 | |||||
Allowance Collectively Evaluated for Impairment | 125 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 270 | |||||
Loans Ending Balance | 67,495 | |||||
Total loans | 88,182 | |||||
Loans Individually Evaluated for Impairment | 1,881 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 162 | |||||
Loans Collectively Evaluated for Impairment | 65,614 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 88,020 | |||||
Second deed of trust | Consumer real estate secured by 1-4 family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 43 | 38 | 49 | 47 | ||
Allowance Ending Balance | 92 | 84 | ||||
Allowance Collectively Evaluated for Impairment | 43 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 92 | |||||
Loans Ending Balance | 7,764 | |||||
Total loans | 10,533 | |||||
Loans Individually Evaluated for Impairment | 195 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 107 | |||||
Loans Collectively Evaluated for Impairment | 7,569 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 10,426 | |||||
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 | 576 | 582 | 533 | 486 | ||
Allowance Ending Balance | 610 | 673 | ||||
Allowance Collectively Evaluated for Impairment | 576 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 610 | |||||
Loans Ending Balance | 90,348 | |||||
Total loans | 83,045 | |||||
Loans Individually Evaluated for Impairment | 19 | |||||
Loans Individually Evaluated For Impairment, after ASU 2016-13 | 97 | |||||
Loans Collectively Evaluated for Impairment | 90,329 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 82,948 | |||||
Guaranteed student loans | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 52 | 67 | 60 | 65 | ||
Allowance Ending Balance | 46 | 44 | ||||
Allowance Collectively Evaluated for Impairment | 52 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 46 | |||||
Loans Ending Balance | 20,617 | |||||
Total loans | 18,923 | |||||
Loans Collectively Evaluated for Impairment | 20,617 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 18,923 | |||||
Consumer and other | Consumer real estate secured by 1-4 family residential | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 97 | |||||
Allowance Ending Balance | 57 | |||||
Allowance Individually Evaluated for Impairment | 1 | |||||
Allowance Collectively Evaluated for Impairment | 96 | |||||
Allowance Collectively Evaluated For Impairment, after ASU 2016-13 | 57 | |||||
Loans Ending Balance | 4,038 | |||||
Total loans | 4,578 | |||||
Loans Individually Evaluated for Impairment | 21 | |||||
Loans Collectively Evaluated for Impairment | 4,017 | |||||
Loans Collectively Evaluated For Impairment, after ASU 2016-13 | 4,578 | |||||
Consumer and other | Commercial and industrial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance Ending Balance | 37 | $ 37 | $ 45 | $ 29 | ||
Allowance Ending Balance | 35 | $ 34 | ||||
Loans Ending Balance | $ 4,038 | |||||
Total loans | $ 4,578 |
Loans and allowance for cred_14
Loans and allowance for credit losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | Sep. 30, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | Jan. 01, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loan amount | $ 535,645,000 | ||||||||||
Defaults on TDRs that were modified as TDRs | loan | 0 | 0 | |||||||||
Provision for (recovery of) credit losses | $ 100,000 | $ (300,000) | (300,000) | ||||||||
Loans and leases receivable, allowance | 3,370,000 | 3,370,000 | $ 3,370,000 | $ 3,370,000 | $ 3,423,000 | $ 3,423,000 | |||||
Total Allowance for credit losses | $ 3,680,000 | $ 3,680,000 | $ 3,680,000 | ||||||||
Total Allowance for credit losses | 3,353,000 | 3,353,000 | 3,353,000 | $ 3,256,000 | |||||||
Allowance for credit losses on unfunded credit exposure | 329,000 | 329,000 | 329,000 | ||||||||
Interest on non accrual loans | 11,000 | ||||||||||
Number of Loans | loan | 24 | ||||||||||
Provision for credit losses for loans | (53,000) | $ 100,000 | $ (52,000) | $ (300,000) | |||||||
Loan growth being offset by improved credit metrics as non-performing loans as a percentage of loans | 0.06% | 0.13% | |||||||||
Net recoveries for credit losses for loans | $ 162,000 | ||||||||||
