Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | VIRGINIA NATIONAL BANKSHARES CORP | |
Entity Central Index Key | 0001572334 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,714,273 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-55117 | |
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 | |
Entity Bankruptcy Proceedings, Reporting Current | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 11,399 | $ 14,908 |
Federal funds sold | 273 | 4,177 |
Securities: | ||
Available for sale, at fair value | 141,245 | 114,041 |
Restricted securities, at cost | 3,436 | 1,683 |
Total securities | 144,681 | 115,724 |
Loans | 636,935 | 539,533 |
Allowance for loan losses | (5,334) | (4,209) |
Loans, net | 631,601 | 535,324 |
Premises and equipment, net | 5,444 | 6,145 |
Bank owned life insurance | 16,739 | 16,412 |
Goodwill | 372 | 372 |
Other intangible assets, net | 357 | 408 |
Accrued interest receivable and other assets | 10,092 | 9,157 |
Total assets | 820,958 | 702,627 |
Demand deposits: | ||
Noninterest-bearing | 190,204 | 166,975 |
Interest-bearing | 135,569 | 122,994 |
Money market and savings deposit accounts | 270,653 | 221,964 |
Certificates of deposit and other time deposits | 98,095 | 109,278 |
Total deposits | 694,521 | 621,211 |
Advances from the FHLB | 40,000 | |
Accrued interest payable and other liabilities | 5,980 | 5,309 |
Total liabilities | 740,501 | 626,520 |
Commitments and contingent liabilities | ||
Shareholders' equity: | ||
Preferred stock, $2.50 par value, 2,000,000 shares authorized, no shares outstanding | ||
Common stock, $2.50 par value, 10,000,000 shares authorized; 2,714,273 (including 25,268 nonvested) shares issued and outstanding as of September 30, 2020 and 2,692,005 (including 4,000 nonvested) shares issued and outstanding as of December 31, 2019 | 6,722 | 6,720 |
Capital surplus | 32,377 | 32,195 |
Retained earnings | 40,158 | 37,235 |
Accumulated other comprehensive income (loss) | 1,200 | (43) |
Total shareholders' equity | 80,457 | 76,107 |
Total liabilities and shareholders' equity | $ 820,958 | $ 702,627 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 2.50 | $ 2.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,714,273 | 2,692,005 |
Common stock, nonvested shares issued | 25,268 | 4,000 |
Common stock, shares outstanding | 2,714,273 | 2,692,005 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest and dividend income: | ||||
Loans, including fees | $ 6,175 | $ 6,021 | $ 18,202 | $ 18,223 |
Federal funds sold | 3 | 174 | 98 | 267 |
Investment securities: | ||||
Taxable | 412 | 291 | 1,150 | 789 |
Tax exempt | 159 | 64 | 326 | 221 |
Dividends | 22 | 29 | 70 | 86 |
Total interest and dividend income | 6,771 | 6,579 | 19,846 | 19,586 |
Interest expense: | ||||
Demand and savings deposits | 383 | 531 | 1,468 | 1,375 |
Certificates and other time deposits | 306 | 574 | 1,166 | 1,619 |
Repurchase agreements and other borrowings | 35 | 35 | 89 | |
Total interest expense | 724 | 1,105 | 2,669 | 3,083 |
Net interest income | 6,047 | 5,474 | 17,177 | 16,503 |
Provision for (recovery of) loan losses | 224 | (120) | 1,367 | 500 |
Net interest income after provision for (recovery of) loan losses | 5,823 | 5,594 | 15,810 | 16,003 |
Noninterest income: | ||||
Wealth management fees | 263 | 377 | 801 | 1,126 |
Advisory and brokerage income | 175 | 159 | 516 | 451 |
Royalty income | 16 | 5 | 87 | 13 |
Deposit account fees | 162 | 192 | 484 | 565 |
Debit/credit card and ATM fees | 144 | 191 | 435 | 537 |
Earnings/increase in value of bank owned life insurance | 111 | 111 | 327 | 687 |
Fees on mortgage sales | 43 | 77 | 129 | |
Gains on sales of securities | 91 | 7 | 734 | 71 |
Loan swap fee income | 344 | 116 | 977 | 151 |
Other | 119 | 126 | 282 | 356 |
Total noninterest income | 1,425 | 1,327 | 4,720 | 4,086 |
Noninterest expense: | ||||
Salaries and employee benefits | 2,322 | 2,268 | 7,004 | 6,800 |
Net occupancy | 501 | 450 | 1,405 | 1,373 |
Equipment | 134 | 85 | 401 | 316 |
Data processing | 302 | 341 | 968 | 987 |
Merger expenses | 549 | 549 | ||
Settlement of claims | 160 | 460 | ||
Other | 1,127 | 1,257 | 3,555 | 3,721 |
Total noninterest expense | 4,935 | 4,561 | 13,882 | 13,657 |
Income before income taxes | 2,313 | 2,360 | 6,648 | 6,432 |
Provision for income taxes | 443 | 463 | 1,286 | 1,174 |
Net income | $ 1,870 | $ 1,897 | $ 5,362 | $ 5,258 |
Net income per common share, basic | $ 0.69 | $ 0.71 | $ 1.98 | $ 1.96 |
Net income per common share, diluted | $ 0.69 | $ 0.71 | $ 1.98 | $ 1.96 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 1,870 | $ 1,897 | $ 5,362 | $ 5,258 |
Other comprehensive income | ||||
Unrealized gain on securities, net of tax of $81 and $484 for the three and nine months ended September 30, 2020; and net of tax of $29 and $372 for the three and nine months ended September 30, 2019 | 309 | 106 | 1,823 | 1,396 |
Reclassification adjustment for realized gains on sales of securities, net of tax of ($19) and ($154) for the three and nine months ended September 30, 2020; and net of tax of ($1) and ($15) for the three and nine months ended September 30, 2019 | 72 | 6 | 580 | 56 |
Total other comprehensive income | 237 | 100 | 1,243 | 1,340 |
Total comprehensive income | $ 2,107 | $ 1,997 | $ 6,605 | $ 6,598 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Change in unrealized gain on available-for-sale securities, tax | $ 81 | $ 29 | $ 484 | $ 372 |
Reclassification adjustment, tax | $ (19) | $ (1) | $ (154) | $ (15) |
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 Income (Loss) [Member] | |
Balance at Dec. 31, 2018 | $ 70,742 | $ 6,359 | $ 27,013 | $ 38,647 | $ (1,277) | |
Stock options exercised | 102 | 14 | 88 | |||
Stock option expense | 24 | 24 | ||||
Unrestricted stock grants | 424 | 27 | 397 | |||
Cash dividends declared | (767) | (767) | ||||
Net income | 1,246 | 1,246 | ||||
Other comprehensive income (loss) | 754 | 754 | ||||
Balance at Mar. 31, 2019 | 72,525 | 6,400 | 27,522 | 39,126 | (523) | |
Balance at Dec. 31, 2018 | 70,742 | 6,359 | 27,013 | 38,647 | (1,277) | |
Net income | 5,258 | |||||
Other comprehensive income (loss) | 1,340 | |||||
Balance at Sep. 30, 2019 | 75,554 | 6,720 | 32,160 | 36,611 | 63 | |
Balance at Mar. 31, 2019 | 72,525 | 6,400 | 27,522 | 39,126 | (523) | |
Stock option expense | 23 | 23 | ||||
Stock dividend distributable | [1] | 320 | 4,593 | (4,913) | ||
Cash dividends declared | (806) | (806) | ||||
Net income | 2,115 | 2,115 | ||||
Other comprehensive income (loss) | 486 | 486 | ||||
Balance at Jun. 30, 2019 | 74,343 | 6,720 | 32,138 | 35,522 | (37) | |
Stock option expense | 24 | 24 | ||||
Stock grants | 3 | 3 | ||||
Cash in lieu of fractional shares | (5) | (5) | ||||
Cash dividends declared | (808) | (808) | ||||
Net income | 1,897 | 1,897 | ||||
Other comprehensive income (loss) | 100 | 100 | ||||
Balance at Sep. 30, 2019 | 75,554 | 6,720 | 32,160 | 36,611 | 63 | |
Balance at Dec. 31, 2019 | 76,107 | 6,720 | 32,195 | 37,235 | (43) | |
Stock option expense | 24 | 24 | ||||
Restricted stock grant expense | 15 | 15 | ||||
Cash dividends declared | (811) | (811) | ||||
Net income | 1,404 | 1,404 | ||||
Other comprehensive income (loss) | (448) | (448) | ||||
Balance at Mar. 31, 2020 | 76,291 | 6,720 | 32,234 | 37,828 | (491) | |
Balance at Dec. 31, 2019 | 76,107 | 6,720 | 32,195 | 37,235 | (43) | |
Net income | 5,362 | |||||
Other comprehensive income (loss) | 1,243 | |||||
Balance at Sep. 30, 2020 | 80,457 | 6,722 | 32,377 | 40,158 | 1,200 | |
Balance at Mar. 31, 2020 | 76,291 | 6,720 | 32,234 | 37,828 | (491) | |
Stock option expense | 34 | 34 | ||||
Restricted stock grant expense | 39 | 39 | ||||
Cash dividends declared | (814) | (814) | ||||
Net income | 2,088 | 2,088 | ||||
Other comprehensive income (loss) | 1,454 | 1,454 | ||||
Balance at Jun. 30, 2020 | 79,092 | 6,720 | 32,307 | 39,102 | 963 | |
Stock option expense | 30 | 30 | ||||
Restricted stock grant expense | 42 | 42 | ||||
Vested stock grants | 2 | (2) | ||||
Cash dividends declared | (814) | (814) | ||||
Net income | 1,870 | 1,870 | ||||
Other comprehensive income (loss) | 237 | 237 | ||||
Balance at Sep. 30, 2020 | $ 80,457 | $ 6,722 | $ 32,377 | $ 40,158 | $ 1,200 | |
[1] | Common stock and capital surplus as of June 30, 2019 includes the 5% stock dividend distributable effective July 5, 2019. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Cash dividend declared, per share | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 |
Common Stock [Member] | ||||||
Stock dividend percentage | 5.00% | |||||
Capital Surplus [Member] | ||||||
Stock dividend percentage | 5.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,362 | $ 5,258 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,367 | 500 |
Net amortization and accretion of securities | 471 | 200 |
Net gains on sale of securities | (734) | (71) |
Earnings on bank owned life insurance | (327) | (687) |
Amortization of intangible assets | 74 | 67 |
Depreciation and other amortization | 1,395 | 1,338 |
Stock option expense | 88 | 71 |
Stock grants, unrestricted | 424 | |
Stock grant expense, restricted | 96 | 3 |
Net change in: | ||
Accrued interest receivable and other assets | (1,117) | (2,447) |
Accrued interest payable and other liabilities | (19) | (58) |
Net cash provided by operating activities | 6,656 | 4,598 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net increase in restricted investments | (1,753) | (1) |
Purchases of available for sale securities | (122,372) | (40,608) |
Proceeds from maturities, calls and principal payments of available for sale securities | 34,821 | 4,573 |
Proceeds from sales of available for sale securities | 62,184 | 21,065 |
Net decrease (increase) in organic loans | (117,081) | 9,654 |
Net decrease in purchased loans | 19,437 | 4,024 |
Cash payment for wealth management book of business | (50) | (50) |
Proceeds from settlement of bank owned life insurance | 1,176 | |
Purchase of bank premises and equipment | (132) | (124) |
Net cash used in investing activities | (124,946) | (291) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in demand deposits, NOW accounts, and money market accounts | 84,493 | (8,148) |
Net increase (decrease) in certificates of deposit and other time deposits | (11,183) | 15,061 |
Net increase in borrowings | 40,000 | |
Proceeds from stock options exercised | 102 | |
Cash payment for stock dividend fractional shares | (5) | |
Cash dividends paid | (2,433) | (2,336) |
Net cash provided by financing activities | 110,877 | 4,674 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (7,413) | 8,981 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 19,085 | 18,874 |
End of period | 11,672 | 27,855 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 2,788 | 2,963 |
Taxes | 1,991 | 1,650 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized gain on available for sale securities | 1,573 | 1,697 |
