Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Entity File Number | 001-33037 | ||
Entity Registrant Name | Southern National Bancorp of Virginia Inc | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 20-1417448 | ||
Entity Address, Address Line One | 6830 Old Dominion Drive | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22101 | ||
City Area Code | 703 | ||
Local Phone Number | 893-7400 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | SONA | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 24,438,545 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 230.8 | ||
Entity Central Index Key | 0001325670 | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash and due from financial institutions | $ 8,585 | $ 7,909 |
Interest-bearing deposits in other financial institutions | 187,600 | 24,019 |
Total cash and cash equivalents | 196,185 | 31,928 |
Securities available for sale, at fair value | 153,233 | 164,820 |
Securities held to maturity, at amortized cost (fair value of $41,832 and $72,666, respectively) | 40,721 | 72,448 |
Total loans | 2,440,496 | 2,186,047 |
Less allowance for credit losses | (36,345) | (10,261) |
Net loans | 2,404,151 | 2,175,786 |
Stock in Federal Reserve Bank (FRB) and Federal Home Loan Bank (FHLB) | 16,927 | 17,832 |
Equity method investment in mortgage affiliate | 12,652 | 5,020 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Bank premises and equipment, net | 30,306 | 31,184 |
Operating lease right-of-use assets | 7,511 | 8,013 |
Goodwill | 101,954 | 101,954 |
Core deposit intangibles, net | 5,826 | 7,191 |
Bank-owned life insurance | 65,409 | 63,850 |
Other real estate owned | 3,078 | 6,224 |
Deferred tax assets, net | 14,646 | 11,788 |
Accrued interest receivable | 19,998 | 8,210 |
Other assets | 12,771 | 12,617 |
Total assets | 3,088,673 | 2,722,170 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Noninterest-bearing demand deposits | 440,674 | 339,153 |
Interest-bearing deposits: | ||
NOW accounts | 714,752 | 391,172 |
Money market accounts | 603,318 | 466,867 |
Savings accounts | 183,814 | 144,486 |
Time deposits | 490,048 | 783,040 |
Total interest-bearing deposits | 1,991,932 | 1,785,565 |
Total deposits | 2,432,606 | 2,124,718 |
Securities sold under agreements to repurchase - short term | 16,065 | 12,883 |
FHLB advances | 100,000 | 121,640 |
Junior subordinated debt - long term | 9,682 | 9,632 |
Senior subordinated notes - long term | 105,647 | 47,051 |
Operating lease liabilities | 8,238 | 8,469 |
Other liabilities | 25,881 | 20,536 |
Total liabilities | 2,698,119 | 2,344,929 |
Commitments and contingencies (See Note 14) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 45,000,000 shares; 24,368,612 and 24,181,534 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 243 | 241 |
Additional paid in capital | 308,870 | 306,755 |
Retained earnings | 77,956 | 69,462 |
Accumulated other comprehensive income | 3,485 | 783 |
Total stockholders' equity | 390,554 | 377,241 |
Total liabilities and stockholders' equity | $ 3,088,673 | $ 2,722,170 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Securities held to maturity fair value (in dollars) | $ 41,832 | $ 72,666 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 24,368,612 | 24,181,534 |
Common stock, shares outstanding | 24,368,612 | 24,181,534 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 111,647 | $ 112,181 | $ 110,213 |
Interest and dividends on taxable securities | 4,244 | 5,639 | 5,752 |
Interest and dividends on tax exempt securities | 486 | 585 | 634 |
Interest and dividends on other earning assets | 1,402 | 2,119 | 2,308 |
Total interest and dividend income | 117,779 | 120,524 | 118,907 |
Interest expense: | |||
Interest on deposits | 20,332 | 30,602 | 18,235 |
Interest on FRB borrowings | 424 | ||
Interest on repurchase agreements | 96 | 87 | 97 |
Interest on junior subordinated debt | 426 | 589 | 575 |
Interest on senior subordinated notes | 3,909 | 2,847 | 2,847 |
Interest on other borrowings | 952 | 2,799 | 6,087 |
Total interest expense | 26,139 | 36,924 | 27,841 |
Net interest income | 91,640 | 83,600 | 91,066 |
Provision for credit losses | 19,450 | 350 | 4,200 |
Net interest income after provision for credit losses | 72,190 | 83,250 | 86,866 |
Noninterest income: | |||
Account maintenance and deposit service fees | 6,520 | 7,159 | 5,959 |
Income from bank-owned life insurance | 1,559 | 1,699 | 1,983 |
Equity gain (loss) from mortgage affiliate | 10,789 | 1,191 | (894) |
Realized losses on sales of investment securities | (620) | ||
Recoveries related to acquired charged-off loans and investment securities | 6,500 | 1,537 | 2,610 |
Other | 703 | 1,000 | 541 |
Total noninterest income | 25,451 | 12,586 | 10,199 |
Noninterest expenses: | |||
Salaries and benefits | 36,675 | 26,261 | 27,706 |
Occupancy expenses | 6,142 | 6,204 | 6,628 |
Furniture and equipment expenses | 2,725 | 2,719 | 2,795 |
Amortization of core deposit intangible | 1,364 | 1,418 | 1,445 |
Virginia franchise tax expense | 2,457 | 2,251 | 1,839 |
Data processing expense | 3,178 | 2,381 | 1,885 |
Telephone and communication expense | 1,497 | 1,615 | 2,035 |
Net (gain) loss on other real estate owned | 960 | (38) | 360 |
Professional fees | 4,726 | 3,612 | 1,644 |
Other operating expenses | 8,016 | 10,169 | 7,423 |
Total noninterest expenses | 67,740 | 56,592 | 53,760 |
Income before income taxes | 29,901 | 39,244 | 43,305 |
Income tax expense | 6,614 | 6,077 | 9,614 |
Net income | 23,287 | 33,167 | 33,691 |
Other comprehensive income: | |||
Unrealized gain (loss) on available for sale securities | 2,789 | 4,256 | (1,548) |
Reclassification of loss on sales of investment securities | 620 | ||
Accretion of amounts previously recorded upon transfer to held to maturity from available for sale | 12 | 13 | 16 |
Net unrealized gain (loss) | 3,421 | 4,269 | (1,532) |
Tax effect | 719 | 897 | (324) |
Other comprehensive income (loss) | 2,702 | 3,372 | (1,208) |
Comprehensive income | $ 25,989 | $ 36,539 | $ 32,483 |
Earnings per share, basic (in dollars per share) | $ 0.96 | $ 1.38 | $ 1.40 |
Earnings per share, diluted (in dollars per share) | $ 0.96 | $ 1.36 | $ 1.39 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Additional Paid-In Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Total |
Balance (Accounting Standards Update 2018-02 [Member]) at Dec. 31, 2017 | $ 239 | $ 304,932 | $ 18,982 | $ (1,381) | $ 322,772 | ||||||||
Balance at Dec. 31, 2017 | $ 239 | $ 304,932 | $ 229 | $ 18,753 | $ (229) | $ (1,152) | $ 322,772 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 33,691 | 33,691 | |||||||||||
Changes in other comprehensive loss on investment securities, net of tax | (1,208) | (1,208) | |||||||||||
Dividends on common stock | (7,688) | (7,688) | |||||||||||
Issuance of common stock under Stock Incentive Plan | 1 | 442 | 443 | ||||||||||
Stock-based compensation expense | 280 | 280 | |||||||||||
Balance at Dec. 31, 2018 | 240 | 305,654 | 44,985 | $ 229 | (1,381) | (2,589) | 348,290 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 33,167 | ||||||||||||
Changes in other comprehensive loss on investment securities, net of tax | 3,372 | 3,372 | |||||||||||
Dividends on common stock | (8,690) | (8,690) | |||||||||||
Issuance of common stock under Stock Incentive Plan | (1) | (669) | (670) | ||||||||||
Stock-based compensation expense | 432 | 432 | |||||||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2019 | $ (5,056) | $ (5,056) | |||||||||||
Balance at Dec. 31, 2019 | $ 241 | 241 | $ 306,755 | 306,755 | $ 64,406 | 69,462 | $ 783 | 783 | $ 372,185 | 377,241 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 23,287 | 23,287 | |||||||||||
Changes in other comprehensive loss on investment securities, net of tax | 2,702 | 2,702 | |||||||||||
Dividends on common stock | (9,737) | (9,737) | |||||||||||
Vesting of restricted stock | 1 | (1) | |||||||||||
Repurchase of restricted stock | (135) | (135) | |||||||||||
Issuance of common stock under Stock Incentive Plan | 1 | 708 | 709 | ||||||||||
Stock-based compensation expense | 1,543 | 1,543 | |||||||||||
Balance at Dec. 31, 2020 | $ 243 | $ 308,870 | $ 77,956 | $ 3,485 | $ 390,554 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Tax on change in on investment securities | $ 719 | $ 897 | $ (324) |
Common stock dividends per share (in dollars per share) | $ 0.40 | $ 0.36 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 23,287,000 | $ 33,167,000 | $ 33,691,000 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation and amortization | 5,285,000 | 5,632,000 | 7,403,000 |
Amortization of operating lease right-of-use assets | 2,909,000 | 2,546,000 | |
Accretion of loan discount | (4,346,000) | (3,859,000) | (4,534,000) |
Amortization of FDIC indemnification asset | 649,000 | 704,000 | |
Provision for credit losses | 19,450,000 | 350,000 | 4,200,000 |
Earnings on bank-owned life insurance | (1,559,000) | (1,565,000) | (1,633,000) |
Equity gain (loss) on mortgage affiliate | (10,789,000) | (1,191,000) | 894,000 |
Stock-based compensation expense | 1,543,000 | 432,000 | 280,000 |
Loss on sales of investment securities | 620,000 | ||
Gain on bank-owned life insurance death benefit | (134,000) | (350,000) | |
(Gain) loss on other real estate owned | 960,000 | (38,000) | 360,000 |
Provision (benefit) for deferred income taxes | (1,618,000) | 1,420,000 | 3,121,000 |
Net (increase) decrease in other assets | (11,942,000) | (2,203,000) | 213,000 |
Net increase (decrease) in other liabilities | 5,863,000 | 1,558,000 | (2,909,000) |
Net cash and cash equivalents provided by operating activities | 29,663,000 | 36,764,000 | 41,440,000 |
Investing activities: | |||
Proceeds from sales of held to maturity investment securities | 1,660,000 | 0 | |
Proceeds from sales of available for sale investment securities | 1,910,000 | 0 | |
Purchases of held to maturity investment securities | (15,197,000) | (15,260,000) | |
Purchases of available for sale investment securities | (38,938,000) | (45,135,000) | |
Proceeds from paydowns, maturities and calls of available for sale investment securities | 50,068,000 | 26,283,000 | 14,360,000 |
Proceeds from paydowns, maturities and calls of held to maturity investment securities | 44,738,000 | 35,006,000 | 5,955,000 |
Net decrease of FRB and FHLB stock | 905,000 | 1,690,000 | 7,253,000 |
Net increase in loans | (251,000,000) | (7,059,000) | (113,845,000) |
Purchase of bank-owned life insurance | (12,000,000) | ||
Proceeds from bank-owned life insurance death benefit | 344,000 | 2,278,000 | |
Sales of other real estate owned, net of improvements | 2,663,000 | 214,000 | 2,140,000 |
Proceeds from sales of bank premise and equipment and assets held for sale | 2,136,000 | ||
Purchases of bank premises and equipment | (1,082,000) | (1,101,000) | (1,973,000) |
Net cash and cash equivalents used in investing activities | (204,273,000) | (5,018,000) | (93,696,000) |
Financing activities: | |||
Net increase in deposits | 307,888,000 | 27,129,000 | 231,671,000 |
Cash dividends paid on common stock | (9,737,000) | (8,690,000) | (7,688,000) |
Issuance of common stock under Stock Incentive Plan | 709,000 | 670,000 | 443,000 |
Repurchase of restricted stock | (135,000) | ||
Issuance of subordinated notes, net of cost | 58,600,000 | ||
Net decrease in other borrowings | (18,458,000) | (47,538,000) | (169,022,000) |
Net cash and cash equivalents provided by (used in) financing activities | 338,867,000 | (28,429,000) | 55,404,000 |
Increase in cash and cash equivalents | 164,257,000 | 3,317,000 | 3,148,000 |
Cash and cash equivalents at beginning of period | 31,928,000 | 28,611,000 | 25,463,000 |
Cash and cash equivalents at end of period | 196,185,000 | 31,928,000 | 28,611,000 |
Cash payments for: | |||
Interest | 27,988,000 | 36,002,000 | 26,129,000 |
Income taxes | 7,693,000 | 4,897,000 | $ 6,672,000 |
Supplemental schedule of noncash investing and financing activities | |||
Transfer from loans to other real estate owned | $ 477,000 | $ 1,323,000 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Southern National Bancorp of Virginia, Inc. (“Southern National” or “SNBV” or the “Company”) is a corporation that was formed on July 28, 2004 under the laws of the Commonwealth of Virginia and is the holding company for Sonabank (“Sonabank” or the “Bank”) a Virginia state-chartered bank which commenced operations on April 14, 2005. Sonabank provides a range of financial services to individuals and small and medium sized businesses. At December 31, 2020, Sonabank had forty-two full-service branches in Virginia and Maryland and through certain internet and mobile applications. Thirty-seven full-service retail branches are in Virginia, located in Ashland, Burgess, Callao, Central Garage, Charlottesville, Chester, Clifton Forge, Colonial Heights, Courtland, Deltaville, Fairfax, Front Royal, Gloucester, Gloucester Point, Hampton, Hartfield, Heathsville, Kilmarnock, Leesburg, McLean, Mechanicsville (2), Middleburg, Midlothian, New Market, Newport News, Quinton, Reston, Richmond, South Riding, Surry, Tappahannock (2), Urbanna, Warrenton, Waverly, and Williamsburg, and five full-service retail branches in Maryland, located in Bethesda, Brandywine, Owings, Rockville, and Upper Marlboro. We have administrative offices in Warrenton and Glen Allen, Virginia. The accounting policies and practices of Southern National and its subsidiaries conform to U.S. generally accepted accounting principles (“U.S. GAAP”) and to general practice within the banking industry. Major policies and practices are described below: Principles of Consolidation The consolidated financial statements include the accounts of Southern National and its subsidiaries Sonabank and EVB Statutory Trust I (the “Trust”). Significant inter-company accounts and transactions have been eliminated in consolidation. Southern National consolidates subsidiaries in which it holds, directly or indirectly, more than 50 percent of the voting rights or where it exercises control. Entities where Southern National holds 20 to 50 percent of the voting rights, or has the ability to exercise significant influence, or both, are accounted for under the equity method. Southern National owns the Trust which is an unconsolidated subsidiary and the junior subordinated debt owed to the Trust is reported as a liability of Southern National. In addition, Sonabank has an interest in one affiliate, Southern Trust Mortgage, LLC (“STM”). Sonabank owns 48.9% and 100% of STM’s common and preferred stock, respectively. To comply with Regulation S-X, Rule 3-09, audited financial statements of STM as of and for the year ended December 31, 2020 are being filed with Southern National’s Annual Report on Form 10-K as Exhibit 99.1. Investments in Mortgage Affiliate Sonabank’s investment in STM’s common stock is accounted for using the equity method. Under the equity method, the carrying value of Sonabank’s investment in STM was originally recorded at cost but is adjusted periodically to record Sonabank’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. Our equity investment in STM as of December 31, 2020 and 2019 was $12.7 million and $5.0 million, respectively. Sonabank’s investment in STM’s preferred stock is considered to be a non-marketable equity security that does not have a readily determinable fair value. Equity securities with no recurring market value data available are reviewed periodically and any observable market value change are adjusting through net income. Sonabank evaluated this non-marketable equity security for impairment and recoverability of the recorded investment by considering positive and negative evidence, including the profitability and asset quality of STM, dividend payment history and recent redemption experience. Impairment is assessed at each reporting period and if identified, is recognized in noninterest income. Our preferred investment in STM was $3.3 million as of December 31, 2020 and 2019. Operating Segments Operating segments are defined as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has determined it has one unconsolidated reportable segment, which consists of the Sonabank's investment in STM. Sonabank’s share of equity in earnings (losses) from STM for the years ended December 31, 2020, 2019 and 2018 were $10.8 million, $1.2 million and $(894) thousand, respectively. The chief operating decision maker evaluates segment performance based on STM’s net income (loss). Net income (loss) was $22.2 million, $2.7 million and $(1.6) million for the years ended December 31, 2020, 2019 and 2018, respectively. The primary source of revenue for this segment is gains on sale of mortgage loans held for sale, net of direct costs. For the years ended December 31, 2020, 2019 and 2018, gains on sale of mortgage loans held for sale, net of direct costs were $107.1 million, $45.7 million and $27.2 million, respectively. In evaluating STM’s net income (loss), the chief operating decision maker also assesses salaries, commissions and benefits, which were $84.1 million, $39.0 million and $24.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Also, the chief operating decision maker evaluates segments performance based on STM’s balance sheet. Total mortgage loans held for sale by STM were $143.4 million and $100.2 million as of December 31, 2020 and 2019, respectively. Warehouse lines of credit were $136.1 million and $92.1 million as of December 31, 2020 and 2019, respectively. STM’s total members’ equity was $26.4 million and $11.1 million as of December 31, 2020 and 2019. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Estimates that are particularly susceptible to change in the near term include: the determination of the allowance for credit losses (formerly the allowance for loan losses), the fair value of investment securities, credit impairment of investment securities, the valuation of goodwill, other real estate owned (“OREO”) and deferred tax assets. Investment Securities Debt securities that Southern National has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Securities classified as available for sale are those debt securities that may be sold in response to changes in interest rates, liquidity needs or other similar factors. Securities available for sale are carried at fair value, with unrealized gains or losses net of deferred taxes, included in accumulated other comprehensive income (loss) in stockholders’ equity. Premiums and discounts are generally amortized using the interest method with a constant effective yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to their earliest call date. Prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2017-08 in 2019, premiums and discounts were recognized in interest income using the interest method over the terms of the securities without anticipating prepayments, except for mortgage-backed securities where prepayments were anticipated. Gains and losses on the sale of investment securities are recorded on the settlement date and are determined using the specific identification method. Southern National purchases amortizing investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchased premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on like-kind instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored and updated monthly to reflect actual activity and the most recent market projections. Other investments include stock acquired for regulatory purposes. The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also required to own FRB stock with a par value equal to 6% of capital and FHLB stock of 4.25% of borrowings outstanding. FHLB and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Southern National provides mortgage loans purchased from STM, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by loans secured by real estate throughout its market area. The ability of Southern National’s debtors to honor their contracts is in varying degrees dependent upon the real estate market conditions and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for the allowance for credit losses, purchased premiums and discounts and any deferred loan fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. Commercial real estate consists of borrowings secured by owner occupied and non-owner occupied commercial real estate. Repayment of these loans is dependent upon rental income or the subsequent sale of the property for loans secured by non-owner occupied commercial real estate and by cash flows from business operations for owner occupied commercial real estate. Loans for which the source of repayment is rental income are primarily impacted by local economic conditions which dictate occupancy rates and the amount of rent charged. Commercial real estate loans that are dependent on cash flows from operations can also be adversely affected by current market conditions for their product or service. Construction and land development primarily consist of borrowings to purchase and develop raw land into residential and non-residential properties. Construction loans are extended to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements. Repayment of the loans to real estate developers is dependent upon the sale or lease of properties to third parties in a timely fashion upon completion. Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value which may be absorbed by Southern National. Commercial loans consist of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises. Commercial loans are generally secured by business assets such as equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations. Southern National’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure become necessary. Generally, business assets used or produced in operations do not maintain their value upon foreclosure which may require Southern National to write-down the value significantly to sell. Residential real estate loans consist of loans to individuals for the purchase of primary residences with repayment primarily through wage or other income sources of the individual borrower. Southern National’s loss exposure to these loans is dependent on local market conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination. STM is a regional mortgage banking company headquartered in Virginia Beach, Virginia that has mortgage banking originators in Delaware, Virginia, Maryland, North Carolina and South Carolina. STM only originates retail mortgage products. Sonabank has established underwriting guidelines with STM under which it will purchase residential construction, construction loans that convert to permanent, and permanent loans primarily in its Virginia and Maryland footprint from STM. These will typically be loans that do not conform to FNMA or FHLMC standards because of size or acreage. Other consumer loans are comprised of loans to individuals both unsecured and secured and home equity loans secured by real estate (closed and open-end), with repayment dependent on individual wages and other income. The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary. Losses in this portfolio are generally relatively low, however, due to the small individual loan size and the balance outstanding as a percentage of Southern National’s entire portfolio. The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Most of Southern National’s business activity is with customers located within Virginia and Maryland. Therefore, our exposure to credit risk is significantly affected by changes in the economy in those areas. We are not dependent on any single customer or group of customers whose insolvency would have a material adverse effect on operations. Southern National has purchased, primarily through acquisitions, individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value such that there is no carryover of the seller’s allowance for credit losses. We adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020 which now requires us to record purchased financial assets with credit deterioration (PCD assets), defined as a more-than-insignificant deterioration in credit quality since origination or issuance, at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition of PCD assets. Changes in estimates of expected credit losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise. Any non-credit discount or premium resulting from acquiring a pool of purchased financial assets with credit deterioration shall be allocated to each individual asset. At the acquisition date, the initial allowance for credit losses determined on a collective basis shall be allocated to individual assets to appropriately allocate any non-credit discount or premium. The non-credit discount or premium, after the adjustment for the allowance for credit losses, shall be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment for credit losses at the adoption date. A purchased financial asset that does not qualify as a PCD asset is accounted for similar to an originated financial asset. Generally, this means that an entity recognizes the allowance for credit losses for non-PCD assets through net income at the time of acquisition. In addition, both the credit discount and non-credit discount or premium resulting from acquiring a pool of purchased financial assets that do not qualify as PCD assets shall be allocated to each individual asset. This combined discount or premium shall be accreted to interest income using the effective yield method. Allowance for Credit Losses (“ACL”) As further discussed below, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020. Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) replaced the previous “incurred loss” model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss (“CECL”) model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance-sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of ASC 326, we revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below. Allowance For Credit Losses - Held-to-Maturity Securities The allowance for credit losses on held-to-maturity securities is a contra-asset valuation account, calculated in accordance with ASC 326 that is deducted from the amortized cost basis of held-to-maturity securities to present management's best estimate of the net amount expected to be collected. Held-to-maturity securities are charged-off against the allowance when deemed uncollectible by management. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held-to-maturity securities from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on held-to-maturity securities is presented in Note 2 – Investment Securities. Allowance For Credit Losses - Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, we first assess whether (i) we intend to sell or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either case is affirmative, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither case is affirmative, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Prior to the adoption of ASU 2016-13, declines in the fair value of held-to-maturity and available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2020, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Allowance for Credit Losses – Loans The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326, which is deducted from the amortized cost basis of loans to present management's best estimate of the net amount expected to be collected. Loans are charged-off against the allowance when deemed uncollectible by management. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on loans is presented in Note 3 – Loans and Allowance. Prior to the adoption of ASU 2016-13, the allowance for loan losses on loans was a contra-asset valuation account established through a provision for loan losses charged to expense, which represented management’s best estimate of inherent losses that had been incurred within the existing portfolio of loans. The allowance for loan losses on loans included allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Allowance For Credit Losses - Off-Balance-Sheet Credit Exposures The allowance for credit losses on off-balance-sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if we have the unconditional right to cancel the obligation. The allowance is reported as a component of accrued interest payable and other liabilities in our consolidated balance sheets. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Further information regarding our policies and methodology used to estimate the allowance for credit losses on off-balance-sheet credit exposures is presented in Note 14 – Financial Instruments with Off-Balance-Sheet Risks. As discussed above, effective January 1, 2020 we adopted the provisions of ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Upon adoption, we recognized an after-tax cumulative effect reduction to retained earnings totaling $5.1 million, as detailed in the table below. Operating results for periods after January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies. The following table details the impact of the adoption of ASC 326 on the allowance for credit losses as of January 1, 2020 (in thousands): After-tax Cumulative Pre-Adoption Impact of Post-Adoption Effect On Allowance Adoption Allowance Retained Earnings Securities Held To Maturity: Obligations of states and political subdivisions $ — $ (1) $ (1) $ — Total $ — $ (1) $ (1) $ — Loans: Commercial real estate - owner occupied $ 810 $ 1,704 $ 2,514 $ (994) Commercial real estate - non-owner occupied (1) 1,720 2,706 4,426 (1,578) Construction and land development 683 674 1,357 (393) Commercial loans 5,418 (3,246) 2,172 1,893 Paycheck Protection Program loans — — — - Residential 1-4 family (2) 1,266 4,169 5,435 (2,431) Other consumer loans 190 187 377 (109) PCD Loans — 2,272 2,272 (1,325) Unallocated 174 (174) — 101 Total loans $ 10,261 $ 8,292 $ 18,553 $ (4,836) Off-Balance Sheet Exposures $ — $ 360 $ 360 $ (220) (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from Southern National, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and Southern National does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives of 30 years. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Operating Leases The Company leases certain properties and equipment under operating leases. The Company recognizes a liability to make lease payments, the operating lease liability, and an asset representing the right to use the underlying asset during the lease term, the right-of-use asset. In recognizing lease right-of-use assets and related right-of-use liabilities, we account for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. The operating lease liability is measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate at inception. The right-of-use asset is measured at the amount of the operating lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the operating lease liability, and any impairment of the right-of-use asset. Lease renewal options are generally not included in the calculation of the operating lease liabilities, unless they are not reasonably certain to be exercised. The Company does not recognize short-term leases on the balance sheet. Goodwill and Intangible Assets Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. In response to the effects of COVID-19, management determined there to be a triggering event in the third quarter of 2020 warranting a goodwill assessment. For the third quarter 2020 assessment, we performed a step one quantitative assessment to determine if the fair value of all our reporting units was less than its carrying amount. We concluded that the fair value of all our reporting units exceeded its carrying amount and no impairment was present based on management’s assessment. Other intangible assets consist of loan servicing rights and core deposit intangible assets arising from whole-bank and branch acquisitions and are amortized over their estimated useful lives, which range from 6 to 15 years. Stock Based Compensation Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes option-pricing model is utilized to estimate the fair value of stock options. Compensation cost for grants of restricted shares is accounted for based on the closing price of Southern National’s common stock on the date the restricted shares are awarded. Compensation cost for stock options and restricted shares is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Bank-Owned Life Insurance Southern National has purchased, and acquired through acquisitions, life insurance policies on certain former and current key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Other Real Estate Owned (“OREO”) Real estate acquired through or instead of foreclosure is held for sale and initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a direct charge-off is recorded through expense. Operating costs after acquisition are expensed as incurred. Impairment of Long-Lived Assets P |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost and fair value of available for sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands): Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2020 Residential government-sponsored mortgage-backed securities $ 35,442 $ 1,618 $ — $ 37,060 Obligations of states and political subdivisions 22,966 1,076 — 24,042 Corporate securities 15,000 81 (2) 15,079 Residential government-sponsored collateralized mortgage obligations 28,680 737 (1) 29,416 Government-sponsored agency securities 5,985 90 — 6,075 Agency commercial mortgage-backed securities 29,118 1,087 (15) 30,190 SBA pool securities 11,441 80 (150) 11,371 Total $ 148,632 $ 4,769 $ (168) $ 153,233 Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2019 Residential government-sponsored mortgage-backed securities $ 48,540 $ 455 $ (16) $ 48,979 Obligations of states and political subdivisions 17,041 541 — 17,582 Corporate securities 2,004 8 — 2,012 Trust preferred securities 2,530 283 (245) 2,568 Residential government-sponsored collateralized mortgage obligations 36,511 217 (39) 36,689 Government-sponsored agency securities 14,823 47 (48) 14,822 Agency commercial mortgage-backed securities 27,557 192 (18) 27,731 SBA pool securities 14,622 11 (196) 14,437 Total $ 163,628 $ 1,754 $ (562) $ 164,820 The amortized cost, gross unrecognized gains and losses, allowance for credit losses and fair value of investment securities held to maturity were as follows (in thousands): Amortized Gross Unrecognized Allowance for Fair Cost Gains Losses Credit Losses Value December 31, 2020 Residential government-sponsored mortgage-backed securities $ 25,037 $ 729 $ (2) $ — $ 25,764 Obligations of states and political subdivisions 9,594 183 — (1) 9,776 Residential government-sponsored collateralized mortgage obligations 1,090 39 — — 1,129 Government-sponsored agency securities 5,000 163 — — 5,163 Total $ 40,721 $ 1,114 $ (2) $ (1) $ 41,832 Amortized Gross Unrecognized Fair Cost Gains Losses Value December 31, 2019 Residential government-sponsored mortgage-backed securities $ 22,925 $ 62 $ (52) $ 22,935 Obligations of states and political subdivisions 15,071 165 (1) 15,235 Trust preferred securities 1,938 99 (2) 2,035 Residential government-sponsored collateralized mortgage obligations 3,128 10 (9) 3,129 Government-sponsored agency securities 29,386 108 (162) 29,332 Total $ 72,448 $ 444 $ (226) $ 72,666 During 2020 and 2019, $38.9 million and $45.1 million, respectively, of available for sale investment securities and $15.2 million and $15.3 million, respectively, of held to maturity investment securities were purchased. During 2020, $1.9 million and $1.7 million, respectively, of available for sale investment securities and held to maturity investment securities were sold. No investment securities were sold during 2019 The fair value and carrying amount of debt investment securities as of December 31, 2020, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 5,841 $ 6,057 $ 3,406 $ 3,513 Due in five to ten years 19,253 19,696 2,183 2,231 Due after ten years 18,857 19,443 9,005 9,195 Residential government-sponsored mortgage-backed securities 35,442 37,060 25,037 25,764 Residential government-sponsored collateralized mortgage obligations 28,680 29,416 1,090 1,129 Agency commercial mortgage-backed securities 29,118 30,190 — — SBA pool securities 11,441 11,371 — — Total $ 148,632 $ 153,233 $ 40,721 $ 41,832 Investment securities with a carrying amount of approximately $125.3 million and $120.5 million at December 31, 2020 and 2019, respectively, were pledged to secure public deposits, certain other deposits, a line of credit for advances from the FHLB of Atlanta, and repurchase agreements. