Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Entity Registrant Name | VIRGINIA NATIONAL BANKSHARES CORP | |
Entity Central Index Key | 0001572334 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,370,912 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-40305 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 46-2331578 | |
Entity Address, Address Line One | 404 People Place | |
Entity Address, City or Town | Charlottesville | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22911 | |
City Area Code | 434 | |
Local Phone Number | 817-8621 | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | VABK | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
ASSETS | |||
Cash and due from banks | $ 8,785 | $ 18,074 | [1] |
Interest-bearing deposits in other banks | 8,515 | 10,316 | [1] |
Securities: | |||
Available for sale, at fair value | 284,698 | 420,595 | [1] |
Restricted securities, at cost | 6,667 | 8,385 | [1] |
Total securities | 291,365 | 428,980 | [1] |
Notes receivable gross | 1,158,214 | 1,092,665 | [1] |
Financing receivable allowance for credit losses | (8,028) | (8,395) | [1] |
Notes receivable net | 1,150,186 | 1,084,270 | [1] |
Premises and equipment, net | 15,818 | 16,195 | [1] |
Bank owned life insurance | 39,468 | 38,904 | [1] |
Goodwill | 7,768 | 7,768 | [1] |
Right of use asset, net | 6,287 | 6,748 | [1] |
Deferred tax asset, net | 15,860 | 15,382 | [1] |
Accrued interest receivable and other assets | 25,350 | 14,287 | [1] |
Total assets | 1,573,820 | 1,646,017 | [1] |
Demand deposits: | |||
Noninterest bearing | 357,931 | 372,857 | [1] |
Interest bearing | 257,365 | 305,541 | [1] |
Money market and savings deposit accounts | 423,055 | 412,119 | [1] |
Certificates of deposit and other time deposits | 335,490 | 318,581 | [1] |
Total deposits | 1,373,841 | 1,409,098 | [1] |
Federal funds purchased | 2,438 | 3,462 | [1] |
Borrowings | 30,000 | 66,500 | [1] |
Junior subordinated debt, net | 3,483 | 3,459 | [1] |
Lease liability | 6,102 | 6,504 | [1] |
Accrued interest payable and other liabilities | 3,792 | 3,954 | [1] |
Total liabilities | 1,419,656 | 1,492,977 | [1] |
Commitments and contingent liabilities | |||
Shareholders' equity: | |||
Preferred stock, $2.50 par value | 0 | [1] | |
Common stock, $2.50 par value | 13,256 | 13,258 | [1] |
Capital surplus | 105,935 | 106,045 | [1] |
Retained earnings | 77,961 | 73,781 | [1] |
Accumulated other comprehensive loss | (42,988) | (40,044) | [1] |
Total shareholders' equity | 154,164 | 153,040 | [1] |
Total liabilities and shareholders' equity | $ 1,573,820 | $ 1,646,017 | [1] |
Common stock, shares outstanding | 5,370,912 | 5,365,982 | [1] |
Common stock, shares authorized | 10,000,000 | 10,000,000 | [1] |
Preferred stock, shares outstanding | 0 | 0 | [1] |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | [1] |
Core Deposit [Member] | |||
Securities: | |||
Intangible assets, net | $ 4,418 | $ 5,093 | [1] |
[1] Derived from audited Consolidated Financial Statements |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 2.5 | $ 2.5 |
Common stock, par value per share | $ 2.5 | $ 2.5 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and dividend income: | ||||
Loans, including fees | $ 16,242 | $ 14,894 | $ 31,903 | $ 27,661 |
Federal funds sold | 160 | 10 | 399 | 10 |
Other interest-bearing deposits | 58 | 119 | 115 | 378 |
Investment securities: | ||||
Taxable | 1,776 | 2,876 | 3,935 | 5,826 |
Tax exempt | 327 | 329 | 653 | 656 |
Dividends | 100 | 104 | 218 | 171 |
Total interest and dividend income | 18,663 | 18,332 | 37,223 | 34,702 |
Interest expense: | ||||
Demand deposits | 68 | 106 | 139 | 195 |
Money market and savings deposits | 2,952 | 2,197 | 5,874 | 3,970 |
Certificates and other time deposits | 3,982 | 1,776 | 8,032 | 2,424 |
Interest expense borrowings | 388 | 439 | 874 | 766 |
Federal funds purchased | 9 | 32 | 16 | 91 |
Junior subordinated debt | 83 | 79 | 171 | 140 |
Total interest expense | 7,482 | 4,629 | 15,106 | 7,586 |
Net interest income | 11,181 | 13,703 | 22,117 | 27,116 |
Provision for (recovery of) credit losses | (338) | 261 | (360) | 13 |
Net interest income after provision for (recovery of) credit losses | 11,519 | 13,442 | 22,477 | 27,103 |
Noninterest income: | ||||
Wealth management fees | 240 | 397 | 666 | 801 |
Deposit account fees | 338 | 399 | 725 | 800 |
Debit/credit card and ATM fees | 523 | 636 | 1,011 | 1,207 |
Bank owned life insurance income | 289 | 261 | 564 | 513 |
Gains (losses) on sale of assets | (3) | 36 | ||
Gain on early redemption of debt | 379 | |||
Gain on termination of interest swap | 460 | |||
Loss on sales of AFS, net | (4) | (206) | ||
Other | 304 | 352 | 492 | 746 |
Total noninterest income | 1,691 | 2,045 | 3,869 | 4,321 |
Noninterest expense: | ||||
Salaries and employee benefits | 3,850 | 4,062 | 8,002 | 8,113 |
Net occupancy | 865 | 929 | 1,837 | 2,108 |
Equipment | 167 | 176 | 338 | 394 |
Bank franchise tax | 345 | 313 | 685 | 637 |
Computer software | 276 | 203 | 484 | 405 |
Data processing | 579 | 806 | 1,318 | 1,548 |
FDIC deposit insurance assessment | 180 | 220 | 375 | 320 |
Marketing, advertising and promotion | 157 | 275 | 405 | 650 |
Professional fees | 190 | 198 | 442 | 390 |
Core deposit intangible amortization | 332 | 379 | 675 | 770 |
Other | 1,181 | 1,003 | 2,380 | 2,090 |
Total noninterest expense | 8,122 | 8,564 | 16,941 | 17,425 |
Income before income taxes | 5,088 | 6,923 | 9,405 | 13,999 |
Provision for income taxes | 929 | 1,272 | 1,600 | 2,557 |
Net income | $ 4,159 | $ 5,651 | $ 7,805 | $ 11,442 |
Net income per common share, basic | $ 0.77 | $ 1.05 | $ 1.45 | $ 2.14 |
Net income per common share, diluted | $ 0.77 | $ 1.05 | $ 1.45 | $ 2.13 |
Weighted average common shares outstanding, basic | 5,377,055 | 5,357,873 | 5,371,972 | 5,348,040 |
Weighted average common shares outstanding, diluted | 5,385,770 | 5,375,073 | 5,382,980 | 5,375,545 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,159 | $ 5,651 | $ 7,805 | $ 11,442 |
Other comprehensive (loss) income: | ||||
Unrealized (losses) gains on securities, net of tax benefit of ($116) and ($783) for the three and six months ended June 30, 2024, respectively, and net of tax of ($831) and $766 for the three and six months ended June 30, 2023, respectively | (436) | (3,127) | (2,947) | 2,881 |
Reclassification adjustment for realized gain on termination of interest rate swap, net of tax of $97 for the six months ended June 30, 2023 | (363) | |||
Reclassification adjustment for realized losses on securities, net of tax of $1 and $43 for the six months ended June 30, 2024 and 2023, respectively | 3 | 163 | ||
Unrealized losses on interest rate swaps, net of tax benefit of ($9) for the six months ended June 30, 2023 | (37) | |||
Total other comprehensive (loss) income | (436) | (3,127) | (2,944) | 2,644 |
Total comprehensive income | $ 3,723 | $ 2,524 | $ 4,861 | $ 14,086 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized losses on available-for-sale securities, tax benefit | $ (116) | $ (831) | $ (783) | $ 766 |
Reclassification adjustment for realized gain on termination of interest rate swap, net of tax | 97 | |||
Reclassification adjustment for realized losses on securities, tax | $ 1 | 43 | ||
Unrealized losses on interest rate swaps, tax benefit | $ (9) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | |
Balance at Dec. 31, 2022 | $ 133,416 | $ 13,214 | $ 105,344 | $ 63,482 | $ (48,624) | |
Exercise of stock options | 18 | 3 | 15 | |||
Stock option expense | 42 | 42 | ||||
Restricted stock grant expense | 111 | 111 | ||||
Vested restricted stock grants | 21 | (21) | ||||
Cash dividends declared | (1,762) | (1,762) | ||||
Impact of adoption of CECL | (1,890) | (1,890) | ||||
Net income | 5,791 | 5,791 | ||||
Other comprehensive income (loss) | 5,771 | 5,771 | ||||
Balance at Mar. 31, 2023 | 141,497 | 13,238 | 105,491 | 65,621 | (42,853) | |
Balance at Dec. 31, 2022 | 133,416 | 13,214 | 105,344 | 63,482 | (48,624) | |
Net income | 11,442 | |||||
Balance at Jun. 30, 2023 | 142,439 | 13,250 | 105,667 | 69,502 | (45,980) | |
Balance at Mar. 31, 2023 | 141,497 | 13,238 | 105,491 | 65,621 | (42,853) | |
Stock option expense | 68 | 68 | ||||
Restricted stock grant expense | 120 | 120 | ||||
Vested restricted stock grants | 12 | (12) | ||||
Cash dividends declared | (1,770) | (1,770) | ||||
Net income | 5,651 | 5,651 | ||||
Other comprehensive income (loss) | (3,127) | (3,127) | ||||
Balance at Jun. 30, 2023 | 142,439 | 13,250 | 105,667 | 69,502 | (45,980) | |
Balance at Dec. 31, 2023 | 153,040 | [1] | 13,258 | 106,045 | 73,781 | (40,044) |
Stock option expense | 24 | 24 | ||||
Restricted stock grant expense | 171 | 171 | ||||
Vested restricted stock grants | 21 | (21) | ||||
Shares repurchased | (26) | (2) | (24) | |||
Cash dividends declared | (1,770) | (1,770) | ||||
Net income | 3,646 | 3,646 | ||||
Other comprehensive income (loss) | (2,508) | (2,508) | ||||
Balance at Mar. 31, 2024 | 152,577 | 13,277 | 106,195 | 75,657 | (42,552) | |
Balance at Dec. 31, 2023 | 153,040 | [1] | 13,258 | 106,045 | 73,781 | (40,044) |
Net income | 7,805 | |||||
Balance at Jun. 30, 2024 | 154,164 | 13,256 | 105,935 | 77,961 | (42,988) | |
Balance at Mar. 31, 2024 | 152,577 | 13,277 | 106,195 | 75,657 | (42,552) | |
Stock option expense | 35 | 35 | ||||
Restricted stock grant expense | 217 | 217 | ||||
Vested restricted stock grants | 28 | (28) | ||||
Shares repurchased | (533) | (49) | (484) | |||
Cash dividends declared | (1,772) | (1,772) | ||||
Net income | 4,159 | 4,159 | ||||
Adjustment for Masonry capital distribution | (83) | (83) | ||||
Other comprehensive income (loss) | (436) | (436) | ||||
Balance at Jun. 30, 2024 | $ 154,164 | $ 13,256 | $ 105,935 | $ 77,961 | $ (42,988) | |
[1] Derived from audited Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend declared, per share | $ 0.33 | $ 0.33 | $ 0.3 | $ 0.33 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,805 | $ 11,442 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Recovery of credit losses | (360) | 13 |
Net accretion of certain acquisition-related adjustments | (1,139) | (4,671) |
Amortization of intangible assets | 675 | 770 |
Net amortization (accretion) of securities | 120 | (1,117) |
Net losses on sale of AFS | 4 | 206 |
Net gain on early redemption of debt | (379) | |
Net (gains) losses on sale of assets | (36) | |
Earnings on bank owned life insurance | (564) | (513) |
Depreciation and other amortization | 1,479 | 1,654 |
Stock option expense | 59 | 110 |
Stock grant expense | 388 | 231 |
Net change in: | ||
Accrued interest receivable and other assets | (10,859) | 344 |
Accrued interest payable and other liabilities | (443) | 1,648 |
Net cash (used in) provided by operating activities | (3,250) | 10,117 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net (increase) decrease in restricted investments | 1,718 | (2,301) |
Purchases of available for sale securities | (10,000) | |
Proceeds from maturities, calls, sales and principal payments of available for sale securities | 132,041 | 78,930 |
Net change in loans | (64,393) | (34,282) |
Proceeds from sale of premises and equipment | 104 | 962 |
Purchase of bank premises and equipment | (428) | (501) |
Net cash provided by investing activities | 69,042 | 32,808 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in demand deposits, money market and savings accounts | (52,166) | (240,112) |
Net change in certificates of deposit and other time deposits | 16,909 | 109,856 |
Net change in Federal funds purchased | (1,024) | 20,503 |
Net change in other borrowings | (36,500) | 59,666 |
Proceeds from termination of interest swap | 479 | |
Proceeds from stock options exercised | 18 | |
Repurchase of shares of stock | (559) | |
Cash dividends paid | (3,542) | (3,532) |
Net cash used in financing activities | (76,882) | (53,122) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (11,090) | (10,197) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 28,390 | 40,136 |
End of period | 17,300 | 29,939 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 15,127 | 2,705 |
Taxes | 1,530 | 2,134 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized (losses) gains on available for sale securities | (3,727) | $ 3,852 |
Initial right-of-use assets obtained in exchange for new operating lease liabilities | $ 281 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 4,159 | $ 3,646 | $ 5,651 | $ 5,791 | $ 7,805 | $ 11,442 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation: The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2023 . Nature of Operations: The accompanying unaudited consolidated financial statements include the accounts of the Company, and its subsidiaries Virginia National Bank and Masonry Capital Management, LLC, a registered investment advisor. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Effective April 1, 2024, the Company sold the membership interests in Masonry Capital Management, LLC to an officer of the Company. Subsequent to the date of sale, the Company will receive an annual revenue-share amount for a period of six years . All significant intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation: The preparation of financial statements in conformity with GAAP and the reporting guidelines prescribed by regulatory authorities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ACL, accounting for business combinations, including loans acquired in the business combination, ACL on individually evaluated loans, goodwill impairment, credit losses of securities, other intangible assets, and fair value measurements. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 . Reclassifications: If needed, certain previously reported amounts have been reclassified to conform to current period presentation. No such reclassifications were considered material. |
Recent Significant Accounting P
Recent Significant Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Recent Significant Accounting Pronouncements | Note 2. Recent Significant Accounting Pronouncements Accounting Standards Adopted in 2024: In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 was effective for the Company on January 1, 2024 . The adoption of ASU 2023-02 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Issued but Not Yet Adopted: On March 29, 2024, the FASB issued ASU 2024-02, Codification Improvements- Amendments to Remove References to the Concepts Statements, which amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. The ASU is effective January 1, 2025 and is not expected to have a significant impact on the Company’s financial statements. Recently Issued Disclosure Rules: In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors”. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements will start to phase in commencing with the Company's fiscal year beginning January 1, 2026. Refer to Note 1, "Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in the 2023 Annual Report on Form 10-K for a discussion of the Company's significant accounting policies. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company's financial position, results of operations or cash flows. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3. Securities The amortized cost and fair values of securities available for sale as of June 30, 2024 and December 31, 2023 were as follows (dollars in thousands): June 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 11,495 $ - $ ( 62 ) $ 11,433 U.S. Government agencies 32,055 - ( 5,518 ) 26,537 Mortgage-backed/CMOs 172,852 68 ( 26,835 ) 146,085 Corporate bonds 18,731 - ( 487 ) 18,244 Municipal bonds 103,981 5 ( 21,587 ) 82,399 Total Securities Available for Sale $ 339,114 $ 73 $ ( 54,489 ) $ 284,698 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 122,288 $ 35 $ ( 615 ) $ 121,708 U.S. Government agencies 45,131 - ( 5,550 ) 39,581 Mortgage-backed/CMOs 179,920 171 ( 24,947 ) 155,144 Corporate bonds 19,680 1 ( 552 ) 19,129 Municipal bonds 104,265 31 ( 19,263 ) 85,033 Total Securities Available for Sale $ 471,284 $ 238 $ ( 50,927 ) $ 420,595 As of June 30, 2024, there were $ 278.5 million or 274 issues of individual securities, held in an unrealized loss position. These securities have an unrealized loss of $ 54.5 million and consist of 117 mortgage-backed/collateralized mortgage obligations, 126 municipal bonds, 19 agency bonds, 2 treasury bonds and 10 corporate bonds. Accrued interest receivable on AFS securities as of June 30, 2024 amounted to $ 1.7 million. The following tables summarize all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, for which no allowance for credit losses was recorded, at June 30, 2024, and December 31, 2023 (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2024 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ - $ - $ 11,432 $ ( 62 ) $ 11,432 $ ( 62 ) U.S. Government agencies - - 29,208 ( 5,518 ) 29,208 ( 5,518 ) Mortgage-backed/CMOs - - 139,131 ( 26,835 ) 139,131 ( 26,835 ) Corporate bonds - - 18,244 ( 487 ) 18,244 ( 487 ) Municipal bonds 939 ( 5 ) 79,542 ( 21,582 ) 80,481 ( 21,587 ) $ 939 $ ( 5 ) $ 277,557 $ ( 54,484 ) $ 278,496 $ ( 54,489 ) Less than 12 Months 12 Months or More Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ - $ - $ 52,298 $ ( 615 ) $ 52,298 $ ( 615 ) U.S. Government agencies 10,090 ( 20 ) 29,490 ( 5,530 ) 39,580 ( 5,550 ) Mortgage-backed/CMOs - - 150,045 ( 24,947 ) 150,045 ( 24,947 ) Corporate bonds - - 19,129 ( 552 ) 19,129 ( 552 ) Municipal bonds - - 82,140 ( 19,263 ) 82,140 ( 19,263 ) $ 10,090 $ ( 20 ) $ 333,102 $ ( 50,907 ) $ 343,192 $ ( 50,927 ) The Company’s securities portfolio is primarily made up of fixed rate instruments, the prices of which move inversely with interest rates. Any unrealized losses are considered by management to be driven by increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the instruments approach their maturity date or repricing date or if market yields for such investments decline. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Impairment of debt securities occurs when the fair value of a security is less than its amortized cost. The Company has elected to exclude accrued interest receivable from the amortized cost basis. For debt securities AFS, impairment is recognized in its entirety in net income if either, (i) we intend to sell the security; 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, however, the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery, the Company evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an ACL is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the ACL are recorded in net income in the period of change and are included in the provision for credit losses. Changes in the fair value of debt securities AFS not resulting from credit losses are recorded in other comprehensive income (loss). The Company regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. In addition, issuers have continued to make timely payments of principal and interest. Accordingly, as of June 30, 2024, management believes the impairments detailed in the table above are temporary, and no credit loss has been realized in the Company’s consolidated statements of income. Additionally, management has the ability to hold any security with an unrealized loss until maturity or until such time as the value of the security has recovered from its unrealized loss position. Securities pledged as collateral to secure public deposits and to facilitate borrowing from the FRB had carrying values of $ 21.6 million and $ 21.8 million at June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024 and 2023, the Company sold AFS securities with a total book value of $ 39.6 million, incurring a pre-tax loss of $ 4 thousand, and AFS securities with a book value of $ 49.9 million incurring a loss of $ 206 thousand, respectively. Each of these sales was executed as the result of a strategic decision to reinvest proceeds into higher yielding assets. Restricted securities are securities with limited marketability and consist of stock in the FRB, the Federal Home Loan Bank of Atlanta, CBB Financial Corporation (the holding company for Community Bankers' Bank) and an investment in an SBA loan fund. These restricted securities, totaling $ 6.7 million and $ 8.4 million as of June 30, 2024 and December 31, 2023, respectively, are carried at cost. The amortized cost and fair value of AFS debt securities at June 30, 2024 are presented below based upon contractual maturities, by major investment categories (dollars in thousands). Expected maturities may differ from contractual maturities because issuers have the right to call or prepay obligations. Amortized Cost Fair Value U.S. Government treasuries One year or less $ 11,495 $ 11,433 After one year to five years - - $ 11,495 $ 11,433 U.S. Government agencies One year or less $ — $ — After one year to five years 10,133 8,878 After five years to ten years 17,922 14,715 Ten years or more 4,000 2,944 $ 32,055 $ 26,537 Mortgage-backed/CMOs One year or less $ 1,791 $ 1,773 After one year to five years 3,275 3,115 After five years to ten years 5,891 5,341 Ten years or more 161,895 135,856 $ 172,852 $ 146,085 Corporate bonds One year or less $ 4,953 $ 4,871 After one year to five years 13,778 13,373 $ 18,731 $ 18,244 Municipal bonds One year or less $ 610 $ 600 After one year to five years 3,202 3,093 After five years to ten years 22,892 20,791 Ten years or more 77,277 57,915 $ 103,981 $ 82,399 Total Debt Securities Available for Sale $ 339,114 $ 284,698 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Note 4. Loans The composition of the loan portfolio by major loan classifications at June 30, 2024 and December 31, 2023 , stated at their face amount, net of deferred fees and costs and discounts, including fair value marks, appears below (dollars in thousands). The Company has elected to exclude accrued interest receivable, totaling $ 4.9 million as of June 30, 2024, from the amortized cost basis of loans. June 30, December 31, 2024 2023 Commercial $ 222,677 $ 152,517 Real estate construction and land 36,908 33,682 1-4 family residential mortgages 307,055 317,558 Commercial mortgages 553,455 550,867 Consumer 38,119 38,041 Total loans 1,158,214 1,092,665 Less: Allowance for credit losses ( 8,028 ) ( 8,395 ) Net loans $ 1,150,186 $ 1,084,270 The balances in the table above include unamortized premiums and net deferred loan costs and fees. As of June 30, 2024 and December 31, 2023, unamortized premiums from purchases of loans (excluding loans acquired during the Merger) were $ 8.7 million , and $ 4.6 million, respectively, due primarily to purchases of government-guaranteed loans. Net deferred loan costs and fees totaled $ 2.5 million as of June 30, 2024 and December 31, 2023. Consumer loans inclu de $ 261 thousand and $ 252 thousand of demand deposit overdrafts as of June 30, 2024 and December 31, 2023, respectively. Loans acquired in business combinations are recorded in the consolidated balance sheets at fair value at the acquisition date under the acquisition method of accounting. The fair value mark as of the Effective Date w as $ 23.1 million. The table above includes a remaining net fair value mark of $ 8.2 million as of June 30, 2024 on the Acquired Loans. The following table shows the aging of the Company's loan portfolio, by class, at June 30, 2024 (dollars in thousands): 30-59 Days 60-89 Days 90 Days or More Past Due and Still Accruing Nonaccrual Loans Current Loans Total Loans Commercial $ 2,582 $ 23 $ 1,533 $ - $ 218,539 $ 222,677 Real estate construction and land - - - - 36,908 36,908 1-4 family residential mortgages 868 433 - 2,008 303,746 307,055 Commercial mortgages - - - 357 553,098 553,455 Consumer loans 146 121 63 - 37,789 38,119 Notes Receivable Gross $ 3,596 $ 577 $ 1,596 $ 2,365 $ 1,150,080 $ 1,158,214 The following table shows the aging of the Company's loan portfolio, by class, at December 31, 2023 (dollars in thousands): 30-59 Days 60-89 Days 90 Days or More Nonaccrual Loans Current Loans Total Loans Commercial $ 378 $ 369 $ 782 $ - $ 150,988 $ 152,517 Real estate construction and land 70 37 - - 33,575 33,682 1-4 family residential mortgages 1,834 860 - 1,438 313,426 317,558 Commercial mortgages 6,304 - - 414 544,149 550,867 Consumer loans 225 141 97 - 37,578 38,041 Notes Receivable Gross $ 8,811 $ 1,407 $ 879 $ 1,852 $ 1,079,716 $ 1,092,665 The following table shows the Company's amortized cost basis of loans on nonaccrual status as of June 30, 2024 (dollars in thousands). All nonaccrual loans are evaluated for an ACL on an individual basis. As of June 30, 2024 , no nonaccrual loans required an ACL, and as of December 31, 2023, only one nonaccrual loan required an ACL, in the amount of $ 4 thousand, due to collateral value shortfall. June 30, 2024 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Commercial $ - $ - $ - Real estate construction and land - - - 1-4 family residential mortgages 2,008 - 2,008 Commercial mortgages 357 357 Consumer - - - Notes Receivable Gross $ 2,365 $ - $ 2,365 The following table shows the Company's amortized cost basis of loans on nonaccrual status as of December 31, 2023 (dollars in thousands). December 31, 2023 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Commercial $ - $ - $ - Real estate construction and land - - - 1-4 family residential mortgages 1,383 55 1,438 Commercial mortgages 414 414 Consumer - - - Notes Receivable Gross $ 1,797 $ 55 $ 1,852 Troubled loan modifications From time to time, the Company modifies loans to borrowers who are experiencing financial difficulties by providing term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the ACL due to the measurement methodologies used in its estimate, the ACL is typically not adjusted upon modification. During the first quarter of 2024, one 1-4 family residential mortgage loan was modified for a borrower experiencing financial difficulties, in the amount of $ 703 thousand and representing 0.002 % of this loan segment, by extending the interest-only term and maintaining the original interest rate. During the three months ended June 30, 2024 and the three and six months ended June 30, 2023 , no loans were modified. The Company closely monitors the performance of all modified loans to understand the effectiveness of its modification efforts. Upon determination, if applicable, that all or a portion of a modified loan is uncollectible, that amount is charged against the ACL. There were no payment defaults during the three and six months ended June 30, 2024 or 2023 of modified loans that were modified during the previous twelve months. All modified loans are current as of June 30, 2024 and June 30, 2023. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Allowance For Loan Losses [Abstract] | |
Allowance for Credit Losses | Note 5. Allowance for Credit Losses The ACL on the loan portfolio is a material estimate for the Company. The Company estimates is ACL on its loan portfolio on a quarterly basis. The Company utilizes two methodologies in its development of the ACL, discounted cash flow and remaining life. • Discounted Cash Flow o DCF models, being periodic in nature, allow for effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner. o The analysis aligns well with other calculations/actions outside the ACL estimation, which will mitigate model risk in other areas and allow for symmetrical application. For example, fair value (exit price notion), profitability analysis, IRR calculations, ALM, stress testing, and other forms of cash flow analysis. o Peer data is available for certain inputs (Probability of Default, Loss Given Default) if first-party data is not available or meaningful. This is made possible by the periodic nature of the model. o The DCF methodology is utilized on the following pools: 1) Commercial & Industrial; 2) Construction; 3) Consumer; 4) CRE NonOwner Occupied; 5) CRE Owner Occupied; 6) HELOC & Junior Lien; 7) Residential 1st Lien; and 8) Multifamily. • Remaining Life o This methodology leverages a quarterly loss rate as well as future expectations of portfolio balances to calculate a reserve. o There are two main strengths of this methodology. First, it is fairly easy to execute and does not rely on large quantities of historical loan-level data. Second, it can satisfy the need to incorporate a reasonable and supportable forecast in a straightforward manner by either applying a forecast policy of “applicable history” or leveraging an actual econometric model for the analysis. o The remaining life methodology is utilized on the following pools: 1) Minute Lender; and 2) Student Loans. Maximum Loss Rate - Management utilizes the same model to calculate maximum loss rates and expected loss rates for each segment. No additional models or methodologies were used to quantify the maximum loss rate, rather, a worst-case economic environment is utilized in the models. This process ensures symmetry between the maximum loss rate and the quantified loss rate. This process also leverages the well-documented regression models used in model development. The process for deriving the maximum loss rate is outlined below: • The economic forecast reflects the worst economic environment observed for each economic factor. This is done by quantifying a rolling 1-year average for each economic factor. Then, the most pessimistic 1-year average observations are captured and utilized as economic forecast inputs within the application. • The economic forecast assumed is a ‘worst-case’ economic environment with inputs reflective of the great recession. • The economic forecast is used to quantify credit risk in the form of Loss Rate. The resulting periodic default and loss rates are applied to the prepayment adjusted amortization schedules for each segment. • The resulting ACL, which represents a lifetime reserve (symmetrical to the base model), is input into the qualitative framework’s maximum loss rate field. The difference between the expected model and the maximum model results are then allocated based on weight and risk assignment. Qualitative Factors - ASC 326 requires an entity to adjust historical loss information to reflect the extent to which management expects reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The adjustments for reasonable and supportable forecasts may be qualitative in nature and should reflect changes related to relevant data. The Company utilizes a scorecard approach to assign qualitative factors. The scorecard approach is in alignment with the AICPA audit considerations for CECL which states: These adjustments should be grounded in a methodology that is subject to appropriate governance, challenge, and periodic controlled reevaluation. Such methodology will generally require significant management judgment. The information used to support management’s adjustments may be publicly available information, information specifically developed for the entity via management’s specialist (internal or external), or other relevant and reliable information. The purpose of the qualitative scorecard is to provide a qualitative estimate of the expected credit losses of the current loan portfolio in response to potential limitations of the quantitative model. It is used to aid in the assessment of the unquantifiable factors affecting expected credit losses in the loan portfolio. Benefits of the scorecard include directional consistency, objectivity, controls and quantification framework (auditable). For each segment, the scorecard calculates the difference between the quantitative expected credit loss and the maximum loss rate. This difference represents all available qualitative adjustment that can be applied to that segment. Individual Evaluation - In accordance with ASC 326, the Company will evaluate individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. Loans will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for each loan, using one of four methods: 1) Fair Value of Collateral Method (Collateral Relationship); 2) Cash Flow Method; 3) Advanced Cash Flow Method; or 4) Loan Pricing Method. Management has elected to perform an individual evaluation on all loans in nonaccrual status. As of June 30, 2024, after reviewing each loan in nonaccrual status, no specific reserve was deemed necessary. As of December 31, 2023 , a specific reserve of $ 4 thousand was established. The primary driver in the change in reserves from December 31, 2023 to June 30, 2024 was the proportional increase in government-guaranteed loans which do not require an ACL. Balances in government-guaranteed loans have increased $ 74.6 million from December 31, 2023 to June 30, 2024 and have increased $ 130.2 million year-over-year. Such loans are 100 % government-guaranteed and do not require an ACL. The following table shows the ACL activity by loan portfolio for the six months ended June 30, 2024 (dollars in thousands): Commercial Real Estate 1-4 Family Residential Mortgages Commercial Mortgages Consumer Total Allowance for Credit Losses: Balance as of December 31, 2023 $ 193 $ 462 $ 1,492 $ 5,261 $ 987 $ 8,395 Charge-offs - - - - ( 184 ) ( 184 ) Recoveries 13 - 4 1 49 67 Provision for (recovery of) credit ( 30 ) ( 51 ) ( 9 ) 30 71 11 Balance as of March 31, 2024 $ 176 $ 411 $ 1,487 $ 5,292 $ 923 $ 8,289 Charge-offs ( 104 ) - - - ( 71 ) ( 175 ) Recoveries 382 - 3 1 47 433 Provision for (recovery of) credit losses 201 275 664 ( 1,748 ) 89 ( 519 ) Balance as of June 30, 2024 $ 655 $ 686 $ 2,154 $ 3,545 $ 988 $ 8,028 The following table shows the ACL activity by loan portfolio at December 31, 2023 (dollars in thousands): Commercial Real Estate 1-4 Family Residential Mortgages Real Estate Consumer Total Allowance for Credit Losses: Balance as of beginning of year, January 1, 2023 $ 194 $ 221 $ 1,618 $ 2,820 $ 699 $ 5,552 Impact of ASC 326 adoption ( 11 ) 440 14 1,577 471 2,491 Charge-offs - - - - ( 721 ) ( 721 ) Recoveries 168 - 10 42 157 377 Provision for (recovery of) credit losses ( 158 ) ( 199 ) ( 150 ) 822 381 696 Ending Balance, December 31, 2023 $ 193 $ 462 $ 1,492 $ 5,261 $ 987 $ 8,395 The following table presents a breakdown of the provision (recovery) for credit losses for the periods indicated (dollars in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Provision for credit losses: Provision for (recovery of) loan losses $ ( 519 ) $ 216 $ ( 508 ) $ ( 19 ) Provision for unfunded commitments 181 45 148 32 Total $ ( 338 ) $ 261 $ ( 360 ) $ 13 The following table presents the Company's amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as of the periods indicated (dollars in thousands): June 30, 2024 December 31, 2023 Real Estate Secured Loans Allowance for Credit Losses - Loans Real Estate Secured Loans Allowance for Credit Losses - Loans Commercial real estate - non owner occupied $ 357 $ - $ 414 $ - Residential 1-4 family real estate 2,008 - 1,438 4 Total $ 2,365 $ - $ 1,852 $ 4 The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of June 30, 2024 (dollars in thousands). Current period gross write-off amounts represent write-offs for the six months ended June 30, 2024 (dollars in thousands): June 30, 2024 Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Loans Converted to Term Total Commercial Pass $ 57,370 $ 105,537 $ 12,044 $ 2,127 $ 3,938 $ 24,338 $ 16,913 $ - $ 222,267 Watch - - 37 - - - - - 37 Special Mention - - - - - 79 - 8 87 Substandard - - 84 - 26 176 - - 286 Total commercial $ 57,370 $ 105,537 $ 12,165 $ 2,127 $ 3,964 $ 24,593 $ 16,913 $ 8 $ 222,677 Current period gross write-off $ - $ - $ 1 $ - $ 103 $ - $ - $ - $ 104 . Real estate construction and land Pass $ 1,746 $ 13,831 $ 12,482 $ 2,605 $ 1,667 $ 1,883 $ - $ - $ 34,214 Watch - 1,043 - - - 273 - - 1,316 Special Mention - - - - - - - - - Substandard - 1,335 - - - 43 - - 1,378 Total real estate construction and land $ 1,746 $ 16,209 $ 12,482 $ 2,605 $ 1,667 $ 2,199 $ - $ - $ 36,908 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - . 1-4 family residential mortgages Pass $ 6,262 $ 16,704 $ 13,032 $ 54,357 $ 73,140 $ 102,513 $ 18,261 $ 300 $ 284,569 Watch - 1,839 1,400 1,852 596 8,433 658 404 15,182 Special Mention - - 1,072 - - 1,571 - 60 2,703 Substandard - - - 810 1,302 1,992 396 101 4,601 Total 1-4 family residential mortgage $ 6,262 $ 18,543 $ 15,504 $ 57,019 $ 75,038 $ 114,509 $ 19,315 $ 865 $ 307,055 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - . Commercial mortgages Pass $ 28,060 $ 104,821 $ 39,316 $ 45,285 $ 88,199 $ 207,911 $ 1,134 $ - $ 514,726 Watch - 1,792 1,059 1,180 6,349 11,133 - - 21,513 Special Mention - - - 520 263 7,435 - - 8,218 Substandard - - - 1,787 4,605 2,606 - - 8,998 Total commercial mortgages $ 28,060 $ 106,613 $ 40,375 $ 48,772 $ 99,416 $ 229,085 $ 1,134 $ - $ 553,455 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Pass $ 129 $ 1,129 $ 174 $ 317 $ 211 $ 20,872 $ 14,931 $ - $ 37,763 Watch - - - 7 - 147 - - 154 Special Mention - - - - - 124 1 - 125 Substandard 12 1 - - - 63 1 - 77 Total consumer $ 141 $ 1,130 $ 174 $ 324 $ 211 $ 21,206 $ 14,933 $ - $ 38,119 Current period gross write-off $ - $ - $ - $ - $ 4 $ 251 $ - $ - $ 255 The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023 (dollars in thousands). December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Loans Converted to Term Total Commercial Pass $ 85,529 $ 12,344 $ 2,712 $ 4,989 $ 7,121 $ 16,873 $ 21,806 $ 112 $ 151,486 Watch - 41 - - - - - - 41 Special Mention - - - - - 79 8 - 87 Substandard - 97 1 135 53 212 50 355 903 Total commercial $ 85,529 $ 12,482 $ 2,713 $ 5,124 $ 7,174 $ 17,164 $ 21,864 $ 467 $ 152,517 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Real estate construction and land Pass $ 12,425 $ 11,748 $ 3,683 $ 1,717 $ 955 $ 1,293 $ 129 $ - $ 31,950 Watch - - - - - 299 - - 299 Special Mention - - - - - 37 - - 37 Substandard 1,351 - - - - 45 - - 1,396 Total real estate construction and land $ 13,776 $ 11,748 $ 3,683 $ 1,717 $ 955 $ 1,674 $ 129 $ - $ 33,682 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - 1-4 family residential mortgages Pass $ 19,482 $ 14,712 $ 54,066 $ 74,539 $ 24,999 $ 85,836 $ 20,571 $ 524 $ 294,729 Watch - 1,621 1,874 602 - 7,149 1,166 - 12,412 Special Mention - 1,089 1,458 1,958 270 1,591 78 138 6,582 Substandard - - 55 1,194 97 2,094 395 - 3,835 Total 1-4 family residential mortgage $ 19,482 $ 17,422 $ 57,453 $ 78,293 $ 25,366 $ 96,670 $ 22,210 $ 662 $ 317,558 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial mortgages Pass $ 112,093 $ 41,433 $ 46,315 $ 101,205 $ 45,809 $ 171,184 $ 1,502 $ 76 $ 519,617 Watch - - 1,196 166 165 14,188 - - 15,715 Special Mention - - 391 278 - 4,130 - - 4,799 Substandard 150 - 1,824 3,032 - 5,730 - - 10,736 Total commercial mortgages $ 112,243 $ 41,433 $ 49,726 $ 104,681 $ 45,974 $ 195,232 $ 1,502 $ 76 $ 550,867 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Pass $ 1,149 $ 193 $ 420 $ 273 $ 107 $ 20,836 $ 14,710 $ - $ 37,688 Watch - - 7 - 9 190 - - 206 Special Mention - - - - - 132 1 5 138 Substandard 1 - - - 8 - - - 9 Total consumer $ 1,150 $ 193 $ 427 $ 273 $ 124 $ 21,158 $ 14,711 $ 5 $ 38,041 Current period gross write-off $ - $ - $ 19 $ 16 $ 28 $ 654 $ 4 $ - $ 721 Credit Quality Indicators The Company utilizes the following credit quality indicators: Pass Loans with the following risk ratings are pooled by class and considered together as “Pass”: Excellent – minimal risk loans secured by cash or fully guaranteed by a U.S. government agency Good – low risk loans secured by marketable collateral within margin Satisfactory – modest risk loans where the borrower has strong and liquid financial statements and more than adequate cash flow Average – average risk loans where the borrower has reasonable debt service capacity Marginal – acceptable risk loans where the borrower has acceptable financial statements but is leveraged Watch These loans have an acceptable risk but require more attention than normal servicing. Special Mention These potential problem loans are currently protected but are potentially weak. Substandard These problem loans are inadequately protected by the sound worth and paying capacity of the borrower and/or the value of any collateral pledged. If such loans are not accruing interest, they would be evaluated on an individual basis. Doubtful Loans with this rating have significant deterioration in the sound worth and paying capacity of the borrower and/or the value of any collateral pledged, making collection or liquidation of the loan in full highly questionable. These loans would be considered impaired and evaluated on an individual basis. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets The carrying amount of goodwill was $ 7.8 million at June 30, 2024, December 31, 2023 and June 30, 2023, resulting from the Merger. The Company had $ 4.4 million , $ 5.1 million and $ 5.8 million of other intangible assets as of June 30, 2024, December 31, 2023 and June 30, 2023 , respectively. Other intangible assets were recognized in connection with the core deposits acquired from Fauquier in 2021. The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets (dollars in thousands): June 30, 2024 December 31, 2023 June 30, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangible $ 9,660 $ ( 5,242 ) $ 9,660 $ ( 4,567 ) $ 9,660 $ ( 3,465 ) Amortization expense was $ 332 thousand and $ 379 thousand for the three months ended June 30, 2024 and 2023, respectively, and $ 675 thousand and $ 770 thousand for the six months ended June 30, 2024 and 2023, respectively. Estimated future amortization expense as of June 30, 2024 is as follows (dollars in thousands): Core Deposit Intangible For the six months ending December 31, 2024 $ 627 For the year ending December 31, 2025 1,110 For the year ending December 31, 2026 918 For the year ending December 31, 2027 726 For the year ending December 31, 2028 535 Thereafter 502 Total $ 4,418 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 7. Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease for a term similar to the length of the lease, including any probable renewal options available. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term. Payments for leases with terms longer than twelve months are included in the determination of the lease liability. Each of the Company’s long-term lease agreements is classified as an operating lease. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases (dollars in thousands): June 30, 2024 December 31, 2023 Lease liability $ 6,102 $ 6,504 Right-of-use asset $ 6,287 $ 6,748 Weighted average remaining lease term 4.87 years 4.71 years Weighted average discount rate 2.71 % 2.28 % Three Months Ended June 30, Six Months Ended June 30, Lease Expense: 2024 2023 2024 2023 Operating lease cost $ 412 $ 395 $ 841 $ 906 Short-term lease expense 18 81 30 204 Total lease expense $ 430 $ 476 $ 871 $ 1,110 Cash paid for amounts included in $ 395 $ 336 $ 783 $ 848 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): Undiscounted Cash Flow June 30, 2024 Six months ending December 31, 2024 $ 799 Twelve months ending December 31, 2025 1,497 Twelve months ending December 31, 2026 1,158 Twelve months ending December 31, 2027 1,063 Twelve months ending December 31, 2028 942 Thereafter 1,195 Total undiscounted cash flows $ 6,654 Less: Discount ( 552 ) Lease liability $ 6,102 |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 8. Net Income Per Share The table below shows the weighted average number of shares used in computing net income per common share and the effect of the weighted average number of shares of potential dilutive common stock for the three and six months ended June 30, 2024 and 2023. Diluted net income per share is computed based on the weighted average number of shares of common stock equivalents outstanding, to the extent dilutive. The Company’s common stock equivalents relate to outstanding common stock options. The recipients of unvested restricted shares have full voting and dividend rights, and as such, unvested restricted stock as of June 30, 2024 and June 30, 2023 is included in the calculation of basic and diluted net income per share (dollars below reported in thousands except per share data). Three Months Ended June 30, 2024 June 30, 2023 Net Weighted Per Net Weighted Per Basic net income per share $ 4,159 5,377,055 $ 0.77 $ 5,651 5,357,873 $ 1.05 Effect of dilutive stock options - 8,715 - - 17,200 - Diluted net income per share $ 4,159 5,385,770 $ 0.77 $ 5,651 5,375,073 $ 1.05 Six Months Ended June 30, 2024 June 30, 2023 Net Weighted Per Net Weighted Per Basic net income per share $ 7,805 5,371,972 $ 1.45 $ 11,442 5,348,040 $ 2.14 Effect of dilutive stock options - 11,008 - - 27,505 ( 0.01 ) Diluted net income per share $ 7,805 $ 5,382,980 $ 1.45 $ 11,442 5,375,545 $ 2.13 For the three and six months ended June 30, 2024, there were 149,001 opti on shares considered anti-dilutive and excluded from this calculation. For the three and six months ended June 30, 2023, there were 105,501 o ption shares considered anti-dilutive and excluded from this calculation. |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Note 9. Stock Incentive Plans At the Annual Shareholders Meeting on June 23, 2022, shareholders approved the Virginia National Bankshares Corporation 2022 Stock Incentive Plan. The 2022 Plan made available up to 150,000 shares of the Company’s common stock to be issued to plan participants. The 2022 Plan provides for granting of both incentive and nonqualified stock options, as well as restricted stock, unrestricted stock and other stock based awards. No new grants can be issued under the 2014 Stock Incentive Plan or the 2005 Stock Incentive Plan as those plans have expired. For the 2022 Plan, the option price for any stock options cannot be less than the fair value of the Company’s stock on the grant date. In addition, 95 % of the common stock authorized for issuance must have a vesting or exercise schedule of at least one year. For the 2014 Plan and the 2005 Plan, the option price of incentive stock options cannot be less than the fair value of the stock at the time an option is granted and nonqualified stock options may be granted at prices established by the Board of Directors, including prices less than the fair value on the date of grant. Outstanding stock options generally expire ten years from the grant date. Stock options generally vest by the fourth or fifth anniversary of the date of the grant. A summary of the shares issued and available under each of the Plans is shown below as of June 30, 2024 . Share data and exercise price range per share have been adjusted to reflect prior issued stock dividends. Although the 2014 Plan and the 2005 Plan have expired and no new grants will be issued under those plans, there were options issued before the plans expired that are still outstanding as shown below. 2022 Plan 2014 Plan 2005 Plan Aggregate shares issuable 150,000 275,625 253,575 Options issued, net of forfeited and expired ( 44,700 ) ( 174,006 ) ( 59,870 ) Unrestricted stock issued - ( 11,635 ) - Restricted stock grants issued, net of forfeited ( 44,212 ) ( 83,653 ) - Cancelled due to Plan expiration - ( 6,331 ) ( 193,705 ) Remaining available for grant 61,088 - - Stock grants issued and outstanding: Total vested and unvested shares 44,212 95,888 - Fully vested shares 4,733 67,054 - Option grants issued and outstanding: Total vested and unvested shares 44,700 169,301 - Fully vested shares - 129,220 - Exercise price range $ 28.82 to $ 33.20 $ 23.75 to $ 42.62 $ - The Company accounts for all of its stock incentive plans under recognition and measurement accounting principles which require that the compensation cost relating to stock-based payment transactions be recognized in the financial statements. Stock-based compensation arrangements include stock options and restricted stock. All stock-based payments to employees are required to be valued at a fair value on the date of grant and expensed based on that fair value over the applicable vesting period. Stock Options Changes in the stock options outstanding related to the Plans are summarized below (dollars in thousands except per share data): June 30, 2024 Number of Options Weighted Aggregate Outstanding at January 1, 2024 174,201 $ 33.94 $ - Issued 41,300 $ 28.98 - Exercised — $ — Forfeited ( 1,500 ) $ 35.35 - Expired - $ - Outstanding at June 30, 2024 214,001 $ 32.97 $ 709 Options exercisable at June 30, 2024 129,220 $ 35.48 $ 350 For the three months ended June 30, 2024 and 2023 , the Company recognized $ 35 thousand and $ 68 thousand, respectively, in compensation expense for stock options. For the six months ended June 30, 2024 and 2023, the Company recognized $ 58 thousand and $ 110 thousand, respectively, in compensation expense for stock options. As of June 30, 2024, there wa s $ 382 thousand in unr e cognized compensation expense remaining to be recognized in future reporting periods through 2028 . The fair value of any stock option grant is estimated at the grant date using the Black-Scholes pricing model. There were stock options grants of 32,900 issued during the three months ended June 30, 2024 , and 8,400 issued in the first quarter of 2024. There were stock option grants of 3,600 issued during the three months ended June 30, 2023, and none granted during the first quarter of 2023. Summary information pertaining to options outstanding at June 30, 2024 is shown below. Share and per share data have been adjusted to reflect the prior stock dividends issued. Options Outstanding Options Exercisable Exercise Price Number of Weighted- Weighted- Number of Weighted- $ 20.01 to $ 30.00 101,300 7.4 Years $ 25.85 43,800 $ 24.82 $ 30.01 to $ 40.00 55,220 6.9 Years 36.00 27,940 37.51 $ 40.01 to $ 42.62 57,481 3.9 Years 42.62 57,480 42.62 Total 214,001 6.3 Years $ 32.97 129,220 $ 35.48 Stock Grants Restricted stock grants – 25,280 restricted shares were granted to employees and non-employee directors, vesting over a four-year period, during the six months ended June 30, 2024. For the three and six months ended June 30, 2024 , $ 217 thousand and $ 388 thousand, respectively, were expensed as a result of restricted stock grants. As of June 30, 2024 , there was $ 2.1 million in unrecognized compensation expense for all restricted stock grants remaining to be recognized in future reporting periods through 2028 . Changes in the restricted stock grants outstanding during the six months ended June 30, 2024 are summarized below (dollars in thousands except per share data): June 30, 2024 Number of Weighted Aggregate Nonvested as of January 1, 2024 62,721 $ 32.56 $ 2,057 Issued 25,280 30.05 829 Vested ( 19,688 ) 31.21 ( 646 ) Forfeited - - - Nonvested at June 30, 2024 68,313 $ 32.02 $ 2,240 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10. Fair Value Measurements Determination of Fair Value The Company follows ASC 820, “Fair Value Measurements and Disclosures,” to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: Securities available for sale Securities AFS are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). The following tables present the balances measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (dollars in thousands): Fair Value Measurements at June 30, 2024 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 11,433 $ - $ 