Initial right-of-use assets obtained in exchange for new operating lease liabilities | $ 711 | $ 4,279 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Virginia National Bankshares Corporation (the “Company”), and its subsidiaries Virginia National Bank (the “Bank”) and Masonry Capital Management, LLC (“Masonry Capital”), a registered investment advisor. Beginning in 2019, the services offered under the umbrella of VNB Wealth are provided by Masonry Capital or by the Bank under VNB Trust & Estate Services or Sturman Wealth Advisors, formerly known as VNB Investment Services. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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 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 allowance for loan losses (including impaired loans), other-than-temporary impairment of securities, intangible assets, and fair value measurements. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019. Adoption of New Accounting Guidance Interagency COVID-19 Guidance I n March 2020, various regulatory agencies, including the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification (“ASC”) 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), issued by the Financial Accounting Standards Board (“FASB”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. This interagency guidance may have a material impact on the Company’s financial statements; however, this impact cannot be quantified at this time. Recent Accounting Pronouncements Financial Instruments – Credit Losses In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the U.S. Securities and Exchange Commission ( “ SEC ” ) , such as the Company, and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 202 2. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements . Early in 2017, the Company formed a cross-functional steering committee, including some members of senior management, to provide governance and guidance over the project plan. T h e Company is capturing the additional loan data which is anticipated to be needed for th is calculation . The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, the impact to the allowance for credit losses (currently allowance for loan losses) will have an offsetting one-time cumulative-effect adjustment to retained earnings. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (“SAB”) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. Investments – Equity Securities In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the FASB’s Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. LIBOR and Other Reference Rates In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. To facilitate an orderly transition from LIBOR, Inter-bank Offered Rate (“IBOR”) and other benchmark rates to alternative reference rates (“ARRs”), the Company has established a focus committee, which includes members of senior management, including the Chief Credit Officer and Chief Financial Officer, among others. The task of this committee is to identify, assess and monitor risk associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, achieve operations readiness and engage impacted clients in connection with the transition to ARRs. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. SEC Filing Requirements On March 12, 2020, the SEC finalized amendments to the definitions of its “accelerated filer” and “large accelerated filer” definitions. The amendments increase the threshold criteria for meeting these filer classifications and are effective on April 27, 2020. Any changes in filer status are to be applied beginning with the filer’s first annual report filed with the SEC subsequent to the effective date. Prior to these changes, the Company was required to comply with section 404(b) of the Sarbanes Oxley Act concerning auditor attestation over internal control over financial reporting as an “accelerated filer” as it had more than $75 million in public float but less than $700 million at the end of the Company’s most recent second quarter. The rule change expands the definition of “smaller reporting companies” to include entities with public float of less than $700 million and less than $100 million in annual revenues. The Company expects that it will no longer be considered an accelerated filer beginning in 2021. If the Company’s annual revenues exceed $100 million, its category will chan ge back to “accelerated filer”. The classifications of “accelerated filer” and “large accelerated filer” require a public company to obtain an auditor attestation concerning the effectiveness of internal control over financial reporting ( “ ICFR ” ) and include the opinion on ICFR in its annual report on Form 10-K. All public companies are required to obtain and file annual financial statement audits, as well as provide management’s assertion on effectiveness of internal control over financial reporting, but the external auditor attestation of internal control over financial reporting is not required f or smaller reporting companies . As the Bank ’s total assets exceed $ 500 m illion, it remains subject to FDICIA ’s internal reporting requirements, but does not require an auditor attestation concerning internal controls over financial reporting. As such, professional and consulting expenditures should decline by an immaterial amount. Nonrefundable Fees and Other Costs In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is not permitted. All entities should apply ASU No. 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption of ASU 2020-08 to have a material impact on its consolidated financial statements. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 2. Securities The amortized cost and fair values of securities available for sale as of September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government agencies $ 19,996 $ 3 $ (159 ) $ 19,840 Mortgage-backed securities/CMOs 63,462 790 (94 ) 64,158 Municipal bonds 56,268 1,075 (96 ) 57,247 Total Securities Available for Sale $ 139,726 $ 1,868 $ (349 ) $ 141,245 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government agencies $ 15,000 $ - $ (48 ) $ 14,952 Corporate bonds 7,469 - - 7,469 Mortgage-backed securities/CMOs 71,970 76 (314 ) 71,732 Municipal bonds 19,656 282 (50 ) 19,888 Total Securities Available for Sale $ 114,095 $ 358 $ (412 ) $ 114,041 As of September 30, 2020, there were $53.1 million, or 32 issues of individual securities, held in an unrealized loss position. These securities have an unrealized loss of $349 thousand and consisted of 11 mortgage-backed/collateralized mortgage obligations (“CMOs”), 12 municipal bonds, and 9 agency bonds. The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, at September 30, 2020, and December 31, 2019 (dollars in thousands): September 30, 2020 Less than 12 Months 12 Months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 15,340 $ (159 ) $ — $ — $ 15,340 $ (159 ) Mortgage-backed/CMOs 22,496 (94 ) — — 22,496 (94 ) Municipal bonds 15,266 (96 ) — — 15,266 (96 ) $ 53,102 $ (349 ) $ — $ — $ 53,102 $ (349 ) December 31, 2019 Less than 12 Months 12 Months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 9,957 $ (43 ) $ 1,995 $ (5 ) $ 11,952 $ (48 ) Mortgage-backed/CMOs 39,061 (228 ) 7,716 (86 ) 46,777 (314 ) Municipal bonds 5,922 (50 ) — — 5,922 (50 ) $ 54,940 $ (321 ) $ 9,711 $ (91 ) $ 64,651 $ (412 ) The Company’s securities portfolio is primarily made up of fixed rate bonds, 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 bonds 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. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. Accordingly, as of September 30, 2020, management believes the impairments detailed in the table above are temporary, and no impairment loss has been realized in the Company’s consolidated income statement. An “other-than-temporary impairment” (“OTTI”) is considered to exist if either of the following conditions are met: it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the security’s entire amortized cost basis (even if the Company does not intend to sell). In the event that a security would suffer impairment for a reason that was “other than temporary,” the Company would be expected to write down the security’s value to its new fair value, and the amount of the write down would be included in earnings as a realized loss. As of September 30, 2020, management has concluded that none of its investment securities have an OTTI based upon the information available. 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 having carrying values of $6.0 million at September 30, 2020 were pledged as collateral to secure public deposits and facilitate borrowing from the Federal Reserve Bank of Richmond (“FRB”). At December 31, 2019, securities having carrying values of $5.0 million were similarly pledged. For the nine months ended September 30, 2020, proceeds from the sales of securities amounted to $62.2 million, with gross realized gains of $882 thousand and gross realized losses of $147 thousand, for a net realized gain of $734 thousand. For the nine months ended September 30, 2019, proceeds from the sales of securities amounted to $21.1 million, with gross realized gains of $114 thousand and gross realized losses of $43 thousand, for a net realized gain of $71 thousand. Restricted securities are securities with limited marketability and consist of stock in the FRB, the Federal Home Loan Bank of Atlanta (“FHLB”), and CBB Financial Corporation, the holding company for Community Bankers Bank. These restricted securities, totaling $3.4 million and $1.7 million as of September 30, 2020 and December 31, 2019, are carried at cost. The increase was attributed to the required purchase of additional FHLB stock with the advances made in the third quarter of 2020. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Loans | Note 3. Loans The composition of the loan portfolio by loan classification at September 30, 2020 and December 31, 2019 appears below (dollars in thousands). September 30, December 31, 2020 2019 Commercial Commercial and industrial - organic $ 32,949 $ 38,843 Commercial and industrial - Paycheck Protection Program 84,706 — Commercial and industrial - government guaranteed 32,455 35,347 Commercial and industrial - syndicated 6,367 6,398 Total commercial and industrial 156,477 80,588 Real estate construction and land Residential construction 1,597 2,197 Commercial construction 15,565 6,880 Land and land development 6,591 8,063 Total construction and land 23,753 17,140 Real estate mortgages 1-4 family residential, first lien, investment 61,656 44,099 1-4 family residential, first lien, owner occupied 18,848 20,671 1-4 family residential, junior lien 2,625 2,520 1-4 family residential - purchased 22,368 33,428 Home equity lines of credit, first lien 9,827 10,268 Home equity lines of credit, junior lien 8,537 9,671 Farm 7,217 8,808 Multifamily 36,113 27,093 Commercial owner occupied 98,219 96,117 Commercial non-owner occupied 128,999 118,561 Total real estate mortgage 394,409 371,236 Consumer Consumer revolving credit 19,312 20,081 Consumer all other credit 3,953 5,741 Student loans purchased 39,031 44,747 Total consumer 62,296 70,569 Total loans 636,935 539,533 Less: Allowance for loan losses (5,334 ) (4,209 ) Net loans $ 631,601 $ 535,324 During the nine months ended September 30, 2020, the Bank originated $86.9 million of Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans, which were designed to provide economic relief to small businesses adversely impacted by COVID-19. The balances in the table above include unamortized premiums and net deferred loan costs (fees). As of September 30, 2020 and December 31, 2019, unamortized premiums on loans purchased were $2.0 million and $2.5 million, respectively. Net deferred loan costs (fees) totaled $(2.1) million and $100 thousand as of September 30, 2020 and December 31, 2019. The deferred fees increased $2.2 million due to the fees collected from the SBA for the PPP loans that are being amortized over the contractual life of the underlying loans, most of which are over a 24-month period. Accounting guidance requires certain disclosures about investments in impaired loans, the allowance for loan losses and interest income recognized on impaired loans. A loan is considered impaired when it is probable that the Company will be unable to collect all principal and interest amounts when due according to the contractual terms of the loan agreement. Factors involved in determining impairment include, but are not limited to, expected future cash flows, financial condition of the borrower, and current economic conditions. The following tables reflect the breakdown by class of the loans classified as impaired loans as of September 30, 2020 and December 31, 2019. These loans are reported at their recorded investment, which is the carrying amount of the loan as reflected on the Company’s balance sheet, net of charge-offs and other amounts applied to reduce the net book balance. Average recorded investment in impaired loans is computed using an average of month-end balances for these loans for either the nine months ended September 30, 2020 or the twelve months ended December 31, 2019. Interest income recognized is for the nine months ended September 30, 2020 or the twelve months ended December 31, 2019 (dollars below reported in thousands). September 30, 2020 Recorded Investment Unpaid Principal Balance Associated Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Land and land development $ 9 $ 56 $ - $ 185 $ - 1-4 family residential mortgages, junior lien 110 110 - 115 4 Commercial non-owner occupied real estate 838 838 - 865 35 Total impaired loans without a valuation allowance 957 1,004 - 1,165 39 Impaired loans with a valuation allowance Student loans purchased 1,202 1,202 4 1,110 58 Total impaired loans with a valuation allowance 1,202 1,202 4 1,110 58 Total impaired loans $ 2,159 $ 2,206 $ 4 $ 2,275 $ 97 December 31, 2019 Recorded Investment Unpaid Principal Balance Associated Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Land and land development $ 279 $ 324 $ - $ 67 $ 13 1-4 family residential mortgages, first lien, owner occupied - - - 20 2 1-4 family residential mortgages, junior lien 117 117 - 122 6 Commercial and industrial - organic 20 20 - 3 1 Commercial non-owner occupied real estate 879 879 - 900 48 Total impaired loans without a valuation allowance 1,295 1,340 - 1,112 70 Impaired loans with a valuation allowance Student loans purchased 1,184 1,184 21 1,549 86 Total impaired loans with a valuation allowance 1,184 1,184 21 1,549 86 Total impaired loans $ 2,479 $ 2,524 $ 21 $ 2,661 $ 156 Included in the impaired loans above are non-accrual loans. Generally, loans are placed on non-accrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more. Any unpaid interest previously accrued on those loans is reversed from income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Interest income on other non-accrual loans is recognized only to the extent of interest payments received. The recorded investment in non-accrual loans is shown below by class (dollars in thousands): September 30, 2020 December 31, 2019 Land and land development $ 9 $ 279 Commercial and industrial - organic - 20 Total non-accrual loans $ 9 $ 299 Additionally, TDRs are considered impaired loans. TDRs occur when the Company agrees to modify the original terms of a loan by granting a concession that it would not otherwise consider due to the deterioration in the financial condition of the borrower. These concessions are done in an attempt to improve the paying capacity of the borrower, and in some cases to avoid foreclosure, and are made with the intent to restore the loan to a performing status once sufficient payment history can be demonstrated. These concessions could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. In accordance with regulatory guidance, the Bank has approved for certain customers who have been adversely affected by COVID-19 to defer principal-only, or principal and interest, payments for a 90- to 180-day period. Such short-term modifications, which were made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. While interest will continue to accrue to income, in accordance with GAAP, if the Bank ultimately incurs a credit loss on these deferred payments, interest income would need to be reversed and therefore, interest income in future periods could be negatively impacted. A total of $58.4 million in loan deferments have been approved since the beginning of the pandemic. As of September 30, 2020, $48.9 million, or 83.8%, of the total loan deferments approved have returned to normal payment schedules and are now current. Based on regulatory guidance on student lending, the Company has classified 81 of its student loans purchased as TDRs for a total of $1.2 million as of September 30, 2020. These borrowers that should have been in repayment have requested and been granted payment extensions or reductions exceeding the maximum lifetime allowable payment forbearance of twelve months (36 months lifetime allowance for military service), as permitted under the regulatory guidance, and are therefore considered restructurings. Student loan borrowers are allowed in-school deferments, plus an automatic six-month The following provides a summary, by class, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in non-accrual status, which are considered to be nonperforming (dollars in thousands). Troubled debt restructurings September 30, 2020 December 31, 2019 No. of Recorded No. of Recorded Loans Investment Loans Investment Performing TDRs 1-4 family residential mortgages, junior lien 1 $ 110 1 $ 117 Commercial non-owner occupied real estate 1 838 1 879 Student loans purchased 81 1,202 67 1,184 Total performing TDRs 83 $ 2,150 69 $ 2,180 Nonperforming TDRs Land and land development 1 $ 9 1 $ 13 Total nonperforming TDRs 1 $ 9 1 $ 13 Total TDRs 84 $ 2,159 70 $ 2,193 A summary of loans shown above that were modified under the terms of a TDR during the three and nine months ended September 30, 2020 and 2019 is shown below by class (dollars in thousands). The Post-Modification Recorded Balance reflects the period end balances, inclusive of any interest capitalized to principal, partial principal paydowns, and principal charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. For three months ended For three months ended September 30, 2020 September 30, 2019 Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Student loans purchased 9 $ 119 $ 119 10 $ 78 $ 78 Total loans modified during the period 9 $ 119 $ 119 10 $ 78 $ 78 For the nine months ended For the nine months ended September 30, 2020 September 30, 2019 Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Student loans purchased 15 $ 168 $ 168 12 $ 133 $ 133 Total loans modified during the period 15 $ 168 $ 168 12 $ 133 $ 133 During the nine months ended September 30, 2020, there were two loans modified as TDRs that subsequently defaulted which had been modified as TDRs during the twelve months prior to default. These student loans had a balance of $7 thousand prior to being charged off. There were three loans modified as a TDR that subsequently defaulted during the year ended December 31, 2019 which had been modified as a TDR during the twelve months prior to default. These student loans had balances totaling $23 thousand prior to being charged off. There were no loans secured by 1-4 family residential property that were in the process of foreclosure at either September 30, 2020 or December 31, 2019. |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Allowance For Loan Losses [Abstract] | |
Allowance for Loan Losses | Note 4. Allowance for Loan Losses The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb probable credit losses inherent in the loan portfolio. The amount of the allowance is based on management’s quarterly evaluation of the collectability of the loan portfolio, credit concentrations, historical loss experience, specific impaired loans, and economic conditions. To determine the total allowance for loan losses, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and loans analyzed on a pooled basis. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Within these segments, the Company has sub-segmented its portfolio by classes within the segments, based on the associated risks within these classes. Loan Classes by Segments Commercial loan segment: Commercial and industrial - organic Commercial and industrial - Paycheck Protection Program Commercial and industrial - government guaranteed 1 Commercial and industrial - syndicated Real estate construction and land loan segment: Residential construction Commercial construction Land and land development Real estate mortgage loan segment: 1-4 family residential, first lien, investment 1-4 family residential, first lien, owner occupied 1-4 family residential, junior lien Home equity lines of credit, first lien Home equity lines of credit, junior lien Farm Multifamily Commercial owner occupied Commercial non-owner occupied Consumer loan segment: Consumer revolving credit Consumer all other credit Student loans purchased 1 Management utilizes a loss migration model for determining the quantitative risk assigned to unimpaired loans in order to capture historical loss information at the loan level, track loss migration through risk grade deterioration, and increase efficiencies related to performing the calculations. The quantitative risk factor for each loan class primarily utilizes a migration analysis loss method based on loss history for the prior twelve quarters. The migration analysis loss method is used for all loan classes except for the following: • Commercial and industrial PPP loans – These loans require no reserve as these are 100% guaranteed by the SBA. • Student loans purchased - On June 27, 2018, the Company was notified that ReliaMax Surety Company (“ReliaMax Surety”), the South Dakota insurance company which issued surety bonds for the student loan pools, was placed into liquidation due to insolvency. As such, the historical charge-off rate on this portfolio is determined by using the Company’s own losses/charge-offs since July 1, 2018 together with prior insurance claim history. For reporting periods prior to June 30, 2018, the Company did not charge off student loans as the insurance covered the past due loans, but the Company did apply qualitative factors to calculate a reserve on these loans, net of the deposit reserve accounts held by the Company for this group of loans. • Commercial and industrial government guaranteed loans - These purchased loans require no reserve as these are 100% guaranteed by either the SBA or the United States Department of Agriculture. • Commercial and industrial syndicated loans - Beginning with the quarter ended September 30, 2016, migration analysis was utilized on the Pass pool. For all other pools, there was not an established loss history; therefore the S&P credit and recovery ratings on the credit facilities were utilized to calculate a three-year weighted average historical default rate. As of December 31, 2019, only migration analysis was utilized since all outstanding syndicated loans at that time were in the Pass pool. Under the migration analysis method, average loss rates are calculated at the risk grade and class levels by dividing the twelve-quarter average net charge-off amount by the twelve-quarter average loan balances. Qualitative factors are combined with these quantitative factors to arrive at the overall general allowances. The Company’s internal creditworthiness grading system is based on experiences with similarly graded loans. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. Additionally, external reviews of a portion of the credits are conducted annually. Loans that trend upward on the risk ratings scale, toward more positive risk ratings, generally exhibit lower risk factor characteristics. Conversely, loans that migrate toward more negative ratings generally will result in a higher risk factor being applied to those related loan balances. Risk Ratings and Historical Loss Factor Assigned Excellent A 0% historical loss factor is applied, as these loans are secured by cash or fully guaranteed by a U.S. government agency and represent a minimal risk. The Company has never experienced a loss within this category. Good A 0% historical loss factor is applied, as these loans represent a low risk and are secured by marketable collateral within margin. In an abundance of caution, a nominal loss reserve is applied to these loans. The Company has never experienced a loss within this category. Pass A historical loss factor for loans rated “Pass” is applied to current balances of like-rated loans, pooled by class. Loans with the following risk ratings are pooled by class and considered together as “Pass”: 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. A historical loss factor for loans rated “Watch” is applied to current balances of like-rated loans pooled by class. Special Mention These potential problem loans are currently protected but are potentially weak. A historical loss factor for loans rated “Special Mention” is applied to current balances of like-rated loans pooled by class. 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. These loans may be considered impaired and evaluated on an individual basis. Otherwise, a historical loss factor for loans rated “Substandard” is applied to current balances of all other “Substandard” loans pooled by class. 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. The following represents the loan portfolio designated by the internal risk ratings assigned to each credit as of September 30, 2020 and December 31, 2019 (dollars in thousands). There were no loans rated “Doubtful” as of either period. September 30, 2020 Excellent Good Pass Watch Special Mention Sub- standard TOTAL Commercial Commercial and industrial - organic $ 6,313 $ 14,985 $ 11,084 $ - $ - $ 567 $ 32,949 Commercial and industrial - Paycheck Protection Program 84,706 - - - - - 84,706 Commercial and industrial - government guaranteed 32,455 - - - - - 32,455 Commercial and industrial - syndicated - - 6,367 - - - 6,367 Real estate construction Residential construction - - 1,597 - - - 1,597 Commercial construction - - 15,565 - - - 15,565 Land and land development - - 6,375 - - 216 6,591 Real estate mortgages 1-4 family residential, first lien investment - - 58,089 2,349 544 674 61,656 1-4 family residential, first lien, owner occupied - - 16,633 1,012 640 563 18,848 1-4 family residential, junior lien - - 2,471 30 14 110 2,625 1-4 family residential, first lien - purchased - - 22,368 - - - 22,368 Home equity lines of credit, first lien - - 9,827 - - - 9,827 Home equity lines of credit, junior lien - - 8,371 84 - 82 8,537 Farm - - 5,650 302 - 1,265 7,217 Multifamily - - 35,720 228 - 165 36,113 Commercial owner occupied - - 88,810 1,153 - 8,256 98,219 Commercial non-owner occupied - - 126,754 995 - 1,250 128,999 Consumer Consumer revolving credit 844 18,218 250 - - - 19,312 Consumer all other credit 409 3,027 516 - - 1 3,953 Student loans purchased - - 37,339 1,407 132 153 39,031 Total Loans $ 124,727 $ 36,230 $ 453,786 $ 7,560 $ 1,330 $ 13,302 $ 636,935 December 31, 2019 Excellent Good Pass Watch Special Mention Sub- standard TOTAL Commercial Commercial and industrial - organic $ 6,463 $ 16,453 $ 14,257 $ 1,493 $ 37 $ 140 $ 38,843 Commercial and industrial - government guaranteed 35,347 - - - - - 35,347 Commercial and industrial - syndicated - - 6,398 - - - 6,398 Real estate construction Residential construction - - 2,197 - - - 2,197 Commercial construction - - 6,880 - - - 6,880 Land and land development - - 7,563 207 - 293 8,063 Real estate mortgages 1-4 family residential, first lien, investment - - 39,641 4,076 - 382 44,099 1-4 family residential, first lien, owner occupied - - 19,578 1,040 - 53 20,671 1-4 family residential, junior lien - - 2,029 33 17 441 2,520 1-4 family residential, first lien - purchased - - 33,428 - - - 33,428 Home equity lines of credit, first lien - - 9,591 677 - - 10,268 Home equity lines of credit, junior lien - - 9,357 232 - 82 9,671 Farm - - 6,149 318 - 2,341 8,808 Multifamily - - 26,690 403 - - 27,093 Commercial owner occupied - - 86,884 5,928 1,677 1,628 96,117 Commercial non-owner occupied - - 116,092 1,558 - 911 118,561 Consumer - Consumer revolving credit 279 19,176 606 20 - - 20,081 Consumer all other credit 199 5,035 507 - - - 5,741 Student loans purchased - - 42,598 1,729 211 209 44,747 Total Loans $ 42,288 $ 40,664 $ 430,445 $ 17,714 $ 1,942 $ 6,480 $ 539,533 In addition, the adequacy of the Company’s allowance for loan losses is evaluated through reference to eight qualitative factors, listed below and ranked in order of importance: 1) Changes in national and local economic conditions, including the condition of various market segments; 2) Changes in the value of underlying collateral; 3) Changes in volume of classified assets, measured as a percentage of capital; 4) Changes in volume of delinquent loans; 5) The existence and effect of any concentrations of credit and changes in the level of such concentrations; 6) Changes in lending policies and procedures, including underwriting standards; 7) Changes in the experience, ability and depth of lending management and staff; and 8) Changes in the level of policy exceptions. It has been the Company’s experience that the first five factors drive losses to a much greater extent than the last three factors; therefore, the first five factors are weighted more heavily. Qualitative factors are not assessed against loans rated “Excellent” or “Good,” as the Company has never experienced a loss within these categories. As of March 31, 2020 and June 30, 2020, the Company downgraded the economic qualitative factors within its ALLL model in light of the effects of COVID-19 on the economy. No additional downgrades of such factors were taken during the quarter ended September 30, 2020. If economic conditions improve or worsen, the Company could experience changes in the required ALLL. It is possible that asset quality metrics could decline in the future if the effects of COVID-19 are sustained. For each segment and class of loans, management must exercise significant judgment to determine the estimation method that fits the credit risk characteristics of its various segments. Although this evaluation is inherently subjective, qualified management utilizes its significant knowledge and experience related to both the Company ’s market and the history of the Company’s loan losses. Impaired loans are individually evaluated and, if deemed appropriate, a specific allocation is made for these loans. In reviewing the loans classified as impaired loans totaling $2.2 million at September 30, 2020, a specific valuation allowance was recognized after consideration was given for each borrowing as to the fair value of the collateral on the loan or the present value of expected future cash flows from the borrower. The $4 thousand in the allowance total shown below as individually evaluated for impairment was attributed to the impaired student loans that required an allowance as of September 30, 2020 due to the loss of the insurance on this portfolio as discussed previously. A summary of the transactions in the Allowance for Loan Losses by loan portfolio segment for the nine months ended September 30, 2020 and the year ended December 31, 2019 appears below (dollars in thousands): Allowance for Loan Losses Rollforward by Portfolio Segment As of and for the period ended September 30, 2020 Commercial Loans Real Estate Construction and Land Real Estate Mortgages Consumer Loans Total Allowance for Loan Losses: Balance as of beginning of year $ 302 $ 109 $ 2,684 $ 1,114 $ 4,209 Charge-offs - - - (643 ) (643 ) Recoveries 23 - - 378 401 Provision for (recovery of) loan losses (86 ) 65 997 391 1,367 Ending Balance $ 239 $ 174 $ 3,681 $ 1,240 $ 5,334 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 4 $ 4 Collectively evaluated for impairment 239 174 3,681 1,236 5,330 Loans: Individually evaluated for impairment $ - $ 9 $ 948 $ 1,202 $ 2,159 Collectively evaluated for impairment 156,477 23,744 393,461 61,094 634,776 Ending Balance $ 156,477 $ 23,753 $ 394,409 $ 62,296 $ 636,935 As of and for the period ended December 31, 2019 Commercial Loans Real Estate Construction and Land Real Estate Mortgages Consumer Loans Total Allowance for Loan Losses: Balance as of beginning of year $ 811 $ 119 $ 2,611 $ 1,350 $ 4,891 Charge-offs (482 ) - - (1,777 ) (2,259 ) Recoveries 51 1 14 136 202 Provision for (recovery of) loan losses (78 ) (11 ) 59 1,405 1,375 Ending Balance $ 302 $ 109 $ 2,684 $ 1,114 $ 4,209 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 21 $ 21 Collectively evaluated for impairment 302 109 2,684 1,093 4,188 Loans: Individually evaluated for impairment $ 20 $ 279 $ 996 $ 1,184 $ 2,479 Collectively evaluated for impairment 80,568 16,861 370,240 69,385 537,054 Ending Balance $ 80,588 $ 17,140 $ 371,236 $ 70,569 $ 539,533 As previously mentioned, one of the major factors that the Company uses in evaluating the adequacy of its allowance for loan losses is changes in the volume of delinquent loans. Management monitors payment activity on a regular basis. For all classes of loans, the Company considers the entire balance of the loan to be contractually