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Treasury and residential mortgage-backed securities issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by States and political subdivisions and other held-to-maturity securities, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities and (iv) internal forecasts. As of December 31, 2020, Southern National has $1 thousand as allowance for credit losses on held-to-maturity securities. The following tables present information regarding investment securities available for sale and held to maturity in a continuous unrealized loss position as of December 31, 2020 and 2019 by duration of time in a loss position (in thousands): December 31, 2020 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Corporate securities $ 998 $ (2) $ — $ — $ 998 $ (2) Residential government-sponsored collateralized mortgage obligations 954 (1) — — 954 (1) Agency commercial mortgage-backed securities 2,170 (15) — — 2,170 (15) SBA pool securities — — 8,119 (150) 8,119 (150) Total $ 4,122 $ (18) $ 8,119 $ (150) $ 12,241 $ (168) December 31, 2020 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 331 $ (1) $ 126 $ (1) $ 457 $ (2) Total $ 331 $ (1) $ 126 $ (1) $ 457 $ (2) December 31, 2019 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 2,686 $ (7) $ 1,758 $ (9) $ 4,444 $ (16) Trust preferred securities — — 795 (245) 795 (245) Residential government-sponsored collateralized mortgage obligations 4,253 (25) 3,133 (14) 7,386 (39) Government-sponsored agency securities 4,924 (48) — — 4,924 (48) Agency commercial mortgage-backed securities 2,833 (6) 3,126 (12) 5,959 (18) SBA pool securities 1,148 (2) 9,420 (194) 10,568 (196) Total $ 15,844 $ (88) $ 18,232 $ (474) $ 34,076 $ (562) December 31, 2019 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 14,978 $ (41) $ 1,402 $ (11) $ 16,380 $ (52) Obligations of states and political subdivisions 2,011 (1) — — 2,011 (1) Trust preferred securities — — 53 (2) 53 (2) Residential government-sponsored collateralized mortgage obligations 1,162 (3) 571 (6) 1,733 (9) Government-sponsored agency securities — — 20,833 (162) 20,833 (162) Total $ 18,151 $ (45) $ 22,859 $ (181) $ 41,010 $ (226) During 2020, we sold all of the pooled trust preferred investment securities. Changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2020, 2019 and 2018 are shown in the table below. All amounts are net of tax (in thousands). Unrealized Holding Gains on Held to Maturity For the year ended December 31, 2020 Available for Sale Securities Total Beginning balance $ 943 $ (160) $ 783 Current period other comprehensive income 2,693 9 2,702 Ending balance $ 3,636 $ (151) $ 3,485 Unrealized Holding Gains (Losses) on Held to Maturity For the year ended December 31, 2019 Available for Sale Securities Total Beginning balance $ (2,419) $ (170) $ (2,589) Current period other comprehensive income 3,362 10 3,372 Ending balance $ 943 $ (160) $ 783 Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2018 Available for Sale Securities Total Beginning balance $ (999) $ (153) $ (1,152) Amounts reclassified from accumulated other comprehensive loss due to the adoption of ASU 2018-02 (199) (30) (229) Subtotal (1,198) (183) (1,381) Current period other comprehensive (loss) income (1,221) 13 (1,208) Ending balance $ (2,419) $ (170) $ (2,589) |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3. LOANS AND ALLOWANCE Loans, net of deferred fees, consist of the following at year end (in thousands): December 31, 2020 Loans secured by real estate: Commercial real estate - owner occupied $ 435,078 Commercial real estate - non-owner occupied 600,706 Secured by farmland 11,662 Construction and land loans 103,264 Residential 1-4 family 557,257 Multi- family residential 107,267 Home equity lines of credit 91,606 Total real estate loans 1,906,840 Commercial loans 187,060 Paycheck Protection Program loans 319,428 Consumer loans 22,290 Total Non-PCD loans 2,435,618 PCD loans 8,908 Plus (less) deferred costs (fees) on loans (4,030) Total loans $ 2,440,496 December 31, 2019 Loans secured by real estate: Commercial real estate - owner occupied $ 414,479 Commercial real estate - non-owner occupied 559,195 Secured by farmland 17,622 Construction and land loans 150,750 Residential 1-4 family 604,777 Multi- family residential 82,055 Home equity lines of credit 109,006 Total real estate loans 1,937,884 Commercial loans 221,447 Paycheck Protection Program loans — Consumer loans 26,304 Subtotal 2,185,635 Plus deferred costs on loans 412 Total loans $ 2,186,047 Accounting policy related to the allowance for credit losses is considered a critical policy given the level of estimation, judgment, and uncertainty in the levels of the allowance required to account for the inherent probable losses in the loan portfolio and the material effect such estimation, judgment, and uncertainty can have on the consolidated financial results. Accrued Interest Receivable Accrued interest receivable on loans totaled $16.4 million and $6.8 million at December 31, 2020 and 2019, respectively and is included in accrued interest receivable in the consolidated balance sheets. COVID-19 Loan Deferments The Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus was published by banking regulators in April 2020 to clarify expectations around loan modifications and the determination of TDRs for borrowers experiencing COVID-19-related financial difficulty. Southern National applied this regulatory guidance during its troubled debt restructurings (“TDR”) identification process for short-term loan forbearance agreements as a result of COVID-19 and in most cases is not recording these as TDRs. Certain borrowers are currently unable to meet their contractual payment obligations because of the adverse effects of COVID-19. To help mitigate these effects, loan customers may apply for a deferral of payments, or portions thereof, for up to 90 days. After 90 days, customers may apply for an additional deferral, and a small proportion of our customers have requested such an additional deferral. In the absence of other intervening factors, such short-term modifications made on a good faith basis are not categorized as TDR, nor are loans granted payment deferrals related to COVID-19 reported as past due or placed on non-accrual status (provided the loans were not past due or on non-accrual status prior to the deferral). We implemented deferral arrangements for TDRs in accordance with the CARES Act and bank regulatory guidance. At December 31, 2020, there were 44 loans in COVID-19 related deferment with an aggregate outstanding balance of $122.0 million and were current as of December 31, 2019. Accretion Accretable discount on the acquired loans totaled $6.2 million and $11.2 million at December 31, 2020 and 2019, respectively. Accretion associated with the acquired loans held for investment of $4.3 million, $3.9 million and $4.5 million was recognized during the twelve months ended December 31, 2020, 2019 and 2018, respectively. Impaired Loans Prior to the adoption of ASC 326 on January 1, 2020, loans were reported as impaired when, based on then current information and events, it was probable we would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment was evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan was impaired, a specific valuation allowance was allocated, if necessary, so that the loan was reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment was expected solely from the collateral. Interest payments on impaired loans were typically applied to principal unless collectability of the principal amount was reasonably assured, in which case interest was recognized on a cash basis. Impaired loans, or portions thereof, were charged off when deemed uncollectible. Impaired loans for the portfolio as of December 31, 2019 were as follows (in thousands): Total Loans Unpaid Recorded Principal Related December 31, 2019 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 6,890 $ 8,530 $ — Commercial real estate - non-owner occupied (2) 3,120 3,363 — Construction and land development 345 747 — Commercial loans 5,049 8,490 — Residential 1-4 family (3) 1,021 2,719 — Other consumer loans — — — Total $ 16,425 $ 23,849 $ — With an allowance recorded Commercial real estate - owner occupied $ — $ — $ — Commercial real estate - non-owner occupied (2) 176 281 1 Construction and land development — — — Commercial loans 2,498 2,533 957 Residential 1-4 family (3) 2,841 3,243 92 Other consumer loans 39 39 1 Total $ 5,554 $ 6,096 $ 1,051 Grand total $ 21,979 $ 29,945 $ 1,051 (1) Recorded investment is after cumulative prior charge offs of $1.5 million as of December 31, 2019. These loans also have aggregate SBA guarantees of $4.4 million as of December 31, 2019. (2) Includes loans secured by farmland and multi-family residential loans. (3) Includes home equity lines of credit. The following tables present the average recorded investment and interest income recognized for impaired loans recognized by class of loans for the years ended December 31, 2019 and 2018 (in thousands): Total Loans Average Interest Recorded Income Year Ended December 31, 2019 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 7,387 $ 453 Commercial real estate - non-owner occupied (1) 3,205 191 Construction and land development 398 57 Commercial loans 5,254 214 Residential 1-4 family (2) 1,061 149 Other consumer loans — — Total $ 17,305 $ 1,064 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) 182 19 Construction and land development — — Commercial loans 3,027 176 Residential 1-4 family (2) 2,944 111 Other consumer loans 39 — Total $ 6,192 $ 306 Grand total $ 23,497 $ 1,370 Total Loans Average Interest Recorded Income For the Year Ended December 31, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 2,780 $ 179 Commercial real estate - non-owner occupied (1) 169 22 Construction and land development — — Commercial loans 3,319 92 Paycheck Protection Program Loans — — Residential 1-4 family (2) 1,582 125 Other consumer loans — — Total $ 7,850 $ 418 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 2,530 200 Paycheck Protection Program loans — — Residential 1-4 family (2) 1,422 67 Other consumer loans — — Total $ 3,952 $ 267 Grand total $ 11,802 $ 685 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Non-Accrual and Past Due Loans 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 non-accrual 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. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, we consider the borrower’s debt service capacity through the analysis of current financial information, if available, and/or current information with regards to our collateral position. Regulatory provisions would typically require the placement of a loan on non-accrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2020 and 2019 (in thousands): 30 - 59 60 - 89 90 Days Days Days Total Loans Not Total December 31, 2020 Past Due Past Due or More Past Due Past Due Loans (4) Commercial real estate - owner occupied $ — $ — $ — $ — $ 435,078 $ 435,078 Commercial real estate - non-owner occupied (1) — — — — 719,635 719,635 Construction and land development 23 39 — 62 103,202 103,264 Commercial loans 64 33 — 97 186,963 187,060 Paycheck Protection Program loans — — — — 319,428 319,428 Residential 1-4 family (2) 1,545 388 — 1,933 646,930 648,863 Other consumer loans 207 4 — 211 22,079 22,290 Total Non-PCD loans 1,839 464 — 2,303 2,433,315 2,435,618 PCD loans — — — — 8,908 8,908 Total $ 1,839 $ 464 $ — $ 2,303 $ 2,442,223 $ 2,444,526 30 - 59 60 - 89 90 Days Days Days Total Nonaccrual Loans Not Total December 31, 2019 Past Due Past Due or More Past Due Loans (3) Past Due Loans Commercial real estate - owner occupied $ 813 $ — $ — $ 813 $ — $ 413,666 $ 414,479 Commercial real estate - non-owner occupied (1) 936 — — 936 — 657,936 658,872 Construction and land development 746 275 — 1,021 — 149,729 150,750 Commercial loans 234 62 — 296 6,337 214,814 221,447 Residential 1-4 family (2) 4,060 — — 4,060 2,524 707,199 713,783 Other consumer loans 107 — — 107 39 26,158 26,304 Total $ 6,896 $ 337 $ — $ 7,233 $ 8,900 $ 2,169,502 $ 2,185,635 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $4.1 million at December 31, 2019. (4) Includes $122.0 million of loans that were subject to deferrals at December 31, 2020. The amortized cost, by class, of loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at December 31, 2020, were as follows (in thousands): 90 Total Days Loans Not Nonaccrual December 31, 2020 or More Past Due Loans (3) Commercial real estate - owner occupied $ 2,641 $ — $ 2,641 Commercial real estate - non-owner occupied (1) 1,098 4,481 5,579 Commercial loans 2,104 228 2,332 Residential 1-4 family (2) 2,035 13 2,048 Other consumer loans 9 — 9 Total Non-PCD loans 7,887 4,722 12,609 PCD loans 1,853 — 1,853 Total $ 9,740 $ 4,722 $ 14,462 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. The following table presents year-end non-accrual loans as of December 31, 2020, segregated by class of loans (in thousands): Non-Accrual With Total No Credit December 31, 2020 Non-Accrual (3) Loss Allowance (4) Commercial real estate - owner occupied $ 2,641 $ 2,641 Commercial real estate - non-owner occupied (1) 5,579 5,579 Commercial loans 2,332 582 Residential 1-4 family (2) 2,048 687 Other consumer loans 9 9 Total non-PCD loans 12,609 9,498 PCD loans 1,853 — Total non-accrual loans $ 14,462 $ 9,498 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. (4) Nonaccrual loans with no credit loss allowance include SBA guaranteed amounts totaling $1.7 million at December 31, 2020. The following table presents non-accrual loans as of December 31, 2020 by class and year of origination (in thousands): Revolving Loans Revolving Converted 2020 2019 2018 2017 2016 Prior Loans To Term Total (3) Commercial real estate - owner occupied $ — $ — $ — $ — $ — $ 2,641 $ — $ — $ 2,641 Commercial real estate - non-owner occupied (1) — — — 1,098 4,481 — — — 5,579 Construction and land development — — — — — — — — — Commercial loans — — — 107 — 2,225 — — 2,332 Paycheck Protection Program loans — — — — — — — — — Residential 1-4 family (2) — — — 151 — 1,374 523 — 2,048 Other consumer loans — — — — — 9 — — 9 Total non-PCD non-accruals — — — 1,356 4,481 6,249 523 — 12,609 PCD loans — — — 1,853 — — — — 1,853 Total non-accrual loans $ — $ — $ — $ 3,209 $ 4,481 $ 6,249 $ 523 $ — $ 14,462 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. Had non-accrual loans performed in accordance with their original contract terms, we would have recognized additional interest income, net of tax, of approximately $630 thousand in 2020. Troubled Debt Restructurings A modification is classified as a TDR if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Bank has granted a concession to the borrower. The Bank determines that a borrower may be experiencing financial difficulty if the borrower is currently delinquent on any of its debt, or if the Bank is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future. Many aspects of the borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty, particularly as it relates to commercial borrowers due to the complex nature of the loan structure, business/industry risk and borrower/guarantor structures. Concessions may include the reduction of an interest rate at a rate lower than current market rates for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, or principal forgiveness. When evaluating whether a concession has been granted, the Bank also considers whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Bank for the restructured terms, or if the revised terms are consistent with those currently being offered to new loan customers. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty and whether a concession has been granted is subjective in nature and management’s judgment is required when determining whether a modification is a TDR. Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reduction in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity. For the year ended December 31, 2020, there were seven TDR loans in the amount of $987 thousand primarily due to the economic impact of COVID-19. There have been no defaults of TDRs modified during the past twelve months. Credit Quality Indicators Through its system of internal controls, Southern National evaluates and segments loan portfolio credit quality on a quarterly basis using regulatory definitions for Special Mention, Substandard and Doubtful. Special Mention loans are considered to be criticized. Substandard and Doubtful loans are considered to be classified. Southern National had no loans classified Doubtful at December 31, 2020 or 2019. Special Mention loans are loans that have a potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Southern National had no loans classified Doubtful at December 31, 2020 or 2019. In monitoring credit quality trends in the context of assessing the appropriate level of the allowance for credit losses on loans, we monitor portfolio credit quality by the weighted-average risk grade of each class of loan. The following table present weighted-average risk grades for all loans, by class and year of origination/renewal as of December 31, 2020 (in thousands): Revolving Loans Revolving Converted 2020 2019 2018 2017 2016 Prior Loans To Term Total Commercial real estate - owner occupied Not Rated $ — $ — $ — $ — $ — $ — $ — $ — $ — Pass 22,473 43,484 41,006 46,847 61,758 188,074 3,608 6,698 413,948 Special Mention — — — 149 1,692 11,822 — — 13,663 Substandard 2,007 — — — 2,449 3,011 — — 7,467 $ 24,480 $ 43,484 $ 41,006 $ 46,996 $ 65,899 $ 202,907 $ 3,608 $ 6,698 $ 435,078 Weighted average risk grade 3.70 3.41 3.62 3.64 3.70 3.55 3.30 4.00 3.59 Commercial real estate - nonowner occupied (1) Not Rated $ — $ — $ — $ — $ — $ 362 $ — $ — $ 362 Pass 73,178 32,275 101,150 96,427 141,460 224,554 11,406 44 680,494 Special Mention — — 1,035 221 12,890 — — 14,146 Substandard — — — 1,069 4,481 18,783 300 — 24,633 $ 73,178 $ 32,275 $ 101,150 $ 98,531 $ 146,162 $ 256,589 $ 11,706 $ 44 $ 719,635 Weighted average risk grade 3.55 3.78 3.32 3.59 3.70 3.90 3.79 3.00 3.70 Construction and land development Not Rated $ 7,666 $ 8,332 $ 56 $ 746 $ 385 $ 2,026 $ — $ — $ 19,211 Pass 20,805 19,231 14,473 11,726 4,804 12,174 799 41 84,053 Special Mention — — — — — — — — — Substandard — — — — — — — — — $ 28,471 $ 27,563 $ 14,529 $ 12,472 $ 5,189 $ 14,200 $ 799 $ 41 $ 103,264 Weighted average risk grade 3.34 3.90 3.68 4.00 3.97 3.41 4.00 4.00 3.67 Commercial loans Not Rated $ — $ — $ — $ 1,919 $ — $ — $ — $ — $ 1,919 Pass 11,372 18,852 13,569 14,335 3,405 24,568 87,118 5,306 178,525 Special Mention — — — — — — — — — Substandard 13 — 1,350 107 66 4,093 987 — 6,616 $ 11,385 $ 18,852 $ 14,919 $ 16,361 $ 3,471 $ 28,661 $ 88,105 $ 5,306 $ 187,060 Weighted average risk grade 3.30 3.66 3.69 3.62 3.97 4.06 3.66 3.94 3.71 Paycheck Protection Program loans Not Rated $ — $ — $ — $ — $ — $ — $ — $ — $ — Pass 319,428 — — — — — — — 319,428 Special Mention — — — — — — — — — Substandard — — — — — — — — — $ 319,428 $ — $ — $ — $ — $ — $ — $ — $ 319,428 Weighted average risk grade 2.00 N/A N/A N/A N/A N/A N/A N/A N/A Residential 1-4 family (2) Not Rated $ 52,416 $ 104,378 $ 68,889 $ 62,047 $ 35,767 $ 96,827 $ 75,214 $ 2,729 $ 498,267 Pass 15,497 14,654 18,557 9,809 10,033 64,106 13,810 521 146,987 Special Mention — — — 52 — 48 277 201 578 Substandard — — — 151 — 2,118 719 43 3,031 $ 67,913 $ 119,032 $ 87,446 $ 72,059 $ 45,800 $ 163,099 $ 90,020 $ 3,494 $ 648,863 Weighted average risk grade 3.33 3.59 3.44 3.41 3.57 3.92 3.55 4.18 3.68 Other consumer loans Not Rated $ 3,811 $ 1,921 $ 1,803 $ 943 $ 6,458 $ 2,767 $ 3,534 $ — $ 21,237 Pass 585 244 — — — 62 37 — 928 Special Mention — — — — — 115 — — 115 Substandard — — — — — 10 — — 10 $ 4,396 $ 2,165 $ 1,803 $ 943 $ 6,458 $ 2,954 $ 3,571 $ — $ 22,290 Weighted average risk grade 3.63 3.28 N/A N/A N/A 4.72 4.00 N/A 3.76 PCD Not Rated $ — $ — $ — $ — $ — $ 1,176 $ 31 $ — $ 1,207 Pass — — — — 400 2,997 — — 3,397 Special Mention — — — — — 1,448 — — 1,448 Substandard — — — 1,825 — 1,031 — — 2,856 $ — $ — $ — $ 1,825 $ 400 $ 6,652 $ 31 $ — $ 8,908 Weighted average risk grade N/A N/A N/A 6.00 4.00 4.63 N/A N/A 4.92 Total $ 529,251 $ 243,371 $ 260,853 $ 249,187 $ 273,379 $ 675,062 $ 197,840 $ 15,583 $ 2,444,526 Weighted average risk grade 2.47 3.63 3.45 3.64 3.71 3.99 3.65 3.98 3.39 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. As of December 31, 2019, the risk category of loans by class of loans is as follows (in thousands): Total Loans Special December 31, 2019 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 3,821 $ 3,975 $ 406,683 $ 414,479 Commercial real estate - non-owner occupied (1) 4,193 176 654,503 658,872 Construction and land development — 690 150,060 150,750 Commercial loans 3,432 4,462 213,553 221,447 Residential 1-4 family (2) 666 1,194 711,923 713,783 Other consumer loans 122 — 26,182 26,304 Total loans $ 12,234 $ 10,497 $ 2,162,904 $ 2,185,635 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Includes SBA guarantees of $4.1 million as of December 31, 2019. Revolving loans that converted to term during 2020 were as follows (in thousands): Total Commercial real estate - owner occupied $ 6,536 Commercial real estate - non-owner occupied (1) 44 Construction and land development — Commercial loans 330 Paycheck Protection Program loans — Residential 1-4 family (2) 731 Other consumer loans — Total loans $ 7,641 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. The amount of foreclosed residential real estate property held at December 31, 2020 and 2019 was $1.0 million and $1.4 million, respectively. The recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure was $1.4 million and $1.9 million at December 31, 2020 and 2019, respectively. Allowance For Credit Losses – Loans The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326 that is deducted from the amortized cost basis of loans to present the net amount expected to be collected. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectability over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless (i) management has a reasonable expectation that a trouble debt restructuring will be executed with an individual borrower or (ii) such extension or renewal options are not unconditionally cancellable by us and, in such cases, the borrower is likely to meet applicable conditions and likely to request extension or renewal. Relevant available information includes historical credit loss experience, current conditions and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current portfolio-specific risk characteristics, environmental conditions or other relevant factors. The allowance for credit losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Credit loss expense related to loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. In calculating the allowance for credit losses, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles include the type/purpose of loan, underlying collateral, geographical similarity and historical/expected credit loss patterns. In developing these loan pools for the purposes of modeling expected credit losses, we also analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. For allowance modeling purposes, our loan pools include (i) commercial real estate - owner occupied, (ii) commercial real estate - non-owner occupied, (iii) construction and land development, (iv) commercial, (v) agricultural loans, (vi) residential 1-4 family and (vii) consumer loans. We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary. For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of inputs: (i) probability of default (“PD”), which is the likelihood that loan will stop performing/default, (ii) probability of attrition (“PA”), which is the likelihood that a loan will pay-off prior to maturity, (iii) loss given default (“LGD”), which is the expected loss rate for loans in default and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date. Inputs are pool-specific, though not necessarily solely reliant on internally-sourced data. Internal data is supplemented by, but not replaced by, peer data when required, primarily to determine the PD input. The various pool-specific inputs may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical information and consider any necessary adjustments to address any differences in current asset-specific characteristics. Significant macroeconomic variables utilized in our allowance models include, among other things, (i) VA Gross Domestic Product, (ii) VA House Price Index, and (iii) VA unemployment rates. The macroeconomic variables utilized as inputs in forecast modeling were subjected to a variety of analysis procedures and were selected primarily based on statistical relevancy and correlation to historical credit losses, where historical credit losses may be fully internally-sourced or supplemented with peer data. PDs were estimated by analyzing the relationship between the historical performance of each loan pool and historical economic trends over a complete economic cycle. Again, historical performance data is either fully internally-sourced or supplemented with peer data where necessary. PDs are adjusted to reflect the current impact of certain ma |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 4. FAIR VALUE ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: Assets Measured on a Recurring Basis: Investment Securities Available for Sale Where quoted prices are available in an active market, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include highly liquid government bonds and mortgage products. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of investment securities with similar characteristics or discounted cash flow. Level 2 investment securities include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Currently, a majority of Southern National’s available for sale debt investment securities are considered to be Level 2 investment securities, except for a few corporate securities that are classified as Level 3 investment securities. Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2020 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 37,060 $ — $ 37,060 $ — Obligations of states and political subdivisions 24,042 — 24,042 — Corporate securities 15,079 — 14,079 1,000 Residential government-sponsored collateralized mortgage obligations 29,416 — 29,416 — Government-sponsored agency securities 6,075 — 6,075 — Agency commercial mortgage-backed securities 30,190 — 30,190 — SBA pool securities 11,371 — 11,371 — Total $ 153,233 $ — $ 152,233 $ 1,000 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 48,979 $ — $ 48,979 $ — Obligations of states and political subdivisions 17,582 — 17,582 — Corporate securities 2,012 — 1,012 1,000 Trust preferred securities 2,568 — 2,568 — Residential government-sponsored collateralized mortgage obligations 36,689 — 36,689 — Government-sponsored agency securities 14,822 — 14,822 — Agency commercial mortgage-backed securities 27,731 — 27,731 — SBA pool securities 14,437 — 14,437 — Total $ 164,820 $ — $ 163,820 $ 1,000 No corporate securities that are classified as Level 3 above were purchased or sold during 2020 or 2019. These corporate securities did not have a material impact on the income statement for the year ended December 31, 2020 or 2019. Assets and Liabilities Measured on a Non-recurring Basis: Loans We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment. Following the adoption of ASC 326, the population of loans measured at fair value on a non-recurring basis has greatly diminished and is limited to collateral-dependent loans evaluated individually. These collateral-dependent loans are deemed to be at fair value if there is an associated allowance for credit losses or if a charge-off has been recorded in the previous 12 months. Collateral values are determined using appraisals or other third-party value estimates of the subject property discounted based on estimated selling costs, generally between 5% and 10%, and immaterial adjustments for other external factors that may impact the marketability of the collateral. The weighted average discount for estimated selling costs applied was 6%. Prior to the adoption of ASC 326, we measured the impairment for impaired loans considering the fair value of the loan’s collateral (if the loan was collateral dependent). Fair value of the loan’s collateral was determined by an independent appraisal or evaluation less estimated costs related to selling the collateral. In some cases appraised value was net of costs to sell. Estimated selling costs ranged from 5% to 10% of collateral valuation at December 31, 2019. Fair value was classified as Level 3 in the fair value hierarchy. Loans identified as impaired totaled $22.0 million (including SBA guarantees of $4.4 million) with a $1.1 million allocation made to the allowance for loan losses at December 31, 2019. Other Real Estate Owned OREO is evaluated at the time of acquisition and recorded at fair value as determined by independent appraisal or evaluation less cost to sell. In some cases appraised value is net of costs to sell. Selling costs have been in the range from 5% to 10% of collateral valuation at December 31, 2020 and 2019. Fair value is classified as Level 3 in the fair value hierarchy. OREO is further evaluated quarterly for any additional impairment. At December 31, 2020 and 2019, the total amount of OREO was $3.1 million and $6.2 million, respectively. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2020 (Level 1) (Level 2) (Level 3) Collateral dependent loans $ 47,001 $ — $ — $ 47,001 Other real estate owned: Commercial real estate - non-owner occupied (1) 865 — — 865 Construction and land development 1,221 — — 1,221 Residential 1-4 family (2) 992 — — 992 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 6,890 $ — $ — $ 6,890 Commercial real estate - non-owner occupied (1) 3,296 — — 3,296 Construction and land development 345 — — 345 Commercial loans 7,547 — — 7,547 Residential 1-4 family (2) 3,862 — — 3,862 Consumer 39 — — 39 Other real estate owned: Commercial real estate - non-owner occupied (1) 1,984 — — 1,984 Construction and land development 2,874 — — 2,874 Residential 1-4 family (2) 1,366 — — 1,366 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. Fair Value of Financial Instruments The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands) for the periods indicated: December 31, 2020 December 31, 2019 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 196,185 $ 196,185 $ 31,928 $ 31,928 Securities available for sale Level 2 & Level 3 153,233 153,233 164,820 164,820 Securities held to maturity Level 2 40,721 41,832 72,448 72,666 Stock in Federal Reserve Bank and Federal Home Loan Bank Level 2 16,927 16,927 17,832 17,832 Equity investment in mortgage affiliate Level 3 12,652 12,652 5,020 5,020 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,404,151 2,435,612 2,175,786 2,180,487 Accrued interest receivable Level 2 17,405 17,405 8,210 8,210 Financial liabilities: Demand deposits and NOW accounts Level 2 $ 1,155,426 $ 1,155,426 $ 730,325 $ 730,325 Money market and savings accounts Level 2 787,132 787,132 611,353 611,353 Time deposits Level 3 490,048 495,022 783,040 786,420 Securities sold under agreements to repurchase Level 1 16,065 16,065 12,883 12,883 FHLB advances Level 1 100,000 100,000 121,640 121,640 Junior subordinated debt Level 2 9,682 8,863 9,632 9,206 Senior subordinated notes Level 2 105,647 109,276 47,051 48,156 Accrued interest payable Level 2 3,057 3,057 4,907 4,907 Carrying amount is the estimated fair value for cash and cash equivalents (including federal funds sold), accrued interest receivable and payable, demand deposits, savings accounts, money market accounts and FHLB advances and securities sold under agreements to repurchase. The investment in common stock of our mortgage affiliate is accounted for using the equity method. Under the equity method, the carrying value of Southern National’s investment in STM was originally recorded at cost but is adjusted periodically to record Southern National’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. The investment in preferred stock of our mortgage affiliate is considered to be a non-marketable equity security that does not have a readily determinable fair value. Non-marketable equity securities with no recurring market value data available are reviewed periodically and any observable market value change is adjusted through noninterest income. Southern National evaluates its investments in this non-marketable equity security for impairment and recoverability of the recorded investment by considering positive and negative evidence, including the profitability and asset quality of STM, dividend payment history and recent redemption experience. Impairment is assessed at each reporting period and if identified, is recognized in noninterest income. No impairment was recorded for the year ended December 31, 2020 and 2019. |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