11,433 $ - U.S. Government agencies 26,537 - 26,537 - Mortgage-backed/CMOs 146,085 - 146,085 - Corporate bonds 18,244 - 18,244 - Municipal bonds 82,399 - 82,399 - Total securities available for sale $ 284,698 $ - $ 284,698 $ - Fair Value Measurements at December 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 121,708 $ - $ 121,708 $ - U.S. Government agencies 39,581 - 39,581 - Mortgage-backed/CMOs 155,144 - 155,144 - Corporate bonds 19,129 - 19,129 Municipal bonds 85,033 - 85,033 - Total securities available for sale $ 420,595 $ - $ 420,595 $ - Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: Collateral Dependent Loans with an ACL In accordance with ASC 326, we may determine that an individual loan exhibits unique risk characteristics which differentiate it from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the ACL are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice. There were no assets that were measured at fair value on a nonrecurring basis as of June 30, 2024 . The following table presents the Company's assets that were measured at fair value on a nonrecurring basis as of December 31, 2023: Fair Value Measurements at December 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans $ 461 $ - $ - $ 461 Description Fair Value Valuation Technique Unobservable Inputs Discount Rate Assets: Individually evaluated loans $ 461 Market comparables Discount applied to recent appraisal 20.0 % ASC 825, “Financial Instruments,” requires disclosures about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The carrying values and estimated fair values of the Company's financial instruments as of June 30, 2024 and December 31, 2023 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2024 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 17,300 $ 17,300 $ - $ - $ 17,300 Available for sale securities 284,698 - 284,698 - 284,698 Restricted securities 6,667 - 6,667 - 6,667 Loans, net 1,150,186 - - 1,084,432 1,084,432 Bank owned life insurance 39,468 - 39,468 - 39,468 Accrued interest receivable 6,579 - 1,716 4,863 6,579 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,038,351 $ - $ 1,038,351 $ - $ 1,038,351 Certificates of deposit 335,490 - 335,282 - 335,282 Federal funds purchased 2,438 2,438 2,438 Borrowings 30,000 - 30,072 - 30,072 Junior subordinated debt, net 3,483 - 3,483 - 3,483 Accrued interest payable 2,122 - 2,122 - 2,122 Fair Value Measurements at December 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 28,390 $ 28,390 $ - $ - $ 28,390 Available for sale securities 420,595 - 420,595 - 420,595 Restricted securities 8,385 - 8,385 - 8,385 Loans, net 1,084,270 - - 1,029,359 1,029,359 Bank owned life insurance 38,904 - 38,904 - 38,904 Accrued interest receivable 6,179 - 1,916 4,263 6,179 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,090,517 $ - $ 1,090,517 $ - $ 1,090,517 Certificates of deposit 318,581 - 318,768 - 318,768 Federal funds purchased 3,462 3,462 3,462 Borrowings 66,500 66,360 66,360 Junior subordinated debt, net 3,459 - 3,459 - 3,459 Accrued interest payable 2,143 - 2,143 - 2,143 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. Consequently, the fair values of the Company’s financial instruments will fluctuate when interest rate levels change, and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk; however, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Other Comprehensive Income (Loss) | Note 11. Other Comprehensive Income (Loss) The following table presents the changes in each component of accumulated other comprehensive income (loss) as of June 30, 2024 and June 30, 2023 (dollars in thousands). AFS Securities Total Accumulated other comprehensive loss at December 31, 2023 $ ( 40,044 ) $ ( 40,044 ) Other comprehensive loss arising during the period ( 3,730 ) ( 3,730 ) Related income tax effects 783 783 ( 2,947 ) ( 2,947 ) Reclassification into net income 4 4 Related income tax effects ( 1 ) ( 1 ) 3 3 Accumulated other comprehensive loss at June 30, 2024 $ ( 42,988 ) $ ( 42,988 ) AFS Securities Interest Rate Swap Total Accumulated other comprehensive loss at December 31, 2022 $ ( 49,024 ) $ 400 $ ( 48,624 ) Other comprehensive income (loss) arising during the period 3,647 ( 46 ) 3,601 Related income tax effects ( 766 ) 9 ( 757 ) 2,881 ( 37 ) 2,844 Reclassification into net income 206 ( 460 ) ( 254 ) Related income tax effects ( 43 ) 97 54 163 ( 363 ) ( 200 ) Accumulated other comprehensive loss at June 30, 2023 $ ( 45,980 ) $ - $ ( 45,980 ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 12. Segment Reporting For the financial periods noted in this report, the Company has three reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report. The three reportable segments are: • Bank - The commercial banking segment involves making loans and generating deposits from individuals, businesses and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for treasury management services, generate additional income for the Bank segment. • VNB Trust & Estate Services – VNB Trust & Estate Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as management fees that are derived from Assets Under Management. Investment management services currently are offered through in-house and third-party managers. • Masonry Capital - Masonry Capital offers investment management services for separately managed accounts and a private investment fund employing a value-based, catalyst-driven investment strategy. Revenue for this segment is generated from management fees that are derived from Assets Under Management and incentive income that is based on the investment returns generated on performance-based Assets Under Management. Effective April 1, 2024, the Company sold the membership interests in Masonry Capital Management, LLC to an officer of the Company. Subsequent to the date of sale, the Company will receive an annual revenue-share amount for a period of six years . No expenses will be incurred by the Company related to Masonry Capital subsequent to the effective date of sale. Segment information for the three and six months ended June 30, 2024 and 2023 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of VNB Trust & Estate Services are reported at the Bank level; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the chief operating decision maker. Three months ended June 30, 2024 Bank VNB Trust & Masonry Consolidated Net interest income $ 11,181 $ - $ - $ 11,181 Recovery of credit losses ( 338 ) - - ( 338 ) Noninterest income 1,452 239 - 1,691 Noninterest expense 7,814 308 - 8,122 Income (loss) before income taxes 5,157 ( 69 ) — 5,088 Provision for (benefit from) income 943 ( 14 ) - 929 Net income (loss) $ 4,214 $ ( 55 ) $ — $ 4,159 Six months ended June 30, 2024 Bank VNB Trust & Masonry Consolidated Net interest income $ 22,117 $ - $ - $ 22,117 Recovery of credit losses ( 360 ) - - ( 360 ) Noninterest income 3,136 543 190 3,869 Noninterest expense 16,084 657 200 16,941 Income (loss) before income taxes 9,529 ( 114 ) ( 10 ) 9,405 Provision for (benefit from) income taxes 1,626 ( 24 ) ( 2 ) 1,600 Net income (loss) $ 7,903 $ ( 90 ) $ ( 8 ) $ 7,805 Three months ended June 30, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 13,703 $ - $ - $ 13,703 Provision for credit losses 261 - - 261 Noninterest income 1,637 250 158 2,045 Noninterest expense 7,987 361 216 8,564 Income (loss) before income taxes 7,092 ( 111 ) ( 58 ) 6,923 Provision for (benefit from) income 1,308 ( 24 ) ( 12 ) 1,272 Net income (loss) $ 5,784 $ ( 87 ) $ ( 46 ) $ 5,651 Six months ended June 30, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 27,116 $ - $ - $ 27,116 Recovery of credit losses 13 - - 13 Noninterest income 3,492 510 319 4,321 Noninterest expense 16,355 672 398 17,425 Income before income taxes 14,240 ( 162 ) ( 79 ) 13,999 Provision for income taxes 2,607 ( 34 ) ( 16 ) 2,557 Net income $ 11,633 $ ( 128 ) $ ( 63 ) $ 11,442 |
Sale of Masonry Capital Managem
Sale of Masonry Capital Management LLC | 6 Months Ended |
Jun. 30, 2024 | |
Sale of Masonry Capital Management LLC [Abstract] | |
Sale of Masonry Capital Management LLC | Note 13. Sale of Masonry Capital Management, LLC Effective April 1, 2024, the Company sold the membership interests in Masonry Capital Management, LLC to an officer of the Company. Subsequent to the date of sale, the Company will receive an annual revenue-share amount for a period of six years . No expenses will be incurred by the Company related to Masonry Capital subsequent to the effective date of sale. The sale of this business line did not meet the requirements for classification of discontinued operations, as the sale did not represent a strategic shift in the Company's operations or plans and will not have a major effect on the Company's future operations or financial results. |
Share Repurchase Plan
Share Repurchase Plan | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Share Repurchase Plan | Note 14. Share Repurchase Plan During the second quarter of 2023, the Board of Directors approved a share repurchase plan of up to 5 % of outstanding common stock. Repurchases may be made through open market purchases or in privately negotiated transactions. The actual timing, number, and value of shares repurchased under the plan will be determined by a committee of the Board. For the six months ended June 30, 2024 , a total of 20,350 shares have been repurchased at an average price of $ 27.42 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2023 . |
Nature of Operations | Nature of Operations: The accompanying unaudited consolidated financial statements include the accounts of the Company, and its subsidiaries Virginia National Bank and Masonry Capital Management, LLC, a registered investment advisor. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Effective April 1, 2024, the Company sold the membership interests in Masonry Capital Management, LLC to an officer of the Company. Subsequent to the date of sale, the Company will receive an annual revenue-share amount for a period of six years . All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation: The preparation of financial statements in conformity with GAAP and the reporting guidelines prescribed by regulatory authorities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ACL, accounting for business combinations, including loans acquired in the business combination, ACL on individually evaluated loans, goodwill impairment, credit losses of securities, other intangible assets, and fair value measurements. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 . |
Reclassifications | Reclassifications: If needed, certain previously reported amounts have been reclassified to conform to current period presentation. No such reclassifications were considered material. |
Recent Significant Accounting Pronouncements and Adoption of New Accounting Standards | Recent Significant Accounting Pronouncements Accounting Standards Adopted in 2024: In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 was effective for the Company on January 1, 2024 . The adoption of ASU 2023-02 did not have a material impact on the Company's consolidated financial statements. Accounting Standards Issued but Not Yet Adopted: On March 29, 2024, the FASB issued ASU 2024-02, Codification Improvements- Amendments to Remove References to the Concepts Statements, which amends the Codification to remove references to various concepts statements and impacts a variety of topics in the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance, but in most instances the references removed are extraneous and not required to understand or apply the guidance. Generally, the amendments in ASU 2024-02 are not intended to result in significant accounting changes for most entities. The ASU is effective January 1, 2025 and is not expected to have a significant impact on the Company’s financial statements. Recently Issued Disclosure Rules: In March 2024, the SEC adopted final rules under SEC Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors”. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements will start to phase in commencing with the Company's fiscal year beginning January 1, 2026. Refer to Note 1, "Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements included in the 2023 Annual Report on Form 10-K for a discussion of the Company's significant accounting policies. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company's financial position, results of operations or cash flows. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Securities Available For Sale | The amortized cost and fair values of securities available for sale as of June 30, 2024 and December 31, 2023 were as follows (dollars in thousands): June 30, 2024 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 11,495 $ - $ ( 62 ) $ 11,433 U.S. Government agencies 32,055 - ( 5,518 ) 26,537 Mortgage-backed/CMOs 172,852 68 ( 26,835 ) 146,085 Corporate bonds 18,731 - ( 487 ) 18,244 Municipal bonds 103,981 5 ( 21,587 ) 82,399 Total Securities Available for Sale $ 339,114 $ 73 $ ( 54,489 ) $ 284,698 December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 122,288 $ 35 $ ( 615 ) $ 121,708 U.S. Government agencies 45,131 - ( 5,550 ) 39,581 Mortgage-backed/CMOs 179,920 171 ( 24,947 ) 155,144 Corporate bonds 19,680 1 ( 552 ) 19,129 Municipal bonds 104,265 31 ( 19,263 ) 85,033 Total Securities Available for Sale $ 471,284 $ 238 $ ( 50,927 ) $ 420,595 |
Schedule of Unrealized Losses in the Bank's Securities Portfolio | The following tables summarize all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, for which no allowance for credit losses was recorded, at June 30, 2024, and December 31, 2023 (dollars in thousands): Less than 12 Months 12 Months or More Total June 30, 2024 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ - $ - $ 11,432 $ ( 62 ) $ 11,432 $ ( 62 ) U.S. Government agencies - - 29,208 ( 5,518 ) 29,208 ( 5,518 ) Mortgage-backed/CMOs - - 139,131 ( 26,835 ) 139,131 ( 26,835 ) Corporate bonds - - 18,244 ( 487 ) 18,244 ( 487 ) Municipal bonds 939 ( 5 ) 79,542 ( 21,582 ) 80,481 ( 21,587 ) $ 939 $ ( 5 ) $ 277,557 $ ( 54,484 ) $ 278,496 $ ( 54,489 ) Less than 12 Months 12 Months or More Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ - $ - $ 52,298 $ ( 615 ) $ 52,298 $ ( 615 ) U.S. Government agencies 10,090 ( 20 ) 29,490 ( 5,530 ) 39,580 ( 5,550 ) Mortgage-backed/CMOs - - 150,045 ( 24,947 ) 150,045 ( 24,947 ) Corporate bonds - - 19,129 ( 552 ) 19,129 ( 552 ) Municipal bonds - - 82,140 ( 19,263 ) 82,140 ( 19,263 ) $ 10,090 $ ( 20 ) $ 333,102 $ ( 50,907 ) $ 343,192 $ ( 50,927 ) |
Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories | The amortized cost and fair value of AFS debt securities at June 30, 2024 are presented below based upon contractual maturities, by major investment categories (dollars in thousands). Expected maturities may differ from contractual maturities because issuers have the right to call or prepay obligations. Amortized Cost Fair Value U.S. Government treasuries One year or less $ 11,495 $ 11,433 After one year to five years - - $ 11,495 $ 11,433 U.S. Government agencies One year or less $ — $ — After one year to five years 10,133 8,878 After five years to ten years 17,922 14,715 Ten years or more 4,000 2,944 $ 32,055 $ 26,537 Mortgage-backed/CMOs One year or less $ 1,791 $ 1,773 After one year to five years 3,275 3,115 After five years to ten years 5,891 5,341 Ten years or more 161,895 135,856 $ 172,852 $ 146,085 Corporate bonds One year or less $ 4,953 $ 4,871 After one year to five years 13,778 13,373 $ 18,731 $ 18,244 Municipal bonds One year or less $ 610 $ 600 After one year to five years 3,202 3,093 After five years to ten years 22,892 20,791 Ten years or more 77,277 57,915 $ 103,981 $ 82,399 Total Debt Securities Available for Sale $ 339,114 $ 284,698 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Composition of Loan Portfolio by Major Loan Classifications | The composition of the loan portfolio by major loan classifications at June 30, 2024 and December 31, 2023 , stated at their face amount, net of deferred fees and costs and discounts, including fair value marks, appears below (dollars in thousands). The Company has elected to exclude accrued interest receivable, totaling $ 4.9 million as of June 30, 2024, from the amortized cost basis of loans. June 30, December 31, 2024 2023 Commercial $ 222,677 $ 152,517 Real estate construction and land 36,908 33,682 1-4 family residential mortgages 307,055 317,558 Commercial mortgages 553,455 550,867 Consumer 38,119 38,041 Total loans 1,158,214 1,092,665 Less: Allowance for credit losses ( 8,028 ) ( 8,395 ) Net loans $ 1,150,186 $ 1,084,270 |