Recovery for credit losses for unfunded commitments | 53,000 | 52,000 | |||||||||
Adoption of ASC 326 | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total Allowance for credit losses | 127,000 | 127,000 | 127,000 | ||||||||
Accounting Standards Update 2016-13 | Adoption of ASC 326 | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total Allowance for credit losses | $ 150,000 | ||||||||||
Total Allowance for credit losses | (127,000) | ||||||||||
Allowance for credit losses on unfunded credit exposure | 277,000 | ||||||||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Total Allowance for credit losses | 3,520,000 | ||||||||||
Total Allowance for credit losses | 3,243,000 | ||||||||||
Allowance for credit losses on unfunded credit exposure | $ 277,000 | ||||||||||
Asset Pledged as Collateral [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Loans pledged as collateral | $ 36,439,000 | $ 36,439,000 | $ 36,439,000 | $ 33,706,000 | |||||||
Guaranteed student loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Percentage Of Recovery Loss On Portfolio From Historical Experience | 98% | 98% | 98% | ||||||||
United States Department of Agriculture Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Percent of guarantee for principal and interest on financing receivable | 100% |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit Liability [Line Items] | ||
Demand accounts | $ 243,390 | $ 255,236 |
Interest checking accounts | 81,779 | 90,252 |
Money market accounts | 210,439 | 179,036 |
Savings accounts | 42,367 | 55,695 |
Other time deposits | 36,986 | 39,784 |
Total | $ 626,774 | $ 624,743 |
Percentage of individual deposits to deposit liability | ||
Demand accounts (in hundredths) | 38.80% | 40.90% |
Interest checking accounts (in hundredths) | 13% | 14.40% |
Money market accounts (in hundredths) | 33.60% | 28.60% |
Savings account (in hundredths) | 6.80% | 8.90% |
Time deposits of $250,000 and over (in hundredths) | 1.90% | 0.80% |
Other time deposits (in hundredths) | 5.90% | 6.40% |
Total (in hundredths) | 100% | 100% |
Geographic Distribution, Domestic [Member] | ||
Deposit Liability [Line Items] | ||
Time deposits of $250,000 and over | $ 11,813 | $ 4,740 |
Borrowings - (Details)
Borrowings - (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank Stock | $ 1,447,000 | $ 1,223,000 |
Long-term Federal Home Loan Bank Advances | 20,000,000 | |
Borrowings | 0 | $ 0 |
Lines of credit for future borrowings | 47,300,000 | |
FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | 2,700,000 | |
Revolving Credit Facility [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | 15,000,000 | |
Secured Debt [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | 2,800,000 | |
Line of Credit [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Lines of credit for future borrowings | $ 25,000,000 |
Trust preferred securities (Det
Trust preferred securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |||
Sep. 20, 2007 | Feb. 24, 2005 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Trust preferred capital notes | $ 8,764 | $ 8,764 | |||
Percent of spread adjustment for replacement of variable interest rate | 0.26161% | ||||
Percentage of Tier one risk based capital required for capital adequacy (in hundredths) | 25% | ||||
Southern Community Financial Capital Trust I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Feb. 24, 2005 | ||||
Trust preferred capital notes | $ 5,200 | ||||
Interest rate (in hundredths) | 7.81% | ||||
Maturity date | Mar. 15, 2035 | ||||
Principal assets of the trust | $ 5,200 | ||||
Southern Community Financial Capital Trust I [Member] | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | ||||
Village Financial Statutory Trust II [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuance Date | Sep. 20, 2007 | ||||
Trust preferred capital notes | $ 3,600 | ||||
Interest rate (in hundredths) | 7.06% | ||||
Principal assets of the trust | $ 3,600 | ||||
Village Financial Statutory Trust II [Member] | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.40% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | 6 Months Ended | 9 Months Ended | ||