BANK PREMISES AND EQUIPMENT [Abstract] | |
BANK PREMISES AND EQUIPMENT | 5. BANK PREMISES AND EQUIPMENT Bank premises and equipment as of December 31, 2020 and 2019 were as follows (in thousands): 2020 2019 Land $ 8,139 $ 8,139 Land improvements 1,558 1,558 Building and improvements 23,164 23,164 Leasehold improvements 3,001 2,933 Furniture and equipment 8,962 8,789 Construction in progress 1,441 719 46,265 45,302 Less accumulated depreciation and amortization 15,959 14,118 Bank premises and equipment, net $ 30,306 $ 31,184 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 6. LEASES The Company leases certain premises and equipment under operating leases. In recognizing lease right-of-use assets and related liabilities, we account for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. At December 31, 2020 and 2019, the Company had operating lease liabilities totaling $8.2 million and $8.5 million, respectively, and right-of-use assets totaling $7.5 million and $8.0 million, respectively, related to these leases. Operating lease liabilities and right-of-use assets are reflected in our consolidated balance sheets. We do not currently have any financing leases. For the year ended December 31, 2020 and 2019, our net operating lease cost was $2.9 million and $2.5 million, respectively, and were reflected in occupancy expenses on our income statements. The following table presents supplemental cash flow and other information related to our operating leases: For the Year Ended (in thousands except for percent and period data) December 31, 2020 December 31, 2019 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 5,062 $ 4,883 Other information: Weighted-average remaining lease term - operating leases, in years 4.8 5.7 Weighted-average discount rate - operating leases 2.5 % 2.8 % The following table summarizes the maturity of remaining lease liabilities: As of (dollars in thousands) December 31, 2020 Lease payments due: Less than one year $ 2,542 One to three years 3,791 Three to five years 1,123 More than five years 1,376 Total lease payments 8,832 Less: imputed interest (594) Lease liabilities $ 8,238 As of December 31, 2020 and 2019, the Company did not have any operating leases that have not yet commenced that will create additional lease liabilities and right-of-use assets for the Company. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 7. GOODWILL AND INTANGIBLE ASSETS Goodwill Southern National has recorded $101.9 million of goodwill at December 31, 2020 and 2019. Goodwill is primarily related to the acquisition of other banks. Goodwill is evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. Our annual assessment occurs during the third calendar quarter. In response to the effects of COVID-19, management determined there to be a triggering event in the third quarter of 2020 warranting a goodwill assessment. For the third quarter 2020 assessment, we performed a step one quantitative assessment to determine if the fair value of all our reporting units was less than its carrying amount. We concluded that the fair value of all our reporting units exceeded their carrying amounts and no impairment was present based on management’s assessment. No impairment was indicated in 2020, 2019 or 2018. Intangible Assets Intangible assets were as follows at year end (in thousands): December 31, 2020 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (11,677) $ 5,826 December 31, 2019 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (10,312) $ 7,191 Estimated amortization expense of intangibles for the years ended December 31 were as follows (in thousands): 2021 $ 1,364 2022 1,325 2023 1,269 2024 1,266 2025 602 Total $ 5,826 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
DEPOSITS | 8 The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2020 and 2019 was $165.7 million and $163.2 million, respectively. At December 31, 2020, the scheduled maturities of time deposits are as follows (in thousands): 2021 $ 369,743 2022 77,081 2023 27,927 2024 10,662 2025 4,600 2026 35 Total $ 490,048 The following table sets forth the maturities of certificates of deposit of $250 thousand and over as of December 31, 2020 (in thousands): Within 3 to 6 6 to 12 Over 12 3 Months Months Months Months Total $ 36,234 $ 38,192 $ 39,515 $ 51,807 $ 165,748 As of December 31, 2020, we had brokered certificates of deposit in the amount of $270 thousand and brokered money market deposits of $55.2 million. At December 31, 2019, we had brokered certificates of deposit in the amount of $114.1 million, and we had brokered money market deposits of $24.4 million. For our deposit agreements with certain customers, we hold the collateral in a segregated custodial account. We are required to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, we will pledge additional securities. We closely monitor collateral levels to ensure adequate levels are maintained, while mitigating the potential risk of over-collateralization. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS | 9. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS Other borrowings can consist of FHLB convertible advances, FHLB of Atlanta overnight advances, FHLB advances maturing within one year, federal funds purchased and securities sold under agreements to repurchase (“repo”) that mature within one year, which are secured transactions with customers. The balance in repo accounts at December 31, 2020 and 2019 was $16.0 million and $12.9 million, respectively. At December 31, 2020 and 2019, we have pledged callable agency securities, residential government-sponsored mortgage-backed securities and collateralized mortgage obligations with a carrying value of $31.1 million and $22.0 million, respectively, to customers who require collateral for overnight repurchase agreements and deposits. Other borrowings consist of the following (in thousands): December 31, 2020 2019 FHLB collateral advances maturing 3/1/2030 $ 100,000 $ — FHLB overnight advances — 81,000 Short-term FHLB advances maturing 3/10/2020 — 40,640 Total FHLB advances 100,000 121,640 Securities sold under agreements to repurchase 16,065 12,883 Total $ 116,065 $ 134,523 Weighted average interest rate at year end 3.55 % 1.75 % Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances paid off earlier than maturity. Residential 1-4 family mortgage loans in the amount of approximately |
JUNIOR SUBORDINATED DEBT AND SE
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES | 10. JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES In 2017, the Company assumed $10.3 million of trust preferred securities that were issued on September 17, 2003 and placed through a trust in a pooled underwriting totaling approximately $650 million. The trust issuer invested the total proceeds from the sale of the trust preferred securities in Floating Rate Junior Subordinated Deferrable Interest Debentures (“Junior Subordinated Debt”). At December 31, 2020 and 2019, we had $9.7 million and $9.6 million, respectively, of Junior Subordinated Debt outstanding. The trust preferred securities pay cumulative cash distributions quarterly at a variable rate per annum, reset quarterly, equal to the three-month LIBOR plus 2.95%. As of December 31, 2020 and 2019, the interest rate was 3.18% and 4.85%, respectively. The dividends paid to holders of the trust preferred securities, which are recorded as interest expense, are deductible for income tax purposes. The trust preferred securities may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. At December 31, 2020, all of the trust preferred securities qualified as Tier 1 capital. On January 20, 2017, Southern National completed the sale of $27.0 million of its fixed-to-floating rate Subordinated Notes due 2027 (the “SNBV Senior Subordinated Notes”). The SNBV Senior Subordinated Notes will initially bear interest at 5.875% per annum until January 31, 2022; thereafter, the SNBV Senior Subordinated Notes will be payable at an annual floating rate equal to three-month LIBOR plus a spread of 3.95% until maturity or early redemption. At December 31, 2020, all In 2017, the Company assumed the Senior Subordinated Note Purchase Agreement dated April 22, 2015 with certain institutional accredited investors, pursuant to which $20.0 million in aggregate principal amount of its 6.50% Fixed-to-Floating Rate Subordinated Notes due 2025 was sold to the investors. At December 31, 2020, 80% of the Senior Subordinated Notes qualified as Tier 2 capital. On February 1, 2021, 100% of the notes were redeemed. On August 25, 2020, Southern National completed the sale of $60.0 million of its fixed-to-floating rate Subordinated Notes due 2030 (the “SNBV Subordinated Notes”). The SNBV Subordinated Notes will bear interest at an initial rate of 5.40% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. From and including September 1, 2025 to, but excluding the maturity date or the date of earlier redemption (the “floating rate period”), the interest rate will reset quarterly to an annual interest rate equal to the Benchmark rate, which is expected to be three-month Term SOFR, plus 531 basis points, for each quarterly interest period during the floating rate period, payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, commencing on December 1, 2025. Notwithstanding the foregoing, in the event that the Benchmark rate is less than zero, the Benchmark rate shall be deemed to be zero. At December 31, 2020, all At December 31, 2020, the remaining unamortized debt issuance costs related to the Subordinated Notes totaled |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. Net deferred tax assets at December 31, 2020 and 2019 consist primarily of the following (in thousands): 2020 2019 Deferred tax assets: Allowance for credit losses $ 8,028 $ 2,235 Unearned loan fees and other 2,583 1,064 Other real estate owned write-downs 567 748 Lease liability 1,779 1,829 Other than temporary impairment charge — 229 Purchase accounting — 949 Federal AMT credit carryforward 1,137 1,137 Federal low income housing credit carryforward 444 3,226 Deferred compensation 1,734 1,573 Depreciation 274 218 Other 1,012 511 Total deferred tax assets 17,558 13,719 Deferred tax liabilities: Right-of-use assets 1,576 1,731 Net unrealized gain on investment securities available for sale 916 200 Purchase accounting 420 — Total deferred tax liabilities 2,912 1,931 Net deferred tax assets $ 14,646 $ 11,788 No valuation allowance was deemed necessary on deferred tax assets in 2020 or 2019. Management believes that the realization of the deferred tax assets is more likely than not based on the expectation that Southern National will generate the necessary taxable income in future periods. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized tax benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals existed as of December 31, 2020, 2019 or 2018. Southern National and its subsidiaries file a consolidated U.S. federal income tax return, and Southern National files a Virginia state income tax return. Sonabank files a Maryland and an Arkansas state income tax return. These returns are subject to examination by taxing authorities for all years after 2016. The provision for income taxes consists of the following for the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Current tax expense Federal $ 7,825 $ 4,429 $ 6,244 State 407 228 249 Total current tax expense 8,232 4,657 6,493 Deferred tax expense (benefit) Federal (1,496) 1,350 2,692 State (122) 70 429 Total deferred tax expense (benefit) (1,618) 1,420 3,121 Total income tax expense $ 6,614 $ 6,077 $ 9,614 The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 21% to pretax income for the years ended December 31, 2020, 2019 and 2018 due to the following (in thousands): 2020 2019 2018 Computed expected tax expense at statutory rate $ 6,279 $ 8,241 $ 9,094 Increase (decrease) in tax expense resulting from: Remeasurement of deferred tax assets and liabilities (31) (1,659) 1,130 Low income housing tax credits, net of amortization 225 (255) (502) Income from bank-owned life insurance (327) (357) (416) Other, net 468 107 308 Income tax expense $ 6,614 $ 6,077 $ 9,614 During 2018, the Company determined that certain net operating loss carryforwards were impaired due to Section 382 limitations. During 2019, the Company completed its formal assessment of the Section 382 limitation and rebooked |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | 12. EMPLOYEE BENEFITS Southern National has a 401(k) plan that allows employees to make pre-tax contributions for retirement. The 401(k) plan provides for discretionary matching contributions by Southern National. Expense for 2020, 2019 and 2018 was $795 thousand, $704 thousand and $784 thousand, respectively. The Bank maintains a deferred compensation plan in the form of Supplemental Executive Retirement Plan (“SERP”) for four (4) former executives. Under the plan, the Bank pays each participant, or their beneficiary, compensation deferred plus accrued interest for a period of 15 to 17 years after their retirement or age 62 depending on the terms and conditions of each plan. A liability is accrued for the obligations under these plans. The expense incurred for the deferred compensation plans in 2020, 2019 and 2018 was |
STOCK- BASED COMPENSATION
STOCK- BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
STOCK- BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION At the June 21, 2017 Annual Meeting of Stockholders of Southern National, the 2017 Equity Compensation Plan (the “2017 Plan”) was approved as recommended by the Board of Directors. The 2017 Plan replaced the 2010 Plan and has a maximum number of 750,000 shares reserved for issuance. The purpose of the 2017 Plan is to promote the success of the Company by providing greater incentives to employees, non-employee directors, consultants and advisors to associate their personal interests with the long-term financial success of the Company, including its subsidiaries, and with growth in stockholder value, consistent with the Company’s risk management practices. Because the 2017 Plan was approved, shares under the 2004 stock-option plan and 2010 Plan are no longer awarded. A summary of the activity in the stock option plan for 2020 follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, beginning of period 555,750 $ 10.02 4.3 $ 3,518 Forfeited (11,700) 10.91 Exercised (93,250) 7.60 Options outstanding, end of period 450,800 $ 10.50 3.8 $ 727 Exercisable at end of period 437,700 $ 10.37 3.7 $ 726 Stock-based compensation expense associated with stock options was $118 thousand, $62 thousand and $122 thousand for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, we do not have any unrecognized compensation expense associated with the stock options. A summary of the activity in the restricted stock plan for 2020 follows: Weighted Weighted Average Average Grant-Date Remaining Fair Value Contractual Shares Per Share Term Unvested restricted stock outstanding, beginning of period 86,500 $ 14.85 3.8 Granted 102,500 14.56 Vested (92,700) 15.22 Unvested restricted stock outstanding, end of period 96,300 $ 14.17 3.8 Restricted stock compensation expense totaled |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 14. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK Financial Instruments with off-balance sheet risk Southern National is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and guarantees of credit card accounts. These instruments involve elements of credit and funding risk in excess of the amount recognized in the consolidated balance sheet. Letters of credit are written conditional commitments issued by Southern National 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. We had letters of credit outstanding totaling $15.9 million and $17.7 million as of December 31, 2020 and 2019, respectively. Our exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit is based on the contractual amount of these instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Unless noted otherwise, we do not require collateral or other security to support financial instruments with credit risk. Allowance For Credit Losses - Off-Balance-Sheet Credit Exposures The allowance for credit losses on off-balance-sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if we have the unconditional right to cancel the obligation. Off-balance-sheet credit exposures primarily consist of amounts available under outstanding lines of credit and letters of credit detailed above. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment or other off-balance-sheet exposure. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management's best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. Estimating credit losses on amounts expected to be funded uses the same methodology as described for loans in Note 3 - Loans and Allowance, as if such commitments were funded. The following table details activity in the allowance for credit losses on off-balance-sheet credit exposures: 2020 Balance as of January 1 $ — Impact of adopting ASU 2016-13 360 Credit loss expense 380 Balance as of December 31, $ 740 Commitments 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 are made predominately for adjustable rate loans, and generally have fixed expiration dates of up to three months or other termination clauses and usually require payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. At December 31, 2020 and 2019, we had unfunded lines of credit and undisbursed construction loan funds totaling |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 15. EARNINGS PER SHARE The following is a reconciliation of the denominators of the basic and diluted EPS computations for 2020, 2019 and 2018 (amounts in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the year ended December 31, 2020 Basic EPS $ 23,287 24,239 $ 0.96 Effect of dilutive stock options and unvested restricted stock — 124 — Diluted EPS $ 23,287 24,363 $ 0.96 For the year ended December 31, 2019 Basic EPS $ 33,167 24,050 $ 1.38 Effect of dilutive stock options and unvested restricted stock — 275 (0.02) Diluted EPS $ 33,167 24,325 $ 1.36 For the year ended December 31, 2018 Basic EPS $ 33,691 24,012 $ 1.40 Effect of dilutive stock options and unvested restricted stock — 261 (0.01) Diluted EPS $ 33,691 24,273 $ 1.39 The Company had t have any anti-dilutive options as of December 31, 2019 and 2018. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters [Abstract] | |
REGULATORY MATTERS | 16. REGULATORY MATTERS Southern National and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (“PCA”), we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2020 and 2019, the most recent regulatory notifications categorized the Bank as well capitalized under regulatory framework for PCA. Quantitative measures established by regulation to ensure capital adequacy require Southern National to maintain minimum amounts and ratios of Total and Tier I capital (as defined in the regulations) to average assets (as defined). Management believes, as of December 31, 2020, that Southern National meets all capital adequacy requirements to which it is subject. The following table provides a comparison of the leverage and risk-weighted capital ratios of Sonabank at the periods indicated to the minimum and well-capitalized required regulatory standards: Required For Capital To Be Categorized as Actual Adequacy Purposes Well Capitalized (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Sonabank Common equity tier 1 capital ratio $ 334,540 15.83 % $ 95,078 4.50 % $ 137,334 6.50 % Tier 1 risk-based capital ratio 334,540 15.83 % 126,770 6.00 % 169,027 8.00 % Total risk-based capital ratio 361,073 17.09 % 169,027 8.00 % 211,284 10.00 % Leverage ratio 334,540 11.25 % 124,046 4.00 % 105,642 5.00 % December 31, 2019 Sonabank Common equity tier 1 capital ratio $ 313,354 14.81 % $ 95,229 4.50 % $ 137,553 6.50 % Tier 1 risk-based capital ratio 313,354 14.81 % 126,972 6.00 % 169,296 8.00 % Total risk-based capital ratio 323,615 15.29 % 169,296 8.00 % 211,619 10.00 % Leverage ratio 313,354 12.07 % 103,838 4.00 % 105,810 5.00 % (1) Prompt corrective action provisions are not applicable at the bank holding company level. Sonabank remains well-capitalized under Basel III capital requirements. Sonabank had capital conservation buffer of 9.09% at December 31, 2020, which exceeded the 2.50% minimum requirement below which the regulators may impose limits on distributions. Southern National’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | 17. PARENT COMPANY FINANCIAL INFORMATION Condensed financial information of Southern National Bancorp of Virginia, Inc. follows (in thousands): CONDENSED BALANCE SHEETS DECEMBER 31, 2020 2019 ASSETS Cash $ 59,318 $ 2,707 Investment in subsidiaries 446,116 423,591 Other assets 2,060 8,128 Total assets $ 507,494 $ 434,426 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Junior subordinated debt - long term $ 9,682 $ 9,632 Senior subordinated notes - long term 105,647 47,051 Other liabilities 1,611 502 Total liabilities 116,940 57,185 Stockholders' equity: Common stock 243 241 Additional paid in capital 308,870 306,755 Retained earnings 77,956 69,462 Accumulated other comprehensive income 3,485 783 Total stockholders' equity 390,554 377,241 Total liabilities and stockholders' equity $ 507,494 $ 434,426 CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 2019 2018 Income: Cash dividends received from subsidiaries $ 2,500 $ 13,300 $ 8,000 Total income 2,500 13,300 8,000 Expenses: Interest on junior subordinated debt 426 589 575 Interest on senior subordinated notes 3,909 2,847 2,847 Other operating expenses 841 726 765 Total expenses 5,176 4,162 4,187 Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries (2,676) 9,138 3,813 Income tax benefit (1,084) (862) (872) Equity in undistributed net income of subsidiaries 24,879 23,167 29,006 Net income $ 23,287 $ 33,167 $ 33,691 CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 2019 2018 Operating activities: Net income $ 23,287 $ 33,167 $ 33,691 Adjustments to reconcile net income to net cash and cash equivalents (used in) provided by operating activities: Equity in undistributed net income of subsidiaries (27,379) (36,467) (37,006) Other, net 8,766 (666) (582) Net cash and cash equivalents provided by (used in) in operating activities 4,674 (3,966) (3,897) Investing activities: Dividend from subsidiaries 2,500 13,300 8,000 Net cash and cash equivalents provided by investing activities 2,500 13,300 8,000 Financing activities: Issuance of subordinated notes, net of cost 58,600 — — Issuance of common stock under Stock Incentive Plan 574 670 443 Cash dividends paid on common stock (9,737) (8,690) (7,688) Net cash and cash equivalents provided by (used in) financing activities 49,437 (8,020) (7,245) Increase (decrease) in cash and cash equivalents 56,611 1,314 (3,142) Cash and cash equivalents at beginning of period 2,707 1,393 4,535 Cash and cash equivalents at end of period $ 59,318 $ 2,707 $ 1,393 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 18. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax (in thousands): Balance at Current Period Balance at December 31, 2019 Change December 31, 2020 Unrealized gain on investment securities available for sale $ 943 $ 2,203 $ 3,146 Reclassification of loss on sales of investment securities — 490 490 Unrecognized gain on investment securities held to maturity for which other than temporary impairment charges have been taken 311 — 311 Unrealized gain (loss) on investment securities available for sale transferred to held to maturity (471) 9 (462) Total $ 783 $ 2,702 $ 3,485 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS Sonabank has entered into loan transactions with STM. The following table summarizes the changes in the loan amount outstanding with STM during the periods indicated (in thousands): 2020 2019 Balance at January 1, $ 26,760 $ 24,168 Principal advances 441,044 298,639 Principal paid (437,033) (296,047) Balance at December 31, $ 30,771 $ 26,760 We purchased loans in an aggregate amount of $80.6 million and $152.2 million during 2020 and 2019, respectively, from STM. During the year, officers, directors, principal shareholders, and their affiliates (related parties) were customers of and had transactions with the Company. Loan activity to related parties is as follows (in thousands): 2020 Balance at January 1, $ 22,670 Principal advances 4,459 Principal paid (4,420) Balance at December 31, $ 22,709 Sonabank has also entered into deposit transactions with its related parties including STM. The aggregate amount of these deposit accounts were |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 20. QUARTERLY FINANCIAL DATA (UNAUDITED) Interest Net Interest Income Net Earnings Per Share Income Income Before Taxes Income Basic Diluted (dollars in thousands, except per share amounts) 2020 First quarter $ 28,481 $ 20,515 $ 33 $ 27 $ — $ — Second quarter 28,672 22,473 5,897 4,709 0.19 0.19 Third quarter 28,707 22,998 12,005 9,588 0.40 0.39 Fourth quarter 31,920 25,654 11,966 8,963 0.37 0.37 2019 First quarter $ 30,303 $ 20,952 $ 7,524 $ 6,020 $ 0.25 $ 0.25 Second quarter 30,393 20,964 10,263 9,319 0.39 0.38 Third quarter 30,474 21,015 11,225 8,864 0.37 0.36 Fourth quarter 29,354 20,669 10,232 8,964 0.37 0.37 |
LOW INCOME HOUSING TAX CREDITS
LOW INCOME HOUSING TAX CREDITS | 12 Months Ended |
Dec. 31, 2020 | |
Low Income Housing Tax Credits [Abstract] | |
LOW INCOME HOUSING TAX CREDITS | 21. LOW INCOME HOUSING TAX CREDITS The general purpose of housing equity funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver Federal Low Income Housing Credits to investors, allocate tax losses and other possible tax benefits to investors, and to preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were carried at |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Southern National and its subsidiaries Sonabank and EVB Statutory Trust I (the “Trust”). Significant inter-company accounts and transactions have been eliminated in consolidation. Southern National consolidates subsidiaries in which it holds, directly or indirectly, more than 50 percent of the voting rights or where it exercises control. Entities where Southern National holds 20 to 50 percent of the voting rights, or has the ability to exercise significant influence, or both, are accounted for under the equity method. Southern National owns the Trust which is an unconsolidated subsidiary and the junior subordinated debt owed to the Trust is reported as a liability of Southern National. In addition, Sonabank has an interest in one affiliate, Southern Trust Mortgage, LLC (“STM”). Sonabank owns 48.9% and 100% of STM’s common and preferred stock, respectively. To comply with Regulation S-X, Rule 3-09, audited financial statements of STM as of and for the year ended December 31, 2020 are being filed with Southern National’s Annual Report on Form 10-K as Exhibit 99.1. |
Investments in Mortgage Affiliate | Investments in Mortgage Affiliate Sonabank’s investment in STM’s common stock is accounted for using the equity method. Under the equity method, the carrying value of Sonabank’s investment in STM was originally recorded at cost but is adjusted periodically to record Sonabank’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. Our equity investment in STM as of December 31, 2020 and 2019 was $12.7 million and $5.0 million, respectively. Sonabank’s investment in STM’s preferred stock is considered to be a non-marketable equity security that does not have a readily determinable fair value. Equity securities with no recurring market value data available are reviewed periodically and any observable market value change are adjusting through net income. Sonabank evaluated this non-marketable equity security for impairment and recoverability of the recorded investment by considering positive and negative evidence, including the profitability and asset quality of STM, dividend payment history and recent redemption experience. Impairment is assessed at each reporting period and if identified, is recognized in noninterest income. Our preferred investment in STM was $3.3 million as of December 31, 2020 and 2019. |
Operating Segments | Operating Segments Operating segments are defined as components of a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has determined it has one unconsolidated reportable segment, which consists of the Sonabank's investment in STM. Sonabank’s share of equity in earnings (losses) from STM for the years ended December 31, 2020, 2019 and 2018 were $10.8 million, $1.2 million and $(894) thousand, respectively. The chief operating decision maker evaluates segment performance based on STM’s net income (loss). Net income (loss) was $22.2 million, $2.7 million and $(1.6) million for the years ended December 31, 2020, 2019 and 2018, respectively. The primary source of revenue for this segment is gains on sale of mortgage loans held for sale, net of direct costs. For the years ended December 31, 2020, 2019 and 2018, gains on sale of mortgage loans held for sale, net of direct costs were $107.1 million, $45.7 million and $27.2 million, respectively. In evaluating STM’s net income (loss), the chief operating decision maker also assesses salaries, commissions and benefits, which were $84.1 million, $39.0 million and $24.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Also, the chief operating decision maker evaluates segments performance based on STM’s balance sheet. Total mortgage loans held for sale by STM were $143.4 million and $100.2 million as of December 31, 2020 and 2019, respectively. Warehouse lines of credit were $136.1 million and $92.1 million as of December 31, 2020 and 2019, respectively. STM’s total members’ equity was $26.4 million and $11.1 million as of December 31, 2020 and 2019. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Estimates that are particularly susceptible to change in the near term include: the determination of the allowance for credit losses (formerly the allowance for loan losses), the fair value of investment securities, credit impairment of investment securities, the valuation of goodwill, other real estate owned (“OREO”) and deferred tax assets. |