Schedule of Aging of Past Due Loans | The following table shows the aging of the Company's loan portfolio, by class, at June 30, 2024 (dollars in thousands): 30-59 Days 60-89 Days 90 Days or More Past Due and Still Accruing Nonaccrual Loans Current Loans Total Loans Commercial $ 2,582 $ 23 $ 1,533 $ - $ 218,539 $ 222,677 Real estate construction and land - - - - 36,908 36,908 1-4 family residential mortgages 868 433 - 2,008 303,746 307,055 Commercial mortgages - - - 357 553,098 553,455 Consumer loans 146 121 63 - 37,789 38,119 Notes Receivable Gross $ 3,596 $ 577 $ 1,596 $ 2,365 $ 1,150,080 $ 1,158,214 The following table shows the aging of the Company's loan portfolio, by class, at December 31, 2023 (dollars in thousands): 30-59 Days 60-89 Days 90 Days or More Nonaccrual Loans Current Loans Total Loans Commercial $ 378 $ 369 $ 782 $ - $ 150,988 $ 152,517 Real estate construction and land 70 37 - - 33,575 33,682 1-4 family residential mortgages 1,834 860 - 1,438 313,426 317,558 Commercial mortgages 6,304 - - 414 544,149 550,867 Consumer loans 225 141 97 - 37,578 38,041 Notes Receivable Gross $ 8,811 $ 1,407 $ 879 $ 1,852 $ 1,079,716 $ 1,092,665 |
Schedule of Impaired Loans Classified as Non-Accruals by Class | The following table shows the Company's amortized cost basis of loans on nonaccrual status as of June 30, 2024 (dollars in thousands). June 30, 2024 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Commercial $ - $ - $ - Real estate construction and land - - - 1-4 family residential mortgages 2,008 - 2,008 Commercial mortgages 357 357 Consumer - - - Notes Receivable Gross $ 2,365 $ - $ 2,365 The following table shows the Company's amortized cost basis of loans on nonaccrual status as of December 31, 2023 (dollars in thousands). December 31, 2023 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Commercial $ - $ - $ - Real estate construction and land - - - 1-4 family residential mortgages 1,383 55 1,438 Commercial mortgages 414 414 Consumer - - - Notes Receivable Gross $ 1,797 $ 55 $ 1,852 Troubled loan modifications |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Allowance For Loan Losses [Abstract] | |
Summary of Transactions in Allowance for Loan Losses by Major Loan Portfolio Segment | The following table shows the ACL activity by loan portfolio for the six months ended June 30, 2024 (dollars in thousands): Commercial Real Estate 1-4 Family Residential Mortgages Commercial Mortgages Consumer Total Allowance for Credit Losses: Balance as of December 31, 2023 $ 193 $ 462 $ 1,492 $ 5,261 $ 987 $ 8,395 Charge-offs - - - - ( 184 ) ( 184 ) Recoveries 13 - 4 1 49 67 Provision for (recovery of) credit ( 30 ) ( 51 ) ( 9 ) 30 71 11 Balance as of March 31, 2024 $ 176 $ 411 $ 1,487 $ 5,292 $ 923 $ 8,289 Charge-offs ( 104 ) - - - ( 71 ) ( 175 ) Recoveries 382 - 3 1 47 433 Provision for (recovery of) credit losses 201 275 664 ( 1,748 ) 89 ( 519 ) Balance as of June 30, 2024 $ 655 $ 686 $ 2,154 $ 3,545 $ 988 $ 8,028 The following table shows the ACL activity by loan portfolio at December 31, 2023 (dollars in thousands): Commercial Real Estate 1-4 Family Residential Mortgages Real Estate Consumer Total Allowance for Credit Losses: Balance as of beginning of year, January 1, 2023 $ 194 $ 221 $ 1,618 $ 2,820 $ 699 $ 5,552 Impact of ASC 326 adoption ( 11 ) 440 14 1,577 471 2,491 Charge-offs - - - - ( 721 ) ( 721 ) Recoveries 168 - 10 42 157 377 Provision for (recovery of) credit losses ( 158 ) ( 199 ) ( 150 ) 822 381 696 Ending Balance, December 31, 2023 $ 193 $ 462 $ 1,492 $ 5,261 $ 987 $ 8,395 |
Summary of Provision (Recovery) for Credit Losses | The following table presents a breakdown of the provision (recovery) for credit losses for the periods indicated (dollars in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Provision for credit losses: Provision for (recovery of) loan losses $ ( 519 ) $ 216 $ ( 508 ) $ ( 19 ) Provision for unfunded commitments 181 45 148 32 Total $ ( 338 ) $ 261 $ ( 360 ) $ 13 |
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses, and Related ACL Allocated to Loans | The following table presents the Company's amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as of the periods indicated (dollars in thousands): June 30, 2024 December 31, 2023 Real Estate Secured Loans Allowance for Credit Losses - Loans Real Estate Secured Loans Allowance for Credit Losses - Loans Commercial real estate - non owner occupied $ 357 $ - $ 414 $ - Residential 1-4 family real estate 2,008 - 1,438 4 Total $ 2,365 $ - $ 1,852 $ 4 |
Summary of Credit Quality Indicators | The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of June 30, 2024 (dollars in thousands). Current period gross write-off amounts represent write-offs for the six months ended June 30, 2024 (dollars in thousands): June 30, 2024 Term Loans Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Loans Converted to Term Total Commercial Pass $ 57,370 $ 105,537 $ 12,044 $ 2,127 $ 3,938 $ 24,338 $ 16,913 $ - $ 222,267 Watch - - 37 - - - - - 37 Special Mention - - - - - 79 - 8 87 Substandard - - 84 - 26 176 - - 286 Total commercial $ 57,370 $ 105,537 $ 12,165 $ 2,127 $ 3,964 $ 24,593 $ 16,913 $ 8 $ 222,677 Current period gross write-off $ - $ - $ 1 $ - $ 103 $ - $ - $ - $ 104 . Real estate construction and land Pass $ 1,746 $ 13,831 $ 12,482 $ 2,605 $ 1,667 $ 1,883 $ - $ - $ 34,214 Watch - 1,043 - - - 273 - - 1,316 Special Mention - - - - - - - - - Substandard - 1,335 - - - 43 - - 1,378 Total real estate construction and land $ 1,746 $ 16,209 $ 12,482 $ 2,605 $ 1,667 $ 2,199 $ - $ - $ 36,908 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - . 1-4 family residential mortgages Pass $ 6,262 $ 16,704 $ 13,032 $ 54,357 $ 73,140 $ 102,513 $ 18,261 $ 300 $ 284,569 Watch - 1,839 1,400 1,852 596 8,433 658 404 15,182 Special Mention - - 1,072 - - 1,571 - 60 2,703 Substandard - - - 810 1,302 1,992 396 101 4,601 Total 1-4 family residential mortgage $ 6,262 $ 18,543 $ 15,504 $ 57,019 $ 75,038 $ 114,509 $ 19,315 $ 865 $ 307,055 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - . Commercial mortgages Pass $ 28,060 $ 104,821 $ 39,316 $ 45,285 $ 88,199 $ 207,911 $ 1,134 $ - $ 514,726 Watch - 1,792 1,059 1,180 6,349 11,133 - - 21,513 Special Mention - - - 520 263 7,435 - - 8,218 Substandard - - - 1,787 4,605 2,606 - - 8,998 Total commercial mortgages $ 28,060 $ 106,613 $ 40,375 $ 48,772 $ 99,416 $ 229,085 $ 1,134 $ - $ 553,455 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Pass $ 129 $ 1,129 $ 174 $ 317 $ 211 $ 20,872 $ 14,931 $ - $ 37,763 Watch - - - 7 - 147 - - 154 Special Mention - - - - - 124 1 - 125 Substandard 12 1 - - - 63 1 - 77 Total consumer $ 141 $ 1,130 $ 174 $ 324 $ 211 $ 21,206 $ 14,933 $ - $ 38,119 Current period gross write-off $ - $ - $ - $ - $ 4 $ 251 $ - $ - $ 255 The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023 (dollars in thousands). December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Loans Converted to Term Total Commercial Pass $ 85,529 $ 12,344 $ 2,712 $ 4,989 $ 7,121 $ 16,873 $ 21,806 $ 112 $ 151,486 Watch - 41 - - - - - - 41 Special Mention - - - - - 79 8 - 87 Substandard - 97 1 135 53 212 50 355 903 Total commercial $ 85,529 $ 12,482 $ 2,713 $ 5,124 $ 7,174 $ 17,164 $ 21,864 $ 467 $ 152,517 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Real estate construction and land Pass $ 12,425 $ 11,748 $ 3,683 $ 1,717 $ 955 $ 1,293 $ 129 $ - $ 31,950 Watch - - - - - 299 - - 299 Special Mention - - - - - 37 - - 37 Substandard 1,351 - - - - 45 - - 1,396 Total real estate construction and land $ 13,776 $ 11,748 $ 3,683 $ 1,717 $ 955 $ 1,674 $ 129 $ - $ 33,682 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - 1-4 family residential mortgages Pass $ 19,482 $ 14,712 $ 54,066 $ 74,539 $ 24,999 $ 85,836 $ 20,571 $ 524 $ 294,729 Watch - 1,621 1,874 602 - 7,149 1,166 - 12,412 Special Mention - 1,089 1,458 1,958 270 1,591 78 138 6,582 Substandard - - 55 1,194 97 2,094 395 - 3,835 Total 1-4 family residential mortgage $ 19,482 $ 17,422 $ 57,453 $ 78,293 $ 25,366 $ 96,670 $ 22,210 $ 662 $ 317,558 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial mortgages Pass $ 112,093 $ 41,433 $ 46,315 $ 101,205 $ 45,809 $ 171,184 $ 1,502 $ 76 $ 519,617 Watch - - 1,196 166 165 14,188 - - 15,715 Special Mention - - 391 278 - 4,130 - - 4,799 Substandard 150 - 1,824 3,032 - 5,730 - - 10,736 Total commercial mortgages $ 112,243 $ 41,433 $ 49,726 $ 104,681 $ 45,974 $ 195,232 $ 1,502 $ 76 $ 550,867 Current period gross write-off $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Pass $ 1,149 $ 193 $ 420 $ 273 $ 107 $ 20,836 $ 14,710 $ - $ 37,688 Watch - - 7 - 9 190 - - 206 Special Mention - - - - - 132 1 5 138 Substandard 1 - - - 8 - - - 9 Total consumer $ 1,150 $ 193 $ 427 $ 273 $ 124 $ 21,158 $ 14,711 $ 5 $ 38,041 Current period gross write-off $ - $ - $ 19 $ 16 $ 28 $ 654 $ 4 $ - $ 721 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets (dollars in thousands): June 30, 2024 December 31, 2023 June 30, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangible $ 9,660 $ ( 5,242 ) $ 9,660 $ ( 4,567 ) $ 9,660 $ ( 3,465 ) |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense as of June 30, 2024 is as follows (dollars in thousands): Core Deposit Intangible For the six months ending December 31, 2024 $ 627 For the year ending December 31, 2025 1,110 For the year ending December 31, 2026 918 For the year ending December 31, 2027 726 For the year ending December 31, 2028 535 Thereafter 502 Total $ 4,418 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease Liability, Right-of-use Asset, Weighted Average Remaining Lease Term and Discount Rate | The following tables present information about the Company’s leases (dollars in thousands): June 30, 2024 December 31, 2023 Lease liability $ 6,102 $ 6,504 Right-of-use asset $ 6,287 $ 6,748 Weighted average remaining lease term 4.87 years 4.71 years Weighted average discount rate 2.71 % 2.28 % |
Schedule of Operating Lease Expense | Three Months Ended June 30, Six Months Ended June 30, Lease Expense: 2024 2023 2024 2023 Operating lease cost $ 412 $ 395 $ 841 $ 906 Short-term lease expense 18 81 30 204 Total lease expense $ 430 $ 476 $ 871 $ 1,110 Cash paid for amounts included in $ 395 $ 336 $ 783 $ 848 |
Schedule of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): Undiscounted Cash Flow June 30, 2024 Six months ending December 31, 2024 $ 799 Twelve months ending December 31, 2025 1,497 Twelve months ending December 31, 2026 1,158 Twelve months ending December 31, 2027 1,063 Twelve months ending December 31, 2028 942 Thereafter 1,195 Total undiscounted cash flows $ 6,654 Less: Discount ( 552 ) Lease liability $ 6,102 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares used in computing earnings per share | The table below shows the weighted average number of shares used in computing net income per common share and the effect of the weighted average number of shares of potential dilutive common stock for the three and six months ended June 30, 2024 and 2023. Diluted net income per share is computed based on the weighted average number of shares of common stock equivalents outstanding, to the extent dilutive. The Company’s common stock equivalents relate to outstanding common stock options. The recipients of unvested restricted shares have full voting and dividend rights, and as such, unvested restricted stock as of June 30, 2024 and June 30, 2023 is included in the calculation of basic and diluted net income per share (dollars below reported in thousands except per share data). Three Months Ended June 30, 2024 June 30, 2023 Net Weighted Per Net Weighted Per Basic net income per share $ 4,159 5,377,055 $ 0.77 $ 5,651 5,357,873 $ 1.05 Effect of dilutive stock options - 8,715 - - 17,200 - Diluted net income per share $ 4,159 5,385,770 $ 0.77 $ 5,651 5,375,073 $ 1.05 Six Months Ended June 30, 2024 June 30, 2023 Net Weighted Per Net Weighted Per Basic net income per share $ 7,805 5,371,972 $ 1.45 $ 11,442 5,348,040 $ 2.14 Effect of dilutive stock options - 11,008 - - 27,505 ( 0.01 ) Diluted net income per share $ 7,805 $ 5,382,980 $ 1.45 $ 11,442 5,375,545 $ 2.13 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Shares Issued and Available Under Each Plans | A summary of the shares issued and available under each of the Plans is shown below as of June 30, 2024 . Share data and exercise price range per share have been adjusted to reflect prior issued stock dividends. Although the 2014 Plan and the 2005 Plan have expired and no new grants will be issued under those plans, there were options issued before the plans expired that are still outstanding as shown below. 2022 Plan 2014 Plan 2005 Plan Aggregate shares issuable 150,000 275,625 253,575 Options issued, net of forfeited and expired ( 44,700 ) ( 174,006 ) ( 59,870 ) Unrestricted stock issued - ( 11,635 ) - Restricted stock grants issued, net of forfeited ( 44,212 ) ( 83,653 ) - Cancelled due to Plan expiration - ( 6,331 ) ( 193,705 ) Remaining available for grant 61,088 - - Stock grants issued and outstanding: Total vested and unvested shares 44,212 95,888 - Fully vested shares 4,733 67,054 - Option grants issued and outstanding: Total vested and unvested shares 44,700 169,301 - Fully vested shares - 129,220 - Exercise price range $ 28.82 to $ 33.20 $ 23.75 to $ 42.62 $ - |
Summary of Stock Option Activity | Changes in the stock options outstanding related to the Plans are summarized below (dollars in thousands except per share data): June 30, 2024 Number of Options Weighted Aggregate Outstanding at January 1, 2024 174,201 $ 33.94 $ - Issued 41,300 $ 28.98 - Exercised — $ — Forfeited ( 1,500 ) $ 35.35 - Expired - $ - Outstanding at June 30, 2024 214,001 $ 32.97 $ 709 Options exercisable at June 30, 2024 129,220 $ 35.48 $ 350 |
Schedule of Options Outstanding and Exercisable, by Exercise Price Range | Summary information pertaining to options outstanding at June 30, 2024 is shown below. Share and per share data have been adjusted to reflect the prior stock dividends issued. Options Outstanding Options Exercisable Exercise Price Number of Weighted- Weighted- Number of Weighted- $ 20.01 to $ 30.00 101,300 7.4 Years $ 25.85 43,800 $ 24.82 $ 30.01 to $ 40.00 55,220 6.9 Years 36.00 27,940 37.51 $ 40.01 to $ 42.62 57,481 3.9 Years 42.62 57,480 42.62 Total 214,001 6.3 Years $ 32.97 129,220 $ 35.48 |
Summary of Changes in the Restricted Stock Grants Outstanding | Changes in the restricted stock grants outstanding during the six months ended June 30, 2024 are summarized below (dollars in thousands except per share data): June 30, 2024 Number of Weighted Aggregate Nonvested as of January 1, 2024 62,721 $ 32.56 $ 2,057 Issued 25,280 30.05 829 Vested ( 19,688 ) 31.21 ( 646 ) Forfeited - - - Nonvested at June 30, 2024 68,313 $ 32.02 $ 2,240 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis | The following tables present the balances measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (dollars in thousands): Fair Value Measurements at June 30, 2024 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 11,433 $ - $ 11,433 $ - U.S. Government agencies 26,537 - 26,537 - Mortgage-backed/CMOs 146,085 - 146,085 - Corporate bonds 18,244 - 18,244 - Municipal bonds 82,399 - 82,399 - Total securities available for sale $ 284,698 $ - $ 284,698 $ - Fair Value Measurements at December 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 121,708 $ - $ 121,708 $ - U.S. Government agencies 39,581 - 39,581 - Mortgage-backed/CMOs 155,144 - 155,144 - Corporate bonds 19,129 - 19,129 Municipal bonds 85,033 - 85,033 - Total securities available for sale $ 420,595 $ - $ 420,595 $ - |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the Company's assets that were measured at fair value on a nonrecurring basis as of December 31, 2023: Fair Value Measurements at December 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans $ 461 $ - $ - $ 461 Description Fair Value Valuation Technique Unobservable Inputs Discount Rate Assets: Individually evaluated loans $ 461 Market comparables Discount applied to recent appraisal 20.0 % |