Mar. 21, 2018 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Proceeds from Issuance of Subordinated Long-term Debt | $ 5,539,000 | |||
Percent of spread adjustment for replacement of variable interest rate | 0.26161% | |||
Subordinated Debt. | $ 5,700,000 | $ 5,692,000 | ||
Fixed-to-floating rate subordinated notes | ||||
Debt Instrument, Face Amount | $ 5,700,000 | |||
Debt Instrument, Maturity Date | Mar. 31, 2028 | |||
Interest Rate During First Period, Duration | 5 years | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 9.05% | ||
LIBOR | Fixed-to-floating rate subordinated notes | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.73% |
Stock incentive plans - Options
Stock incentive plans - Options outstanding under company's stock incentive plan (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Options | ||
Options outstanding, beginning of period | 14 | 734 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | (345) |
Options outstanding, end of period | 14 | 389 |
Options exercisable, end of period | 14 | 389 |
Weighted Average Exercise Price | ||
Options outstanding, beginning of period | $ 25.28 | $ 25.63 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 25.50 |
Options outstanding, end of period | 25.28 | 25.74 |
Fair Value Per Share | ||
Options outstanding, beginning of period | 9.76 | 9.76 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 9.76 |
Options outstanding, end of period | $ 9.76 | $ 9.76 |
Intrinsic Value Options outstanding | $ 0 | $ 0 |
Stock incentive plans - Non ves
Stock incentive plans - Non vested restricted stock award (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ending Balance | 10,658 | 5,514 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance | 28,296 | |
Shares, Granted | 370 | |
Shares, Vested | (8,221) | |
Shares, Forfeited | 0 | (924) |
Shares, Other | 1,485 | |
Ending Balance | 21,930 | 16,316 |
Weighted-Average Grant-Date Fair-Value, Beginning Balance | $ 46.60 | |
Weighted-Average Grant-Date Fair-Value, Granted | 52 | |
Weighted-Average Grant-Date Fair-Value, Vested | 30.60 | |
Weighted-Average Grant-Date Fair-Value, Forfeited | 0 | |
Weighted-Average Grant Date Fair Value, Other | 29 | |
Weighted-Average Grant-Date Fair-Value, Ending Balance | $ 51.50 | |
Aggregate Intrinsic Value, Beginning Balance | $ 1,290,298 | |
Aggregate Intrinsic Value, Granted | 16,872 | |
Aggregate Intrinsic Value, Vested | (374,878) | |
Aggregate Intrinsic Value, Forfeited | 0 | |
Aggregate Intrinsic Value, Other | 67,716 | |
Aggregate Intrinsic Value, Ending Balance | $ 1,000,008 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 10,658 | 5,514 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 7 days | ||
Allocated Share-based Compensation Expense | $ 358,000 | $ 272,000 | |
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 | 21,930 | 16,316 | 28,296 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 583,220 | $ 551,691 | |
Shares, Forfeited | 0 | 924 | |
Performance Based Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | |
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 | $ 371,600 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Performance Shares [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio | 150% | ||
Performance Shares [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Sharebased Compensation Arrangement by Sharebased Payment Award Payout Ratio | 0% |
Fair value - Recurring and non
Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 5,400 | $ 2,300 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 5,425 | 2,268 |
IRLC | 183 | 142 |
Forward sales commitment | 262 | 207 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government Agencies | 20,449 | 60,902 |
Mortgage-backed securities | 71,591 | 60,560 |
Municipals | 1,543 | 1,550 |
Subordinated debt | 9,963 | 8,841 |
Loans held for sale | 5,425 | 2,268 |
IRLC | 183 | 142 |
Forward sales commitment | 262 | 207 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinated debt | 500 | 2,000 |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government Agencies | 20,449 | 60,902 |
Mortgage-backed securities | 71,591 | 60,560 |