Investment Securities | Investment Securities Debt securities that Southern National has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. Securities classified as available for sale are those debt securities that may be sold in response to changes in interest rates, liquidity needs or other similar factors. Securities available for sale are carried at fair value, with unrealized gains or losses net of deferred taxes, included in accumulated other comprehensive income (loss) in stockholders’ equity. Premiums and discounts are generally amortized using the interest method with a constant effective yield without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Premiums on callable securities are amortized to their earliest call date. Prior to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2017-08 in 2019, premiums and discounts were recognized in interest income using the interest method over the terms of the securities without anticipating prepayments, except for mortgage-backed securities where prepayments were anticipated. Gains and losses on the sale of investment securities are recorded on the settlement date and are determined using the specific identification method. Southern National purchases amortizing investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchased premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on like-kind instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored and updated monthly to reflect actual activity and the most recent market projections. Other investments include stock acquired for regulatory purposes. The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is also required to own FRB stock with a par value equal to 6% of capital and FHLB stock of 4.25% of borrowings outstanding. FHLB and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Loans | Loans Southern National provides mortgage loans purchased from STM, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by loans secured by real estate throughout its market area. The ability of Southern National’s debtors to honor their contracts is in varying degrees dependent upon the real estate market conditions and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for the allowance for credit losses, purchased premiums and discounts and any deferred loan fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. Commercial real estate consists of borrowings secured by owner occupied and non-owner occupied commercial real estate. Repayment of these loans is dependent upon rental income or the subsequent sale of the property for loans secured by non-owner occupied commercial real estate and by cash flows from business operations for owner occupied commercial real estate. Loans for which the source of repayment is rental income are primarily impacted by local economic conditions which dictate occupancy rates and the amount of rent charged. Commercial real estate loans that are dependent on cash flows from operations can also be adversely affected by current market conditions for their product or service. Construction and land development primarily consist of borrowings to purchase and develop raw land into residential and non-residential properties. Construction loans are extended to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements. Repayment of the loans to real estate developers is dependent upon the sale or lease of properties to third parties in a timely fashion upon completion. Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value which may be absorbed by Southern National. Commercial loans consist of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises. Commercial loans are generally secured by business assets such as equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations. Southern National’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure become necessary. Generally, business assets used or produced in operations do not maintain their value upon foreclosure which may require Southern National to write-down the value significantly to sell. Residential real estate loans consist of loans to individuals for the purchase of primary residences with repayment primarily through wage or other income sources of the individual borrower. Southern National’s loss exposure to these loans is dependent on local market conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination. STM is a regional mortgage banking company headquartered in Virginia Beach, Virginia that has mortgage banking originators in Delaware, Virginia, Maryland, North Carolina and South Carolina. STM only originates retail mortgage products. Sonabank has established underwriting guidelines with STM under which it will purchase residential construction, construction loans that convert to permanent, and permanent loans primarily in its Virginia and Maryland footprint from STM. These will typically be loans that do not conform to FNMA or FHLMC standards because of size or acreage. Other consumer loans are comprised of loans to individuals both unsecured and secured and home equity loans secured by real estate (closed and open-end), with repayment dependent on individual wages and other income. The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary. Losses in this portfolio are generally relatively low, however, due to the small individual loan size and the balance outstanding as a percentage of Southern National’s entire portfolio. The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal and interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Most of Southern National’s business activity is with customers located within Virginia and Maryland. Therefore, our exposure to credit risk is significantly affected by changes in the economy in those areas. We are not dependent on any single customer or group of customers whose insolvency would have a material adverse effect on operations. Southern National has purchased, primarily through acquisitions, individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value such that there is no carryover of the seller’s allowance for credit losses. We adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020 which now requires us to record purchased financial assets with credit deterioration (PCD assets), defined as a more-than-insignificant deterioration in credit quality since origination or issuance, at the purchase price plus the allowance for credit losses expected at the time of acquisition. Under this method, there is no credit loss expense affecting net income on acquisition of PCD assets. Changes in estimates of expected credit losses after acquisition are recognized as credit loss expense (or reversal of credit loss expense) in subsequent periods as they arise. Any non-credit discount or premium resulting from acquiring a pool of purchased financial assets with credit deterioration shall be allocated to each individual asset. At the acquisition date, the initial allowance for credit losses determined on a collective basis shall be allocated to individual assets to appropriately allocate any non-credit discount or premium. The non-credit discount or premium, after the adjustment for the allowance for credit losses, shall be accreted to interest income using the interest method based on the effective interest rate determined after the adjustment for credit losses at the adoption date. A purchased financial asset that does not qualify as a PCD asset is accounted for similar to an originated financial asset. Generally, this means that an entity recognizes the allowance for credit losses for non-PCD assets through net income at the time of acquisition. In addition, both the credit discount and non-credit discount or premium resulting from acquiring a pool of purchased financial assets that do not qualify as PCD assets shall be allocated to each individual asset. This combined discount or premium shall be accreted to interest income using the effective yield method. |
Allowance for Credit Losses ("ACL") | Allowance for Credit Losses (“ACL”) As further discussed below, we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020. Accounting Standards Codification (“ASC”) Topic 326 (“ASC 326”) replaced the previous “incurred loss” model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss (“CECL”) model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance-sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. In connection with the adoption of ASC 326, we revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below. Allowance For Credit Losses - Held-to-Maturity Securities The allowance for credit losses on held-to-maturity securities is a contra-asset valuation account, calculated in accordance with ASC 326 that is deducted from the amortized cost basis of held-to-maturity securities to present management's best estimate of the net amount expected to be collected. Held-to-maturity securities are charged-off against the allowance when deemed uncollectible by management. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management measures expected credit losses on held-to-maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held-to-maturity securities from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on held-to-maturity securities is presented in Note 2 – Investment Securities. Allowance For Credit Losses - Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, we first assess whether (i) we intend to sell or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either case is affirmative, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither case is affirmative, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Prior to the adoption of ASU 2016-13, declines in the fair value of held-to-maturity and available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2020, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Allowance for Credit Losses – Loans The allowance for credit losses on loans is a contra-asset valuation account, calculated in accordance with ASC 326, which is deducted from the amortized cost basis of loans to present management's best estimate of the net amount expected to be collected. Loans are charged-off against the allowance when deemed uncollectible by management. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding our policies and methodology used to estimate the allowance for credit losses on loans is presented in Note 3 – Loans and Allowance. Prior to the adoption of ASU 2016-13, the allowance for loan losses on loans was a contra-asset valuation account established through a provision for loan losses charged to expense, which represented management’s best estimate of inherent losses that had been incurred within the existing portfolio of loans. The allowance for loan losses on loans included allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Allowance For Credit Losses - Off-Balance-Sheet Credit Exposures The allowance for credit losses on off-balance-sheet credit exposures is a liability account, calculated in accordance with ASC 326, representing expected credit losses over the contractual period for which we are exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if we have the unconditional right to cancel the obligation. The allowance is reported as a component of accrued interest payable and other liabilities in our consolidated balance sheets. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. Further information regarding our policies and methodology used to estimate the allowance for credit losses on off-balance-sheet credit exposures is presented in Note 14 – Financial Instruments with Off-Balance-Sheet Risks. As discussed above, effective January 1, 2020 we adopted the provisions of ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Upon adoption, we recognized an after-tax cumulative effect reduction to retained earnings totaling $5.1 million, as detailed in the table below. Operating results for periods after January 1, 2020 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies. The following table details the impact of the adoption of ASC 326 on the allowance for credit losses as of January 1, 2020 (in thousands): After-tax Cumulative Pre-Adoption Impact of Post-Adoption Effect On Allowance Adoption Allowance Retained Earnings Securities Held To Maturity: Obligations of states and political subdivisions $ — $ (1) $ (1) $ — Total $ — $ (1) $ (1) $ — Loans: Commercial real estate - owner occupied $ 810 $ 1,704 $ 2,514 $ (994) Commercial real estate - non-owner occupied (1) 1,720 2,706 4,426 (1,578) Construction and land development 683 674 1,357 (393) Commercial loans 5,418 (3,246) 2,172 1,893 Paycheck Protection Program loans — — — - Residential 1-4 family (2) 1,266 4,169 5,435 (2,431) Other consumer loans 190 187 377 (109) PCD Loans — 2,272 2,272 (1,325) Unallocated 174 (174) — 101 Total loans $ 10,261 $ 8,292 $ 18,553 $ (4,836) Off-Balance Sheet Exposures $ — $ 360 $ 360 $ (220) (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from Southern National, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and Southern National does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Bank Premises and Equipment | Bank Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives of 30 years. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. |
Operating Leases | Operating Leases The Company leases certain properties and equipment under operating leases. The Company recognizes a liability to make lease payments, the operating lease liability, and an asset representing the right to use the underlying asset during the lease term, the right-of-use asset. In recognizing lease right-of-use assets and related right-of-use liabilities, we account for lease and non-lease components (such as taxes, insurance, and common area maintenance costs) separately as such amounts are generally readily determinable under our lease contracts. The operating lease liability is measured at the present value of the remaining lease payments, discounted at the Company’s incremental borrowing rate at inception. The right-of-use asset is measured at the amount of the operating lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the operating lease liability, and any impairment of the right-of-use asset. Lease renewal options are generally not included in the calculation of the operating lease liabilities, unless they are not reasonably certain to be exercised. The Company does not recognize short-term leases on the balance sheet. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. In response to the effects of COVID-19, management determined there to be a triggering event in the third quarter of 2020 warranting a goodwill assessment. For the third quarter 2020 assessment, we performed a step one quantitative assessment to determine if the fair value of all our reporting units was less than its carrying amount. We concluded that the fair value of all our reporting units exceeded its carrying amount and no impairment was present based on management’s assessment. Other intangible assets consist of loan servicing rights and core deposit intangible assets arising from whole-bank and branch acquisitions and are amortized over their estimated useful lives, which range from 6 to 15 years. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes option-pricing model is utilized to estimate the fair value of stock options. Compensation cost for grants of restricted shares is accounted for based on the closing price of Southern National’s common stock on the date the restricted shares are awarded. Compensation cost for stock options and restricted shares is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Bank Owned Life Insurance | Bank-Owned Life Insurance Southern National has purchased, and acquired through acquisitions, life insurance policies on certain former and current key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) Real estate acquired through or instead of foreclosure is held for sale and initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a direct charge-off is recorded through expense. Operating costs after acquisition are expensed as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Premises and equipment, core deposit intangible assets, right of use assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Retirement Plans | Retirement Plans Employee 401(k) plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to Southern National or by Southern National to shareholders. |
Estimates and Uncertainties | Estimates and Uncertainties Estimates including the carrying value of investment securities, other than temporary impairment of investment securities, the determination of the allowance for credit losses and the valuation of goodwill and intangible assets involves uncertainties and matters of significant judgement regarding interest rates, credit risk, repayments and prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized tax benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals exist as of December 31, 2020 and 2019. Southern National and its subsidiaries file a consolidated U.S. federal tax return; Sonabank files a Maryland state income tax return and Southern National files a franchise tax return. These returns are subject to examination by taxing authorities for all years after 2017. |
Restrictions on Cash | Restrictions on Cash No regulatory reserve or clearing requirements with the FRB were needed at December 31, 2020 and 2019. |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows For purposes of reporting cash flows, Southern National defines cash and cash equivalents as cash due from financial institutions, interest-bearing deposits and federal funds sold in other financial institutions with maturities less than 90 days. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted EPS reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to net income that would result from the assumed issuance. Potential common shares that may be issued by Southern National relate solely to outstanding stock options and warrants and are determined using the treasury stock method. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive (loss) income. Other comprehensive (loss) income includes unrealized gains and losses on investment securities available for sale and the non-credit component of other than temporary impairment of investment securities held-to-maturity which are also recognized as a separate component of equity. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, Southern National has entered into commitments to extend credit, standby letters of credit, and guarantees of previously sold credit card accounts. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. |
Fair Value Measurements | Fair Value Measurements In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon observable market-based parameters. Valuation assumptions may be made to ensure that financial instruments are recorded at fair value. These assumptions may reflect assumptions that market participants would use in pricing an asset or liability, among other things, as well as unobservable parameters. Any such valuation assumptions are applied consistently over time. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Standards Adopted: In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In June 2016 , Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments along with several other subsequent codification updates related to accounting for credit losses, set forth a “current expected credit loss” ("CECL") model requiring the Company to measure all expected credit losses for financial instruments recorded at amortized cost held at the reporting date. The estimate was to be based on historical experience, current conditions and reasonable and supportable forecasts. This replaced the existing incurred loss model and was applicable to the measurement of credit losses on financial assets measured at amortized cost and applied to some off-balance sheet credit exposures. The amendments were effective for the Company beginning January 1, 2020. effective January 1, 2020 with cumulative adjustment of $5.1 million to retained earnings and implemented as of December 31, 2020 . The adoption of this ASU resulted in an increase of $8.3 million in our allowance for credit losses, including transfers of non-accretable discount on loans. The increase is a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The adoption of this ASU required that we establish an allowance for expected credit losses for certain debt securities and other financial assets which are not material. New Accounting Standards Not Yet Adopted: In December 2019, FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting In October 2020, FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. In October 2020, FASB issued ASU 2020-10, Codification Improvements. |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule for allowance for credit losses on held to maturity debt securities and financing receivables | After-tax Cumulative Pre-Adoption Impact of Post-Adoption Effect On Allowance Adoption Allowance Retained Earnings Securities Held To Maturity: Obligations of states and political subdivisions $ — $ (1) $ (1) $ — Total $ — $ (1) $ (1) $ — Loans: Commercial real estate - owner occupied $ 810 $ 1,704 $ 2,514 $ (994) Commercial real estate - non-owner occupied (1) 1,720 2,706 4,426 (1,578) Construction and land development 683 674 1,357 (393) Commercial loans 5,418 (3,246) 2,172 1,893 Paycheck Protection Program loans — — — - Residential 1-4 family (2) 1,266 4,169 5,435 (2,431) Other consumer loans 190 187 377 (109) PCD Loans — 2,272 2,272 (1,325) Unallocated 174 (174) — 101 Total loans $ 10,261 $ 8,292 $ 18,553 $ (4,836) Off-Balance Sheet Exposures $ — $ 360 $ 360 $ (220) (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of available for sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands): Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2020 Residential government-sponsored mortgage-backed securities $ 35,442 $ 1,618 $ — $ 37,060 Obligations of states and political subdivisions 22,966 1,076 — 24,042 Corporate securities 15,000 81 (2) 15,079 Residential government-sponsored collateralized mortgage obligations 28,680 737 (1) 29,416 Government-sponsored agency securities 5,985 90 — 6,075 Agency commercial mortgage-backed securities 29,118 1,087 (15) 30,190 SBA pool securities 11,441 80 (150) 11,371 Total $ 148,632 $ 4,769 $ (168) $ 153,233 Amortized Gross Unrealized Fair Cost Gains Losses Value December 31, 2019 Residential government-sponsored mortgage-backed securities $ 48,540 $ 455 $ (16) $ 48,979 Obligations of states and political subdivisions 17,041 541 — 17,582 Corporate securities 2,004 8 — 2,012 Trust preferred securities 2,530 283 (245) 2,568 Residential government-sponsored collateralized mortgage obligations 36,511 217 (39) 36,689 Government-sponsored agency securities 14,823 47 (48) 14,822 Agency commercial mortgage-backed securities 27,557 192 (18) 27,731 SBA pool securities 14,622 11 (196) 14,437 Total $ 163,628 $ 1,754 $ (562) $ 164,820 |
Schedule of amortized cost, unrecognized gains and losses, and fair value of held to maturity securities | The amortized cost, gross unrecognized gains and losses, allowance for credit losses and fair value of investment securities held to maturity were as follows (in thousands): Amortized Gross Unrecognized Allowance for Fair Cost Gains Losses Credit Losses Value December 31, 2020 Residential government-sponsored mortgage-backed securities $ 25,037 $ 729 $ (2) $ — $ 25,764 Obligations of states and political subdivisions 9,594 183 — (1) 9,776 Residential government-sponsored collateralized mortgage obligations 1,090 39 — — 1,129 Government-sponsored agency securities 5,000 163 — — 5,163 Total $ 40,721 $ 1,114 $ (2) $ (1) $ 41,832 Amortized Gross Unrecognized Fair Cost Gains Losses Value December 31, 2019 Residential government-sponsored mortgage-backed securities $ 22,925 $ 62 $ (52) $ 22,935 Obligations of states and political subdivisions 15,071 165 (1) 15,235 Trust preferred securities 1,938 99 (2) 2,035 Residential government-sponsored collateralized mortgage obligations 3,128 10 (9) 3,129 Government-sponsored agency securities 29,386 108 (162) 29,332 Total $ 72,448 $ 444 $ (226) $ 72,666 |
Schedule of fair value and carrying amount, if different, of debt securities, by contractual maturity | Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value Due in one to five years $ 5,841 $ 6,057 $ 3,406 $ 3,513 Due in five to ten years 19,253 19,696 2,183 2,231 Due after ten years 18,857 19,443 9,005 9,195 Residential government-sponsored mortgage-backed securities 35,442 37,060 25,037 25,764 Residential government-sponsored collateralized mortgage obligations 28,680 29,416 1,090 1,129 Agency commercial mortgage-backed securities 29,118 30,190 — — SBA pool securities 11,441 11,371 — — Total $ 148,632 $ 153,233 $ 40,721 $ 41,832 |
Schedule of present information regarding securities in a continuous unrealized loss position by duration of time in a loss position | The following tables present information regarding investment securities available for sale and held to maturity in a continuous unrealized loss position as of December 31, 2020 and 2019 by duration of time in a loss position (in thousands): December 31, 2020 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Corporate securities $ 998 $ (2) $ — $ — $ 998 $ (2) Residential government-sponsored collateralized mortgage obligations 954 (1) — — 954 (1) Agency commercial mortgage-backed securities 2,170 (15) — — 2,170 (15) SBA pool securities — — 8,119 (150) 8,119 (150) Total $ 4,122 $ (18) $ 8,119 $ (150) $ 12,241 $ (168) December 31, 2020 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 331 $ (1) $ 126 $ (1) $ 457 $ (2) Total $ 331 $ (1) $ 126 $ (1) $ 457 $ (2) December 31, 2019 Less than 12 months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Available for Sale value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 2,686 $ (7) $ 1,758 $ (9) $ 4,444 $ (16) Trust preferred securities — — 795 (245) 795 (245) Residential government-sponsored collateralized mortgage obligations 4,253 (25) 3,133 (14) 7,386 (39) Government-sponsored agency securities 4,924 (48) — — 4,924 (48) Agency commercial mortgage-backed securities 2,833 (6) 3,126 (12) 5,959 (18) SBA pool securities 1,148 (2) 9,420 (194) 10,568 (196) Total $ 15,844 $ (88) $ 18,232 $ (474) $ 34,076 $ (562) December 31, 2019 Less than 12 months 12 Months or More Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Held to Maturity value Losses value Losses value Losses Residential government-sponsored mortgage-backed securities $ 14,978 $ (41) $ 1,402 $ (11) $ 16,380 $ (52) Obligations of states and political subdivisions 2,011 (1) — — 2,011 (1) Trust preferred securities — — 53 (2) 53 (2) Residential government-sponsored collateralized mortgage obligations 1,162 (3) 571 (6) 1,733 (9) Government-sponsored agency securities — — 20,833 (162) 20,833 (162) Total $ 18,151 $ (45) $ 22,859 $ (181) $ 41,010 $ (226) |
Schedule of changes in accumulated other comprehensive income by component | Changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2020, 2019 and 2018 are shown in the table below. All amounts are net of tax (in thousands). Unrealized Holding Gains on Held to Maturity For the year ended December 31, 2020 Available for Sale Securities Total Beginning balance $ 943 $ (160) $ 783 Current period other comprehensive income 2,693 9 2,702 Ending balance $ 3,636 $ (151) $ 3,485 Unrealized Holding Gains (Losses) on Held to Maturity For the year ended December 31, 2019 Available for Sale Securities Total Beginning balance $ (2,419) $ (170) $ (2,589) Current period other comprehensive income 3,362 10 3,372 Ending balance $ 943 $ (160) $ 783 Unrealized Holding Losses on Held to Maturity For the year ended December 31, 2018 Available for Sale Securities Total Beginning balance $ (999) $ (153) $ (1,152) Amounts reclassified from accumulated other comprehensive loss due to the adoption of ASU 2018-02 (199) (30) (229) Subtotal (1,198) (183) (1,381) Current period other comprehensive (loss) income (1,221) 13 (1,208) Ending balance $ (2,419) $ (170) $ (2,589) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Allowance for Loan Losses [Abstract] | |
Schedule of loans, net of unearned income | Loans, net of deferred fees, consist of the following at year end (in thousands): December 31, 2020 Loans secured by real estate: Commercial real estate - owner occupied $ 435,078 Commercial real estate - non-owner occupied 600,706 Secured by farmland 11,662 Construction and land loans 103,264 Residential 1-4 family 557,257 Multi- family residential 107,267 Home equity lines of credit 91,606 Total real estate loans 1,906,840 Commercial loans 187,060 Paycheck Protection Program loans 319,428 Consumer loans 22,290 Total Non-PCD loans 2,435,618 PCD loans 8,908 Plus (less) deferred costs (fees) on loans (4,030) Total loans $ 2,440,496 December 31, 2019 Loans secured by real estate: Commercial real estate - owner occupied $ 414,479 Commercial real estate - non-owner occupied 559,195 Secured by farmland 17,622 Construction and land loans 150,750 Residential 1-4 family 604,777 Multi- family residential 82,055 Home equity lines of credit 109,006 Total real estate loans 1,937,884 Commercial loans 221,447 Paycheck Protection Program loans — Consumer loans 26,304 Subtotal 2,185,635 Plus deferred costs on loans 412 Total loans $ 2,186,047 |
Schedule of summary of impaired loans | Impaired loans for the portfolio as of December 31, 2019 were as follows (in thousands): Total Loans Unpaid Recorded Principal Related December 31, 2019 Investment (1) Balance Allowance With no related allowance recorded Commercial real estate - owner occupied $ 6,890 $ 8,530 $ — Commercial real estate - non-owner occupied (2) 3,120 3,363 — Construction and land development 345 747 — Commercial loans 5,049 8,490 — Residential 1-4 family (3) 1,021 2,719 — Other consumer loans — — — Total $ 16,425 $ 23,849 $ — With an allowance recorded Commercial real estate - owner occupied $ — $ — $ — Commercial real estate - non-owner occupied (2) 176 281 1 Construction and land development — — — Commercial loans 2,498 2,533 957 Residential 1-4 family (3) 2,841 3,243 92 Other consumer loans 39 39 1 Total $ 5,554 $ 6,096 $ 1,051 Grand total $ 21,979 $ 29,945 $ 1,051 (1) Recorded investment is after cumulative prior charge offs of $1.5 million as of December 31, 2019. These loans also have aggregate SBA guarantees of $4.4 million as of December 31, 2019. (2) Includes loans secured by farmland and multi-family residential loans. (3) Includes home equity lines of credit. |
Schedule of details of average recorded investment and interest income for impaired loans recognized by class of loans | The following tables present the average recorded investment and interest income recognized for impaired loans recognized by class of loans for the years ended December 31, 2019 and 2018 (in thousands): Total Loans Average Interest Recorded Income Year Ended December 31, 2019 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 7,387 $ 453 Commercial real estate - non-owner occupied (1) 3,205 191 Construction and land development 398 57 Commercial loans 5,254 214 Residential 1-4 family (2) 1,061 149 Other consumer loans — — Total $ 17,305 $ 1,064 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) 182 19 Construction and land development — — Commercial loans 3,027 176 Residential 1-4 family (2) 2,944 111 Other consumer loans 39 — Total $ 6,192 $ 306 Grand total $ 23,497 $ 1,370 Total Loans Average Interest Recorded Income For the Year Ended December 31, 2018 Investment Recognized With no related allowance recorded Commercial real estate - owner occupied $ 2,780 $ 179 Commercial real estate - non-owner occupied (1) 169 22 Construction and land development — — Commercial loans 3,319 92 Paycheck Protection Program Loans — — Residential 1-4 family (2) 1,582 125 Other consumer loans — — Total $ 7,850 $ 418 With an allowance recorded Commercial real estate - owner occupied $ — $ — Commercial real estate - non-owner occupied (1) — — Construction and land development — — Commercial loans 2,530 200 Paycheck Protection Program loans — — Residential 1-4 family (2) 1,422 67 Other consumer loans — — Total $ 3,952 $ 267 Grand total $ 11,802 $ 685 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of details of aging of the recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2020 and 2019 (in thousands): 30 - 59 60 - 89 90 Days Days Days Total Loans Not Total December 31, 2020 Past Due Past Due or More Past Due Past Due Loans (4) Commercial real estate - owner occupied $ — $ — $ — $ — $ 435,078 $ 435,078 Commercial real estate - non-owner occupied (1) — — — — 719,635 719,635 Construction and land development 23 39 — 62 103,202 103,264 Commercial loans 64 33 — 97 186,963 187,060 Paycheck Protection Program loans — — — — 319,428 319,428 Residential 1-4 family (2) 1,545 388 — 1,933 646,930 648,863 Other consumer loans 207 4 — 211 22,079 22,290 Total Non-PCD loans 1,839 464 — 2,303 2,433,315 2,435,618 PCD loans — — — — 8,908 8,908 Total $ 1,839 $ 464 $ — $ 2,303 $ 2,442,223 $ 2,444,526 30 - 59 60 - 89 90 Days Days Days Total Nonaccrual Loans Not Total December 31, 2019 Past Due Past Due or More Past Due Loans (3) Past Due Loans Commercial real estate - owner occupied $ 813 $ — $ — $ 813 $ — $ 413,666 $ 414,479 Commercial real estate - non-owner occupied (1) 936 — — 936 — 657,936 658,872 Construction and land development 746 275 — 1,021 — 149,729 150,750 Commercial loans 234 62 — 296 6,337 214,814 221,447 Residential 1-4 family (2) 4,060 — — 4,060 2,524 707,199 713,783 Other consumer loans 107 — — 107 39 26,158 26,304 Total $ 6,896 $ 337 $ — $ 7,233 $ 8,900 $ 2,169,502 $ 2,185,635 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $4.1 million at December 31, 2019. (4) Includes $122.0 million of loans that were subject to deferrals at December 31, 2020. The amortized cost, by class, of loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at December 31, 2020, were as follows (in thousands): 90 Total Days Loans Not Nonaccrual December 31, 2020 or More Past Due Loans (3) Commercial real estate - owner occupied $ 2,641 $ — $ 2,641 Commercial real estate - non-owner occupied (1) 1,098 4,481 5,579 Commercial loans 2,104 228 2,332 Residential 1-4 family (2) 2,035 13 2,048 Other consumer loans 9 — 9 Total Non-PCD loans 7,887 4,722 12,609 PCD loans 1,853 — 1,853 Total $ 9,740 $ 4,722 $ 14,462 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. |