Schedule of the Carrying Values and Estimated Fair Values of the Bank's Financial Instruments | The carrying values and estimated fair values of the Company's financial instruments as of June 30, 2024 and December 31, 2023 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2024 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 17,300 $ 17,300 $ - $ - $ 17,300 Available for sale securities 284,698 - 284,698 - 284,698 Restricted securities 6,667 - 6,667 - 6,667 Loans, net 1,150,186 - - 1,084,432 1,084,432 Bank owned life insurance 39,468 - 39,468 - 39,468 Accrued interest receivable 6,579 - 1,716 4,863 6,579 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,038,351 $ - $ 1,038,351 $ - $ 1,038,351 Certificates of deposit 335,490 - 335,282 - 335,282 Federal funds purchased 2,438 2,438 2,438 Borrowings 30,000 - 30,072 - 30,072 Junior subordinated debt, net 3,483 - 3,483 - 3,483 Accrued interest payable 2,122 - 2,122 - 2,122 Fair Value Measurements at December 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 28,390 $ 28,390 $ - $ - $ 28,390 Available for sale securities 420,595 - 420,595 - 420,595 Restricted securities 8,385 - 8,385 - 8,385 Loans, net 1,084,270 - - 1,029,359 1,029,359 Bank owned life insurance 38,904 - 38,904 - 38,904 Accrued interest receivable 6,179 - 1,916 4,263 6,179 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,090,517 $ - $ 1,090,517 $ - $ 1,090,517 Certificates of deposit 318,581 - 318,768 - 318,768 Federal funds purchased 3,462 3,462 3,462 Borrowings 66,500 66,360 66,360 Junior subordinated debt, net 3,459 - 3,459 - 3,459 Accrued interest payable 2,143 - 2,143 - 2,143 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) as of June 30, 2024 and June 30, 2023 (dollars in thousands). AFS Securities Total Accumulated other comprehensive loss at December 31, 2023 $ ( 40,044 ) $ ( 40,044 ) Other comprehensive loss arising during the period ( 3,730 ) ( 3,730 ) Related income tax effects 783 783 ( 2,947 ) ( 2,947 ) Reclassification into net income 4 4 Related income tax effects ( 1 ) ( 1 ) 3 3 Accumulated other comprehensive loss at June 30, 2024 $ ( 42,988 ) $ ( 42,988 ) AFS Securities Interest Rate Swap Total Accumulated other comprehensive loss at December 31, 2022 $ ( 49,024 ) $ 400 $ ( 48,624 ) Other comprehensive income (loss) arising during the period 3,647 ( 46 ) 3,601 Related income tax effects ( 766 ) 9 ( 757 ) 2,881 ( 37 ) 2,844 Reclassification into net income 206 ( 460 ) ( 254 ) Related income tax effects ( 43 ) 97 54 163 ( 363 ) ( 200 ) Accumulated other comprehensive loss at June 30, 2023 $ ( 45,980 ) $ - $ ( 45,980 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Segment information for the three and six months ended June 30, 2024 and 2023 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of VNB Trust & Estate Services are reported at the Bank level; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the chief operating decision maker. Three months ended June 30, 2024 Bank VNB Trust & Masonry Consolidated Net interest income $ 11,181 $ - $ - $ 11,181 Recovery of credit losses ( 338 ) - - ( 338 ) Noninterest income 1,452 239 - 1,691 Noninterest expense 7,814 308 - 8,122 Income (loss) before income taxes 5,157 ( 69 ) — 5,088 Provision for (benefit from) income 943 ( 14 ) - 929 Net income (loss) $ 4,214 $ ( 55 ) $ — $ 4,159 Six months ended June 30, 2024 Bank VNB Trust & Masonry Consolidated Net interest income $ 22,117 $ - $ - $ 22,117 Recovery of credit losses ( 360 ) - - ( 360 ) Noninterest income 3,136 543 190 3,869 Noninterest expense 16,084 657 200 16,941 Income (loss) before income taxes 9,529 ( 114 ) ( 10 ) 9,405 Provision for (benefit from) income taxes 1,626 ( 24 ) ( 2 ) 1,600 Net income (loss) $ 7,903 $ ( 90 ) $ ( 8 ) $ 7,805 Three months ended June 30, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 13,703 $ - $ - $ 13,703 Provision for credit losses 261 - - 261 Noninterest income 1,637 250 158 2,045 Noninterest expense 7,987 361 216 8,564 Income (loss) before income taxes 7,092 ( 111 ) ( 58 ) 6,923 Provision for (benefit from) income 1,308 ( 24 ) ( 12 ) 1,272 Net income (loss) $ 5,784 $ ( 87 ) $ ( 46 ) $ 5,651 Six months ended June 30, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 27,116 $ - $ - $ 27,116 Recovery of credit losses 13 - - 13 Noninterest income 3,492 510 319 4,321 Noninterest expense 16,355 672 398 17,425 Income before income taxes 14,240 ( 162 ) ( 79 ) 13,999 Provision for income taxes 2,607 ( 34 ) ( 16 ) 2,557 Net income $ 11,633 $ ( 128 ) $ ( 63 ) $ 11,442 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | Apr. 01, 2024 |
Summary of Significant Accounting Policies [Line Items] | |
Annual revenue share amount period | 6 years |
Recent Significant Accounting_2
Recent Significant Accounting Pronouncements (Narrative) (Details) - ASU 2023-02 [Member] | Jun. 30, 2024 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2024 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Values of Securities Available for Sale) (Details)) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 339,114 | $ 471,284 | |
Gross Unrealized Gains | 73 | 238 | |
Gross Unrealized (Losses) | (54,489) | (50,927) | |
Available for Sale, Fair Value | 284,698 | 420,595 | [1] |
U.S. Government Treasuries [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 11,495 | 122,288 | |
Gross Unrealized Gains | 35 | ||
Gross Unrealized (Losses) | (62) | (615) | |
Available for Sale, Fair Value | 11,433 | 121,708 | |
U.S. Government Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 32,055 | 45,131 | |
Gross Unrealized (Losses) | (5,518) | (5,550) | |
Available for Sale, Fair Value | 26,537 | 39,581 | |
Mortgage-backed /CMOs [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 172,852 | 179,920 | |
Gross Unrealized Gains | 68 | 171 | |
Gross Unrealized (Losses) | (26,835) | (24,947) | |
Available for Sale, Fair Value | 146,085 | 155,144 | |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 18,731 | 19,680 | |
Gross Unrealized Gains | 1 | ||
Gross Unrealized (Losses) | (487) | (552) | |
Available for Sale, Fair Value | 18,244 | 19,129 | |
Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 103,981 | 104,265 | |
Gross Unrealized Gains | 5 | 31 | |
Gross Unrealized (Losses) | (21,587) | (19,263) | |
Available for Sale, Fair Value | $ 82,399 | $ 85,033 | |
[1] Derived from audited Consolidated Financial Statements |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 USD ($) Item | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | ||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 278,496 | $ 343,192 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 274 | |||
Accrued interest receivable | $ 4,900 | |||
Unrealized loss of available for sale securities | 54,489 | 50,927 | ||
Securities, allowance for credit losses | 0 | 0 | ||
Proceeds from the sales of securities | 39,600 | $ 49,900 | ||
Available for sale securities pre-tax loss | 4 | $ 206 | ||
Restricted securities, at cost | 6,667 | 8,385 | [1] | |
Mortgage-backed Securities/CMOs [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 139,131 | 150,045 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 117 | |||
Unrealized loss of available for sale securities | $ 26,835 | 24,947 | ||
U.S. Government Agencies [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 29,208 | 39,580 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 19 | |||
Unrealized loss of available for sale securities | $ 5,518 | 5,550 | ||
Corporate Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 18,244 | 19,129 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 10 | |||
Unrealized loss of available for sale securities | $ 487 | 552 | ||
Treasury bond [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of securities designated as available for sale securities having unrealized loss | Item | 2 | |||
Asset Pledged as Collateral without Right [Member] | Public Deposits [Member] | ||||
Schedule of Investments [Line Items] | ||||
Securities pledged to secure deposits and facilitate borrowing | $ 21,600 | 21,800 | ||
Municipal Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 80,481 | 82,140 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 126 | |||
Unrealized loss of available for sale securities | $ 21,587 | $ 19,263 | ||
AFS Securities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Accrued interest receivable | $ 1,700 | |||
[1] Derived from audited Consolidated Financial Statements |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | $ 939 | $ 10,090 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (5) | (20) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 277,557 | 333,102 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (54,484) | (50,907) |
Total, Estimated Fair value | 278,496 | 343,192 |
Total, Unrealized losses | (54,489) | (50,927) |
U.S. Government Treasuries [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 11,432 | 52,298 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (62) | (615) |
Total, Estimated Fair value | 11,432 | 52,298 |
Total, Unrealized losses | (62) | (615) |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 10,090 | |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (20) | |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 29,208 | 29,490 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (5,518) | (5,530) |
Total, Estimated Fair value | 29,208 | 39,580 |
Total, Unrealized losses | (5,518) | (5,550) |
Mortgage-backed /CMOs [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 139,131 | 150,045 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (26,835) | (24,947) |
Total, Estimated Fair value | 139,131 | 150,045 |
Total, Unrealized losses | (26,835) | (24,947) |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 18,244 | 19,129 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (487) | (552) |
Total, Estimated Fair value | 18,244 | 19,129 |
Total, Unrealized losses | (487) | (552) |
Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 939 | |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (5) | |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 79,542 | 82,140 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (21,582) | (19,263) |
Total, Estimated Fair value | 80,481 | 82,140 |
Total, Unrealized losses | $ (21,587) | $ (19,263) |
Securities (Schedule of Amortiz
Securities (Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Amortized Cost | $ 339,114 | $ 471,284 |
Fair Value | ||
Total Securities Available for Sale | 284,698 | |
U.S. Government Treasuries [Member] | ||
Amortized Cost | ||
One year or less | 11,495 | |
Amortized Cost | 11,495 | 122,288 |
Fair Value | ||
One year or less | 11,433 | |
Total Securities Available for Sale | 11,433 | |
U.S. Government Agencies [Member] | ||
Amortized Cost | ||
After one year to five years | 10,133 | |
After five years to ten years | 17,922 | |
Ten years or more | 4,000 | |
Amortized Cost | 32,055 | 45,131 |
Fair Value | ||
After one year to five years | 8,878 | |
After five years to ten years | 14,715 | |
Ten years or more | 2,944 | |
Total Securities Available for Sale | 26,537 | |
Mortgage-backed /CMOs [Member] | ||
Amortized Cost | ||
One year or less | 1,791 | |
After one year to five years | 3,275 | |
After five years to ten years | 5,891 | |
Ten years or more | 161,895 | |
Amortized Cost | 172,852 | 179,920 |
Fair Value | ||
One year or less | 1,773 | |
After one year to five years | 3,115 | |
After five years to ten years | 5,341 | |
Ten years or more | 135,856 | |
Total Securities Available for Sale | 146,085 | |
Corporate Bonds [Member] | ||
Amortized Cost | ||
One year or less | 4,953 | |
After one year to five years | 13,778 | |
Amortized Cost | 18,731 | 19,680 |
Fair Value | ||
One year or less | 4,871 | |
After one year to five years | 13,373 | |
Total Securities Available for Sale | 18,244 | |
Municipal Bonds [Member] | ||
Amortized Cost | ||
One year or less | 610 | |
After one year to five years | 3,202 | |
After five years to ten years | 22,892 | |
Ten years or more | 77,277 | |
Amortized Cost | 103,981 | $ 104,265 |
Fair Value | ||
One year or less | 600 | |
After one year to five years | 3,093 | |
After five years to ten years | 20,791 | |
Ten years or more | 57,915 | |
Total Securities Available for Sale | $ 82,399 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) Loan | Jun. 30, 2024 USD ($) Loan | Dec. 31, 2023 USD ($) Loan | Jun. 30, 2023 Loan | Apr. 01, 2021 USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||||
Accrued interest receivable | $ 4,900 | ||||
Deposit account overdrafts | 261 | $ 252 | |||
Unamortized premium | 8,700 | 4,600 | |||
Net deferred loan costs and fees | (2,500) | $ (2,500) | |||
Due to collateral value shortfall | $ 4 | ||||
Number of non accrual loans required allowance of credit loss | Loan | 0 | 1 | |||
Number of loan modified for a borrower | Loan | 1 | 0 | 0 | ||
Purchased Impaired Loan [Member] | Fauquier Bankshares, Inc [Member] | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loan receivable at fair value net | $ 8,200 | $ 23,100 | |||
1-4 Family Residential Mortgages [Member] | |||||
Loans And Leases Receivable Disclosure [Line Items] | |||||
Loan receivable experiencing financial difficulties | $ 703 | ||||
Loan receivable experiencing financial difficulties, percentage on loans | 0.002% |
Loans (Schedule of Composition
Loans (Schedule of Composition of Loan Portfolio by Major Loan Classifications) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | $ 1,158,214 | $ 1,092,665 | [1] | ||
Less: Allowance for credit losses | (8,028) | $ (8,289) | (8,395) | [1] | $ (5,552) |
Notes receivable net | 1,150,186 | 1,084,270 | [1] | ||
Commercial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | 222,677 | 152,517 | |||
Less: Allowance for credit losses | (655) | (176) | (193) | (194) | |
Real Estate Construction and Land [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | 36,908 | 33,682 | |||
1-4 Family Residential Mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | 307,055 | 317,558 | |||
Less: Allowance for credit losses | (2,154) | (1,487) | (1,492) | $ (1,618) | |
Commercial mortgages [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | 553,455 | 550,867 | |||
Less: Allowance for credit losses | (3,545) | $ (5,292) | (5,261) | ||
Consumer [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable gross | $ 38,119 | $ 38,041 | |||
[1] Derived from audited Consolidated Financial Statements |
Loans (Schedule of Aging of Pas
Loans (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
90 Days Past Due and Accruing | $ 1,596 | $ 879 | |
Nonaccrual Loans | 2,365 | 1,852 | |
Total Loans | 1,158,214 | 1,092,665 | [1] |
30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,596 | 8,811 | |
60-89 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 577 | 1,407 | |
Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,150,080 | 1,079,716 | |
Commercial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
90 Days Past Due and Accruing | 1,533 | 782 | |
Total Loans | 222,677 | 152,517 | |
Commercial [Member] | 30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,582 | 378 | |
Commercial [Member] | 60-89 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 23 | 369 | |
Commercial [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 218,539 | 150,988 | |
Real Estate Construction and Land [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 36,908 | 33,682 | |
Real Estate Construction and Land [Member] | 30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 70 | ||
Real Estate Construction and Land [Member] | 60-89 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 37 | ||
Real Estate Construction and Land [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 36,908 | 33,575 | |
1-4 Family Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Nonaccrual Loans | 2,008 | 1,438 | |
Total Loans | 307,055 | 317,558 | |
1-4 Family Residential Mortgages [Member] | 30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 868 | 1,834 | |
1-4 Family Residential Mortgages [Member] | 60-89 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 433 | 860 | |
1-4 Family Residential Mortgages [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 303,746 | 313,426 | |
Commercial Mortgages [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Nonaccrual Loans | 357 | 414 | |
Total Loans | 553,455 | 550,867 | |
Commercial Mortgages [Member] | 30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 0 | 6,304 | |
Commercial Mortgages [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 553,098 | 544,149 | |
Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
90 Days Past Due and Accruing | 63 | 97 | |
Total Loans | 38,119 | 38,041 | |
Consumer Loans [Member] | 30-59 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 146 | 225 | |
Consumer Loans [Member] | 60-89 Days [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 121 | 141 | |
Consumer Loans [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 37,789 | $ 37,578 | |
[1] Derived from audited Consolidated Financial Statements |
Loans (Non-Accrual Loans by Loa
Loans (Non-Accrual Loans by Loan Classification) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | $ 2,365 | $ 1,797 |
Nonaccrual Loans with an Allowance | 55 | |
Nonaccrual loans, Total | 2,365 | 1,852 |
Commercial Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | 357 | 414 |
Nonaccrual loans, Total | 357 | 414 |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | 2,008 | 1,383 |
Nonaccrual Loans with an Allowance | 55 | |
Nonaccrual loans, Total | $ 2,008 | $ 1,438 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Specific reserve for nonaccrual status | $ 4 | ||
Government-Guaranteed [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Increase in loan balances | $ 74,600 | $ 130,200 | |
Percentage of loan guaranteed by Government | 100% |
Allowance for Credit Losses (Su
Allowance for Credit Losses (Summary of Transactions in Allowance for Loan Losses by Major Loan Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | $ 8,289 | $ 8,395 | [1] | $ 8,395 | [1] | $ 5,552 | $ 5,552 | ||
Impact of ASC 326 adoption | 2,491 | ||||||||
Charge-offs | (175) | (184) | (721) | ||||||
Recoveries | 433 | 67 | 377 | ||||||
Provision for (recovery of) credit losses | (519) | 11 | $ 216 | (508) | (19) | 696 | |||
Ending Balance | 8,028 | 8,289 | 8,028 | 8,395 | [1] | ||||
Commercial Loans [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 176 | 193 | 193 | 194 | 194 | ||||
Impact of ASC 326 adoption | (11) | ||||||||