Municipals | 1,543 | 1,550 |
Subordinated debt | 10,463 | 10,841 |
Loans held for sale | 5,425 | 2,268 |
IRLC | 183 | 142 |
Forward sales commitment | $ 262 | $ 207 |
Fair value - Carrying amounts a
Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets | ||
Investment securities available for sale, at fair value | $ 104,046 | $ 133,853 |
Loans held for sale | 5,400 | 2,300 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash | 14,055 | 12,062 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash | 14,055 | 12,062 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 5,276 | 4,616 |
Investment securities available for sale, at fair value | 103,546 | 131,853 |
Federal Home Loan Bank stock | 1,447 | 1,223 |
Loans held for sale | 5,425 | 2,268 |
Bank owned life insurance | 13,031 | 12,798 |
Accrued interest receivable | 3,536 | 3,651 |
Interest rate lock commitments | 183 | 142 |
Financial liabilities | ||
Deposits | 626,774 | 624,743 |
FHLB borrowings | 20,000 | 20,000 |
Trust preferred securities | 8,764 | 8,764 |
Other borrowings | 5,700 | 5,692 |
Accrued interest payable | 213 | 70 |
Forward sales commitment | 262 | 207 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 5,276 | 4,616 |
Investment securities available for sale, at fair value | 103,546 | 131,853 |
Federal Home Loan Bank stock | 1,447 | 1,223 |
Loans held for sale | 5,425 | 2,268 |
Bank owned life insurance | 13,031 | 12,798 |
Accrued interest receivable | 3,536 | 3,651 |
Interest rate lock commitments | 183 | 142 |
Financial liabilities | ||
Deposits | 626,916 | 625,037 |
FHLB borrowings | 19,740 | 20,000 |
Trust preferred securities | 8,926 | 7,066 |
Other borrowings | 5,700 | 5,692 |
Accrued interest payable | 213 | 70 |
Forward sales commitment | 262 | 207 |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 500 | 2,000 |
Loans | 566,101 | 538,427 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale, at fair value | 500 | 2,000 |
Loans | $ 535,409 | $ 521,150 |
Segment Reporting - Segment inf
Segment Reporting - Segment information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | segment | 2 | ||||
Revenues | |||||
Interest income | $ 8,462,000 | $ 6,955,000 | $ 24,144,000 | $ 19,954,000 | |
Mortgage banking income, net | 489,000 | 973,000 | 1,353,000 | 2,942,000 | |
Other revenues | 828,000 | 777,000 | 2,442,000 | 2,446,000 | |
Total revenues | 9,779,000 | 8,705,000 | 27,939,000 | 25,342,000 | |
Expenses | |||||
Recovery of credit losses | 100,000 | (300,000) | $ (300,000) | ||
Interest expense | 2,348,000 | 420,000 | 5,541,000 | 1,238,000 | |
Salaries and benefits | 3,310,000 | 3,446,000 | 10,173,000 | 10,394,000 | |
Loss on sale of investment securities | 4,986,000 | 4,986,000 | |||
Other expenses | 2,442,000 | 2,078,000 | 7,168,000 | 6,397,000 | |
Total operating expenses | 13,086,000 | 6,044,000 | 27,868,000 | 17,729,000 | |
Income (loss) before income taxes | (3,307,000) | 2,661,000 | 71,000 | 7,613,000 | |
Income tax expense (benefit) | (754,000) | 508,000 | (155,000) | 1,470,000 | |
Net income/loss | (2,553,000) | 2,153,000 | 226,000 | 6,143,000 | |
Total assets | 727,504,000 | 742,703,000 | 727,504,000 | 742,703,000 | $ 723,270,000 |
Eliminations [Member] | |||||
Revenues | |||||
Mortgage banking income, net | (81,000) | (26,000) | (365,000) | (84,000) | |
Other revenues | (43,000) | (45,000) | (130,000) | (64,000) | |
Total revenues | (124,000) | (71,000) | (495,000) | (148,000) | |
Expenses | |||||
Other expenses | (124,000) | (71,000) | (495,000) | (148,000) | |
Total operating expenses | (124,000) | (71,000) | (495,000) | (148,000) | |
Total assets | (28,099,000) | (30,649,000) | (28,099,000) | (30,649,000) | |
Commercial Banking | Operating Segments [Member] | |||||
Revenues | |||||
Interest income | 8,334,000 | 6,885,000 | 23,876,000 | 19,762,000 | |
Other revenues | 871,000 | 822,000 | 2,572,000 | 2,510,000 | |
Total revenues | 9,205,000 | 7,707,000 | 26,448,000 | 22,272,000 | |
Expenses | |||||
Recovery of credit losses | 100,000 | (300,000) | |||
Interest expense | 2,348,000 | 420,000 | 5,541,000 | 1,238,000 | |
Salaries and benefits | 2,611,000 | 2,646,000 | 8,048,000 | 7,900,000 | |