Schedule of non accrual loans | The following table presents year-end non-accrual loans as of December 31, 2020, segregated by class of loans (in thousands): Non-Accrual With Total No Credit December 31, 2020 Non-Accrual (3) Loss Allowance (4) Commercial real estate - owner occupied $ 2,641 $ 2,641 Commercial real estate - non-owner occupied (1) 5,579 5,579 Commercial loans 2,332 582 Residential 1-4 family (2) 2,048 687 Other consumer loans 9 9 Total non-PCD loans 12,609 9,498 PCD loans 1,853 — Total non-accrual loans $ 14,462 $ 9,498 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. (4) Nonaccrual loans with no credit loss allowance include SBA guaranteed amounts totaling $1.7 million at December 31, 2020. The following table presents non-accrual loans as of December 31, 2020 by class and year of origination (in thousands): Revolving Loans Revolving Converted 2020 2019 2018 2017 2016 Prior Loans To Term Total (3) Commercial real estate - owner occupied $ — $ — $ — $ — $ — $ 2,641 $ — $ — $ 2,641 Commercial real estate - non-owner occupied (1) — — — 1,098 4,481 — — — 5,579 Construction and land development — — — — — — — — — Commercial loans — — — 107 — 2,225 — — 2,332 Paycheck Protection Program loans — — — — — — — — — Residential 1-4 family (2) — — — 151 — 1,374 523 — 2,048 Other consumer loans — — — — — 9 — — 9 Total non-PCD non-accruals — — — 1,356 4,481 6,249 523 — 12,609 PCD loans — — — 1,853 — — — — 1,853 Total non-accrual loans $ — $ — $ — $ 3,209 $ 4,481 $ 6,249 $ 523 $ — $ 14,462 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Nonaccrual loans include SBA guaranteed amounts totaling $3.1 million at December 31, 2020. |
Schedule of allowance for loan losses and the recorded investment by portfolio segment | The following table presents details of the allowance for credit losses on loans segregated by loan portfolio segment as of December 31, 2020, calculated in accordance with the CECL methodology described above (in thousands). Commercial Commercial Real Estate Real Estate Construction Paycheck Other Owner Non-owner and Land Commercial Protection 1-4 Family Consumer PCD December 31, 2020 Occupied Occupied (1) Development Loans Program Residential (2) Loans Loans Total Modeled expected credit losses $ 2,565 $ 4,666 $ 1,297 $ 544 $ — $ 5,113 $ 306 $ — $ 14,491 Q-factor and other qualitative adjustments 4,134 8,276 516 917 — 5,330 194 — 19,367 Specific allocations — — 2 37 — 37 17 2,394 2,487 Total $ 6,699 $ 12,942 $ 1,815 $ 1,498 $ — $ 10,480 $ 517 $ 2,394 $ 36,345 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the SBA. Activity in the allowance for credit losses by class of loan for the year ended December 31, 2020 and allowance for loan losses by class of loan for the years ended December 31, 2019 and 2018 is summarized below (in thousands): Commercial Commercial Real Estate Real Estate Construction Other Owner Non-owner and Land Commercial 1-4 Family Consumer PCD Year Ended December 31, 2020 Occupied Occupied (1) Development Loans Residential (2) Loans Loans Unallocated Total Allowance for credit losses: Beginning balance $ 810 $ 1,720 $ 683 $ 5,418 $ 1,266 $ 190 $ — $ 174 $ 10,261 Adoption of ASC 326 1,704 2,706 674 (3,246) 4,169 187 2,272 (174) 8,292 Balance 2,514 4,426 1,357 2,172 5,435 377 2,272 — 18,553 Provision (credits) 4,232 8,381 458 966 5,060 231 122 — 19,450 Charge offs (52) — — (1,734) (433) (124) — — (2,343) Recoveries 5 135 — 94 418 33 — — 685 Ending balance $ 6,699 $ 12,942 $ 1,815 $ 1,498 $ 10,480 $ 517 $ 2,394 $ — $ 36,345 Year Ended December 31, 2019 Allowance for loan losses: Beginning balance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ — $ 564 $ 12,283 Provision (recovery) for non-purchased loans 587 904 (138) (1,708) 596 199 — (390) 50 Provision for purchase credit impaired loans — — — 300 — — — — 300 Total Provision (recovery) 587 904 (138) (1,408) 596 199 — (390) 350 Charge offs (782) (863) — (622) (742) (269) — — (3,278) Recoveries 203 10 — 351 306 36 — — 906 Ending balance $ 810 $ 1,720 $ 683 $ 5,418 $ 1,266 $ 190 $ — $ 174 $ 10,261 Year ended December 31, 2018 Allowance for loan losses: Beginning balance $ 690 $ 1,321 $ 692 $ 4,496 $ 1,586 $ 612 $ — $ — $ 9,397 Provision (recovery) for non-purchased loans 497 348 129 1,941 237 (116) — 564 3,600 Provision for purchase credit impaired loans — — — 600 — — — — 600 Provision (recovery) 497 348 129 2,541 237 (116) — 564 4,200 Charge offs (400) — — (1,566) (842) (290) — — (3,098) Recoveries 15 — — 1,626 125 18 — — 1,784 Ending balance $ 802 $ 1,669 $ 821 $ 7,097 $ 1,106 $ 224 $ — $ 564 $ 12,283 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. The following table presents loans that were evaluated for expected credit losses on an individual basis and the related specific allocations, by loan portfolio segment as of December 31, 2020 (in thousands): Loan Specific December 31, 2020 Balance (3) Allocations Commercial real estate - owner occupied $ 23,397 $ — Commercial real estate - non-owner occupied (1) 8,536 — Construction and land development 77 2 Commercial loans 5,515 37 Paycheck Protection Program loans — — Residential 1-4 family (2) 2,399 37 Other consumer loans 17 17 Total non-PCD loans 39,941 93 PCD loans 8,908 2,394 Total loans $ 48,849 $ 2,487 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Includes SBA guarantees of $2.5 million as of December 31, 2020. Commercial Commercial Real Estate Real Estate Construction Paycheck Other Owner Non-owner and Land Commercial Protection 1-4 Family Consumer December 31, 2019 Occupied Occupied (1) Development Loans Program Residential (2) Loans Unallocated Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 957 $ — $ 85 $ — $ — $ 1,042 Collectively evaluated for impairment 810 1,720 683 4,461 — 1,181 190 174 9,219 Total ending allowance $ 810 $ 1,720 $ 683 $ 5,418 $ — $ 1,266 $ 190 $ 174 $ 10,261 Loans: Individually evaluated for impairment $ 6,890 $ 3,120 $ 345 $ 7,544 $ — $ 1,443 $ — $ — $ 19,342 Collectively evaluated for impairment 407,589 655,752 150,405 213,903 — 712,340 26,304 — 2,166,293 Total ending loan balances $ 414,479 $ 658,872 $ 150,750 $ 221,447 $ — $ 713,783 $ 26,304 $ — $ 2,185,635 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of the risk category of loans by class of loans | The following table present weighted-average risk grades for all loans, by class and year of origination/renewal as of December 31, 2020 (in thousands): Revolving Loans Revolving Converted 2020 2019 2018 2017 2016 Prior Loans To Term Total Commercial real estate - owner occupied Not Rated $ — $ — $ — $ — $ — $ — $ — $ — $ — Pass 22,473 43,484 41,006 46,847 61,758 188,074 3,608 6,698 413,948 Special Mention — — — 149 1,692 11,822 — — 13,663 Substandard 2,007 — — — 2,449 3,011 — — 7,467 $ 24,480 $ 43,484 $ 41,006 $ 46,996 $ 65,899 $ 202,907 $ 3,608 $ 6,698 $ 435,078 Weighted average risk grade 3.70 3.41 3.62 3.64 3.70 3.55 3.30 4.00 3.59 Commercial real estate - nonowner occupied (1) Not Rated $ — $ — $ — $ — $ — $ 362 $ — $ — $ 362 Pass 73,178 32,275 101,150 96,427 141,460 224,554 11,406 44 680,494 Special Mention — — 1,035 221 12,890 — — 14,146 Substandard — — — 1,069 4,481 18,783 300 — 24,633 $ 73,178 $ 32,275 $ 101,150 $ 98,531 $ 146,162 $ 256,589 $ 11,706 $ 44 $ 719,635 Weighted average risk grade 3.55 3.78 3.32 3.59 3.70 3.90 3.79 3.00 3.70 Construction and land development Not Rated $ 7,666 $ 8,332 $ 56 $ 746 $ 385 $ 2,026 $ — $ — $ 19,211 Pass 20,805 19,231 14,473 11,726 4,804 12,174 799 41 84,053 Special Mention — — — — — — — — — Substandard — — — — — — — — — $ 28,471 $ 27,563 $ 14,529 $ 12,472 $ 5,189 $ 14,200 $ 799 $ 41 $ 103,264 Weighted average risk grade 3.34 3.90 3.68 4.00 3.97 3.41 4.00 4.00 3.67 Commercial loans Not Rated $ — $ — $ — $ 1,919 $ — $ — $ — $ — $ 1,919 Pass 11,372 18,852 13,569 14,335 3,405 24,568 87,118 5,306 178,525 Special Mention — — — — — — — — — Substandard 13 — 1,350 107 66 4,093 987 — 6,616 $ 11,385 $ 18,852 $ 14,919 $ 16,361 $ 3,471 $ 28,661 $ 88,105 $ 5,306 $ 187,060 Weighted average risk grade 3.30 3.66 3.69 3.62 3.97 4.06 3.66 3.94 3.71 Paycheck Protection Program loans Not Rated $ — $ — $ — $ — $ — $ — $ — $ — $ — Pass 319,428 — — — — — — — 319,428 Special Mention — — — — — — — — — Substandard — — — — — — — — — $ 319,428 $ — $ — $ — $ — $ — $ — $ — $ 319,428 Weighted average risk grade 2.00 N/A N/A N/A N/A N/A N/A N/A N/A Residential 1-4 family (2) Not Rated $ 52,416 $ 104,378 $ 68,889 $ 62,047 $ 35,767 $ 96,827 $ 75,214 $ 2,729 $ 498,267 Pass 15,497 14,654 18,557 9,809 10,033 64,106 13,810 521 146,987 Special Mention — — — 52 — 48 277 201 578 Substandard — — — 151 — 2,118 719 43 3,031 $ 67,913 $ 119,032 $ 87,446 $ 72,059 $ 45,800 $ 163,099 $ 90,020 $ 3,494 $ 648,863 Weighted average risk grade 3.33 3.59 3.44 3.41 3.57 3.92 3.55 4.18 3.68 Other consumer loans Not Rated $ 3,811 $ 1,921 $ 1,803 $ 943 $ 6,458 $ 2,767 $ 3,534 $ — $ 21,237 Pass 585 244 — — — 62 37 — 928 Special Mention — — — — — 115 — — 115 Substandard — — — — — 10 — — 10 $ 4,396 $ 2,165 $ 1,803 $ 943 $ 6,458 $ 2,954 $ 3,571 $ — $ 22,290 Weighted average risk grade 3.63 3.28 N/A N/A N/A 4.72 4.00 N/A 3.76 PCD Not Rated $ — $ — $ — $ — $ — $ 1,176 $ 31 $ — $ 1,207 Pass — — — — 400 2,997 — — 3,397 Special Mention — — — — — 1,448 — — 1,448 Substandard — — — 1,825 — 1,031 — — 2,856 $ — $ — $ — $ 1,825 $ 400 $ 6,652 $ 31 $ — $ 8,908 Weighted average risk grade N/A N/A N/A 6.00 4.00 4.63 N/A N/A 4.92 Total $ 529,251 $ 243,371 $ 260,853 $ 249,187 $ 273,379 $ 675,062 $ 197,840 $ 15,583 $ 2,444,526 Weighted average risk grade 2.47 3.63 3.45 3.64 3.71 3.99 3.65 3.98 3.39 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. As of December 31, 2019, the risk category of loans by class of loans is as follows (in thousands): Total Loans Special December 31, 2019 Mention Substandard (3) Pass Total Commercial real estate - owner occupied $ 3,821 $ 3,975 $ 406,683 $ 414,479 Commercial real estate - non-owner occupied (1) 4,193 176 654,503 658,872 Construction and land development — 690 150,060 150,750 Commercial loans 3,432 4,462 213,553 221,447 Residential 1-4 family (2) 666 1,194 711,923 713,783 Other consumer loans 122 — 26,182 26,304 Total loans $ 12,234 $ 10,497 $ 2,162,904 $ 2,185,635 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. (3) Includes SBA guarantees of $4.1 million as of December 31, 2019. Revolving loans that converted to term during 2020 were as follows (in thousands): Total Commercial real estate - owner occupied $ 6,536 Commercial real estate - non-owner occupied (1) 44 Construction and land development — Commercial loans 330 Paycheck Protection Program loans — Residential 1-4 family (2) 731 Other consumer loans — Total loans $ 7,641 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of carrying amount of covered purchased impaired and non-impaired loans | The following table presents the carrying amount of purchased impaired and non-impaired loans from the acquisitions as of December 31, 2019 (in thousands): December 31, 2019 Purchased Purchased Impaired Non-impaired Loans Loans Total Commercial real estate (1) $ 3,978 $ 307,289 $ 311,267 Construction and land development 26 21,111 21,137 Commercial loans 2,354 34,729 37,083 Residential 1-4 family (2) 2,841 232,887 235,728 Other consumer loans — 15,153 15,153 Total $ 9,199 $ 611,169 $ 620,368 (1) Includes owner occupied and non-owner occupied as well as loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Changes in Carrying Amount and Accretable Yield for Purchased Impaired and Nonimpaired Loans | Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the acquisitions were as follows for the years ended December 31, 2019 (in thousands): December 31, 2019 Purchased Impaired Purchased Non-impaired Carrying Carrying Accretable Amount Accretable Amount Yield of Loans Discount of Loans Balance at beginning of the period $ 174 $ 11,449 $ 13,474 $ 795,759 Accretion (72) 72 (3,549) 3,549 Payments received — (2,322) — (188,139) Balance at end of the period $ 102 $ 9,199 $ 9,925 $ 611,169 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2020 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 37,060 $ — $ 37,060 $ — Obligations of states and political subdivisions 24,042 — 24,042 — Corporate securities 15,079 — 14,079 1,000 Residential government-sponsored collateralized mortgage obligations 29,416 — 29,416 — Government-sponsored agency securities 6,075 — 6,075 — Agency commercial mortgage-backed securities 30,190 — 30,190 — SBA pool securities 11,371 — 11,371 — Total $ 153,233 $ — $ 152,233 $ 1,000 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Available for sale securities Residential government-sponsored mortgage-backed securities $ 48,979 $ — $ 48,979 $ — Obligations of states and political subdivisions 17,582 — 17,582 — Corporate securities 2,012 — 1,012 1,000 Trust preferred securities 2,568 — 2,568 — Residential government-sponsored collateralized mortgage obligations 36,689 — 36,689 — Government-sponsored agency securities 14,822 — 14,822 — Agency commercial mortgage-backed securities 27,731 — 27,731 — SBA pool securities 14,437 — 14,437 — Total $ 164,820 $ — $ 163,820 $ 1,000 |
Schedule of assets measured at fair value on non recurring basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2020 (Level 1) (Level 2) (Level 3) Collateral dependent loans $ 47,001 $ — $ — $ 47,001 Other real estate owned: Commercial real estate - non-owner occupied (1) 865 — — 865 Construction and land development 1,221 — — 1,221 Residential 1-4 family (2) 992 — — 992 Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Total at Identical Assets Inputs Inputs (dollars in thousands) December 31, 2019 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate - owner occupied $ 6,890 $ — $ — $ 6,890 Commercial real estate - non-owner occupied (1) 3,296 — — 3,296 Construction and land development 345 — — 345 Commercial loans 7,547 — — 7,547 Residential 1-4 family (2) 3,862 — — 3,862 Consumer 39 — — 39 Other real estate owned: Commercial real estate - non-owner occupied (1) 1,984 — — 1,984 Construction and land development 2,874 — — 2,874 Residential 1-4 family (2) 1,366 — — 1,366 (1) Includes loans secured by farmland and multi-family residential loans. (2) Includes home equity lines of credit. |
Schedule of estimated fair values and fair value hierarchy levels of financial instruments | The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands) for the periods indicated: December 31, 2020 December 31, 2019 Fair Value Carrying Fair Carrying Fair Hierarchy Level Amount Value Amount Value Financial assets: Cash and cash equivalents Level 1 $ 196,185 $ 196,185 $ 31,928 $ 31,928 Securities available for sale Level 2 & Level 3 153,233 153,233 164,820 164,820 Securities held to maturity Level 2 40,721 41,832 72,448 72,666 Stock in Federal Reserve Bank and Federal Home Loan Bank Level 2 16,927 16,927 17,832 17,832 Equity investment in mortgage affiliate Level 3 12,652 12,652 5,020 5,020 Preferred investment in mortgage affiliate Level 3 3,305 3,305 3,305 3,305 Net loans Level 3 2,404,151 2,435,612 2,175,786 2,180,487 Accrued interest receivable Level 2 17,405 17,405 8,210 8,210 Financial liabilities: Demand deposits and NOW accounts Level 2 $ 1,155,426 $ 1,155,426 $ 730,325 $ 730,325 Money market and savings accounts Level 2 787,132 787,132 611,353 611,353 Time deposits Level 3 490,048 495,022 783,040 786,420 Securities sold under agreements to repurchase Level 1 16,065 16,065 12,883 12,883 FHLB advances Level 1 100,000 100,000 121,640 121,640 Junior subordinated debt Level 2 9,682 8,863 9,632 9,206 Senior subordinated notes Level 2 105,647 109,276 47,051 48,156 Accrued interest payable Level 2 3,057 3,057 4,907 4,907 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BANK PREMISES AND EQUIPMENT [Abstract] | |
Schedule of bank premises and equipment | 2020 2019 Land $ 8,139 $ 8,139 Land improvements 1,558 1,558 Building and improvements 23,164 23,164 Leasehold improvements 3,001 2,933 Furniture and equipment 8,962 8,789 Construction in progress 1,441 719 46,265 45,302 Less accumulated depreciation and amortization 15,959 14,118 Bank premises and equipment, net $ 30,306 $ 31,184 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of operating lease other information | For the Year Ended (in thousands except for percent and period data) December 31, 2020 December 31, 2019 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 5,062 $ 4,883 Other information: Weighted-average remaining lease term - operating leases, in years 4.8 5.7 Weighted-average discount rate - operating leases 2.5 % 2.8 % |
Schedule of future minimum rental payments required under non-cancelable operating leases for bank premises | As of (dollars in thousands) December 31, 2020 Lease payments due: Less than one year $ 2,542 One to three years 3,791 Three to five years 1,123 More than five years 1,376 Total lease payments 8,832 Less: imputed interest (594) Lease liabilities $ 8,238 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of acquired intangible assets | Intangible assets were as follows at year end (in thousands): December 31, 2020 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (11,677) $ 5,826 December 31, 2019 Gross Carrying Accumulated Net Carrying Value Amortization Value Amortizable core deposit intangibles $ 17,503 $ (10,312) $ 7,191 |
Schedule of estimated amortization expense of intangibles | Estimated amortization expense of intangibles for the years ended December 31 were as follows (in thousands): 2021 $ 1,364 2022 1,325 2023 1,269 2024 1,266 2025 602 Total $ 5,826 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Schedule of scheduled maturities of time deposits | At December 31, 2020, the scheduled maturities of time deposits are as follows (in thousands): 2021 $ 369,743 2022 77,081 2023 27,927 2024 10,662 2025 4,600 2026 35 Total $ 490,048 |
Schedule of maturities of certificates of deposit | The following table sets forth the maturities of certificates of deposit of $250 thousand and over as of December 31, 2020 (in thousands): Within 3 to 6 6 to 12 Over 12 3 Months Months Months Months Total $ 36,234 $ 38,192 $ 39,515 $ 51,807 $ 165,748 |
SECURITIES SOLD UNDER AGREEME_2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS [Abstract] | |
Schedule of other short-term borrowings | Other borrowings consist of the following (in thousands): December 31, 2020 2019 FHLB collateral advances maturing 3/1/2030 $ 100,000 $ — FHLB overnight advances — 81,000 Short-term FHLB advances maturing 3/10/2020 — 40,640 Total FHLB advances 100,000 121,640 Securities sold under agreements to repurchase 16,065 12,883 Total $ 116,065 $ 134,523 Weighted average interest rate at year end 3.55 % 1.75 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES [Abstract] | |
Schedule of net deferred tax assets | 2020 2019 Deferred tax assets: Allowance for credit losses $ 8,028 $ 2,235 Unearned loan fees and other 2,583 1,064 Other real estate owned write-downs 567 748 Lease liability 1,779 1,829 Other than temporary impairment charge — 229 Purchase accounting — 949 Federal AMT credit carryforward 1,137 1,137 Federal low income housing credit carryforward 444 3,226 Deferred compensation 1,734 1,573 Depreciation 274 218 Other 1,012 511 Total deferred tax assets 17,558 13,719 Deferred tax liabilities: Right-of-use assets 1,576 1,731 Net unrealized gain on investment securities available for sale 916 200 Purchase accounting 420 — Total deferred tax liabilities 2,912 1,931 Net deferred tax assets $ 14,646 $ 11,788 |
Schedule of provision for income taxes | The provision for income taxes consists of the following for the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Current tax expense Federal $ 7,825 $ 4,429 $ 6,244 State 407 228 249 Total current tax expense 8,232 4,657 6,493 Deferred tax expense (benefit) Federal (1,496) 1,350 2,692 State (122) 70 429 Total deferred tax expense (benefit) (1,618) 1,420 3,121 Total income tax expense $ 6,614 $ 6,077 $ 9,614 |
Schedule of income tax expense determined by applying the U.S. Federal income tax rate | The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 21% to pretax income for the years ended December 31, 2020, 2019 and 2018 due to the following (in thousands): 2020 2019 2018 Computed expected tax expense at statutory rate $ 6,279 $ 8,241 $ 9,094 Increase (decrease) in tax expense resulting from: Remeasurement of deferred tax assets and liabilities (31) (1,659) 1,130 Low income housing tax credits, net of amortization 225 (255) (502) Income from bank-owned life insurance (327) (357) (416) Other, net 468 107 308 Income tax expense $ 6,614 $ 6,077 $ 9,614 |
STOCK- BASED COMPENSATION (Tabl
STOCK- BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of activity in the stock option plan | Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, beginning of period 555,750 $ 10.02 4.3 $ 3,518 Forfeited (11,700) 10.91 Exercised (93,250) 7.60 Options outstanding, end of period 450,800 $ 10.50 3.8 $ 727 Exercisable at end of period 437,700 $ 10.37 3.7 $ 726 |
Restricted Stock [Member] | |
Schedule of activity in the restricted stock plan | Weighted Weighted Average Average Grant-Date Remaining Fair Value Contractual Shares Per Share Term Unvested restricted stock outstanding, beginning of period 86,500 $ 14.85 3.8 Granted 102,500 14.56 Vested (92,700) 15.22 Unvested restricted stock outstanding, end of period 96,300 $ 14.17 3.8 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments With Off Balance Sheet Risk [Abstract] | |
Schedule of allowance for credit losses off balance sheet exposure | 2020 Balance as of January 1 $ — Impact of adopting ASU 2016-13 360 Credit loss expense 380 Balance as of December 31, $ 740 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the denominators of the basic and diluted earnings per share | The following is a reconciliation of the denominators of the basic and diluted EPS computations for 2020, 2019 and 2018 (amounts in thousands, except per share data): Weighted Average Income Shares Per Share (Numerator) (Denominator) Amount For the year ended December 31, 2020 Basic EPS $ 23,287 24,239 $ 0.96 Effect of dilutive stock options and unvested restricted stock — 124 — Diluted EPS $ 23,287 24,363 $ 0.96 For the year ended December 31, 2019 Basic EPS $ 33,167 24,050 $ 1.38 Effect of dilutive stock options and unvested restricted stock — 275 (0.02) Diluted EPS $ 33,167 24,325 $ 1.36 For the year ended December 31, 2018 Basic EPS $ 33,691 24,012 $ 1.40 Effect of dilutive stock options and unvested restricted stock — 261 (0.01) Diluted EPS $ 33,691 24,273 $ 1.39 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters [Abstract] | |
Schedule of capital amounts and ratios for southern national and sonabank | The following table provides a comparison of the leverage and risk-weighted capital ratios of Sonabank at the periods indicated to the minimum and well-capitalized required regulatory standards: Required For Capital To Be Categorized as Actual Adequacy Purposes Well Capitalized (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Sonabank Common equity tier 1 capital ratio $ 334,540 15.83 % $ 95,078 4.50 % $ 137,334 6.50 % Tier 1 risk-based capital ratio 334,540 15.83 % 126,770 6.00 % 169,027 8.00 % Total risk-based capital ratio 361,073 17.09 % 169,027 8.00 % 211,284 10.00 % Leverage ratio 334,540 11.25 % 124,046 4.00 % 105,642 5.00 % December 31, 2019 Sonabank Common equity tier 1 capital ratio $ 313,354 14.81 % $ 95,229 4.50 % $ 137,553 6.50 % Tier 1 risk-based capital ratio 313,354 14.81 % 126,972 6.00 % 169,296 8.00 % Total risk-based capital ratio 323,615 15.29 % 169,296 8.00 % 211,619 10.00 % Leverage ratio 313,354 12.07 % 103,838 4.00 % 105,810 5.00 % (1) Prompt corrective action provisions are not applicable at the bank holding company level. |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed balance sheet of Southern National Bancorp of Virginia, Inc. | 2020 2019 ASSETS Cash $ 59,318 $ 2,707 Investment in subsidiaries 446,116 423,591 Other assets 2,060 8,128 Total assets $ 507,494 $ 434,426 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Junior subordinated debt - long term $ 9,682 $ 9,632 Senior subordinated notes - long term 105,647 47,051 Other liabilities 1,611 502 Total liabilities 116,940 57,185 Stockholders' equity: Common stock 243 241 Additional paid in capital 308,870 306,755 Retained earnings 77,956 69,462 Accumulated other comprehensive income 3,485 783 Total stockholders' equity 390,554 377,241 Total liabilities and stockholders' equity $ 507,494 $ 434,426 |
Schedule of condensed statements of income of Southern National Bancorp of Virginia, Inc. | 2020 2019 2018 Income: Cash dividends received from subsidiaries $ 2,500 $ 13,300 $ 8,000 Total income 2,500 13,300 8,000 Expenses: Interest on junior subordinated debt 426 589 575 Interest on senior subordinated notes 3,909 2,847 2,847 Other operating expenses 841 726 765 Total expenses 5,176 4,162 4,187 Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries (2,676) 9,138 3,813 Income tax benefit (1,084) (862) (872) Equity in undistributed net income of subsidiaries 24,879 23,167 29,006 Net income $ 23,287 $ 33,167 $ 33,691 |
Schedule of condensed statements of cash flows information of Southern National Bancorp of Virginia, Inc. | 2020 2019 2018 Operating activities: Net income $ 23,287 $ 33,167 $ 33,691 Adjustments to reconcile net income to net cash and cash equivalents (used in) provided by operating activities: Equity in undistributed net income of subsidiaries (27,379) (36,467) (37,006) Other, net 8,766 (666) (582) Net cash and cash equivalents provided by (used in) in operating activities 4,674 (3,966) (3,897) Investing activities: Dividend from subsidiaries 2,500 13,300 8,000 Net cash and cash equivalents provided by investing activities 2,500 13,300 8,000 Financing activities: Issuance of subordinated notes, net of cost 58,600 — — Issuance of common stock under Stock Incentive Plan 574 670 443 Cash dividends paid on common stock (9,737) (8,690) (7,688) Net cash and cash equivalents provided by (used in) financing activities 49,437 (8,020) (7,245) Increase (decrease) in cash and cash equivalents 56,611 1,314 (3,142) Cash and cash equivalents at beginning of period 2,707 1,393 4,535 Cash and cash equivalents at end of period $ 59,318 $ 2,707 $ 1,393 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement Of Other Comprehensive Income [Abstract] | |
Schedule of the accumulated other comprehensive loss balances, net of tax | The following is a summary of the accumulated other comprehensive income (loss) balances, net of tax (in thousands): Balance at Current Period Balance at December 31, 2019 Change December 31, 2020 Unrealized gain on investment securities available for sale $ 943 $ 2,203 $ 3,146 Reclassification of loss on sales of investment securities — 490 490 Unrecognized gain on investment securities held to maturity for which other than temporary impairment charges have been taken 311 — 311 Unrealized gain (loss) on investment securities available for sale transferred to held to maturity (471) 9 (462) Total $ 783 $ 2,702 $ 3,485 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Southern Trust Mortgage [Member] | |
Related Party Transaction [Line Items] | |
Schedule of changes in the loan amount outstanding during the periods | 2020 2019 Balance at January 1, $ 26,760 $ 24,168 Principal advances 441,044 298,639 Principal paid (437,033) (296,047) Balance at December 31, $ 30,771 $ 26,760 |
Officers and Directors and Principal Shareholders and Their Affiliates [Member]. | |
Related Party Transaction [Line Items] | |
Schedule of changes in the loan amount outstanding during the periods | 2020 Balance at January 1, $ 22,670 Principal advances 4,459 Principal paid (4,420) Balance at December 31, $ 22,709 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of income statement information (unaudited) | Interest Net Interest Income Net Earnings Per Share Income Income Before Taxes Income Basic Diluted (dollars in thousands, except per share amounts) 2020 First quarter $ 28,481 $ 20,515 $ 33 $ 27 $ — $ — Second quarter 28,672 22,473 5,897 4,709 0.19 0.19 Third quarter 28,707 22,998 12,005 9,588 0.40 0.39 Fourth quarter 31,920 25,654 11,966 8,963 0.37 0.37 2019 First quarter $ 30,303 $ 20,952 $ 7,524 $ 6,020 $ 0.25 $ 0.25 Second quarter 30,393 20,964 10,263 9,319 0.39 0.38 Third quarter 30,474 21,015 11,225 8,864 0.37 0.36 Fourth quarter 29,354 20,669 10,232 8,964 0.37 0.37 |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)propertysegment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2017USD ($) | |
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Number of branches | property | 42 | ||||||||||||
Financing receivable, allowance for credit loss | $ 10,261,000 | $ 10,261,000 | $ 18,553,000 | ||||||||||
Percentage of capital, par value FRB stock required to own | 6.00% | ||||||||||||
Percentage of federal home loan bank stock required to own | 4.25% | ||||||||||||
Goodwill, impairment loss | $ 0 | $ 0 | 0 | $ 0 | |||||||||
Cumulative effect adjustment | $ 390,554,000 | 377,241,000 | $ 390,554,000 | 377,241,000 | 348,290,000 | $ 322,772,000 | |||||||
Number of reportable segments | segment | 1 | ||||||||||||
Equity gain (loss) from mortgage affiliate | $ 10,789,000 | 1,191,000 | (894,000) | ||||||||||
Net income | 8,963,000 | $ 9,588,000 | $ 4,709,000 | $ 27,000 | 8,964,000 | $ 8,864,000 | $ 9,319,000 | $ 6,020,000 | 23,287,000 | 33,167,000 | 33,691,000 | ||
Salaries and benefits | 36,675,000 | 26,261,000 | 27,706,000 | ||||||||||
Securities available for sale, at fair value | 153,233,000 | 164,820,000 | 153,233,000 | 164,820,000 | |||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | Southern Trust Mortgage [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Net income | 22,200,000 | 2,700,000 | (1,600,000) | ||||||||||
Gain (loss) on sale of mortgage loans | 107,100,000 | 45,700,000 | 27,200,000 | ||||||||||
Salaries and benefits | 84,100,000 | 39,000,000 | 24,600,000 | ||||||||||
Securities available for sale, at fair value | 143,400,000 | 100,200,000 | 143,400,000 | 100,200,000 | |||||||||
Warehouse lines of credit | 136,100,000 | 92,100,000 | 136,100,000 | 92,100,000 | |||||||||
Members' Equity | $ 26,400,000 | 11,100,000 | 26,400,000 | 11,100,000 | |||||||||
Southern Trust Mortgage [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Equity gain (loss) from mortgage affiliate | $ 10,800,000 | 1,200,000 | $ (894,000) | ||||||||||
Common Stock [Member] | Southern Trust Mortgage [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Percentage of equity investment and preferred stock of STM | 48.90% | 48.90% | |||||||||||
Equity method investments | $ 12,700,000 | 5,000,000 | $ 12,700,000 | 5,000,000 | |||||||||
Preferred Stock [Member] | Southern Trust Mortgage [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Percentage of equity investment and preferred stock of STM | 100.00% | 100.00% | |||||||||||
Equity method investments | $ 3,300,000 | 3,300,000 | $ 3,300,000 | 3,300,000 | |||||||||
Paycheck Protection Program Loans [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Financing receivable, allowance for credit loss | $ 0 | $ 0 | |||||||||||
Revision of Prior Period, Adjustment [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Financing receivable, allowance for credit loss | 8,292,000 | ||||||||||||
Revision of Prior Period, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Financing receivable, allowance for credit loss | 8,300,000 | ||||||||||||
Virginia | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Number of branches | property | 37 | ||||||||||||
Maryland | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Number of branches | property | 5 | ||||||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Financing receivable, allowance for credit loss | (4,836,000) | ||||||||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||
Cumulative effect adjustment | $ (5,056,000) | $ (5,056,000) | $ 5,100,000 |
ORGANIZATION AND SIGNIFICANT _5
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 2) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Useful lives | 30 years |
Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 3 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives | 10 years |
ORGANIZATION AND SIGNIFICANT _6
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 3) (Details) - Core Deposits [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 6 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 15 years |
ORGANIZATION AND SIGNIFICANT _7
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Narrative 4) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Percentage of capital, par value FRB stock required to own | 6.00% | ||
Number of reportable segment | segment | 1 | ||