Charge-offs | (104) | ||||||||
Recoveries | 382 | 13 | 168 | ||||||
Provision for (recovery of) credit losses | 201 | (30) | (158) | ||||||
Ending Balance | 655 | 176 | 655 | 193 | |||||
Real Estate Construction and Land [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 411 | 462 | 462 | 221 | 221 | ||||
Impact of ASC 326 adoption | 440 | ||||||||
Provision for (recovery of) credit losses | 275 | (51) | (199) | ||||||
Ending Balance | 686 | 411 | 686 | 462 | |||||
1-4 Family Residential Mortgages [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 1,487 | 1,492 | 1,492 | 1,618 | 1,618 | ||||
Impact of ASC 326 adoption | 14 | ||||||||
Recoveries | 3 | 4 | 10 | ||||||
Provision for (recovery of) credit losses | 664 | (9) | (150) | ||||||
Ending Balance | 2,154 | 1,487 | 2,154 | 1,492 | |||||
Commercial Mortgages [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 5,292 | 5,261 | 5,261 | ||||||
Recoveries | 1 | 1 | |||||||
Provision for (recovery of) credit losses | (1,748) | 30 | |||||||
Ending Balance | 3,545 | 5,292 | 3,545 | 5,261 | |||||
Real Estate Mortgages [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 5,261 | 5,261 | 2,820 | 2,820 | |||||
Impact of ASC 326 adoption | 1,577 | ||||||||
Recoveries | 42 | ||||||||
Provision for (recovery of) credit losses | 822 | ||||||||
Ending Balance | 5,261 | ||||||||
Consumer Loans [Member] | |||||||||
Allowance for Loan Losses: | |||||||||
Beginning Balance | 923 | 987 | 987 | $ 699 | 699 | ||||
Impact of ASC 326 adoption | 471 | ||||||||
Charge-offs | (71) | (184) | (721) | ||||||
Recoveries | 47 | 49 | 157 | ||||||
Provision for (recovery of) credit losses | 89 | 71 | 381 | ||||||
Ending Balance | $ 988 | $ 923 | $ 988 | $ 987 | |||||
[1] Derived from audited Consolidated Financial Statements |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Summary of Provision (Recovery) for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Provision for credit losses: | ||||||
Provision for (recovery of) loan losses | $ (519) | $ 11 | $ 216 | $ (508) | $ (19) | $ 696 |
Provision for unfunded commitments | 181 | 45 | 148 | 32 | ||
Total | $ (338) | $ 261 | $ (360) | $ 13 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses, and Related ACL Allocated to Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Real Estate Secured Loans | $ 1,158,214 | $ 1,092,665 | [1] | ||
Allowance for Credit Losses - Loans | 8,028 | $ 8,289 | 8,395 | [1] | $ 5,552 |
Collateral Dependent Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Real Estate Secured Loans | 2,365 | 1,852 | |||
Allowance for Credit Losses - Loans | 4 | ||||
Commercial real estate - non owner occupied [Member] | Collateral Dependent Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Real Estate Secured Loans | 357 | 414 | |||
Residential 1-4 family real estate [Member] | Collateral Dependent Loans [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Real Estate Secured Loans | $ 2,008 | 1,438 | |||
Allowance for Credit Losses - Loans | $ 4 | ||||
[1] Derived from audited Consolidated Financial Statements |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Summary of Investment in Loans by Credit Quality Indicators by Year of Origination) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | $ 1,158,214 | $ 1,092,665 | [1] |
Commercial [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | 222,677 | 152,517 | |
Commercial [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 57,370 | 85,529 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 105,537 | 12,482 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 12,165 | 2,713 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 2,127 | 5,124 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 3,964 | 7,174 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,593 | 17,164 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,913 | 21,864 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 8 | 467 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 222,677 | 152,517 | |
Current period gross write-off, 2022/2021 | 1 | ||
Current period gross write-off, 2020/2019 | 103 | ||
Current period gross write-off | 104 | ||
Commercial [Member] | Pass [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 57,370 | 85,529 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 105,537 | 12,344 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 12,044 | 2,712 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 2,127 | 4,989 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 3,938 | 7,121 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,338 | 16,873 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,913 | 21,806 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 112 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 222,267 | 151,486 | |
Commercial [Member] | Watch [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 41 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 37 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 37 | 41 | |
Commercial [Member] | Special Mention [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Prior | 79 | 79 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 0 | 8 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 8 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 87 | 87 | |
Commercial [Member] | Substandard [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 97 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 84 | 1 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 135 | ||
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 26 | 53 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 176 | 212 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 0 | 50 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 355 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 286 | 903 | |
Real Estate Construction and Land [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | 36,908 | 33,682 | |
Real Estate Construction and Land [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 1,746 | 13,776 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 16,209 | 11,748 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 12,482 | 3,683 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 2,605 | 1,717 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 1,667 | 955 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,199 | 1,674 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 129 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 36,908 | 33,682 | |
Real Estate Construction and Land [Member] | Pass [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 1,746 | 12,425 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 13,831 | 11,748 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 12,482 | 3,683 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 2,605 | 1,717 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 1,667 | 955 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,883 | 1,293 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 129 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 34,214 | 31,950 | |
Real Estate Construction and Land [Member] | Watch [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,043 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 273 | 299 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,316 | 299 | |
Real Estate Construction and Land [Member] | Special Mention [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Prior | 37 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 37 | ||
Real Estate Construction and Land [Member] | Substandard [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 1,351 | ||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,335 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 43 | 45 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,378 | 1,396 | |
1-4 Family Residential Mortgages [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | 307,055 | 317,558 | |
1-4 Family Residential Mortgages [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 6,262 | 19,482 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 18,543 | 17,422 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 15,504 | 57,453 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 57,019 | 78,293 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 75,038 | 25,366 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 114,509 | 96,670 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 19,315 | 22,210 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 865 | 662 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 307,055 | 317,558 | |
1-4 Family Residential Mortgages [Member] | Pass [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 6,262 | 19,482 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 16,704 | 14,712 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 13,032 | 54,066 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 54,357 | 74,539 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 73,140 | 24,999 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 102,513 | 85,836 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 18,261 | 20,571 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 300 | 524 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 284,569 | 294,729 | |
1-4 Family Residential Mortgages [Member] | Watch [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,839 | 1,621 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 1,400 | 1,874 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 1,852 | 602 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 596 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 8,433 | 7,149 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 658 | 1,166 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 404 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 15,182 | 12,412 | |
1-4 Family Residential Mortgages [Member] | Special Mention [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,089 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 1,072 | 1,458 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 1,958 | ||
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 270 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,571 | 1,591 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 78 | ||
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 60 | 138 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 2,703 | 6,582 | |
1-4 Family Residential Mortgages [Member] | Substandard [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 55 | ||
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 810 | 1,194 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 1,302 | 97 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,992 | 2,094 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 396 | 395 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 101 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 4,601 | 3,835 | |
Commercial Mortgages [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | 553,455 | 550,867 | |
Commercial Mortgages [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 28,060 | 112,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 106,613 | 41,433 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 40,375 | 49,726 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 48,772 | 104,681 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 99,416 | 45,974 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 229,085 | 195,232 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1,134 | 1,502 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 76 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 553,455 | 550,867 | |
Commercial Mortgages [Member] | Pass [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 28,060 | 112,093 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 104,821 | 41,433 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 39,316 | 46,315 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 45,285 | 101,205 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 88,199 | 45,809 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 207,911 | 171,184 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1,134 | 1,502 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 76 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 514,726 | 519,617 | |
Commercial Mortgages [Member] | Watch [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,792 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 1,059 | 1,196 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 1,180 | 166 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 6,349 | 165 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 11,133 | 14,188 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 21,513 | 15,715 | |
Commercial Mortgages [Member] | Special Mention [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 391 | ||
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 520 | 278 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 263 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 7,435 | 4,130 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 8,218 | 4,799 | |
Commercial Mortgages [Member] | Substandard [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 150 | ||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 1,824 | ||
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 1,787 | 3,032 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 4,605 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,606 | 5,730 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 8,998 | 10,736 | |
Consumer [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Total | 38,119 | 38,041 | |
Consumer [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 141 | 1,150 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,130 | 193 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 174 | 427 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 324 | 273 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 211 | 124 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 21,206 | 21,158 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 14,933 | 14,711 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 5 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 38,119 | 38,041 | |
Current period gross write-off, 2022/2021 | 19 | ||
Current period gross write-off, 2021/2020 | 16 | ||
Current period gross write-off, 2020/2019 | 4 | 28 | |
Current period gross write-off, Prior | 251 | 654 | |
Current period gross write-off, Revolving Loans | 4 | ||
Current period gross write-off | 255 | 721 | |
Consumer [Member] | Pass [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 129 | 1,149 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1,129 | 193 | |
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 174 | 420 | |
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 317 | 273 | |
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 211 | 107 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 20,872 | 20,836 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 14,931 | 14,710 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 37,763 | 37,688 | |
Consumer [Member] | Watch [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2022/2021 | 7 | ||
Term Loans Amortized Cost Basis by Origination Year, 2021/2020 | 7 | ||
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 9 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 147 | 190 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 154 | 206 | |
Consumer [Member] | Special Mention [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, Prior | 124 | 132 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1 | 1 | |
Term Loans Amortized Cost Basis by Origination Year, Loans Converted to Term | 5 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | 125 | 138 | |
Consumer [Member] | Substandard [Member] | Term Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Term Loans Amortized Cost Basis by Origination Year, 2024/2023 | 12 | 1 | |
Term Loans Amortized Cost Basis by Origination Year, 2023/2022 | 1 | ||
Term Loans Amortized Cost Basis by Origination Year, 2020/2019 | 8 | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 63 | ||
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1 | ||
Term Loans Amortized Cost Basis by Origination Year, Total | $ 77 | $ 9 | |
[1] Derived from audited Consolidated Financial Statements |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 7,768 | $ 7,800 | $ 7,768 | $ 7,800 | $ 7,768 | [1] |
Other intangible assets | 4,400 | 5,800 | 4,400 | 5,800 | $ 5,100 | |
Amortization of intangible assets | $ 332 | $ 379 | $ 675 | $ 770 | ||
[1] Derived from audited Consolidated Financial Statements |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Details) - Core Deposit [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9,660 | $ 9,660 | $ 9,660 |
Accumulated Amortization | $ (5,242) | $ (4,567) | $ (3,465) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - Core Deposit Intangible [Member] $ in Thousands | Jun. 30, 2024 USD ($) |