Loss on sale of investment securities | 4,986,000 | 4,986,000 | |||
Other expenses | 2,279,000 | 1,853,000 | 6,809,000 | 5,610,000 | |
Total operating expenses | 12,224,000 | 5,019,000 | 25,384,000 | 14,448,000 | |
Income (loss) before income taxes | (3,019,000) | 2,688,000 | 1,064,000 | 7,824,000 | |
Income tax expense (benefit) | (693,000) | 514,000 | 54,000 | 1,514,000 | |
Net income/loss | (2,326,000) | 2,174,000 | 1,010,000 | 6,310,000 | |
Total assets | 738,452,000 | 755,071,000 | 738,452,000 | 755,071,000 | |
Mortgage Banking | Operating Segments [Member] | |||||
Revenues | |||||
Interest income | 128,000 | 70,000 | 268,000 | 192,000 | |
Mortgage banking income, net | 570,000 | 999,000 | 1,718,000 | 3,026,000 | |
Total revenues | 698,000 | 1,069,000 | 1,986,000 | 3,218,000 | |
Expenses | |||||
Salaries and benefits | 699,000 | 800,000 | 2,125,000 | 2,494,000 | |
Other expenses | 287,000 | 296,000 | 854,000 | 935,000 | |
Total operating expenses | 986,000 | 1,096,000 | 2,979,000 | 3,429,000 | |
Income (loss) before income taxes | (288,000) | (27,000) | (993,000) | (211,000) | |
Income tax expense (benefit) | (61,000) | (6,000) | (209,000) | (44,000) | |
Net income/loss | (227,000) | (21,000) | (784,000) | (167,000) | |
Total assets | $ 17,151,000 | $ 18,281,000 | $ 17,151,000 | $ 18,281,000 |
Shareholders' Equity and Regu_3
Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Shareholders' Equity and Regulatory Matters | ||||||
Total accumulated other comprehensive loss | $ (8,060) | $ (10,431) | $ (10,881) | $ (11,568) | $ (7,879) | $ (744) |
Shareholders' Equity and Regu_4
Shareholders' Equity and Regulatory Matters - Detailed AOCI Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated other comprehensive loss, Beginning balance | $ (10,431) | $ (7,879) | $ (10,881) | $ (744) |
Other comprehensive loss before reclassification - AFS | (1,570) | (3,691) | (1,124) | (10,830) |
Other comprehensive loss before reclassification - benefits | (2) | (2) | (6) | (6) |
Other comprehensive loss before reclassification - AFS and benefits | (1,568) | (3,689) | (1,118) | (10,824) |
Amounts reclassified from AOCI into earnings | 3,939 | 3,939 | ||
Net current period other comprehensive income | 2,371 | (3,689) | 2,821 | (10,824) |
Accumulated other comprehensive loss, Ending balance | (8,060) | (11,568) | (8,060) | (11,568) |
Unrealized Losses on AFS Securities | ||||
Accumulated other comprehensive loss, Beginning balance | (10,417) | (7,856) | (10,863) | (717) |
Other comprehensive loss before reclassification - AFS | (1,570) | (3,691) | (1,124) | (10,830) |
Amounts reclassified from AOCI into earnings | 3,939 | 3,939 | ||
Net current period other comprehensive income | 2,369 | (3,691) | 2,815 | (10,830) |
Accumulated other comprehensive loss, Ending balance | (8,048) | (11,547) | (8,048) | (11,547) |
Defined Benefit Plan | ||||
Accumulated other comprehensive loss, Beginning balance | (14) | (23) | (18) | (27) |
Other comprehensive loss before reclassification - benefits | 2 | 2 | 6 | 6 |
Net current period other comprehensive income | 2 | 2 | 6 | 6 |
Accumulated other comprehensive loss, Ending balance | $ (12) | $ (21) | $ (12) | $ (21) |
Shareholders' Equity and Regu_5
Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.080 | |
To be Well Capitalized (in percentage) | 0.100 | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.060 | |
To be Well Capitalized (in percentage) | 0.080 | |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.040 | |
To be Well Capitalized (in percentage) | 0.050 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
To Be Well Capitalized (in percentage) | 0.065 | |
Common equity tier one risk based capital ratio capital adequacy minimum | 0.045 | |
Capital conservation buffer common equity tier one risk based capital actual | 0.025 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.060 | |
Capital conservation buffer tier one risk based capital actual | 0.025 | |
Capital required for capital adequacy to risk weighted assets | 0.080 | |
Capital conservation buffer total risk based capital actual | 0.025 | |
Maximum | ||
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.080 | |
Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.105 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Banking Regulation Common Equity Tier One Risk Based Capital Ratio Capital Adequacy Minimum Including Conservation Buffer (in percentage) | 0.07 | |
Capital required for capital adequacy to risk weighted assets | 0.080 | |
Minimum | ||
Tier 1 capital (to risk-capital to average assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 0.060 | |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.085 | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Common equity tier one risk based capital ratio capital adequacy minimum | 0.045 | |
Tier one risk based capital required for capital adequacy to risk weighted assets | 0.060 | |
Subsidiaries [Member] | ||
Total capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 85,021 | $ 84,982 |
Capital Required For Capital Adequacy Including Conservation Buffer | 62,912 | 60,267 |
To be Well Capitalized Amount | $ 59,917 | $ 57,398 |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 0.1419 | 0.1481 |
Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.1050 | 0.1050 |
To be Well Capitalized (in percentage) | 0.1000 | 0.1000 |
Tier 1 capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 81,339 | $ 81,612 |
Tier One Risk Based Capital Required For Capital Adequacy Including Conservation Buffer | 50,929 | 48,788 |
To be Well Capitalized Amount | $ 47,933 | $ 45,918 |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 0.1358 | 0.1422 |
Tier One Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets Including Conservation Buffer (in percentage) | 0.0850 | 0.0850 |
To be Well Capitalized (in percentage) | 0.0800 | 0.0800 |
Leverage ratio (Tier 1 capital to average assets), Amount | ||
Actual Amount | $ 81,339 | $ 81,612 |
Tier One Leverage Capital Required For Capital Adequacy Including Conservation Buffer | 30,280 | 29,805 |
To be Well Capitalized Amount | $ 37,850 | $ 37,256 |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 0.1074 | 0.1095 |
For Capital Adequacy Purposes (in percentage) | 0.0400 | 0.0400 |
To be Well Capitalized (in percentage) | 0.0500 | 0.0500 |
Common equity (Tier 1 risk based capital to risk weighted assets), Amount | ||
Actual Amount | $ 81,339 | $ 81,612 |
Common Equity Tier One Capital Required For Capital Adequacy Including Conservation Buffer | 41,942 | 40,178 |
To Be Well Capitalized Amount | $ 38,032 | $ 37,308 |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Actual Ratio (in percentage) | 13.58% | 14.22% |
Banking Regulation Common Equity Tier One Risk Based Capital Ratio Capital Adequacy Minimum Including Conservation Buffer (in percentage) | 0.0700 | 0.0700 |
To Be Well Capitalized (in percentage) | 0.0650 | 0.0650 |
Shareholders' Equity and Regu_6
Shareholders' Equity and Regulatory Matters - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Shareholders' Equity and Regulatory Matters | ||
Deferred tax benefits | $ 76 | $ 159 |
Commitments and contingencies_2
Commitments and contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 149,641 | $ 130,275 |
Standby letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 1,164 | 922 |
Undisbursed credit lines | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 138,311 | 119,454 |
Commitments to extend or originate credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 10,166 | $ 9,899 |
Mortgage Banking and Derivati_2
Mortgage Banking and Derivatives (Details) | Sep. 30, 2023 USD ($) position | Dec. 31, 2022 USD ($) position |
Participating Mortgage Loans [Line Items] | ||
Fair value of LHFS | $ 5,400,000 | $ 2,300,000 |
Unpaid principal balance | 5,400,000 | 2,200,000 |
Other Assets | ||
Participating Mortgage Loans [Line Items] | ||
Fair value of IRLC | $ 183,000 | $ 142,000 |
IRLC total positions | position | 41 | 31 |
Forward sales commitments notional amount | $ 10,200,000 | $ 9,900,000 |
Other Liabilities | ||
Participating Mortgage Loans [Line Items] | ||
IRLC notional amount | 15,600,000 | 12,100,000 |
Fair value of forward sales commitments | $ 262,000 | $ 207,000 |
Forward sales commitments total positions | position | 60 | 38 |