Unrecognized tax benefits | $ 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 |
U.S. Federal income tax rate | 21.00% | 21.00% | 21.00% |
Operating Lease, Right-of-Use Asset | $ 7,511,000 | $ 8,013,000 | |
Operating Lease, Liability | $ 8,238,000 | $ 8,469,000 |
ORGANIZATION AND SIGNIFICANT _8
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Schedule for allowance for credit losses on held to maturity debt securities and financing receivables) (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | $ 1,000 | $ (1,000) | |
Financing receivable, allowance for credit loss | 18,553,000 | $ 10,261,000 | |
Off-Balance Sheet, Credit Loss, Liability | 740,000 | 360,000 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | 1,000 | (1,000) | |
Revision of Prior Period, Adjustment [Member] | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | (1,000) | ||
Financing receivable, allowance for credit loss | 8,292,000 | ||
Off-Balance Sheet, Credit Loss, Liability | 360,000 | 360,000 | |
Revision of Prior Period, Adjustment [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Debt Securities, Held-to-maturity, Allowance for Credit Loss | (1,000) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (4,836,000) | ||
Off-Balance Sheet, Credit Loss, Liability | (220,000) | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing receivable, allowance for credit loss | 2,272,000 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 2,272,000 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (1,325,000) | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Financing receivable, allowance for credit loss | 2,514,000 | 810,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 1,704,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (994,000) | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Financing receivable, allowance for credit loss | 4,426,000 | 1,720,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 2,706,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (1,578,000) | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Financing receivable, allowance for credit loss | 5,435,000 | 1,266,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 4,169,000 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (2,431,000) | ||
Consumer Portfolio Segment [Member] | Construction Loans [Member] | |||
Financing receivable, allowance for credit loss | 1,357,000 | 683,000 | |
Consumer Portfolio Segment [Member] | Construction Loans [Member] | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 674,000 | ||
Consumer Portfolio Segment [Member] | Construction Loans [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (393,000) | ||
Consumer Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Financing receivable, allowance for credit loss | 2,172,000 | 5,418,000 | |
Consumer Portfolio Segment [Member] | Commercial Mortgage Loan | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (3,246,000) | ||
Consumer Portfolio Segment [Member] | Commercial Mortgage Loan | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 1,893,000 | ||
Other Consumer Loans | |||
Financing receivable, allowance for credit loss | 377,000 | 190,000 | |
Other Consumer Loans | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | 187,000 | ||
Other Consumer Loans | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (109,000) | ||
Unallocated | |||
Financing receivable, allowance for credit loss | $ 174,000 | ||
Unallocated | Revision of Prior Period, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | (174,000) | ||
Unallocated | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Financing receivable, allowance for credit loss | $ 101,000 | ||
Paycheck Protection Program Loans [Member] | |||
Financing receivable, allowance for credit loss | $ 0 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Sale of investment available-for-sale | $ 1,910,000 | $ 0 | ||
Proceeds from sales of held to maturity investment securities | 1,660,000 | 0 | ||
Called investment securities | 50,068,000 | 26,283,000 | $ 14,360,000 | |
Securities pledged for collateral | 125,300,000 | 120,500,000 | ||
Debt Securities, Unrealized Gain (Loss), Total | (620,000) | |||
Purchases of available for sale investment securities | 38,938,000 | 45,135,000 | ||
Purchases of securities held to maturity | 15,197,000 | $ 15,260,000 | ||
Allowance for Credit Losses | 1,000 | $ (1,000) | ||
Realized losses on sales of investment securities | $ 620,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of amortized cost and fair value of securities available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | $ 148,632 | $ 163,628 |
Gross Unrealized Gains | 4,769 | 1,754 |
Gross Unrealized Losses | (168) | (562) |
Available for sale, fair value | 153,233 | 164,820 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 35,442 | 48,540 |
Gross Unrealized Gains | 1,618 | 455 |
Gross Unrealized Losses | (16) | |
Available for sale, fair value | 37,060 | 48,979 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 22,966 | 17,041 |
Gross Unrealized Gains | 1,076 | 541 |
Available for sale, fair value | 24,042 | 17,582 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 15,000 | 2,004 |
Gross Unrealized Gains | 81 | 8 |
Gross Unrealized Losses | (2) | |
Available for sale, fair value | 15,079 | 2,012 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 2,530 | |
Gross Unrealized Gains | 283 | |
Gross Unrealized Losses | (245) | |
Available for sale, fair value | 2,568 | |
Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 28,680 | 36,511 |
Gross Unrealized Gains | 737 | 217 |
Gross Unrealized Losses | (1) | (39) |
Available for sale, fair value | 29,416 | 36,689 |
Government-Sponsored Agency Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 5,985 | 14,823 |
Gross Unrealized Gains | 90 | 47 |
Gross Unrealized Losses | (48) | |
Available for sale, fair value | 6,075 | 14,822 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 29,118 | 27,557 |
Gross Unrealized Gains | 1,087 | 192 |
Gross Unrealized Losses | (15) | (18) |
Available for sale, fair value | 30,190 | 27,731 |
SBA Pool Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis, Total | 11,441 | 14,622 |
Gross Unrealized Gains | 80 | 11 |
Gross Unrealized Losses | (150) | (196) |
Available for sale, fair value | $ 11,371 | $ 14,437 |
INVESTMENT SECURITIES (Schedu_2
INVESTMENT SECURITIES (Schedule of amortized cost, unrecognized gains and losses, and fair value of held to maturity securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | $ 40,721 | $ 72,448 | |
Gross Unrecognized Gains | 1,114 | 444 | |
Gross Unrecognized Losses | (2) | (226) | |
Allowance for Credit Losses | (1) | $ 1 | |
Securities held to maturity fair value (in dollars) | 41,832 | 72,666 | |
Residential Mortgage Backed Securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 1,090 | 3,128 | |
Gross Unrecognized Gains | 39 | 10 | |
Gross Unrecognized Losses | (9) | ||
Securities held to maturity fair value (in dollars) | 1,129 | 3,129 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 9,594 | 15,071 | |
Gross Unrecognized Gains | 183 | 165 | |
Gross Unrecognized Losses | (1) | ||
Allowance for Credit Losses | (1) | $ 1 | |
Securities held to maturity fair value (in dollars) | 9,776 | 15,235 | |
US Government Agencies Debt Securities [Member] | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 25,037 | 22,925 | |
Gross Unrecognized Gains | 729 | 62 | |
Gross Unrecognized Losses | (2) | (52) | |
Securities held to maturity fair value (in dollars) | 25,764 | 22,935 | |
Trust preferred securities | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 1,938 | ||
Gross Unrecognized Gains | 99 | ||
Gross Unrecognized Losses | (2) | ||
Securities held to maturity fair value (in dollars) | 2,035 | ||
Government-Sponsored Agency Securities | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
Amortized Cost | 5,000 | 29,386 | |
Gross Unrecognized Gains | 163 | 108 | |
Gross Unrecognized Losses | (162) | ||
Securities held to maturity fair value (in dollars) | $ 5,163 | $ 29,332 |
INVESTMENT SECURITIES (Schedu_3
INVESTMENT SECURITIES (Schedule of fair value and carrying amount, if different, of debt securities, by contractual maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to Maturity, due in one to five years, amortized cost | $ 3,406 | |
Held to Maturity, due in five to ten years, amortized cost | 2,183 | |
Held to maturity, due after ten years, amortized cost | 9,005 | |
Held to maturity, amortized cost | 40,721 | |
Held to Maturity, due in one to five years, fair value | 3,513 | |
Held to Maturity, due in five to ten years, fair value | 2,231 | |
Held to maturity, due after ten years, fair value | 9,195 | |
Held to maturity fair value | 41,832 | $ 72,666 |
Available for Sale, due in one to five years, amortized cost | 5,841 | |
Available for Sale, due in five to ten years, amortized cost | 19,253 | |
Available for sale, due after ten years, amortized cost | 18,857 | |
Available for sale, amortized cost | 148,632 | 163,628 |
Available for Sale, due in one to five years, fair value | 6,057 | |
Available for Sale, due in five to ten years, fair value | 19,696 | |
Available for sale, due after ten years, fair value | 19,443 | |
Available for sale, Fair value | 153,233 | 164,820 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 25,037 | |
Held to maturity fair value | 25,764 | 22,935 |
Available for sale, amortized cost | 35,442 | 48,540 |
Available for sale, Fair value | 37,060 | 48,979 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 1,090 | |
Held to maturity fair value | 1,129 | 3,129 |
Available for sale, amortized cost | 28,680 | 36,511 |
Available for sale, Fair value | 29,416 | 36,689 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 29,118 | 27,557 |
Available for sale, Fair value | 30,190 | 27,731 |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, amortized cost | 11,441 | 14,622 |
Available for sale, Fair value | $ 11,371 | $ 14,437 |
INVESTMENT SECURITIES (Schedu_4
INVESTMENT SECURITIES (Schedule of present information regarding securities in a continuous unrealized loss position by duration of time in a loss position) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | $ 4,122 | $ 15,844 |
Available for sale, less than 12 months, unrealized losses | (18) | (88) |
Available for sale, 12 months or more, fair value | 8,119 | 18,232 |
Available for sale, 12 months or more, unrealized losses | (150) | (474) |
Available for sale, total fair value | 12,241 | 34,076 |
Available for sale, total unrealized losses | (168) | (562) |
Held to maturity, less than 12 months, fair value | 331 | 18,151 |
Held to Maturity, less than 12 months unrecognized losses | (1) | (45) |
Held to Maturity, 12 months or more, fair value | 126 | 22,859 |
Held to Maturity, 12 months or more, unrecognized losses | (1) | (181) |
Held to maturity, total fair value | 457 | 41,010 |
Held to maturity, total unrecognized losses | (2) | (226) |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 2,686 | |
Available for sale, less than 12 months, unrealized losses | (7) | |
Available for sale, 12 months or more, fair value | 1,758 | |
Available for sale, 12 months or more, unrealized losses | (9) | |
Available for sale, total fair value | 4,444 | |
Available for sale, total unrealized losses | (16) | |
Held to maturity, less than 12 months, fair value | 331 | 14,978 |
Held to Maturity, less than 12 months unrecognized losses | (1) | (41) |
Held to Maturity, 12 months or more, fair value | 126 | 1,402 |
Held to Maturity, 12 months or more, unrecognized losses | (1) | (11) |
Held to maturity, total fair value | 457 | 16,380 |
Held to maturity, total unrecognized losses | (2) | (52) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | 2,011 | |
Held to Maturity, less than 12 months unrecognized losses | (1) | |
Held to maturity, total fair value | 2,011 | |
Held to maturity, total unrecognized losses | (1) | |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 998 | |
Available for sale, less than 12 months, unrealized losses | (2) | |
Available for sale, total fair value | 998 | |
Available for sale, total unrealized losses | (2) | |
Trust preferred securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, 12 months or more, fair value | 795 | |
Available for sale, 12 months or more, unrealized losses | (245) | |
Available for sale, total fair value | 795 | |
Available for sale, total unrealized losses | (245) | |
Held to Maturity, 12 months or more, fair value | 53 | |
Held to Maturity, 12 months or more, unrecognized losses | (2) | |
Held to maturity, total fair value | 53 | |
Held to maturity, total unrecognized losses | (2) | |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 954 | 4,253 |
Available for sale, less than 12 months, unrealized losses | (1) | (25) |
Available for sale, 12 months or more, fair value | 3,133 | |
Available for sale, 12 months or more, unrealized losses | (14) | |
Available for sale, total fair value | 954 | 7,386 |
Available for sale, total unrealized losses | (1) | (39) |
Held to maturity, less than 12 months, fair value | 1,162 | |
Held to Maturity, less than 12 months unrecognized losses | (3) | |
Held to Maturity, 12 months or more, fair value | 571 | |
Held to Maturity, 12 months or more, unrecognized losses | (6) | |
Held to maturity, total fair value | 1,733 | |
Held to maturity, total unrecognized losses | (9) | |
Government-Sponsored Agency Securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 4,924 | |
Available for sale, less than 12 months, unrealized losses | (48) | |
Available for sale, total fair value | 4,924 | |
Available for sale, total unrealized losses | (48) | |
Held to Maturity, 12 months or more, fair value | 20,833 | |
Held to Maturity, 12 months or more, unrecognized losses | (162) | |
Held to maturity, total fair value | 20,833 | |
Held to maturity, total unrecognized losses | (162) | |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 2,170 | 2,833 |
Available for sale, less than 12 months, unrealized losses | (15) | (6) |
Available for sale, 12 months or more, fair value | 3,126 | |
Available for sale, 12 months or more, unrealized losses | (12) | |
Available for sale, total fair value | 2,170 | 5,959 |
Available for sale, total unrealized losses | (15) | (18) |
SBA Pool Securities [Member] | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 1,148 | |
Available for sale, less than 12 months, unrealized losses | (2) | |
Available for sale, 12 months or more, fair value | 8,119 | 9,420 |
Available for sale, 12 months or more, unrealized losses | (150) | (194) |
Available for sale, total fair value | 8,119 | 10,568 |
Available for sale, total unrealized losses | $ (150) | $ (196) |
INVESTMENT SECURITIES (Schedu_5
INVESTMENT SECURITIES (Schedule of changes in accumulated other comprehensive income by component) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 377,241 | $ 348,290 | $ 322,772 |
Net current-period other comprehensive income (loss) | 2,702 | 3,372 | (1,208) |
Balance | 390,554 | 377,241 | 348,290 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3,485 | 783 | |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 372,185 | ||
Balance | 372,185 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 783 | (2,589) | (1,152) |
Other comprehensive loss before reclassifications | 2,702 | ||
Net current-period other comprehensive income (loss) | 2,702 | 3,372 | (1,208) |
Balance | 3,485 | 783 | (2,589) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3,485 | 783 | |
Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 229 | (229) | |
Balance | 229 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 783 | (1,381) | |
Balance | 783 | (1,381) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (160) | (170) | (153) |
Other comprehensive loss before reclassifications | 9 | ||
Net current-period other comprehensive income (loss) | 10 | 13 | |
Balance | (151) | (160) | (170) |
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 30 | ||
Balance | 30 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Held-to-maturity Securities [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (183) | ||
Balance | (183) | ||
Unrealized gain (loss) on securities available for sale | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 943 | ||
Net current-period other comprehensive income (loss) | 2,203 | ||
Balance | 3,146 | 943 | |
Unrealized gain (loss) on securities available for sale | Available-for-sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 943 | (2,419) | (999) |
Other comprehensive loss before reclassifications | 2,693 | ||
Net current-period other comprehensive income (loss) | 3,362 | (1,221) | |
Balance | $ 3,636 | 943 | (2,419) |
Unrealized gain (loss) on securities available for sale | Available-for-sale Securities [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 199 | ||
Balance | 199 | ||
Unrealized gain (loss) on securities available for sale | Available-for-sale Securities [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ (1,198) | ||
Balance | $ (1,198) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2018USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Unpaid principal balance of loans | $ 23,849,000 | |||
Total loans | $ 2,440,496,000 | 2,186,047,000 | ||
Total loans, net | $ 2,444,526,000 | 2,185,635,000 | ||
TDRs during period | loan | 7 | |||
TDR, subsequent default, number of contracts | loan | 0 | |||
TDR amount | $ 987,000 | |||
Accrued interest receivable | 19,998,000 | 8,210,000 | ||
Additional income from interest if recognized | 630,000 | |||
Financing receivable, allowance for credit loss | 10,261,000 | $ 18,553,000 | ||
Loans Receivable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accretable discount on loans | 4,300,000 | 3,900,000 | $ 4,500,000 | |
Accrued interest receivable | 16,400,000 | 6,800,000 | ||
Doubtful [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans, net | 0 | 0 | ||
Eastern Virginia Bankshares Inc and Greater Atlantic Bank and Harvest Bank of Maryland and Prince George Federal Savings Bank [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accretable discount on loans | 6,200,000 | 11,200,000 | ||
GAB acquisition [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans, net | 620,368,000 | |||
Residential Portfolio Segment [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Mortgage loans on real estate, foreclosures | 1,000,000 | |||
Mortgage loans in process of foreclosure, amount | 1,400,000 | |||
Consumer Portfolio Segment [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Mortgage loans in process of foreclosure, amount | 1,400,000 | $ 1,900,000 | ||
Paycheck Protection Program Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans, net | $ 122,000,000 | |||
Loans in deferment | loan | 44 | |||
Financing receivable, allowance for credit loss | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loans, net of Unearned Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | $ 1,937,884 | ||
Total loans | $ 2,440,496 | 2,186,047 | |
Plus deferred costs on loans | (4,030) | 412 | |
Total loans | 2,444,526 | 2,185,635 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 8,908 | ||
Total loans | 8,908 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 2,435,618 | ||
Total loans | 2,435,618 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 1,906,840 | ||
Paycheck Protection Program Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 122,000 | ||
Paycheck Protection Program Loans [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 319,428 | ||
GAB acquisition [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 620,368 | ||
GAB acquisition [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 9,199 | $ 11,449 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 414,479 | ||
Total loans | 414,479 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 435,078 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 435,078 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 559,195 | ||
Total loans | 658,872 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 719,635 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 600,706 | ||
Commercial Real Estate Portfolio Segment [Member] | Loans And Leases Receivable Secured By Farmland [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 17,622 | ||
Commercial Real Estate Portfolio Segment [Member] | Loans And Leases Receivable Secured By Farmland [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 11,662 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 150,750 | ||
Total loans | 150,750 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 103,264 | ||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 103,264 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 604,777 | ||
Total loans | 713,783 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 648,863 | ||
Residential Portfolio Segment [Member] | 1-4 Family Residential | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 557,257 | ||
Residential Portfolio Segment [Member] | Loans And Leases Receivable Multi Family Residential [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 82,055 | ||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 109,006 | ||
Residential Portfolio Segment [Member] | Home Equity Loan [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 91,606 | ||
Commercial Portfolio Segment [Member] | Paycheck Protection Program Loans [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 319,428 | ||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 150,750 | ||
Commercial Portfolio Segment [Member] | Loans And Leases Receivable Multi Family Residential [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 107,267 | ||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 221,447 | ||
Total loans | 221,447 | ||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | 187,060 | ||
Total loans | 187,060 | ||
Consumer Portfolio Segment [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | $ 26,304 | ||
Consumer Portfolio Segment [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total real estate loans | $ 22,290 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Summary of Impaired Loans) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | $ 16,425 |
With no related allowance recorded - Unpaid Principal Balance | 23,849 |
With an allowance recorded | |
With an allowance recorded - Recorded Investment | 5,554 |
With an allowance recorded - Unpaid Principal Balance | 6,096 |
With an allowance recorded - Allowance for Loan Losses Allocated | 1,051 |
Recorded Investment, Grand total | 21,979 |
Unpaid Principal Balance, Grand total | 29,945 |
Charge off on recorded investment | 1,500 |
Small Business Administration Loan [Member] | |
With an allowance recorded | |
Recorded Investment, Grand total | 4,400 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | 6,890 |
With no related allowance recorded - Unpaid Principal Balance | 8,530 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | 3,120 |
With no related allowance recorded - Unpaid Principal Balance | 3,363 |
With an allowance recorded | |
With an allowance recorded - Recorded Investment | 176 |
With an allowance recorded - Unpaid Principal Balance | 281 |
With an allowance recorded - Allowance for Loan Losses Allocated | 1 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | 345 |
With no related allowance recorded - Unpaid Principal Balance | 747 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | 1,021 |
With no related allowance recorded - Unpaid Principal Balance | 2,719 |
With an allowance recorded | |
With an allowance recorded - Recorded Investment | 2,841 |
With an allowance recorded - Unpaid Principal Balance | 3,243 |
With an allowance recorded - Allowance for Loan Losses Allocated | 92 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |
With no related allowance recorded | |
With no related allowance recorded - Recorded Investment | 5,049 |
With no related allowance recorded - Unpaid Principal Balance | 8,490 |
With an allowance recorded | |
With an allowance recorded - Recorded Investment | 2,498 |
With an allowance recorded - Unpaid Principal Balance | 2,533 |
With an allowance recorded - Allowance for Loan Losses Allocated | 957 |
Other Consumer Loans | |
With an allowance recorded | |
With an allowance recorded - Recorded Investment | 39 |
With an allowance recorded - Unpaid Principal Balance | 39 |
With an allowance recorded - Allowance for Loan Losses Allocated | $ 1 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Details of Average Recorded Investment and Interest Income for Impaired Loans Recognized by Class of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | $ 17,305 | $ 7,850 |
With no related allowance recorded, Interest Income Recognized | 1,064 | 418 |
With an allowance recorded | ||
With an allowance recorded, Average Recorded Investment | 6,192 | 3,952 |
With an allowance recorded, Interest Income Recognized | 306 | 267 |
Average Recorded Investment, Grand total | 23,497 | 11,802 |
Interest Income Recognized, Grand total | 1,370 | 685 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | 7,387 | 2,780 |
With no related allowance recorded, Interest Income Recognized | 453 | 179 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | 3,205 | 169 |
With no related allowance recorded, Interest Income Recognized | 191 | 22 |
With an allowance recorded | ||
With an allowance recorded, Average Recorded Investment | 182 | |
With an allowance recorded, Interest Income Recognized | 19 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | 398 | |
With no related allowance recorded, Interest Income Recognized | 57 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | 1,061 | 1,582 |
With no related allowance recorded, Interest Income Recognized | 149 | 125 |
With an allowance recorded | ||
With an allowance recorded, Average Recorded Investment | 2,944 | 1,422 |
With an allowance recorded, Interest Income Recognized | 111 | 67 |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
With no related allowance recorded | ||
With no related allowance recorded, Average Recorded Investment | 5,254 | 3,319 |
With no related allowance recorded, Interest Income Recognized | 214 | 92 |
With an allowance recorded | ||
With an allowance recorded, Average Recorded Investment | 3,027 | 2,530 |
With an allowance recorded, Interest Income Recognized | 176 | $ 200 |
Other Consumer Loans | ||
With an allowance recorded | ||
With an allowance recorded, Average Recorded Investment | $ 39 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Details of Aging of the Recorded Investment in Past Due loans by Class of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 2,303 | $ 7,233 |
Recorded Investment, Nonaccrual Loans | 14,462 | 8,900 |
Recorded Investment, Loans Not Past Due | 2,442,223 | 2,169,502 |
Total loans | 2,444,526 | 2,185,635 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,839 | 6,896 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 464 | 337 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 813 | |
Recorded Investment, Loans Not Past Due | 413,666 | |
Total loans | 414,479 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 813 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 936 | |
Recorded Investment, Loans Not Past Due | 657,936 | |
Total loans | 658,872 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 936 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,021 | |
Recorded Investment, Loans Not Past Due | 149,729 | |
Total loans | 150,750 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 746 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 275 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 4,060 | |
Recorded Investment, Nonaccrual Loans | 2,524 | |
Recorded Investment, Loans Not Past Due | 707,199 | |
Total loans | 713,783 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 4,060 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 150,750 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 296 | |
Recorded Investment, Nonaccrual Loans | 6,337 | |
Recorded Investment, Loans Not Past Due | 214,814 | |
Total loans | 221,447 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 234 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 62 | |
Other Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 107 | |
Recorded Investment, Nonaccrual Loans | 39 | |
Recorded Investment, Loans Not Past Due | 26,158 | |
Total loans | 26,304 | |
Other Consumer Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | $ 107 | |
Paycheck Protection Program Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 122,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Nonaccrual Loans | 1,853 | |
Recorded Investment, Loans Not Past Due | 8,908 | |
Total loans | 8,908 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 2,303 | |
Recorded Investment, Nonaccrual Loans | 12,609 | |
Recorded Investment, Loans Not Past Due | 2,433,315 | |
Total loans | 2,435,618 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,839 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 464 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Nonaccrual Loans | 2,641 | |
Recorded Investment, Loans Not Past Due | 435,078 | |
Total loans | 435,078 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Nonaccrual Loans | 5,579 | |
Recorded Investment, Loans Not Past Due | 719,635 | |
Total loans | 719,635 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 62 | |
Recorded Investment, Loans Not Past Due | 103,202 | |
Total loans | 103,264 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 23 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 39 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,933 | |
Recorded Investment, Nonaccrual Loans | 2,048 | |
Recorded Investment, Loans Not Past Due | 646,930 | |
Total loans | 648,863 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 1,545 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 388 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 97 | |
Recorded Investment, Nonaccrual Loans | 2,332 | |
Recorded Investment, Loans Not Past Due | 186,963 | |
Total loans | 187,060 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 64 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 33 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 211 | |
Recorded Investment, Nonaccrual Loans | 9 | |
Recorded Investment, Loans Not Past Due | 22,079 | |
Total loans | 22,290 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 207 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Past Due | 4 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Paycheck Protection Program Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded Investment, Loans Not Past Due | 319,428 | |
Total loans | $ 319,428 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of non accrual loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Recorded Investment, Loans Not Past Due | $ 2,442,223 | $ 2,169,502 |
Recorded Investment, Nonaccrual Loans | 14,462 | 8,900 |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 529,251 | |
2019 | 243,371 | |
2018 | 260,853 | |
2017 | 249,187 | |
2016 | 273,379 | |
Prior | 675,062 | |
Revolving Loan | 197,840 | |
Revolving Loans Converted to Term | 15,583 | |
Total | 2,444,526 | |
Nonperforming Financial Instruments [Member] | ||
90 Days or More | 9,740 | |
Recorded Investment, Loans Not Past Due | 4,722 | |
Recorded Investment, Nonaccrual Loans | 14,462 | |
Non-Accrual with No Credit Loss Allowance | 9,498 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 3,209 | |
2016 | 4,481 | |
Prior | 6,249 | |
Revolving Loan | 523 | |
Total | 14,462 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Recorded Investment, Loans Not Past Due | 413,666 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 24,480 | |
2019 | 43,484 | |
2018 | 41,006 | |
2017 | 46,996 | |
2016 | 65,899 | |
Prior | 202,907 | |
Revolving Loan | 3,608 | |
Revolving Loans Converted to Term | 6,698 | |
Total | 435,078 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Recorded Investment, Loans Not Past Due | 657,936 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 73,178 | |
2019 | 32,275 | |
2018 | 101,150 | |
2017 | 98,531 | |
2016 | 146,162 | |
Prior | 256,589 | |
Revolving Loan | 11,706 | |
Revolving Loans Converted to Term | 44 | |
Total | 719,635 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Recorded Investment, Loans Not Past Due | 149,729 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Recorded Investment, Loans Not Past Due | 707,199 | |
Recorded Investment, Nonaccrual Loans | 2,524 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 67,913 | |
2019 | 119,032 | |
2018 | 87,446 | |
2017 | 72,059 | |
2016 | 45,800 | |
Prior | 163,099 | |
Revolving Loan | 90,020 | |
Revolving Loans Converted to Term | 3,494 | |
Total | 648,863 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 28,471 | |
2019 | 27,563 | |
2018 | 14,529 | |
2017 | 12,472 | |
2016 | 5,189 | |
Prior | 14,200 | |
Revolving Loan | 799 | |
Revolving Loans Converted to Term | 41 | |
Total | 103,264 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Recorded Investment, Loans Not Past Due | 214,814 | |
Recorded Investment, Nonaccrual Loans | 6,337 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 11,385 | |
2019 | 18,852 | |
2018 | 14,919 | |
2017 | 16,361 | |
2016 | 3,471 | |
Prior | 28,661 | |
Revolving Loan | 88,105 | |
Revolving Loans Converted to Term | 5,306 | |