Schedule of Estimated Future Amortization Expense [Line Items] | |
For the six months ending December 31, 2024 | $ 627 |
For the year ending December 31, 2025 | 1,110 |
For the year ending December 31, 2026 | 918 |
For the year ending December 31, 2027 | 726 |
For the year ending December 31, 2028 | 535 |
Thereafter | 502 |
Finite-Lived Intangible Assets, Net, Total | $ 4,418 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Lessee, operating lease, existence of option to extend | true |
Lease term | 12 months |
Leases (Schedule of Lease Liabi
Leases (Schedule of Lease Liability, Right-of-use Asset, Weighted Average Remaining Lease Term and Discount Rate) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Lease liability | $ 6,102 | $ 6,504 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Right-of-use asset | $ 6,287 | $ 6,748 | [1] |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Weighted average remaining lease term | 4 years 10 months 13 days | 4 years 8 months 15 days | |
Weighted average discount rate | 2.71% | 2.28% | |
[1] Derived from audited Consolidated Financial Statements |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 412 | $ 395 | $ 841 | $ 906 |
Short-term lease expense | 18 | 81 | 30 | 204 |
Total lease expense | 430 | 476 | 871 | 1,110 |
Cash paid for amounts included in lease liabilities | $ 395 | $ 336 | $ 783 | $ 848 |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Six months ending December 31, 2024 | $ 799 | |
Twelve months ending December 31, 2025 | 1,497 | |
Twelve months ending December 31, 2026 | 1,158 | |
Twelve months ending December 31, 2027 | 1,063 | |
Twelve months ending December 31, 2028 | 942 | |
Thereafter | 1,195 | |
Total undiscounted cash flows | 6,654 | |
Less: Discount | (552) | |
Lease liability | $ 6,102 | $ 6,504 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Weighted Average Number of Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic net income per share | ||||||
Net income | $ 4,159 | $ 3,646 | $ 5,651 | $ 5,791 | $ 7,805 | $ 11,442 |
Basic, Weighted Average Shares | 5,377,055 | 5,357,873 | 5,371,972 | 5,348,040 | ||
Basic, Per Share Amount | $ 0.77 | $ 1.05 | $ 1.45 | $ 2.14 | ||
Effect of dilutive stock options, Weighted Average Shares | 8,715 | 17,200 | 11,008 | 27,505 | ||
Effect of dilutive stock options, Per Share Amount | $ (0.01) | |||||
Diluted net income per share | ||||||
Net income | $ 4,159 | $ 3,646 | $ 5,651 | $ 5,791 | $ 7,805 | $ 11,442 |
Diluted, Weighted Average Shares | 5,385,770 | 5,375,073 | 5,382,980 | 5,375,545 | ||
Diluted, Per Share Amount | $ 0.77 | $ 1.05 | $ 1.45 | $ 2.13 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Securities considered to be anti-dilutive and excluded from earnings per share calculation | 149,001 | 105,501 | 149,001 | 105,501 |
Stock Incentive Plans (Plan dur
Stock Incentive Plans (Plan duration - Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 23, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock grant expense | $ 388 | $ 231 | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 35 | $ 68 | 58 | $ 110 | |||
Unrecognized compensation expense related to the non-vested awards | $ 382 | $ 382 | |||||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2028 | ||||||
Option Issued | 32,900 | 8,400 | 3,600 | 0 | 41,300 | ||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to the non-vested awards | $ 2,100 | $ 2,100 | |||||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2028 | ||||||
Stock grants awarded | 25,280 | ||||||
Stock grant expense | $ 388 | ||||||
Restricted Stock [Member] | Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock grants awarded | 25,280 | ||||||
Restricted Stock [Member] | Non Employee Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock grants awarded | 25,280 | ||||||
Restricted Stock [Member] | Employee And Non Employee Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Plan duration | 10 years | ||||||
2022 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance | 150,000 | 150,000 | 150,000 | ||||
Common stock available for grant | 61,088 | 61,088 | |||||
Percentage of common stock authorized for issuance | 95% | ||||||
2014 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance | 275,625 | 275,625 | |||||
Common stock available for grant | 0 | 0 | 0 | ||||
2005 Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance | 253,575 | 253,575 | |||||
Common stock available for grant | 0 | 0 | 0 |
Stock Incentive Plans (Summary
Stock Incentive Plans (Summary of Shares Issued and Available Under Each Plans) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 23, 2022 | |
2022 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 150,000 | 150,000 |
Options issued, net of forfeited and expired options | (44,700) | |
Remaining available for grant | 61,088 | |
Total vested and unvested shares | 44,212 | |
Fully vested shares | 4,733 | |
2022 Stock Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (44,212) | |
2022 Stock Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total vested and unvested shares | 44,700 | |
2022 Stock Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 28.82 | |
2022 Stock Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 33.2 | |
2014 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 275,625 | |
Options issued, net of forfeited and expired options | (174,006) | |
Cancelled due to Plan expiration | (6,331) | |
Remaining available for grant | 0 | 0 |
Total vested and unvested shares | 95,888 | |
Fully vested shares | 67,054 | |
2014 Stock Plan [Member] | Unrestricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (11,635) | |
2014 Stock Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (83,653) | |
2014 Stock Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total vested and unvested shares | 169,301 | |
Fully vested shares | 129,220 | |
2014 Stock Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 23.75 | |
2014 Stock Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 42.62 | |
2005 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 253,575 | |
Options issued, net of forfeited and expired options | (59,870) | |
Cancelled due to Plan expiration | (193,705) | |
Remaining available for grant | 0 | 0 |
Stock Incentive Plans (Changes
Stock Incentive Plans (Changes in the Stock Options Outstanding) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | |
Number of Options | |||||
Outstanding, at the beginning | 174,201 | 174,201 | |||
Issued | 32,900 | 8,400 | 3,600 | 0 | 41,300 |
Forfeited | (1,500) | ||||
Outstanding, at the end | 214,001 | 214,001 | |||
Options Exercisable | 129,220 | 129,220 | |||
Weighted Average Exercise Price | |||||
Outstanding, at the beginning | $ 33.94 | $ 33.94 | |||
Issued | 28.98 | ||||
Forfeited | 35.35 | ||||
Outstanding, at the end | $ 32.97 | 32.97 | |||
Exercisable | $ 35.48 | $ 35.48 | |||
Aggregate Intrinsic Value | |||||
Outstanding, Aggregate Intrinsic Value | $ 709 | $ 709 | |||
Exercisable | $ 350 | $ 350 |
Stock Incentive Plans (Summar_2
Stock Incentive Plans (Summary Information Pertaining to Options Outstanding) (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 214,001 |
Weighted-Average Remaining Contractual Life | 6 years 3 months 18 days |
Weighted Average Exercise Price | $ 32.97 |
Options Exercisable | shares | 129,220 |
Weighted-Average Exercise Price | $ 35.48 |
$20.01 to $30.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 20.01 |
Exercise Price, Maximum | $ 30 |
Options Outstanding | shares | 101,300 |
Weighted-Average Remaining Contractual Life | 7 years 4 months 24 days |
Weighted Average Exercise Price | $ 25.85 |
Options Exercisable | shares | 43,800 |
Weighted-Average Exercise Price | $ 24.82 |
$30.01 to $40.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 30.01 |
Exercise Price, Maximum | $ 40 |
Options Outstanding | shares | 55,220 |
Weighted-Average Remaining Contractual Life | 6 years 10 months 24 days |
Weighted Average Exercise Price | $ 36 |
Options Exercisable | shares | 27,940 |
Weighted-Average Exercise Price | $ 37.51 |
$40.01 to $42.62 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 40.01 |
Exercise Price, Maximum | $ 42.62 |
Options Outstanding | shares | 57,481 |
Weighted-Average Remaining Contractual Life | 3 years 10 months 24 days |
Weighted Average Exercise Price | $ 42.62 |
Options Exercisable | shares | 57,480 |
Weighted-Average Exercise Price | $ 42.62 |
Stock Incentive Plans (Change_2
Stock Incentive Plans (Changes in the Restricted Stock Grants Outstanding) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Number of Shares/Options | |
Non-vested Outstanding, at the beginning | shares | 62,721 |
Issued | shares | 25,280 |
Vested | shares | (19,688) |
Forfeited | shares | 0 |
Non-vested Outstanding, at the end | shares | 68,313 |
Weighted Average Grant Date Fair Value Per Share/Exercise Price | |
Non-vested Outstanding, at the beginning | $ / shares | $ 32.56 |
Issued | $ / shares | 30.05 |
Vested | $ / shares | 31.21 |
Forfeited | $ / shares | 0 |
Non-vested Outstanding, at the end | $ / shares | $ 32.02 |
Aggregate Intrinsic Value | |
Non-vested Outstanding, at the beginning | $ | $ 2,057 |
Issued | $ | 829 |
Vested | $ | (646) |
Forfeited | $ | 0 |
Non-vested Outstanding, Aggregate Intrinsic Value | $ | $ 2,240 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 284,698 | $ 420,595 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 284,698 | 420,595 |
U.S. Government Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 11,433 | 121,708 |
U.S. Government Treasuries [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 11,433 | 121,708 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 26,537 | 39,581 |
U.S. Government Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 26,537 | 39,581 |
Mortgage-backed /CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 146,085 | 155,144 |
Mortgage-backed /CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 146,085 | 155,144 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 18,244 | 19,129 |
Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 18,244 | 19,129 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 82,399 | 85,033 |
Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 82,399 | $ 85,033 |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets Measured at Fair Value on Nonrecurring Basis) (Details) - Fair Value, Nonrecurring [Member] - Individually Evaluated Loans [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value | $ 461 |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value | $ 461 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Market Comparables [Member] - Individually Evaluated Loans [Member] - Fair Value, Nonrecurring [Member] - Significant Unobservable Inputs (Level 3) [Member] | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Unobservable Inputs | Discount applied to recent appraisal |
Discount Rate | 20 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Restricted securities | $ 6,667 | $ 8,385 | [1] |
Fair Value, Nonrecurring [Member] | Carrying Value [Member] | |||
Assets | |||
Cash and cash equivalent | 17,300 | 28,390 | |
Available for sale securities | 284,698 | 420,595 | |
Restricted securities | 6,667 | 8,385 | |
Loans, net | 1,150,186 | 1,084,270 | |
Bank owned life insurance | 39,468 | 38,904 | |
Accrued interest receivable | 6,579 | 6,179 | |
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,038,351 | 1,090,517 | |
Certificates of deposit | 335,490 | 318,581 | |
Federal funds purchased | 2,438 | 3,462 | |
Borrowings | 30,000 | 66,500 | |
Junior subordinated debt, net | 3,483 | 3,459 | |
Accrued interest payable | 2,122 | 2,143 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | |||
Assets | |||
Cash and cash equivalent | 17,300 | 28,390 | |
Available for sale securities | 284,698 | 420,595 | |
Restricted securities | 6,667 | 8,385 | |
Loans, net | 1,084,432 | 1,029,359 | |
Bank owned life insurance | 39,468 | 38,904 | |
Accrued interest receivable | 6,579 | 6,179 | |
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,038,351 | 1,090,517 | |
Certificates of deposit | 335,282 | 318,768 | |
Federal funds purchased | 2,438 | 3,462 | |
Borrowings | 30,072 | 66,360 | |
Junior subordinated debt, net | 3,483 | 3,459 | |
Accrued interest payable | 2,122 | 2,143 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets | |||
Cash and cash equivalent | 17,300 | 28,390 | |
Liabilities | |||
Federal funds purchased | 3,462 | ||
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets | |||
Available for sale securities | 284,698 | 420,595 | |
Restricted securities | 6,667 | 8,385 | |
Bank owned life insurance | 39,468 | 38,904 | |
Accrued interest receivable | 1,716 | 1,916 | |
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,038,351 | 1,090,517 | |
Certificates of deposit | 335,282 | 318,768 | |
Federal funds purchased | 2,438 | ||
Borrowings | 30,072 | 66,360 | |
Junior subordinated debt, net | 3,483 | 3,459 | |
Accrued interest payable | 2,122 | 2,143 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets | |||
Loans, net | 1,084,432 | 1,029,359 | |
Accrued interest receivable | $ 4,863 | $ 4,263 | |
[1] Derived from audited Consolidated Financial Statements |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ (40,044) | [1] | $ (48,624) |
Other comprehensive income (loss) arising during the period | (3,730) | 3,601 | |
Related income tax effects | 783 | (757) | |
Total other comprehensive loss before reclassification | (2,947) | 2,844 | |
Reclassification into net income | 4 | (254) | |
Related income tax effects | (1) | 54 | |
Reclassification into net income net of tax | 3 | (200) | |
Accumulated other comprehensive income (loss), Ending Balance | (42,988) | (45,980) | |
Interest Rate Swap [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 400 | ||
Other comprehensive income (loss) arising during the period | (46) | ||
Related income tax effects | 9 | ||
Total other comprehensive loss before reclassification | (37) | ||
Reclassification into net income | (460) | ||
Related income tax effects | 97 | ||
Reclassification into net income net of tax | (363) | ||
AFS Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (40,044) | (49,024) | |
Other comprehensive income (loss) arising during the period | (3,730) | 3,647 | |
Related income tax effects | 783 | (766) | |
Total other comprehensive loss before reclassification | (2,947) | 2,881 | |
Reclassification into net income | 4 | 206 | |
Related income tax effects | (1) | (43) | |
Reclassification into net income net of tax | 3 | 163 | |
Accumulated other comprehensive income (loss), Ending Balance | $ (42,988) | $ (45,980) | |
[1] Derived from audited Consolidated Financial Statements |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - Item | 6 Months Ended | |
Apr. 01, 2024 | Jun. 30, 2024 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 3 | |
Annual revenue share amount period | 6 years |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||||
Net interest income | $ 11,181 | $ 13,703 | $ 22,117 | $ 27,116 | ||
Provision for (recovery of) credit losses | (338) | 261 | (360) | 13 | ||
Noninterest income | 1,691 | 2,045 | 3,869 | 4,321 | ||
Noninterest expense | 8,122 | 8,564 | 16,941 | 17,425 | ||
Income before income taxes | 5,088 | 6,923 | 9,405 | 13,999 | ||
Provision for (benefit from) income taxes | 929 | 1,272 | 1,600 | 2,557 | ||
Net income | 4,159 | $ 3,646 | 5,651 | $ 5,791 | 7,805 | 11,442 |
Bank [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net interest income | 11,181 | 13,703 | 22,117 | 27,116 | ||
Provision for (recovery of) credit losses | (338) | 261 | (360) | 13 | ||
Noninterest income | 1,452 | 1,637 | 3,136 | 3,492 | ||
Noninterest expense | 7,814 | 7,987 | 16,084 | 16,355 | ||
Income before income taxes | 5,157 | 7,092 | 9,529 | 14,240 | ||
Provision for (benefit from) income taxes | 943 | 1,308 | 1,626 | 2,607 | ||
Net income | 4,214 | 5,784 | 7,903 | 11,633 | ||
VNB Trust & Estate Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Noninterest income | 239 | 250 | 543 | 510 | ||
Noninterest expense | 308 | 361 | 657 | 672 | ||
Income before income taxes | (69) | (111) | (114) | (162) | ||
Provision for (benefit from) income taxes | (14) | (24) | (24) | (34) | ||
Net income | $ (55) | (87) | (90) | (128) | ||
Masonry Capital [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Noninterest income | 158 | 190 | 319 | |||
Noninterest expense | 216 | 200 | 398 | |||
Income before income taxes | (58) | (10) | (79) | |||
Provision for (benefit from) income taxes | (12) | (2) | (16) | |||
Net income | $ (46) | $ (8) | $ (63) |
Sale of Masonry Capital Manag_2
Sale of Masonry Capital Management, LLC (Narrative) (Details) | Apr. 01, 2024 |
Sale of Masonry Capital Management LLC [Line Items] | |
Annual revenue share amount period | 6 years |
Share Repurchase Plan (Narrativ
Share Repurchase Plan (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2024 | |
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchased | 20,350 | |
Average Price | $ 27.42 | |
Percentage of Common stock outstanding percentage | 5% |