delinquent if the minimum payment is not received by the due date. Interest and fees continue to accrue on past due loans until they are placed in nonaccrual or cha r ged off. The following tables show the aging of past due loans as of September 30, 2020 and December 31, 2019 (dollars below reported in thousands). Past Due Aging as of September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Commercial loans Commercial and industrial - organic $ - $ - $ - $ - $ 32,949 $ 32,949 $ - Commercial and industrial - Paycheck Protection Program - - - - 84,706 84,706 - Commercial and industrial - government guaranteed 491 - - 491 31,964 32,455 - Commercial and industrial - syndicated - - - - 6,367 6,367 - Real estate construction and land Residential construction - - - - 1,597 1,597 - Commercial construction - - - - 15,565 15,565 - Land and land development - 12 - 12 6,579 6,591 - Real estate mortgages 1-4 family residential, first lien, investment - 75 - 75 61,581 61,656 - 1-4 family residential, first lien, owner occupied - - - - 18,848 18,848 - 1-4 family residential, junior lien - - - - 2,625 2,625 - 1-4 family residential - purchased - 500 - 500 21,868 22,368 - Home equity lines of credit, first lien - - - - 9,827 9,827 - Home equity lines of credit, junior lien - - - - 8,537 8,537 - Farm - - - - 7,217 7,217 - Multifamily - - - - 36,113 36,113 - Commercial owner occupied - - - - 98,219 98,219 - Commercial non-owner occupied - - - - 128,999 128,999 - Consumer loans Consumer revolving credit - - - - 19,312 19,312 - Consumer all other credit - - - - 3,953 3,953 - Student loans purchased 205 133 61 399 38,632 39,031 61 Total Loans $ 696 $ 720 $ 61 $ 1,477 $ 635,458 $ 636,935 $ 61 Past Due Aging as of December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Commercial loans Commercial and industrial - organic $ 604 $ 20 $ - $ 624 $ 38,219 $ 38,843 $ - Commercial and industrial - government guaranteed - - 548 548 34,799 35,347 548 Commercial and industrial - syndicated - - - - 6,398 6,398 - Real estate construction and land Residential construction - - - - 2,197 2,197 - Commercial construction - - - - 6,880 6,880 - Land and land development 1 - 280 281 7,782 8,063 14 Real estate mortgages 1-4 family residential, first lien, investment 188 - - 188 43,911 44,099 - 1-4 family residential, first lien, owner occupied - 123 - 123 20,548 20,671 - 1-4 family residential, junior lien - - - - 2,520 2,520 - 1-4 family residential - purchased 501 158 - 659 32,769 33,428 - Home equity lines of credit, first lien - - - - 10,268 10,268 - Home equity lines of credit, junior lien - - - - 9,671 9,671 - Farm - - - - 8,808 8,808 - Multifamily - - - - 27,093 27,093 - Commercial owner occupied - - - - 96,117 96,117 - Commercial non-owner occupied - - - - 118,561 118,561 - Consumer loans Consumer revolving credit 20 - - 20 20,061 20,081 - Consumer all other credit 43 - - 43 5,698 5,741 - Student loans purchased 697 218 209 1,124 43,623 44,747 209 Total Loans $ 2,054 $ 519 $ 1,037 $ 3,610 $ 535,923 $ 539,533 $ 771 |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 5 . Net Income Per Share On June 13, 2019, the Board of Directors approved a stock dividend of five percent (5%) on the outstanding shares of common stock of the Company (or .05 share for each share outstanding) which was issued on July 5, 2019 to all shareholders of record as of the close of business on June 26, 2019, referred to as the “5% Stock Dividend”. Shareholders received cash in lieu of any fractional shares that they otherwise would have been entitled to receive in connection with the stock dividend. The price paid for fractional shares was based on the volume-weighted average price of a share of common stock for the most recent three days prior to the record date during which a trade of the Company’s stock occurred. For the following table, share and per share data have been adjusted to reflect the 5% Stock Dividend. The table 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 nine months ended September 30, 2020 and 2019. 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. Unvested restricted stock as noted in the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 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 September 30, 2020 September 30, 2019 Net Income Weighted Average Shares Per Share Amount Net Income Weighted Average Shares Per Share Amount Basic net income per share $ 1,870 2,714,273 $ 0.69 $ 1,897 2,689,092 $ 0.71 Effect of dilutive stock options - 624 - - 1,022 - Diluted net income per share $ 1,870 $ 2,714,897 $ 0.69 $ 1,897 $ 2,690,114 $ 0.71 Nine Months Ended September 30, 2020 September 30, 2019 Net Income Weighted Average Shares Per Share Amount Net Income Weighted Average Shares Per Share Amount Basic net income per share $ 5,362 2,705,730 $ 1.98 $ 5,258 2,685,134 $ 1.96 Effect of dilutive stock options - 708 - - 3,627 - Diluted net income per share $ 5,362 $ 2,706,438 $ 1.98 $ 5,258 $ 2,688,761 $ 1.96 For the nine months ended September 30, 2020, there were 145,404 option shares considered anti-dilutive and excluded from this calculation. For the nine months ended September 30, 2019, there were 66,301 option shares, as adjusted, considered anti-dilutive and excluded from this calculation. |
Stock Incentive Plans
Stock Incentive Plans | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plans | Note 6. Stock Incentive Plans At the Annual Shareholders Meeting on May 21, 2014, shareholders approved the Virginia National Bankshares Corporation 2014 Stock Incentive Plan (“2014 Plan”). The 2014 Plan makes available up to 275,625 shares of the Company’s common stock, as adjusted by the 5% Stock Dividend and prior stock dividends, to be issued to plan participants. The 2014 Plan provides for granting of both incentive and nonqualified stock options, as well as restricted stock and other stock-based awards. No new grants will be issued under the 2005 Stock Incentive Plan (“2005 Plan”) as this plan has expired. For the 2014 Plan and the 2005 Plan (the “Plans”), the option price of incentive stock options cannot be less than the fair value of the stock at the time an option is granted. 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 September 30, 2020. Share data and exercise price range per share have been adjusted to reflect the 5% Stock Dividend and prior stock dividends. Although the 2005 Plan has expired and no new grants will be issued under this plan, there were options issued before the plan expired that are still outstanding as shown below. 2005 Plan 2014 Plan Aggregate shares issuable 253,575 275,625 Options issued, net of forfeited and expired options (59,870 ) (162,047 ) Unrestricted stock issued - (11,535 ) Restricted stock grants issued - (26,268 ) Cancelled due to Plan expiration (193,705 ) - Remaining available for grant - 75,775 Grants issued and outstanding: Total vested and unvested shares 1,379 145,404 Fully vested shares 1,379 26,977 Exercise price range $13.69 to $13.69 $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): September 30, 2020 Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2020 80,783 $ 40.76 Issued 66,000 24.64 Exercised — — Expired — — Outstanding at September 30, 2020 146,783 $ 33.51 $ 28 Options exercisable at September 30, 2020 28,356 $ 40.53 $ 14 For the nine months ended September 30, 2020 and 2019, the Company recognized $88 thousand and $71 thousand, respectively, in compensation expense for stock options. As of September 30, 2020, there was $432 thousand in unrecognized compensation expense remaining to be recognized in future reporting periods through 2025. The fair value of any stock option grant is estimated at the grant date using the Black-Scholes pricing model. Stock option grants for 40,000 shares were issued during the three months ended September 30, 2020 and no stock option grants were issued during the three months ended September 30, 2019. Stock option grants for 66,000 shares were issued during the nine months ended September 30, 2020, and stock option grants for 420 shares were issued during the nine months ended September 30, 2019. The fair value of each option granted in 2020 was estimated based on the assumptions noted in the following table: For the nine months ended September 30, 2020 Expected volatility 1 22.97 % Expected dividends 2 4.75 % Expected term (in years) 3 6.50 Risk-free rate 4 0.68 % 1 Based on the monthly historical volatility of the Company’s stock price over the expected life of the options. 2 Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. 3 Based on the average of the contractual life and vesting period for the respective option. 4 Based upon an interpolated U.S. Treasury yield curve interest rate that corresponds to the contractual life of the option, in effect at the time of the grant. Summary information pertaining to options outstanding at September 30, 2020 is shown below. Share and per share data have been adjusted to reflect the 5% Stock Dividend and prior stock dividends. Options Outstanding Options Exercisable Exercise Price Number of Options Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Options Exercisable Weighted- Average Exercise Price $10.65 to $20.00 1,379 2.4 Years $ 13.69 1,379 $ 13.69 $20.01 to $30.00 67,103 9.7 Years 24.68 551 27.39 $30.01 to $40.00 20,820 8.4 Years 38.14 3,444 39.44 $40.01 to $42.62 57,481 7.6 Years 42.62 22,982 42.62 Total 146,783 8.7 Years $ 33.51 28,356 $ 40.53 Stock Grants Unrestricted stock grants - No Restricted stock grants – In September 2019, 4,000 restricted shares were granted to certain members of executive management, vesting over a four-year four-year five-year four-year $3 Changes in the restricted stock grants outstanding during the nine months ended September 30, 2020 are summarized below (dollars in thousands except per share data): September 30, 2020 Number of Shares Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Nonvested as of January 1, 2020 4,000 $ 36.00 $ 96 Issued 22,268 25.34 537 Vested (1,000 ) (36.00 ) (24 ) Nonvested at September 30, 2020 25,268 $ 26.60 $ 609 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7. 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 available for sale 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 September 30, 2020 and December 31, 2019 (dollars in thousands): Fair Value Measurements at September 30, 2020 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government agencies $ 19,840 $ - $ 19,840 $ - Mortgage-backed securities/CMOs 64,158 - 64,158 - Municipal bonds 57,247 - 57,247 - Total securities available for sale $ 141,245 $ - $ 141,245 $ - Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government agencies $ 14,952 $ - $ 14,952 $ - Corporate bonds 7,469 - 7,469 - Mortgage-backed securities/CMOs 71,732 - 71,732 - Municipal bonds 19,888 - 19,888 - Total securities available for sale $ 114,041 $ - $ 114,041 $ - Certain 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: Other Real Estate Owned Other real estate owned (“OREO”) is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Consolidated Statements of Income. As of September 30, 2020 and December 31, 2019, the Company had no OREO property. Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either (a) the observable market price of the loan or the fair value of the collateral, or (b) using the present value of expected future cash flows discounted at the loan’s effective interest rate, which is not a fair value measurement. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. Impaired loans that are measured based on expected future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest are not recorded at fair value, and are therefore excluded from fair value disclosure requirements. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. The Company had impaired loans of $2.2 million as of September 30, 2020 and $2.5 million as of December 31, 2019. All impaired loans were measured based on expected future cash flows discounted at the loan’s effective interest rate, or fair value of collateral, as noted above. 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 September 30, 2020 and December 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at September 30, 2020 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 $ 11,672 $ 11,672 $ - $ - $ 11,672 Available for sale securities 141,245 - 141,245 - 141,245 Loans, net 631,601 - - 633,165 633,165 Bank owned life insurance 16,739 - 16,739 - 16,739 Accrued interest receivable 2,878 - 530 2,348 2,878 Liabilities Demand deposits and interest-bearing transaction, money market, and savings accounts $ 596,426 $ - $ 596,426 $ - $ 596,426 Certificates of deposit and other time deposits 98,095 - 98,995 - 98,995 Accrued interest payable 176 - 176 - 176 Fair Value Measurements at December 31, 2019 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 $ 19,085 $ 19,085 $ - $ - $ 19,085 Available for sale securities 114,041 - 114,041 - 114,041 Loans, net 535,324 - - 523,507 523,507 Bank owned life insurance 16,412 - 16,412 - 16,412 Accrued interest receivable 2,240 - 385 1,855 2,240 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 511,933 $ - $ 511,933 $ - $ 511,933 Certificates of deposit and other time deposits 109,278 - 109,848 - 109,848 Accrued interest payable 295 - 295 - 295 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
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Other Comprehensive Income | Note 8. Other Comprehensive Income A component of the Company’s other comprehensive income, in addition to net income from operations, is the recognition of the unrealized gains and losses on available for sale securities, net of income taxes. Reclassifications of realized gains and losses on available for sale securities are reported in the income statement as “Gains on sales of securities” with the corresponding income tax effect reflected as a component of income tax expense. Amounts reclassified out of accumulated other comprehensive income are presented below for the three and nine months ended September 30, 2020 and 2019 (dollars in thousands) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Available for sale securities Realized gains on sales of securities $ 91 $ 7 $ 734 $ 71 Tax effect (19 ) (1 ) (154 ) (15 ) Realized gains, net of tax $ 72 $ 6 $ 580 $ 56 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 9. Segment Reporting Beginning in 2019, the Company has four 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 four 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. • Sturman Wealth Advisors – Sturman Wealth Advisors, formerly known as VNB Investment Services, offers wealth management and investment advisory services. Revenue for this segment is generated primarily from investment advisory and financial planning fees, with a small and decreasing portion attributable to brokerage commissions. • 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 and, prior to 2020, incentive income that was based on the investment returns generated on performance-based Assets Under Management. Investment management services currently are offered through in-house and third-party managers. In addition, royalty income, in the form of fixed and incentive fees, from the sale of Swift Run Capital Management, LLC in 2013 is reported as income of VNB Trust & Estate Services. More information on royalty income and the related sale can be found under Summary of Significant Accounting Policies in Note 1 of the notes to consolidated financial statements, which is found in Item 8. Financial Statements and Supplementary Data, in the Company’s Form 10-K Report for December 31, 2019. • 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. A management fee for administrative and technology support services provided by the Bank is allocated to the other three lines of business. For both the three months ended September 30, 2020 and 2019, management fees totaling $25 thousand were charged by the Bank and eliminated in consolidated totals. For both the nine months ended September 30, 2020 and 2019, management fees totaling $75 thousand were charged by the Bank and eliminated in consolidated totals. Segment information for the three and nine months ended September 30, 2020 and 2019 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of Sturman Wealth Advisors and 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 September 30, 2020 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 6,047 $ - $ - $ - $ 6,047 Provision for loan losses 224 - - - 224 Noninterest income 970 176 192 87 1,425 Noninterest expense 4,373 155 196 211 4,935 Income (loss) before income taxes 2,420 21 (4 ) (124 ) 2,313 Provision for income taxes 466 4 (1 ) (26 ) 443 Net income (loss) $ 1,954 $ 17 $ (3 ) $ (98 ) $ 1,870 Nine months ended September 30, 2020 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 17,177 $ - $ - $ - $ 17,177 Provision for loan losses 1,367 - - - 1,367 Noninterest income 3,316 516 625 263 4,720 Noninterest expense 12,147 483 668 584 13,882 Income (loss) before income taxes 6,979 33 (43 ) (321 ) 6,648 Provision for income taxes 1,355 7 (9 ) (67 ) 1,286 Net income (loss) $ 5,624 $ 26 $ (34 ) $ (254 ) $ 5,362 Three months ended September 30, 2019 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 5,474 $ - $ - $ - $ 5,474 Provision for (recovery of) loan losses (120 ) - - - (120 ) Noninterest income 786 159 314 68 1,327 Noninterest expense 3,905 155 308 193 4,561 Income (loss) before income taxes 2,475 4 6 (125 ) 2,360 Provision for income taxes 487 1 1 (26 ) 463 Net income (loss) $ 1,988 $ 3 $ 5 $ (99 ) $ 1,897 Nine months ended September 30, 2019 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 16,503 $ - $ - $ - $ 16,503 Provision for loan losses 500 - - - 500 Noninterest income 2,496 451 1,008 131 4,086 Noninterest expense 11,777 438 918 524 13,657 Income (loss) before income taxes 6,722 13 90 (393 ) 6,432 Provision for income taxes 1,234 3 19 (82 ) 1,174 Net income (loss) $ 5,488 $ 10 $ 71 $ (311 ) $ 5,258 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 10. Leases On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. 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. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. 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. Each of the Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not 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): September 30, 2020 Lease liability $ 3,783 Right-of-use asset $ 3,725 Weighted average remaining lease term 5.35 years Weighted average discount rate 2.55 % Three Months Ended September 30, Nine Months Ended September 30, Lease Expense 2020 2019 2020 2019 Operating lease expense $ 228 $ 203 $ 636 $ 611 Short-term lease expense 28 34 85 107 Total lease expense $ 256 $ 237 $ 721 $ 718 Cash paid for amounts included in lease liabilities $ 199 $ 196 $ 597 $ 589 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 September 30, 2020 Three months ending December 31, 2020 $ 218 Twelve months ending December 31, 2021 877 Twelve months ending December 31, 2022 839 Twelve months ending December 31, 2023 753 Twelve months ending December 31, 2024 544 Twelve months ending December 31, 2025 469 Thereafter 372 Total undiscounted cash flows $ 4,072 Less: Discount (289 ) Lease liability $ 3,783 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | N ote 11. Subsequent Event On October 1, 2020, the Company announced the signing of a definitive merger agreement with Fauquier Bankshares, Inc. (“Fauquier”), pursuant to which the companies will combine in an all-stock merger with the Company as the surviving company. At or immediately following consummation of the merger, The Fauquier Bank, the wholly owned banking subsidiary of will be merged with and into the Bank, with the Bank as the surviving bank. Under the terms of the merger agreement, Fauquier shareholders will receive 0.675 shares of Company stock for each share of Fauquier common stock they own. Shareholders of the Company will own approximately 51.4% and Fauquier shareholders will own approximately 48.6% of the combined company. The combined company will operate under the Virginia National Bankshares name and the combined bank will operate under the Virginia National Bank name. Additional information on the merger can be found in the Company’s 8-Ks filed with the SEC on October 1, 2020 and October 2, 2020 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Virginia National Bankshares Corporation (the “Company”), and its subsidiaries Virginia National Bank (the “Bank”) and Masonry Capital Management, LLC (“Masonry Capital”), a registered investment advisor. Beginning in 2019, the services offered under the umbrella of VNB Wealth are provided by Masonry Capital or by the Bank under VNB Trust & Estate Services or Sturman Wealth Advisors, formerly known as VNB Investment Services. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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 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 allowance for loan losses (including impaired loans), other-than-temporary impairment of securities, intangible assets, and fair value measurements. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. 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, 2019. Adoption of New Accounting Guidance Interagency COVID-19 Guidance I n March 2020, various regulatory agencies, including the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under Accounting Standards Codification (“ASC”) 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), issued by the Financial Accounting Standards Board (“FASB”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. This interagency guidance may have a material impact on the Company’s financial statements; however, this impact cannot be quantified at this time. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Instruments – Credit Losses In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the U.S. Securities and Exchange Commission ( “ SEC ” ) , such as the Company, and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 202 2. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements . Early in 2017, the Company formed a cross-functional steering committee, including some members of senior management, to provide governance and guidance over the project plan. T h e Company is capturing the additional loan data which is anticipated to be needed for th is calculation . The extent of the change is indeterminable at this time as it will be dependent upon portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Upon adoption, the impact to the allowance for credit losses (currently allowance for loan losses) will have an offsetting one-time cumulative-effect adjustment to retained earnings. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (“SAB”) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. Income Taxes In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. Investments – Equity Securities In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the FASB’s Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. LIBOR and Other Reference Rates In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. To facilitate an orderly transition from LIBOR, Inter-bank Offered Rate (“IBOR”) and other benchmark rates to alternative reference rates (“ARRs”), the Company has established a focus committee, which includes members of senior management, including the Chief Credit Officer and Chief Financial Officer, among others. The task of this committee is to identify, assess and monitor risk associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, achieve operations readiness and engage impacted clients in connection with the transition to ARRs. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. SEC Filing Requirements On March 12, 2020, the SEC finalized amendments to the definitions of its “accelerated filer” and “large accelerated filer” definitions. The amendments increase the threshold criteria for meeting these filer classifications and are effective on April 27, 2020. Any changes in filer status are to be applied beginning with the filer’s first annual report filed with the SEC subsequent to the effective date. Prior to these changes, the Company was required to comply with section 404(b) of the Sarbanes Oxley Act concerning auditor attestation over internal control over financial reporting as an “accelerated filer” as it had more than $75 million in public float but less than $700 million at the end of the Company’s most recent second quarter. The rule change expands the definition of “smaller reporting companies” to include entities with public float of less than $700 million and less than $100 million in annual revenues. The Company expects that it will no longer be considered an accelerated filer beginning in 2021. If the Company’s annual revenues exceed $100 million, its category will chan ge back to “accelerated filer”. The classifications of “accelerated filer” and “large accelerated filer” require a public company to obtain an auditor attestation concerning the effectiveness of internal control over financial reporting ( “ ICFR ” ) and include the opinion on ICFR in its annual report on Form 10-K. All public companies are required to obtain and file annual financial statement audits, as well as provide management’s assertion on effectiveness of internal control over financial reporting, but the external auditor attestation of internal control over financial reporting is not required f or smaller reporting companies . As the Bank ’s total assets exceed $ 500 m illion, it remains subject to FDICIA ’s internal reporting requirements, but does not require an auditor attestation concerning internal controls over financial reporting. As such, professional and consulting expenditures should decline by an immaterial amount. Nonrefundable Fees and Other Costs In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is not permitted. All entities should apply ASU No. 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption of ASU 2020-08 to have a material impact on its consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 were as follows (dollars in thousands): September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government agencies $ 19,996 $ 3 $ (159 ) $ 19,840 Mortgage-backed securities/CMOs 63,462 790 (94 ) 64,158 Municipal bonds 56,268 1,075 (96 ) 57,247 Total Securities Available for Sale $ 139,726 $ 1,868 $ (349 ) $ 141,245 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government agencies $ 15,000 $ - $ (48 ) $ 14,952 Corporate bonds 7,469 - - 7,469 Mortgage-backed securities/CMOs 71,970 76 (314 ) 71,732 Municipal bonds 19,656 282 (50 ) 19,888 Total Securities Available for Sale $ 114,095 $ 358 $ (412 ) $ 114,041 |
Schedule of Unrealized Losses in the Bank's Securities Portfolio | The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, at September 30, 2020, and December 31, 2019 (dollars in thousands): September 30, 2020 Less than 12 Months 12 Months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 15,340 $ (159 ) $ — $ — $ 15,340 $ (159 ) Mortgage-backed/CMOs 22,496 (94 ) — — 22,496 (94 ) Municipal bonds 15,266 (96 ) — — 15,266 (96 ) $ 53,102 $ (349 ) $ — $ — $ 53,102 $ (349 ) December 31, 2019 Less than 12 Months 12 Months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government agencies $ 9,957 $ (43 ) $ 1,995 $ (5 ) $ 11,952 $ (48 ) Mortgage-backed/CMOs 39,061 (228 ) 7,716 (86 ) 46,777 (314 ) Municipal bonds 5,922 (50 ) — — 5,922 (50 ) $ 54,940 $ (321 ) $ 9,711 $ (91 ) $ 64,651 $ (412 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Schedule of Composition of Loan Portfolio by Loan Classification | The composition of the loan portfolio by loan classification at September 30, 2020 and December 31, 2019 appears below (dollars in thousands). September 30, December 31, 2020 2019 Commercial Commercial and industrial - organic $ 32,949 $ 38,843 Commercial and industrial - Paycheck Protection Program 84,706 — Commercial and industrial - government guaranteed 32,455 35,347 Commercial and industrial - syndicated 6,367 6,398 Total commercial and industrial 156,477 80,588 Real estate construction and land Residential construction 1,597 2,197 Commercial construction 15,565 6,880 Land and land development 6,591 8,063 Total construction and land 23,753 17,140 Real estate mortgages 1-4 family residential, first lien, investment 61,656 44,099 1-4 family residential, first lien, owner occupied 18,848 20,671 1-4 family residential, junior lien 2,625 2,520 1-4 family residential - purchased 22,368 33,428 Home equity lines of credit, first lien 9,827 10,268 Home equity lines of credit, junior lien 8,537 9,671 Farm 7,217 8,808 Multifamily 36,113 27,093 Commercial owner occupied 98,219 96,117 Commercial non-owner occupied 128,999 118,561 Total real estate mortgage 394,409 371,236 Consumer Consumer revolving credit 19,312 20,081 Consumer all other credit 3,953 5,741 Student loans purchased 39,031 44,747 Total consumer 62,296 70,569 Total loans 636,935 539,533 Less: Allowance for loan losses (5,334 ) (4,209 ) Net loans $ 631,601 $ 535,324 |
Schedule of Loans Classified as Impaired Loans | The following tables reflect the breakdown by class of the loans classified as impaired loans as of September 30, 2020 and December 31, 2019. These loans are reported at their recorded investment, which is the carrying amount of the loan as reflected on the Company’s balance sheet, net of charge-offs and other amounts applied to reduce the net book balance. Average recorded investment in impaired loans is computed using an average of month-end balances for these loans for either the nine months ended September 30, 2020 or the twelve months ended December 31, 2019. Interest income recognized is for the nine months ended September 30, 2020 or the twelve months ended December 31, 2019 (dollars below reported in thousands). September 30, 2020 Recorded Investment Unpaid Principal Balance Associated Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Land and land development $ 9 $ 56 $ - $ 185 $ - 1-4 family residential mortgages, junior lien 110 110 - 115 4 Commercial non-owner occupied real estate 838 838 - 865 35 Total impaired loans without a valuation allowance 957 1,004 - 1,165 39 Impaired loans with a valuation allowance Student loans purchased 1,202 1,202 4 1,110 58 Total impaired loans with a valuation allowance 1,202 1,202 4 1,110 58 Total impaired loans $ 2,159 $ 2,206 $ 4 $ 2,275 $ 97 December 31, 2019 Recorded Investment Unpaid Principal Balance Associated Allowance Average Recorded Investment Interest Income Recognized Impaired loans without a valuation allowance: Land and land development $ 279 $ 324 $ - $ 67 $ 13 1-4 family residential mortgages, first lien, owner occupied - - - 20 2 1-4 family residential mortgages, junior lien 117 117 - 122 6 Commercial and industrial - organic 20 20 - 3 1 Commercial non-owner occupied real estate 879 879 - 900 48 Total impaired loans without a valuation allowance 1,295 1,340 - 1,112 70 Impaired loans with a valuation allowance Student loans purchased 1,184 1,184 21 1,549 86 Total impaired loans with a valuation allowance 1,184 1,184 21 1,549 86 Total impaired loans $ 2,479 $ 2,524 $ 21 $ 2,661 $ 156 |
Schedule of Impaired Loans Classified as Non-Accruals by Class | . The recorded investment in non-accrual loans is shown below by class (dollars in thousands): September 30, 2020 December 31, 2019 Land and land development $ 9 $ 279 Commercial and industrial - organic - 20 Total non-accrual loans $ 9 $ 299 |
Schedule of Loans Modified Under Terms of a TDR | The following provides a summary, by class, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in non-accrual status, which are considered to be nonperforming (dollars in thousands). Troubled debt restructurings September 30, 2020 December 31, 2019 No. of Recorded No. of Recorded Loans Investment Loans Investment Performing TDRs 1-4 family residential mortgages, junior lien 1 $ 110 1 $ 117 Commercial non-owner occupied real estate 1 838 1 879 Student loans purchased 81 1,202 67 1,184 Total performing TDRs 83 $ 2,150 69 $ 2,180 Nonperforming TDRs Land and land development 1 $ 9 1 $ 13 Total nonperforming TDRs 1 $ 9 1 $ 13 Total TDRs 84 $ 2,159 70 $ 2,193 |
Summary of Modified Loans | A summary of loans shown above that were modified under the terms of a TDR during the three and nine months ended September 30, 2020 and 2019 is shown below by class (dollars in thousands). The Post-Modification Recorded Balance reflects the period end balances, inclusive of any interest capitalized to principal, partial principal paydowns, and principal charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. For three months ended For three months ended September 30, 2020 September 30, 2019 Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Student loans purchased 9 $ 119 $ 119 10 $ 78 $ 78 Total loans modified during the period 9 $ 119 $ 119 10 $ 78 $ 78 For the nine months ended For the nine months ended September 30, 2020 September 30, 2019 Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Number of Loans Pre- Modification Recorded Balance Post- Modification Recorded Balance Student loans purchased 15 $ 168 $ 168 12 $ 133 $ 133 Total loans modified during the period 15 $ 168 $ 168 12 $ 133 $ 133 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Allowance For Loan Losses [Abstract] | |