Total | 187,060 | |
Other Consumer Loans | ||
Recorded Investment, Loans Not Past Due | 26,158 | |
Recorded Investment, Nonaccrual Loans | 39 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 4,396 | |
2019 | 2,165 | |
2018 | 1,803 | |
2017 | 943 | |
2016 | 6,458 | |
Prior | 2,954 | |
Revolving Loan | 3,571 | |
Total | 22,290 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Recorded Investment, Loans Not Past Due | 8,908 | |
Recorded Investment, Nonaccrual Loans | 1,853 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 1,825 | |
2016 | 400 | |
Prior | 6,652 | |
Revolving Loan | 31 | |
Total | 8,908 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 1,853 | |
Recorded Investment, Nonaccrual Loans | 1,853 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 1,853 | |
Total | 1,853 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | ||
Recorded Investment, Loans Not Past Due | 2,433,315 | |
Recorded Investment, Nonaccrual Loans | 12,609 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 7,887 | |
Recorded Investment, Loans Not Past Due | 4,722 | |
Recorded Investment, Nonaccrual Loans | 12,609 | |
Non-Accrual with No Credit Loss Allowance | 9,498 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 1,356 | |
2016 | 4,481 | |
Prior | 6,249 | |
Revolving Loan | 523 | |
Total | 12,609 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Recorded Investment, Loans Not Past Due | 435,078 | |
Recorded Investment, Nonaccrual Loans | 2,641 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 2,641 | |
Recorded Investment, Nonaccrual Loans | 2,641 | |
Non-Accrual with No Credit Loss Allowance | 2,641 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
Prior | 2,641 | |
Total | 2,641 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Recorded Investment, Loans Not Past Due | 719,635 | |
Recorded Investment, Nonaccrual Loans | 5,579 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 1,098 | |
Recorded Investment, Loans Not Past Due | 4,481 | |
Recorded Investment, Nonaccrual Loans | 5,579 | |
Non-Accrual with No Credit Loss Allowance | 5,579 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 1,098 | |
2016 | 4,481 | |
Total | 5,579 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Recorded Investment, Loans Not Past Due | 103,202 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Recorded Investment, Loans Not Past Due | 646,930 | |
Recorded Investment, Nonaccrual Loans | 2,048 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 2,035 | |
Recorded Investment, Loans Not Past Due | 13 | |
Recorded Investment, Nonaccrual Loans | 2,048 | |
Non-Accrual with No Credit Loss Allowance | 687 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 151 | |
Prior | 1,374 | |
Revolving Loan | 523 | |
Total | 2,048 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Recorded Investment, Loans Not Past Due | 186,963 | |
Recorded Investment, Nonaccrual Loans | 2,332 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 2,104 | |
Recorded Investment, Loans Not Past Due | 228 | |
Recorded Investment, Nonaccrual Loans | 2,332 | |
Non-Accrual with No Credit Loss Allowance | 582 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2017 | 107 | |
Prior | 2,225 | |
Total | 2,332 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | ||
Recorded Investment, Loans Not Past Due | 22,079 | |
Recorded Investment, Nonaccrual Loans | 9 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | Nonperforming Financial Instruments [Member] | ||
90 Days or More | 9 | |
Recorded Investment, Nonaccrual Loans | 9 | |
Non-Accrual with No Credit Loss Allowance | 9 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
Prior | 9 | |
Total | 9 | |
Paycheck Protection Program Loans [Member] | ||
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
2020 | 319,428 | |
Total | 319,428 | |
Paycheck Protection Program Loans [Member] | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | ||
Recorded Investment, Loans Not Past Due | 319,428 | |
Small Business Administration Loan [Member] | ||
Recorded Investment, Nonaccrual Loans | $ 4,100 | |
Small Business Administration Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Recorded Investment, Nonaccrual Loans | 3,100 | |
Non-Accrual with No Credit Loss Allowance | 1,700 | |
Non Accrual Loans By Class And Year Of Origination [Abstract] | ||
Total | $ 3,100 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of the risk category of loans by class of loans) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Quality Information [Abstract] | ||
2020 | $ 529,251,000 | |
2019 | 243,371,000 | |
2018 | 260,853,000 | |
2017 | 249,187,000 | |
2016 | 273,379,000 | |
Prior | 675,062,000 | |
Revolving Loan | 197,840,000 | |
Revolving Loans Converted to Term | 15,583,000 | |
Total | $ 2,444,526,000 | |
2020, Weighted average risk grade | 2.47 | |
2019, Weighted average risk grade | 3.63 | |
2018, Weighted average risk grade | 3.45 | |
2017, Weighted average risk grade | 3.64 | |
2016, Weighted average risk grade | 3.71 | |
Prior, Weighted average risk grade | 3.99 | |
Revolving loan, Weighted average risk grade | 3.65 | |
Revolving loans converted to term, Weighted average risk grade | 3.98 | |
Weighted average risk grade | 3.39 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | $ 2,444,526,000 | $ 2,185,635,000 |
Credit Quality Revolving Loans Converted to Term Loans [Abstract] | ||
Revolving loans converted to term loans, during the period | 7,641,000 | |
Pass [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 2,162,904,000 | |
Special Mention [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 12,234,000 | |
Substandard [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 10,497,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||
Credit Quality Information [Abstract] | ||
2020 | 24,480,000 | |
2019 | 43,484,000 | |
2018 | 41,006,000 | |
2017 | 46,996,000 | |
2016 | 65,899,000 | |
Prior | 202,907,000 | |
Revolving Loan | 3,608,000 | |
Revolving Loans Converted to Term | 6,698,000 | |
Total | $ 435,078,000 | |
2020, Weighted average risk grade | 3.70 | |
2019, Weighted average risk grade | 3.41 | |
2018, Weighted average risk grade | 3.62 | |
2017, Weighted average risk grade | 3.64 | |
2016, Weighted average risk grade | 3.70 | |
Prior, Weighted average risk grade | 3.55 | |
Revolving loan, Weighted average risk grade | 3.30 | |
Revolving loans converted to term, Weighted average risk grade | 4 | |
Weighted average risk grade | 3.59 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 414,479,000 | |
Credit Quality Revolving Loans Converted to Term Loans [Abstract] | ||
Revolving loans converted to term loans, during the period | $ 6,536,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 22,473,000 | |
2019 | 43,484,000 | |
2018 | 41,006,000 | |
2017 | 46,847,000 | |
2016 | 61,758,000 | |
Prior | 188,074,000 | |
Revolving Loan | 3,608,000 | |
Revolving Loans Converted to Term | 6,698,000 | |
Total | 413,948,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 406,683,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Special Mention [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 149,000 | |
2016 | 1,692,000 | |
Prior | 11,822,000 | |
Total | 13,663,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 3,821,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 2,007,000 | |
2016 | 2,449,000 | |
Prior | 3,011,000 | |
Total | 7,467,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 3,975,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||
Credit Quality Information [Abstract] | ||
2020 | 73,178,000 | |
2019 | 32,275,000 | |
2018 | 101,150,000 | |
2017 | 98,531,000 | |
2016 | 146,162,000 | |
Prior | 256,589,000 | |
Revolving Loan | 11,706,000 | |
Revolving Loans Converted to Term | 44,000 | |
Total | $ 719,635,000 | |
2020, Weighted average risk grade | 3.55 | |
2019, Weighted average risk grade | 3.78 | |
2018, Weighted average risk grade | 3.32 | |
2017, Weighted average risk grade | 3.59 | |
2016, Weighted average risk grade | 3.70 | |
Prior, Weighted average risk grade | 3.90 | |
Revolving loan, Weighted average risk grade | 3.79 | |
Revolving loans converted to term, Weighted average risk grade | 3 | |
Weighted average risk grade | 3.70 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 658,872,000 | |
Credit Quality Revolving Loans Converted to Term Loans [Abstract] | ||
Revolving loans converted to term loans, during the period | $ 44,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
Prior | 362,000 | |
Total | 362,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 73,178,000 | |
2019 | 32,275,000 | |
2018 | 101,150,000 | |
2017 | 96,427,000 | |
2016 | 141,460,000 | |
Prior | 224,554,000 | |
Revolving Loan | 11,406,000 | |
Revolving Loans Converted to Term | 44,000 | |
Total | 680,494,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 654,503,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Special Mention [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 1,035,000 | |
2016 | 221,000 | |
Prior | 12,890,000 | |
Total | 14,146,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 4,193,000 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 1,069,000 | |
2016 | 4,481,000 | |
Prior | 18,783,000 | |
Revolving Loan | 300,000 | |
Total | 24,633,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 176,000 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 150,750,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||
Credit Quality Information [Abstract] | ||
2020 | 67,913,000 | |
2019 | 119,032,000 | |
2018 | 87,446,000 | |
2017 | 72,059,000 | |
2016 | 45,800,000 | |
Prior | 163,099,000 | |
Revolving Loan | 90,020,000 | |
Revolving Loans Converted to Term | 3,494,000 | |
Total | $ 648,863,000 | |
2020, Weighted average risk grade | 3.33 | |
2019, Weighted average risk grade | 3.59 | |
2018, Weighted average risk grade | 3.44 | |
2017, Weighted average risk grade | 3.41 | |
2016, Weighted average risk grade | 3.57 | |
Prior, Weighted average risk grade | 3.92 | |
Revolving loan, Weighted average risk grade | 3.55 | |
Revolving loans converted to term, Weighted average risk grade | 4.18 | |
Weighted average risk grade | 3.68 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 713,783,000 | |
Credit Quality Revolving Loans Converted to Term Loans [Abstract] | ||
Revolving loans converted to term loans, during the period | $ 731,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 52,416,000 | |
2019 | 104,378,000 | |
2018 | 68,889,000 | |
2017 | 62,047,000 | |
2016 | 35,767,000 | |
Prior | 96,827,000 | |
Revolving Loan | 75,214,000 | |
Revolving Loans Converted to Term | 2,729,000 | |
Total | 498,267,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 15,497,000 | |
2019 | 14,654,000 | |
2018 | 18,557,000 | |
2017 | 9,809,000 | |
2016 | 10,033,000 | |
Prior | 64,106,000 | |
Revolving Loan | 13,810,000 | |
Revolving Loans Converted to Term | 521,000 | |
Total | 146,987,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 711,923,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Special Mention [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 52,000 | |
Prior | 48,000 | |
Revolving Loan | 277,000 | |
Revolving Loans Converted to Term | 201,000 | |
Total | 578,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 666,000 | |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 151,000 | |
Prior | 2,118,000 | |
Revolving Loan | 719,000 | |
Revolving Loans Converted to Term | 43,000 | |
Total | 3,031,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 1,194,000 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 28,471,000 | |
2019 | 27,563,000 | |
2018 | 14,529,000 | |
2017 | 12,472,000 | |
2016 | 5,189,000 | |
Prior | 14,200,000 | |
Revolving Loan | 799,000 | |
Revolving Loans Converted to Term | 41,000 | |
Total | $ 103,264,000 | |
2020, Weighted average risk grade | 3.34 | |
2019, Weighted average risk grade | 3.90 | |
2018, Weighted average risk grade | 3.68 | |
2017, Weighted average risk grade | 4 | |
2016, Weighted average risk grade | 3.97 | |
Prior, Weighted average risk grade | 3.41 | |
Revolving loan, Weighted average risk grade | 4 | |
Revolving loans converted to term, Weighted average risk grade | 4 | |
Weighted average risk grade | 3.67 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 150,750,000 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | $ 7,666,000 | |
2019 | 8,332,000 | |
2018 | 56,000 | |
2017 | 746,000 | |
2016 | 385,000 | |
Prior | 2,026,000 | |
Total | 19,211,000 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 20,805,000 | |
2019 | 19,231,000 | |
2018 | 14,473,000 | |
2017 | 11,726,000 | |
2016 | 4,804,000 | |
Prior | 12,174,000 | |
Revolving Loan | 799,000 | |
Revolving Loans Converted to Term | 41,000 | |
Total | 84,053,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 150,060,000 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 690,000 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||
Credit Quality Information [Abstract] | ||
2020 | 11,385,000 | |
2019 | 18,852,000 | |
2018 | 14,919,000 | |
2017 | 16,361,000 | |
2016 | 3,471,000 | |
Prior | 28,661,000 | |
Revolving Loan | 88,105,000 | |
Revolving Loans Converted to Term | 5,306,000 | |
Total | $ 187,060,000 | |
2020, Weighted average risk grade | 3.30 | |
2019, Weighted average risk grade | 3.66 | |
2018, Weighted average risk grade | 3.69 | |
2017, Weighted average risk grade | 3.62 | |
2016, Weighted average risk grade | 3.97 | |
Prior, Weighted average risk grade | 4.06 | |
Revolving loan, Weighted average risk grade | 3.66 | |
Revolving loans converted to term, Weighted average risk grade | 3.94 | |
Weighted average risk grade | 3.71 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 221,447,000 | |
Credit Quality Revolving Loans Converted to Term Loans [Abstract] | ||
Revolving loans converted to term loans, during the period | $ 330,000 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 1,919,000 | |
Total | 1,919,000 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 11,372,000 | |
2019 | 18,852,000 | |
2018 | 13,569,000 | |
2017 | 14,335,000 | |
2016 | 3,405,000 | |
Prior | 24,568,000 | |
Revolving Loan | 87,118,000 | |
Revolving Loans Converted to Term | 5,306,000 | |
Total | 178,525,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 213,553,000 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Special Mention [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 3,432,000 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 13,000 | |
2018 | 1,350,000 | |
2017 | 107,000 | |
2016 | 66,000 | |
Prior | 4,093,000 | |
Revolving Loan | 987,000 | |
Total | 6,616,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 4,462,000 | |
Other Consumer Loans | ||
Credit Quality Information [Abstract] | ||
2020 | 4,396,000 | |
2019 | 2,165,000 | |
2018 | 1,803,000 | |
2017 | 943,000 | |
2016 | 6,458,000 | |
Prior | 2,954,000 | |
Revolving Loan | 3,571,000 | |
Total | $ 22,290,000 | |
2020, Weighted average risk grade | 3.63 | |
2019, Weighted average risk grade | 3.28 | |
Prior, Weighted average risk grade | 4.72 | |
Revolving loan, Weighted average risk grade | 4 | |
Weighted average risk grade | 3.76 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 26,304,000 | |
Other Consumer Loans | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | $ 3,811,000 | |
2019 | 1,921,000 | |
2018 | 1,803,000 | |
2017 | 943,000 | |
2016 | 6,458,000 | |
Prior | 2,767,000 | |
Revolving Loan | 3,534,000 | |
Total | 21,237,000 | |
Other Consumer Loans | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 585,000 | |
2019 | 244,000 | |
Prior | 62,000 | |
Revolving Loan | 37,000 | |
Total | 928,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 26,182,000 | |
Other Consumer Loans | Special Mention [Member] | ||
Credit Quality Information [Abstract] | ||
Prior | 115,000 | |
Total | 115,000 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | 122,000 | |
Other Consumer Loans | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
Prior | 10,000 | |
Total | 10,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 1,825,000 | |
2016 | 400,000 | |
Prior | 6,652,000 | |
Revolving Loan | 31,000 | |
Total | $ 8,908,000 | |
2017, Weighted average risk grade | 6 | |
2016, Weighted average risk grade | 4 | |
Prior, Weighted average risk grade | 4.63 | |
Weighted average risk grade | 4.92 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | $ 8,908,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | Not Rated Internal Credit [Member] | ||
Credit Quality Information [Abstract] | ||
Prior | 1,176,000 | |
Revolving Loan | 31,000 | |
Total | 1,207,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2016 | 400,000 | |
Prior | 2,997,000 | |
Total | 3,397,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | Special Mention [Member] | ||
Credit Quality Information [Abstract] | ||
Prior | 1,448,000 | |
Total | 1,448,000 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | Substandard [Member] | ||
Credit Quality Information [Abstract] | ||
2017 | 1,825,000 | |
Prior | 1,031,000 | |
Total | 2,856,000 | |
Paycheck Protection Program Loans [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 319,428,000 | |
Total | $ 319,428,000 | |
2020, Weighted average risk grade | 2 | |
Credit Quality By Class of Loans [Abstract] | ||
Total loans, net | $ 122,000,000 | |
Paycheck Protection Program Loans [Member] | Pass [Member] | ||
Credit Quality Information [Abstract] | ||
2020 | 319,428,000 | |
Total | $ 319,428,000 | |
Small Business Administration Loan [Member] | Substandard [Member] | ||
Credit Quality By Class of Loans [Abstract] | ||
Loans guaranteed by SBA | $ 4,100,000 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of calculation for allowance for credit losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowances for loan losses | $ 36,345 | $ 10,261 | $ 12,283 | $ 9,397 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Allowances for loan losses | 6,699 | 810 | 802 | 690 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Allowances for loan losses | 12,942 | 1,720 | 1,669 | 1,321 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowances for loan losses | 1,815 | 683 | 821 | 692 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Allowances for loan losses | 10,480 | 1,266 | 1,106 | 1,586 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowances for loan losses | 1,815 | 683 | ||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Allowances for loan losses | 1,498 | 5,418 | 7,097 | 4,496 |
Unallocated | ||||
Allowances for loan losses | 174 | 564 | ||
Other Consumer Loans | ||||
Allowances for loan losses | 517 | $ 190 | $ 224 | $ 612 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Allowances for loan losses | 2,394 | |||
Modeled Expected Credit Losses [Member] | ||||
Allowances for loan losses | 14,491 | |||
Modeled Expected Credit Losses [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Allowances for loan losses | 2,565 | |||
Modeled Expected Credit Losses [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Allowances for loan losses | 4,666 | |||
Modeled Expected Credit Losses [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Allowances for loan losses | 5,113 | |||
Modeled Expected Credit Losses [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowances for loan losses | 1,297 | |||
Modeled Expected Credit Losses [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Allowances for loan losses | 544 | |||
Modeled Expected Credit Losses [Member] | Other Consumer Loans | ||||
Allowances for loan losses | 306 | |||
Q Factor And Other Qualitative Adjustments [Member] | ||||
Allowances for loan losses | 19,367 | |||
Q Factor And Other Qualitative Adjustments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Allowances for loan losses | 4,134 | |||
Q Factor And Other Qualitative Adjustments [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Allowances for loan losses | 8,276 | |||
Q Factor And Other Qualitative Adjustments [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Allowances for loan losses | 5,330 | |||
Q Factor And Other Qualitative Adjustments [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowances for loan losses | 516 | |||
Q Factor And Other Qualitative Adjustments [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Allowances for loan losses | 917 | |||
Q Factor And Other Qualitative Adjustments [Member] | Other Consumer Loans | ||||
Allowances for loan losses | 194 | |||
Specific Allocation [Member] | ||||
Allowances for loan losses | 2,487 | |||
Specific Allocation [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Allowances for loan losses | 37 | |||
Specific Allocation [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Allowances for loan losses | 2 | |||
Specific Allocation [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Allowances for loan losses | 37 | |||
Specific Allocation [Member] | Other Consumer Loans | ||||
Allowances for loan losses | 17 | |||
Specific Allocation [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Allowances for loan losses | $ 2,394 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Activity for Loan and Lease Losses By Class of Loan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 10,261 | $ 12,283 | $ 9,397 |
Provision (credit) | 19,450 | 350 | 4,200 |
Charge offs | (2,343) | (3,278) | (3,098) |
Recoveries | 685 | 906 | 1,784 |
Ending balance | 36,345 | 10,261 | 12,283 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 810 | 802 | 690 |
Provision (credit) | 4,232 | 587 | 497 |
Charge offs | (52) | (782) | (400) |
Recoveries | 5 | 203 | 15 |
Ending balance | 6,699 | 810 | 802 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,720 | 1,669 | 1,321 |
Provision (credit) | 8,381 | 904 | 348 |
Charge offs | (863) | ||
Recoveries | 135 | 10 | |
Ending balance | 12,942 | 1,720 | 1,669 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 683 | 821 | 692 |
Provision (credit) | 458 | (138) | 129 |
Ending balance | 1,815 | 683 | 821 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,266 | 1,106 | 1,586 |
Provision (credit) | 5,060 | 596 | 237 |
Charge offs | (433) | (742) | (842) |
Recoveries | 418 | 306 | 125 |
Ending balance | 10,480 | 1,266 | 1,106 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 683 | ||
Ending balance | 1,815 | 683 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 5,418 | 7,097 | 4,496 |
Provision (credit) | 966 | (1,408) | 2,541 |
Charge offs | (1,734) | (622) | (1,566) |
Recoveries | 94 | 351 | 1,626 |
Ending balance | 1,498 | 5,418 | 7,097 |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 174 | 564 | |
Provision (credit) | (390) | 564 | |
Ending balance | 174 | 564 | |
Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 190 | 224 | 612 |
Provision (credit) | 231 | 199 | (116) |
Charge offs | (124) | (269) | (290) |
Recoveries | 33 | 36 | 18 |
Ending balance | 517 | 190 | 224 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 122 | 300 | 600 |
Ending balance | 2,394 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 300 | 600 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 50 | 3,600 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 587 | 497 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 904 | 348 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | (138) | 129 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 596 | 237 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | (1,708) | 1,941 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | (390) | 564 | |
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision (credit) | 199 | $ (116) | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 8,292 | ||
Ending balance | 8,292 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,704 | ||
Ending balance | 1,704 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,706 | ||
Ending balance | 2,706 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 674 | ||
Ending balance | 674 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 4,169 | ||
Ending balance | 4,169 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (3,246) | ||
Ending balance | (3,246) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (174) | ||
Ending balance | (174) | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 187 | ||
Ending balance | 187 | ||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,272 | ||
Ending balance | 2,272 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 18,553 | ||
Ending balance | 18,553 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,514 | ||
Ending balance | 2,514 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 4,426 | ||
Ending balance | 4,426 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,357 | ||
Ending balance | 1,357 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 5,435 | ||
Ending balance | 5,435 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,172 | ||
Ending balance | 2,172 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Other Consumer Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 377 | ||
Ending balance | 377 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 2,272 | ||
Ending balance | $ 2,272 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Allowance for Loan Losses and the Recorded Investment by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | $ 2,487 | $ 1,042 | ||
Collectively evaluated for impairment, allowance | 9,219 | |||
Total ending allowance | 36,345 | 10,261 | $ 12,283 | $ 9,397 |
Loans: | ||||
Individually evaluated for impairment | 48,849 | 19,342 | ||
Collectively evaluated for impairment | 2,166,293 | |||
Total ending loans, net | 2,444,526 | 2,185,635 | ||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment, allowance | 810 | |||
Total ending allowance | 6,699 | 810 | 802 | 690 |
Loans: | ||||
Individually evaluated for impairment | 6,890 | |||
Collectively evaluated for impairment | 407,589 | |||
Total ending loans, net | 414,479 | |||
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment, allowance | 1,720 | |||
Total ending allowance | 12,942 | 1,720 | 1,669 | 1,321 |
Loans: | ||||
Individually evaluated for impairment | 3,120 | |||
Collectively evaluated for impairment | 655,752 | |||
Total ending loans, net | 658,872 | |||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Total ending allowance | 1,815 | 683 | 821 | 692 |
Loans: | ||||
Total ending loans, net | 150,750 | |||
Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 85 | |||
Collectively evaluated for impairment, allowance | 1,181 | |||
Total ending allowance | 10,480 | 1,266 | 1,106 | 1,586 |
Loans: | ||||
Individually evaluated for impairment | 1,443 | |||
Collectively evaluated for impairment | 712,340 | |||
Total ending loans, net | 713,783 | |||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment, allowance | 683 | |||
Total ending allowance | 1,815 | 683 | ||
Loans: | ||||
Individually evaluated for impairment | 345 | |||
Collectively evaluated for impairment | 150,405 | |||
Total ending loans, net | 150,750 | |||
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 957 | |||
Collectively evaluated for impairment, allowance | 4,461 | |||
Total ending allowance | 1,498 | 5,418 | 7,097 | 4,496 |
Loans: | ||||
Individually evaluated for impairment | 7,544 | |||
Collectively evaluated for impairment | 213,903 | |||
Total ending loans, net | 221,447 | |||
Other Consumer Loans | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment, allowance | 190 | |||
Total ending allowance | 517 | 190 | 224 | $ 612 |
Loans: | ||||
Collectively evaluated for impairment | 26,304 | |||
Total ending loans, net | 26,304 | |||
Unallocated | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment, allowance | 174 | |||
Total ending allowance | $ 174 | $ 564 | ||
Paycheck Protection Program Loans [Member] | ||||
Loans: | ||||
Total ending loans, net | 122,000 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 2,394 | |||
Total ending allowance | 2,394 | |||
Loans: | ||||
Individually evaluated for impairment | 8,908 | |||
Total ending loans, net | 8,908 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 93 | |||
Loans: | ||||
Individually evaluated for impairment | 39,941 | |||
Total ending loans, net | 2,435,618 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | ||||
Loans: | ||||
Individually evaluated for impairment | 23,397 | |||
Total ending loans, net | 435,078 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | ||||
Loans: | ||||
Individually evaluated for impairment | 8,536 | |||
Total ending loans, net | 719,635 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||||
Loans: | ||||
Total ending loans, net | 103,264 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Residential Portfolio Segment [Member] | 1-4 Family Residential | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 37 | |||
Loans: | ||||
Individually evaluated for impairment | 2,399 | |||
Total ending loans, net | 648,863 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 2 | |||
Loans: | ||||
Individually evaluated for impairment | 77 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 37 | |||
Loans: | ||||
Individually evaluated for impairment | 5,515 | |||
Total ending loans, net | 187,060 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | ||||
Loans: | ||||
Total ending loans, net | 22,290 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Other Consumer Loans | Commercial Mortgage Loan | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment, allowance | 17 | |||
Loans: | ||||
Individually evaluated for impairment | 17 | |||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | Paycheck Protection Program Loans [Member] | ||||
Loans: | ||||
Total ending loans, net | 319,428 | |||
Small Business Administration Loan [Member] | ||||
Loans: | ||||
Individually evaluated for impairment | $ 2,500 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of carrying amount of covered purchased impaired and non-impaired loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | $ 2,444,526 | $ 2,185,635 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 8,908 | ||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 2,435,618 | ||
Other Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 26,304 | ||
Other Consumer Loans | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | $ 22,290 | ||
GAB acquisition [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 620,368 | ||
GAB acquisition [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 9,199 | $ 11,449 | |
GAB acquisition [Member] | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 611,169 | $ 795,759 | |
GAB acquisition [Member] | Commercial Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 311,267 | ||
GAB acquisition [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 3,978 | ||
GAB acquisition [Member] | Commercial Real Estate [Member] | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 307,289 | ||
GAB acquisition [Member] | Other Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 15,153 | ||
GAB acquisition [Member] | Other Consumer Loans | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 15,153 | ||
Construction Loans [Member] | GAB acquisition [Member] | Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 21,137 | ||
Construction Loans [Member] | GAB acquisition [Member] | Construction and Land Development | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 26 | ||
Construction Loans [Member] | GAB acquisition [Member] | Construction and Land Development | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 21,111 | ||
1-4 Family Residential | GAB acquisition [Member] | 1-4 Family Residential | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 235,728 | ||
1-4 Family Residential | GAB acquisition [Member] | 1-4 Family Residential | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 2,841 | ||
1-4 Family Residential | GAB acquisition [Member] | 1-4 Family Residential | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 232,887 | ||
Commercial Mortgage Loan | GAB acquisition [Member] | Commercial Mortgage Loan | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 37,083 | ||
Commercial Mortgage Loan | GAB acquisition [Member] | Commercial Mortgage Loan | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | 2,354 | ||
Commercial Mortgage Loan | GAB acquisition [Member] | Commercial Mortgage Loan | Financial Asset Acquired and No Credit Deterioration [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans, net | $ 34,729 |
LOANS AND ALLOWANCE FOR LOAN_14
LOANS AND ALLOWANCE FOR LOAN LOSSES (Changes in Carrying Amount and Accretable Yield for Purchased Impaired and Nonimpaired Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | |
Balance at end of period | $ 2,185,635 |
GAB acquisition [Member] | |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | |
Balance at end of period | 620,368 |
Receivables Acquired with Deteriorated Credit Quality [Member] | GAB acquisition [Member] | |
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | 174 |
Accretion | (72) |
Balance at ending of period | 102 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | |
Balance at beginning of period | 11,449 |
Accretion | 72 |
Payments received | (2,322) |
Balance at end of period | 9,199 |
Financial Asset Acquired and No Credit Deterioration [Member] | GAB acquisition [Member] | |
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | 13,474 |
Accretion | (3,549) |
Balance at ending of period | 9,925 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | |
Balance at beginning of period | 795,759 |
Accretion | 3,549 |
Payments received | (188,139) |
Balance at end of period | $ 611,169 |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Impaired loans | $ 21,979,000 | |||
Allowances for loan losses | $ 36,345,000 | 10,261,000 | $ 12,283,000 | $ 9,397,000 |
Other real estate owned | 3,078,000 | 6,224,000 | ||
Equity method investment, impairment | $ 0 | $ 0 | ||
Minimum [Member] | Loans Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value of estimated costs related to selling the collateral | 5.00% | 5.00% | ||
Minimum [Member] | Other Real Estate Owned [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of discount rate on other real estate owned | 5.00% | 5.00% | ||
Maximum [Member] | Loans Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value of estimated costs related to selling the collateral | 10.00% | 10.00% | ||
Maximum [Member] | Other Real Estate Owned [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of discount rate on other real estate owned | 10.00% | 10.00% | ||
Weighted Average [Member] | Loans Payable [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Fair value of estimated costs related to selling the collateral | 6.00% | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowances for loan losses | $ 1,100,000 | |||
Other real estate owned | $ 3,100,000 | |||
Covered other real estate owned | 6,200,000 | |||
Fair Value, Inputs, Level 3 [Member] | Non-covered Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Impaired loans | 22,000,000 | |||
Loans guaranteed by SBA | $ 4,400,000 |
FAIR VALUE (Schedule of assets
FAIR VALUE (Schedule of assets measured at fair value on a recurring basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available for sale securities | ||
Available for sale, Fair value | $ 153,233 | $ 164,820 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 153,233 | 164,820 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 37,060 | 48,979 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 24,042 | 17,582 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 15,079 | 2,012 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 29,416 | 36,689 |
Fair Value, Measurements, Recurring [Member] | Government-Sponsored Agency Securities | ||
Available for sale securities | ||
Available for sale, Fair value | 6,075 | 14,822 |
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 30,190 | 27,731 |
Fair Value, Measurements, Recurring [Member] | SBA Pool Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 11,371 | 14,437 |
Fair Value, Measurements, Recurring [Member] | Trust preferred securities | ||
Available for sale securities | ||
Available for sale, Fair value | 2,568 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 152,233 | 163,820 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 37,060 | 48,979 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 24,042 | 17,582 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 14,079 | 1,012 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 29,416 | 36,689 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government-Sponsored Agency Securities | ||
Available for sale securities | ||
Available for sale, Fair value | 6,075 | 14,822 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 30,190 | 27,731 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | SBA Pool Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 11,371 | 14,437 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Trust preferred securities | ||
Available for sale securities | ||
Available for sale, Fair value | 2,568 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | 1,000 | 1,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Available for sale securities | ||
Available for sale, Fair value | $ 1,000 | $ 1,000 |
FAIR VALUE (Schedule of Asset_2
FAIR VALUE (Schedule of Assets Measured at Fair Value on Non-recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | $ 47,001 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 47,001 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,890 | |
Other real estate owned | 1,984 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,890 | |
Other real estate owned | 1,984 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,296 | |
Other real estate owned | 865 | |
Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Non-owner Occupied | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,296 | |
Other real estate owned | 865 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,221 | 2,874 |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,221 | 2,874 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,862 | |
Other real estate owned | 992 | 1,366 |
Residential Portfolio Segment [Member] | 1-4 Family Residential | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,862 | |
Other real estate owned | $ 992 | 1,366 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 345 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 345 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 7,547 | |
Commercial Portfolio Segment [Member] | Commercial Mortgage Loan | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 7,547 | |
Consumer Portfolio Segment [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 39 | |
Consumer Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 39 |
FAIR VALUE (Schedule of estimat
FAIR VALUE (Schedule of estimated fair values and fair value hierarchy levels of financial instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities available for sale | $ 153,233 | $ 164,820 |
Held To Maturity Securities Fair Value | 41,832 | 72,666 |
Equity Method Investments, Fair Value Disclosure | 12,652 | 5,020 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Fair Value, Inputs, Level 1 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 196,185 | 31,928 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 16,065 | 12,883 |
FHLB advances | 100,000 | 121,640 |
Fair Value, Inputs, Level 1 [Member] | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 196,185 | 31,928 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 16,065 | 12,883 |
FHLB advances | 100,000 | 121,640 |
Fair Value, Inputs, Level 2 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Held To Maturity Securities Fair Value | 40,721 | 72,448 |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 16,927 | 17,832 |
Accrued interest receivable | 17,405 | 8,210 |
Financial liabilities: | ||
Demand deposits | 1,155,426 | 730,325 |
Money market and savings accounts | 787,132 | 611,353 |
Junior subordinated debt | 9,682 | 9,632 |
Senior subordinated notes | 105,647 | 47,051 |
Accrued interest payable | 3,057 | 4,907 |
Fair Value, Inputs, Level 2 [Member] | Fair Value | ||
Financial assets: | ||
Held To Maturity Securities Fair Value | 41,832 | 72,666 |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 16,927 | 17,832 |
Accrued interest receivable | 17,405 | 8,210 |
Financial liabilities: | ||
Demand deposits | 1,155,426 | 730,325 |
Money market and savings accounts | 787,132 | 611,353 |
Junior subordinated debt | 8,863 | 9,206 |
Senior subordinated notes | 109,276 | 48,156 |
Accrued interest payable | 3,057 | 4,907 |
Fair Value, Inputs, Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Equity Method Investments, Fair Value Disclosure | 12,652 | 5,020 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Net loans | 2,404,151 | 2,175,786 |
Financial liabilities: | ||
Certificate of deposits | 490,048 | 783,040 |
Fair Value, Inputs, Level 3 [Member] | Fair Value | ||
Financial assets: | ||
Equity Method Investments, Fair Value Disclosure | 12,652 | 5,020 |
Preferred investment in mortgage affiliate | 3,305 | 3,305 |
Net loans | 2,435,612 | 2,180,487 |
Financial liabilities: | ||
Certificate of deposits | 495,022 | 786,420 |
Fair Value Inputs Level 2 and Level 3 [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial assets: | ||
Securities available for sale | 153,233 | 164,820 |
Fair Value Inputs Level 2 and Level 3 [Member] | Fair Value | ||
Financial assets: | ||
Securities available for sale | $ 153,233 | $ 164,820 |
BANK PREMISES AND EQUIPMENT (Na
BANK PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
BANK PREMISES AND EQUIPMENT [Abstract] | |||
Depreciation and amortization expense | $ 2 | $ 2.3 | $ 3.3 |
BANK PREMISES AND EQUIPMENT (Sc
BANK PREMISES AND EQUIPMENT (Schedule of bank premises and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 46,265 | $ 45,302 |
Less accumulated depreciation and amortization | 15,959 | 14,118 |
Bank premises and equipment, net | 30,306 | 31,184 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 8,139 | 8,139 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 1,558 | 1,558 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 23,164 | 23,164 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 3,001 | 2,933 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 8,962 | 8,789 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 1,441 | $ 719 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 7,511 | $ 8,013 |
Operating Lease, Liability | 8,238 | 8,469 |
Lease, Cost | $ 2,900 | $ 2,500 |
LEASES (Schedule of operating l
LEASES (Schedule of operating lease other information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 5,062 | $ 4,883 |
Weighted-average remaining lease term - operating leases, in years | 4 years 9 months 18 days | 5 years 8 months 12 days |
Weighted-average discount rate - operating leases | 2.50% | 2.80% |
LEASES (Schedule of future mini
LEASES (Schedule of future minimum rental payments required under non-cancelable operating leases for bank premises) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Less than one year | $ 2,542 | |
One to three years | 3,791 | |
Three to five years | 1,123 | |
More than five years | 1,376 | |
Total lease payments | 8,832 | |
Less: imputed interest | (594) | |
Lease liabilities | $ 8,238 | $ 8,469 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 101,954,000 | $ 101,954,000 | ||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of acquired intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles, net carrying value | $ 5,826 | $ 7,191 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangibles, gross carrying value | 17,503 | 17,503 |
Accumulated Amortization | (11,677) | (10,312) |
Amortizable intangibles, net carrying value | $ 5,826 | $ 7,191 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule of estimated amortization expense of intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, net | $ 5,826 | $ 7,191 |
Core Deposits and Servicing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 | 1,364 | |
2022 | 1,325 | |
2023 | 1,269 | |
2024 | 1,266 | |
2025 | 602 | |
Intangibles, net | $ 5,826 |
DEPOSITS (Narrative) (Details)
DEPOSITS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Aggregate amount of time deposits in denominations of $250,000 or more | $ 165,700 | $ 163,200 |
Brokered certificate of deposits | 270 | 114,100 |
Money market deposits | $ 55,200 | $ 24,400 |
DEPOSITS (Scheduled maturities
DEPOSITS (Scheduled maturities of time deposits) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits [Abstract] | |
2021 | $ 369,743 |
2022 | 77,081 |
2023 | 27,927 |
2024 | 10,662 |
2025 | 4,600 |
2026 | 35 |
Time deposits, total | $ 490,048 |
DEPOSITS (Scheduled maturitie_2
DEPOSITS (Scheduled maturities of certificates of deposits) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits [Abstract] | |
Within 3 Months | $ 36,234 |
3 to 6 Months | 38,192 |
6 to 12 Months | 39,515 |
Over 12 Months | 51,807 |
Total | $ 165,748 |
SECURITIES SOLD UNDER AGREEME_3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | ||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | $ 16 | $ 12.9 |
Securities sold under agreements to repurchase, fair value of collateral | 31.1 | 22 |
Potential amount that could be collateralized | 689.1 | |
Home Equity Loan [Member] | Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | ||
FHLB advances, pledged as collateral | 37.2 | 46.9 |
1-4 Family Residential | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | ||
FHLB advances, pledged as collateral | 390.7 | 376.3 |
Commercial Mortgage Loan | Commercial Portfolio Segment [Member] | Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | ||
FHLB advances, pledged as collateral | 189 | 76.6 |
Securities Investment [Member] | Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Branch Of Fhlb Bank [Line Items] | ||
FHLB advances, pledged as collateral | $ 6.4 | $ 17.6 |
SECURITIES SOLD UNDER AGREEME_4
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWINGS (Summary of Other short-term borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Amount of advances, FHLB | $ 100,000 | $ 121,640 |
Securities sold under agreements to repurchase | 16,065 | 12,883 |
Total | $ 116,065 | $ 134,523 |
Due date, FHLB | Oct. 3, 2020 | |
Federal Home Loan Bank Advances [Member] | ||
Short-term Debt [Line Items] | ||
Weighted average interest rate at year end | 3.55% | 1.75% |
FHLB collateral advances maturity 3/1/2030 [Member] | ||
Short-term Debt [Line Items] | ||
Amount of advances, FHLB | $ 100,000 | |
Due date, FHLB | Mar. 1, 2030 | |
Other short-term FHLB advances maturing 3/10/2020 [Member] | ||
Short-term Debt [Line Items] | ||
Amount of advances, FHLB | $ 40,640 | |
Overnight [member] | ||
Short-term Debt [Line Items] | ||
Amount of advances, FHLB | $ 81,000 |
JUNIOR SUBORDINATED DEBT AND _2
JUNIOR SUBORDINATED DEBT AND SENIOR SUBORDINATED NOTES (Narrative) (Details) - USD ($) $ in Thousands | Feb. 01, 2021 | Aug. 25, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 23, 2017 | Jan. 20, 2017 | Apr. 22, 2015 | Sep. 17, 2003 |
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of subordinated long-term debt | $ 58,600 | |||||||
Junior subordinated notes | 9,682 | $ 9,632 | ||||||
Senior subordinated notes - long term | $ 105,647 | $ 47,051 | ||||||
Eastern Virginia Bankshares Inc [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes assumed in merger | $ 10,300 | |||||||
Trust preferred securities pooled underwriting amount | $ 650,000 | |||||||
Junior Subordinated Debt [Member] | Eastern Virginia Bankshares Inc [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate percentage | 3.18% | 4.85% | ||||||
Description of variable rate basis | three-month LIBOR | |||||||
Basis spread on LIBOR | 2.95% | |||||||
Percentage of tier one capital for regulatory capital adequacy | 25.00% | |||||||
Senior Subordinated Notes [Member] | Eastern Virginia Bankshares Inc [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate percentage | 6.50% | |||||||
Percentage of subordinated notes considered tier 2 | 80.00% | |||||||
Debt instrument, face amount | $ 20,000 | |||||||
Senior Subordinated Notes [Member] | Eastern Virginia Bankshares Inc [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |||||||
SNBV Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate percentage | 5.875% | |||||||
Description of variable rate basis | three-month LIBOR | |||||||
Basis spread on LIBOR | 3.95% | |||||||
Percentage of subordinated notes considered tier 2 | 100.00% | |||||||
Debt instrument, face amount | $ 27,000 | |||||||
SNBV Subordinated Notes [Member] | Subordinated Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate percentage | 5.40% | |||||||
Description of variable rate basis | 531 | |||||||
Unamortized debt issuance costs | $ 1,900 | |||||||
Percentage of subordinated notes considered tier 2 | 100.00% | |||||||
Debt instrument, face amount | $ 60,000 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES [Abstract] | ||||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 | |
Unrecognized tax benefits | 0 | |||
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | |
U.S. Federal income tax rate | 21.00% | 21.00% | 21.00% | |
Income Tax Examination, Description | Southern National and its subsidiaries file a consolidated U.S. federal income tax return, and Southern National files a Virginia state income tax return. Sonabank files a Maryland and an Arkansas state income tax return. These returns are subject to examination by taxing authorities for all years after 2016. | |||
Increase (decrease) to deferred tax liabilities | $ 600,000 | |||
Increase (decrease) to deferred tax assets | $ 1,200,000 | |||
Operating loss carryforward write-off (reversal) | $ 5,500,000 |
INCOME TAXES (Schedule of net d
INCOME TAXES (Schedule of net deferred tax assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 8,028 | $ 2,235 |
Unearned loan fees and other | 2,583 | 1,064 |
Other real estate owned write-downs | 567 | 748 |
Lease liability | 1,779 | 1,829 |
Other than temporary impairment charge | 229 | |
Purchase accounting | 949 | |
Federal AMT credit carryforward | 1,137 | 1,137 |
Federal low income housing credit carryforward | 444 | 3,226 |
Deferred compensation | 1,734 | 1,573 |
Depreciation | 274 | 218 |
Other | 1,012 | 511 |
Total deferred tax assets | 17,558 | 13,719 |
Deferred tax liabilities: | ||
Right-of-use assets | 1,576 | 1,731 |
Net unrealized gain on investment securities available for sale | 916 | 200 |
Purchase accounting | 420 | |
Total deferred tax liabilities | 2,912 | 1,931 |
Net deferred tax assets | $ 14,646 | $ 11,788 |
INCOME TAXES (Schedule of provi
INCOME TAXES (Schedule of provision for income taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense | |||
Federal | $ 7,825 | $ 4,429 | $ 6,244 |
State | 407 | 228 | 249 |
Total current tax expense | 8,232 | 4,657 | 6,493 |
Deferred tax benefit | |||
Federal | (1,496) | 1,350 | 2,692 |
State | (122) | 70 | 429 |
Total deferred tax expense | (1,618) | 1,420 | 3,121 |
Total deferred tax expense (benefit) | $ 6,614 | $ 6,077 | $ 9,614 |
INCOME TAXES (Schedule of incom
INCOME TAXES (Schedule of income tax expense determined by applying the U.S. Federal income tax rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INCOME TAXES [Abstract] | |||
Computed expected tax expense at statutory rate | $ 6,279 | $ 8,241 | $ 9,094 |
Increase (decrease) in tax expense resulting from: | |||
Remeasurement of deferred tax assets and liabilities | (31) | (1,659) | 1,130 |
Low income housing tax credits, net of amortization | 225 | (255) | (502) |
Income from bank-owned life insurance | (327) | (357) | (416) |
Other, net | 468 | 107 | 308 |
Total deferred tax expense (benefit) | $ 6,614 | $ 6,077 | $ 9,614 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer discretionary matching contributions in 401(k) plan | $ 795 | $ 704 | $ 784 |
Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation expense | 1,300 | 1,200 | $ 1,200 |
Deferred compensation liability | $ 8,000 | $ 7,300 |
STOCK- BASED COMPENSATION (Narr
STOCK- BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 21, 2017 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 118 | $ 62 | $ 122 | |
Employee Stock Option [Member] | Stock Option Plan 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for reservation (in shares) | 750,000 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 102,500 | |||
Unrecognized compensation expense associated with the other than options | $ 1,200 | |||
Unrecognized compensation cost weighted average recognition period | 3 years 10 months 24 days | |||
Restricted Stock [Member] | Stock Option Plan 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,400 | $ 370 | $ 158 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Activity in the Stock Option Plan) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Stock Option [Member] | ||
Shares | ||
Options outstanding, beginning of period | 555,750 | |
Forfeited | (11,700) | |
Exercised | (93,250) | |
Options outstanding, end of period | 450,800 | 555,750 |
Exercisable at end of period | 437,700 | |
Weighted Average Grant Date Fair Value Per Share | ||
Options outstanding, beginning of period | $ 10.02 | |
Forfeited | 10.91 | |
Exercised | 7.60 | |
Options outstanding, end of period | 10.50 | $ 10.02 |
Exercisable at end of period | $ 10.37 | |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 3 years 9 months 18 days | 4 years 3 months 18 days |
Exercisable at end of period | 3 years 8 months 12 days | |
Options outstanding, Aggregate Intrinsic Value | $ 727 | $ 3,518 |
Exercisable at end of period - Aggregate Intrinsic Value | $ 726 | |
Restricted Stock [Member] | ||
Shares | ||
Options outstanding, beginning of period | 86,500 | |
Granted | 102,500 | |
Vested | (92,700) | |
Options outstanding, end of period | 96,300 | 86,500 |
Weighted Average Grant Date Fair Value Per Share | ||
Options outstanding, beginning of period | $ 14.85 | |
Granted | 14.56 | |
Vested | 15.22 | |
Options outstanding, end of period | $ 14.17 | $ 14.85 |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 3 years 9 months 18 days | 3 years 9 months 18 days |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments With Off Balance Sheet Risk [Abstract] | ||
Letters of credit outstanding | $ 15.9 | $ 17.7 |
Unfunded lines of credit and undisbursed construction loan funds | $ 355.3 | $ 324.8 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Schedule of allowance for credit losses off balance sheet exposure) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Credit loss expense | $ 380 |
Off-Balance Sheet, Credit Loss, Liability, Ending Balance | 740 |
Revision of Prior Period, Adjustment [Member] | |
Off-Balance Sheet, Credit Loss, Liability, Beginning Balance | $ 360 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive options and warrants (in shares) | 226,300 | 0 | 0 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Reconciliation of the Denominators of the Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||||||
Basic EPS - Income (Numerator) (in dollars) | $ 23,287 | $ 33,167 | $ 33,691 | |||||||
Effect of dilutive stock options and and unvested restricted stock - Income (Numerator) (in dollars) | ||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted, Total | $ 23,287 | $ 33,167 | $ 33,691 | |||||||
Basic EPS- Weighted Average Shares (Denominator) (in shares) | 24,239 | 24,050 | 24,012 | |||||||
Effect of dilutive stock options and and unvested restricted stock- Weighted Average Shares (Denominator) (in shares) | 124 | 275 | 261 | |||||||
Diluted EPS- Weighted Average Shares (Denominator) (in shares) | 24,363 | 24,325 | 24,273 | |||||||
Basic EPS - Per Share Amount (in dollars per share) | $ 0.37 | $ 0.40 | $ 0.19 | $ 0.37 | $ 0.37 | $ 0.39 | $ 0.25 | $ 0.96 | $ 1.38 | $ 1.40 |
Effect of dilutive stock options and and unvested restricted stock- Per Share Amount (in dollars per share) | (0.02) | (0.01) | ||||||||
Diluted EPS- Per Share Amount (in dollars per share) | $ 0.37 | $ 0.39 | $ 0.19 | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.25 | $ 0.96 | $ 1.36 | $ 1.39 |
REGULATORY MATTERS (Schedule of
REGULATORY MATTERS (Schedule of capital amounts and ratios for southern national and sonabank) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 9.09% | |
Sonabank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity tier 1 capital ratio, Actual Amount | $ 334,540 | $ 313,354 |
Common equity tier 1 capital ratio, Actual Ratio | 15.83 | 14.81 |
Common equity tier 1 capital ratio required for capital adequacy purposes amount | $ 95,078 | $ 95,229 |
Common equity tier 1 capital ratio required for capital adequacy purposes ratio | 4.50% | 4.50% |
Common equity tier 1 capital ratio, To Be Categorized as Well Capitalized Amount | $ 137,334 | $ 137,553 |
Common equity tier 1 capital ratio, To Be Categorized as Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 risk-based capital ratio, Actual Amount | $ 334,540 | $ 313,354 |
Tier 1 risk-based capital ratio, Actual Ratio | 15.83 | 14.81 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 126,770 | $ 126,972 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 6 | 6 |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | $ 169,027 | $ 169,296 |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 8 | 8 |
Total risk-based capital ratio, Actual Amount | $ 361,073 | $ 323,615 |
Total risk-based capital ratio, Actual Ratio | 17.09 | 15.29 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 169,027 | $ 169,296 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 8 | 8 |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | $ 211,284 | $ 211,619 |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 10 | 10 |
Leverage ratio, Actual Amount | $ 334,540 | $ 313,354 |
Leverage ratio, Actual Ratio | 11.25 | 12.07 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | $ 124,046 | $ 103,838 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4 | 4 |
Leverage ratio, To Be Categorized as Well Capitalized, Amount | $ 105,642 | $ 105,810 |
Leverage ratio, To Be Categorized as Well Capitalized, Ratio | 5 | 5 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed balance sheet of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash | $ 196,185 | $ 31,928 | ||
Other assets | 12,771 | 12,617 | ||
Total assets | 3,088,673 | 2,722,170 | ||
Liabilities [Abstract] | ||||
Junior subordinated debt - long term | 9,682 | 9,632 | ||
Senior subordinated notes - long term | 105,647 | 47,051 | ||
Other liabilities | 25,881 | 20,536 | ||
Total liabilities | 2,698,119 | 2,344,929 | ||
Stockholders' equity: | ||||
Common stock | 243 | 241 | ||
Additional paid in capital | 308,870 | 306,755 | ||
Retained earnings | 77,956 | 69,462 | ||
Accumulated other comprehensive income | 3,485 | 783 | ||
Total stockholders' equity | 390,554 | 377,241 | $ 348,290 | $ 322,772 |
Total liabilities and stockholders' equity | 3,088,673 | 2,722,170 | ||
Southern National | Reportable Legal Entities | ||||
ASSETS | ||||
Cash | 59,318 | 2,707 | ||
Investment in subsidiary | 446,116 | 423,591 | ||
Other assets | 2,060 | 8,128 | ||
Total assets | 507,494 | 434,426 | ||
Liabilities [Abstract] | ||||
Junior subordinated debt - long term | 9,682 | 9,632 | ||
Senior subordinated notes - long term | 105,647 | 47,051 | ||
Other liabilities | 1,611 | 502 | ||
Total liabilities | 116,940 | 57,185 | ||
Stockholders' equity: | ||||
Common stock | 243 | 241 | ||
Additional paid in capital | 308,870 | 306,755 | ||
Retained earnings | 77,956 | 69,462 | ||
Accumulated other comprehensive income | 3,485 | 783 | ||
Total stockholders' equity | 390,554 | 377,241 | ||
Total liabilities and stockholders' equity | $ 507,494 | $ 434,426 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed statements of income of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total interest and dividend income | $ 31,920 | $ 28,707 | $ 28,672 | $ 28,481 | $ 29,354 | $ 30,474 | $ 30,393 | $ 30,303 | $ 117,779 | $ 120,524 | $ 118,907 |
Interest on junior subordinated debt | 426 | 589 | 575 | ||||||||
Interest on senior subordinated notes | 3,909 | 2,847 | 2,847 | ||||||||
Other operating expenses | 8,016 | 10,169 | 7,423 | ||||||||
Income before income taxes | 11,966 | 12,005 | 5,897 | 33 | 10,232 | 11,225 | 10,263 | 7,524 | 29,901 | 39,244 | 43,305 |
Income tax benefit | (6,614) | (6,077) | (9,614) | ||||||||
Net income | $ 8,963 | $ 9,588 | $ 4,709 | $ 27 | $ 8,964 | $ 8,864 | $ 9,319 | $ 6,020 | 23,287 | 33,167 | 33,691 |
Southern National | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash dividends received from Sonabank | 2,500 | 13,300 | 8,000 | ||||||||
Total interest and dividend income | 2,500 | 13,300 | 8,000 | ||||||||
Interest on junior subordinated debt | 426 | 589 | 575 | ||||||||
Interest on senior subordinated notes | 3,909 | 2,847 | 2,847 | ||||||||
Other operating expenses | 841 | 726 | 765 | ||||||||
Total expense | 5,176 | 4,162 | 4,187 | ||||||||
Income before income taxes | (2,676) | 9,138 | 3,813 | ||||||||
Income tax benefit | 1,084 | 862 | 872 | ||||||||
Equity in undistributed net income of Sonabank | 24,879 | 23,167 | 29,006 | ||||||||
Net income | $ 23,287 | $ 33,167 | $ 33,691 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION (Schedule of condensed statements of cash flows information of Southern National Bancorp of Virginia, Inc.) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 23,287 | $ 33,167 | $ 33,691 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Other, net | (11,942) | (2,203) | 213 |
Net cash and cash equivalents (used in) operating activities | 29,663 | 36,764 | 41,440 |
Investing activities: | |||
Net cash and cash equivalents provided by investing activities | (204,273) | (5,018) | (93,696) |
Financing activities: | |||
Issuance of subordinated notes, net of cost | 58,600 | ||
Issuance of common stock | 709 | 670 | 443 |
Dividend payment on common stock | (9,737) | (8,690) | (7,688) |
Net cash and cash equivalents provided by (used in) financing activities | 338,867 | (28,429) | 55,404 |
Increase (decrease) in cash and cash equivalents | 164,257 | 3,317 | 3,148 |
Cash and cash equivalents at beginning of period | 31,928 | 28,611 | 25,463 |
Cash and cash equivalents at end of period | 196,185 | 31,928 | 28,611 |
Southern National | Reportable Legal Entities | |||
Operating activities: | |||
Net income | 23,287 | 33,167 | 33,691 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Equity in undistributed net income of subsidiaries | (27,379) | (36,467) | (37,006) |
Other, net | 8,766 | (666) | (582) |
Net cash and cash equivalents (used in) operating activities | 4,674 | (3,966) | (3,897) |
Investing activities: | |||
Dividend from subsidiary | 2,500 | 13,300 | 8,000 |
Net cash and cash equivalents provided by investing activities | 2,500 | 13,300 | 8,000 |
Financing activities: | |||
Issuance of subordinated notes, net of cost | 58,600 | ||
Issuance of common stock | 574 | 670 | 443 |
Dividend payment on common stock | (9,737) | (8,690) | (7,688) |
Net cash and cash equivalents provided by (used in) financing activities | 49,437 | (8,020) | (7,245) |
Increase (decrease) in cash and cash equivalents | 56,611 | 1,314 | (3,142) |
Cash and cash equivalents at beginning of period | 2,707 | 1,393 | 4,535 |
Cash and cash equivalents at end of period | $ 59,318 | $ 2,707 | $ 1,393 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of the accumulated other comprehensive loss balances, net of tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | $ 377,241 | $ 348,290 | $ 322,772 |
Current Period Change | 2,702 | 3,372 | (1,208) |
Balance | 390,554 | 377,241 | 348,290 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | 783 | (2,589) | (1,152) |
Current Period Change | 2,702 | 3,372 | (1,208) |
Balance | 3,485 | 783 | $ (2,589) |
Unrealized gain (loss) on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | 943 | ||
Current Period Change | 2,203 | ||
Balance | 3,146 | 943 | |
Accumulated Investment Gain Loss On Sale Available For Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Current Period Change | 490 | ||
Balance | 490 | ||
Accumulated Other Than Temporary Impairment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | 311 | ||
Balance | 311 | 311 | |
Accumulated Unrealized Loss On Securities Available For Sale Transferred To Held To Maturity [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance | (471) | ||
Current Period Change | 9 | ||
Balance | $ (462) | $ (471) |
RELATED PARTY TRANSACTIONS (Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Related party deposit liabilities | $ 25.2 | $ 20.1 |
Southern Trust Mortgage [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, purchases from related party | $ 80.6 | $ 152.2 |
RELATED PARTY TRANSACTIONS (Sch
RELATED PARTY TRANSACTIONS (Schedule of changes in the loan amount outstanding during the periods) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Southern Trust Mortgage [Member] | ||
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Loans outstanding at January 1 | $ 26,760 | $ 24,168 |
Principal advances | 441,044 | 298,639 |
Principal paid | (437,033) | (296,047) |
Balance at December 31 | 30,771 | 26,760 |
Officers and Directors and Principal Shareholders and Their Affiliates [Member]. | ||
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Loans outstanding at January 1 | 22,670 | |
Principal advances | 4,459 | |
Principal paid | (4,420) | |
Balance at December 31 | $ 22,709 | $ 22,670 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Schedule of income statement information (unaudited)) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 31,920 | $ 28,707 | $ 28,672 | $ 28,481 | $ 29,354 | $ 30,474 | $ 30,393 | $ 30,303 | $ 117,779 | $ 120,524 | $ 118,907 |
Net Interest Income | 25,654 | 22,998 | 22,473 | 20,515 | 20,669 | 21,015 | 20,964 | 20,952 | 91,640 | 83,600 | 91,066 |
Income Before Taxes | 11,966 | 12,005 | 5,897 | 33 | 10,232 | 11,225 | 10,263 | 7,524 | 29,901 | 39,244 | 43,305 |
Net income | $ 8,963 | $ 9,588 | $ 4,709 | $ 27 | $ 8,964 | $ 8,864 | $ 9,319 | $ 6,020 | $ 23,287 | $ 33,167 | $ 33,691 |
Earnings per share, basic (in dollars per share) | $ 0.37 | $ 0.40 | $ 0.19 | $ 0.37 | $ 0.37 | $ 0.39 | $ 0.25 | $ 0.96 | $ 1.38 | $ 1.40 | |
Earnings Per Share, Diluted (in dollars per share) | $ 0.37 | $ 0.39 | $ 0.19 | $ 0.37 | $ 0.36 | $ 0.38 | $ 0.25 | $ 0.96 | $ 1.36 | $ 1.39 |
LOW INCOME HOUSING TAX CREDITS
LOW INCOME HOUSING TAX CREDITS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Tax credits and other tax benefits recognized related to investments | $ (225) | $ 255 |
Total projected tax credits to be received | 405 | |
Other liabilities | 25,881 | 20,536 |
Investments [Member] | ||
Other liabilities | 2,900 | 3,800 |
Other Assets [Member] | ||
Investments in equity | $ 5,100 | $ 6,000 |