Internal Risk Rating Grades | The following represents the loan portfolio designated by the internal risk ratings assigned to each credit as of September 30, 2020 and December 31, 2019 (dollars in thousands). There were no loans rated “Doubtful” as of either period. September 30, 2020 Excellent Good Pass Watch Special Mention Sub- standard TOTAL Commercial Commercial and industrial - organic $ 6,313 $ 14,985 $ 11,084 $ - $ - $ 567 $ 32,949 Commercial and industrial - Paycheck Protection Program 84,706 - - - - - 84,706 Commercial and industrial - government guaranteed 32,455 - - - - - 32,455 Commercial and industrial - syndicated - - 6,367 - - - 6,367 Real estate construction Residential construction - - 1,597 - - - 1,597 Commercial construction - - 15,565 - - - 15,565 Land and land development - - 6,375 - - 216 6,591 Real estate mortgages 1-4 family residential, first lien investment - - 58,089 2,349 544 674 61,656 1-4 family residential, first lien, owner occupied - - 16,633 1,012 640 563 18,848 1-4 family residential, junior lien - - 2,471 30 14 110 2,625 1-4 family residential, first lien - purchased - - 22,368 - - - 22,368 Home equity lines of credit, first lien - - 9,827 - - - 9,827 Home equity lines of credit, junior lien - - 8,371 84 - 82 8,537 Farm - - 5,650 302 - 1,265 7,217 Multifamily - - 35,720 228 - 165 36,113 Commercial owner occupied - - 88,810 1,153 - 8,256 98,219 Commercial non-owner occupied - - 126,754 995 - 1,250 128,999 Consumer Consumer revolving credit 844 18,218 250 - - - 19,312 Consumer all other credit 409 3,027 516 - - 1 3,953 Student loans purchased - - 37,339 1,407 132 153 39,031 Total Loans $ 124,727 $ 36,230 $ 453,786 $ 7,560 $ 1,330 $ 13,302 $ 636,935 December 31, 2019 Excellent Good Pass Watch Special Mention Sub- standard TOTAL Commercial Commercial and industrial - organic $ 6,463 $ 16,453 $ 14,257 $ 1,493 $ 37 $ 140 $ 38,843 Commercial and industrial - government guaranteed 35,347 - - - - - 35,347 Commercial and industrial - syndicated - - 6,398 - - - 6,398 Real estate construction Residential construction - - 2,197 - - - 2,197 Commercial construction - - 6,880 - - - 6,880 Land and land development - - 7,563 207 - 293 8,063 Real estate mortgages 1-4 family residential, first lien, investment - - 39,641 4,076 - 382 44,099 1-4 family residential, first lien, owner occupied - - 19,578 1,040 - 53 20,671 1-4 family residential, junior lien - - 2,029 33 17 441 2,520 1-4 family residential, first lien - purchased - - 33,428 - - - 33,428 Home equity lines of credit, first lien - - 9,591 677 - - 10,268 Home equity lines of credit, junior lien - - 9,357 232 - 82 9,671 Farm - - 6,149 318 - 2,341 8,808 Multifamily - - 26,690 403 - - 27,093 Commercial owner occupied - - 86,884 5,928 1,677 1,628 96,117 Commercial non-owner occupied - - 116,092 1,558 - 911 118,561 Consumer - Consumer revolving credit 279 19,176 606 20 - - 20,081 Consumer all other credit 199 5,035 507 - - - 5,741 Student loans purchased - - 42,598 1,729 211 209 44,747 Total Loans $ 42,288 $ 40,664 $ 430,445 $ 17,714 $ 1,942 $ 6,480 $ 539,533 |
Summary of Transactions in Allowance for Loan Losses by Loan Portfolio Segment | A summary of the transactions in the Allowance for Loan Losses by loan portfolio segment for the nine months ended September 30, 2020 and the year ended December 31, 2019 appears below (dollars in thousands): Allowance for Loan Losses Rollforward by Portfolio Segment As of and for the period ended September 30, 2020 Commercial Loans Real Estate Construction and Land Real Estate Mortgages Consumer Loans Total Allowance for Loan Losses: Balance as of beginning of year $ 302 $ 109 $ 2,684 $ 1,114 $ 4,209 Charge-offs - - - (643 ) (643 ) Recoveries 23 - - 378 401 Provision for (recovery of) loan losses (86 ) 65 997 391 1,367 Ending Balance $ 239 $ 174 $ 3,681 $ 1,240 $ 5,334 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 4 $ 4 Collectively evaluated for impairment 239 174 3,681 1,236 5,330 Loans: Individually evaluated for impairment $ - $ 9 $ 948 $ 1,202 $ 2,159 Collectively evaluated for impairment 156,477 23,744 393,461 61,094 634,776 Ending Balance $ 156,477 $ 23,753 $ 394,409 $ 62,296 $ 636,935 As of and for the period ended December 31, 2019 Commercial Loans Real Estate Construction and Land Real Estate Mortgages Consumer Loans Total Allowance for Loan Losses: Balance as of beginning of year $ 811 $ 119 $ 2,611 $ 1,350 $ 4,891 Charge-offs (482 ) - - (1,777 ) (2,259 ) Recoveries 51 1 14 136 202 Provision for (recovery of) loan losses (78 ) (11 ) 59 1,405 1,375 Ending Balance $ 302 $ 109 $ 2,684 $ 1,114 $ 4,209 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 21 $ 21 Collectively evaluated for impairment 302 109 2,684 1,093 4,188 Loans: Individually evaluated for impairment $ 20 $ 279 $ 996 $ 1,184 $ 2,479 Collectively evaluated for impairment 80,568 16,861 370,240 69,385 537,054 Ending Balance $ 80,588 $ 17,140 $ 371,236 $ 70,569 $ 539,533 |
Schedule of Aging of Past Due Loans | The following tables show the aging of past due loans as of September 30, 2020 and December 31, 2019 (dollars below reported in thousands). Past Due Aging as of September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Commercial loans Commercial and industrial - organic $ - $ - $ - $ - $ 32,949 $ 32,949 $ - Commercial and industrial - Paycheck Protection Program - - - - 84,706 84,706 - Commercial and industrial - government guaranteed 491 - - 491 31,964 32,455 - Commercial and industrial - syndicated - - - - 6,367 6,367 - Real estate construction and land Residential construction - - - - 1,597 1,597 - Commercial construction - - - - 15,565 15,565 - Land and land development - 12 - 12 6,579 6,591 - Real estate mortgages 1-4 family residential, first lien, investment - 75 - 75 61,581 61,656 - 1-4 family residential, first lien, owner occupied - - - - 18,848 18,848 - 1-4 family residential, junior lien - - - - 2,625 2,625 - 1-4 family residential - purchased - 500 - 500 21,868 22,368 - Home equity lines of credit, first lien - - - - 9,827 9,827 - Home equity lines of credit, junior lien - - - - 8,537 8,537 - Farm - - - - 7,217 7,217 - Multifamily - - - - 36,113 36,113 - Commercial owner occupied - - - - 98,219 98,219 - Commercial non-owner occupied - - - - 128,999 128,999 - Consumer loans Consumer revolving credit - - - - 19,312 19,312 - Consumer all other credit - - - - 3,953 3,953 - Student loans purchased 205 133 61 399 38,632 39,031 61 Total Loans $ 696 $ 720 $ 61 $ 1,477 $ 635,458 $ 636,935 $ 61 Past Due Aging as of December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90 Days Past Due and Still Accruing Commercial loans Commercial and industrial - organic $ 604 $ 20 $ - $ 624 $ 38,219 $ 38,843 $ - Commercial and industrial - government guaranteed - - 548 548 34,799 35,347 548 Commercial and industrial - syndicated - - - - 6,398 6,398 - Real estate construction and land Residential construction - - - - 2,197 2,197 - Commercial construction - - - - 6,880 6,880 - Land and land development 1 - 280 281 7,782 8,063 14 Real estate mortgages 1-4 family residential, first lien, investment 188 - - 188 43,911 44,099 - 1-4 family residential, first lien, owner occupied - 123 - 123 20,548 20,671 - 1-4 family residential, junior lien - - - - 2,520 2,520 - 1-4 family residential - purchased 501 158 - 659 32,769 33,428 - Home equity lines of credit, first lien - - - - 10,268 10,268 - Home equity lines of credit, junior lien - - - - 9,671 9,671 - Farm - - - - 8,808 8,808 - Multifamily - - - - 27,093 27,093 - Commercial owner occupied - - - - 96,117 96,117 - Commercial non-owner occupied - - - - 118,561 118,561 - Consumer loans Consumer revolving credit 20 - - 20 20,061 20,081 - Consumer all other credit 43 - - 43 5,698 5,741 - Student loans purchased 697 218 209 1,124 43,623 44,747 209 Total Loans $ 2,054 $ 519 $ 1,037 $ 3,610 $ 535,923 $ 539,533 $ 771 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares used in computing earnings per share | For the following table, share and per share data have been adjusted to reflect the 5% Stock Dividend. The table 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 nine months ended September 30, 2020 and 2019. 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. Unvested restricted stock as noted in the Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 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 September 30, 2020 September 30, 2019 Net Income Weighted Average Shares Per Share Amount Net Income Weighted Average Shares Per Share Amount Basic net income per share $ 1,870 2,714,273 $ 0.69 $ 1,897 2,689,092 $ 0.71 Effect of dilutive stock options - 624 - - 1,022 - Diluted net income per share $ 1,870 $ 2,714,897 $ 0.69 $ 1,897 $ 2,690,114 $ 0.71 Nine Months Ended September 30, 2020 September 30, 2019 Net Income Weighted Average Shares Per Share Amount Net Income Weighted Average Shares Per Share Amount Basic net income per share $ 5,362 2,705,730 $ 1.98 $ 5,258 2,685,134 $ 1.96 Effect of dilutive stock options - 708 - - 3,627 - Diluted net income per share $ 5,362 $ 2,706,438 $ 1.98 $ 5,258 $ 2,688,761 $ 1.96 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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 September 30, 2020. Share data and exercise price range per share have been adjusted to reflect the 5% Stock Dividend and prior stock dividends. Although the 2005 Plan has expired and no new grants will be issued under this plan, there were options issued before the plan expired that are still outstanding as shown below. 2005 Plan 2014 Plan Aggregate shares issuable 253,575 275,625 Options issued, net of forfeited and expired options (59,870 ) (162,047 ) Unrestricted stock issued - (11,535 ) Restricted stock grants issued - (26,268 ) Cancelled due to Plan expiration (193,705 ) - Remaining available for grant - 75,775 Grants issued and outstanding: Total vested and unvested shares 1,379 145,404 Fully vested shares 1,379 26,977 Exercise price range $13.69 to $13.69 $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): September 30, 2020 Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2020 80,783 $ 40.76 Issued 66,000 24.64 Exercised — — Expired — — Outstanding at September 30, 2020 146,783 $ 33.51 $ 28 Options exercisable at September 30, 2020 28,356 $ 40.53 $ 14 |
Schedule of Fair Value Assumptions | For the nine months ended September 30, 2020 and 2019, the Company recognized $88 thousand and $71 thousand, respectively, in compensation expense for stock options. As of September 30, 2020, there was $432 thousand in unrecognized compensation expense remaining to be recognized in future reporting periods through 2025. The fair value of any stock option grant is estimated at the grant date using the Black-Scholes pricing model. Stock option grants for 40,000 shares were issued during the three months ended September 30, 2020 and no stock option grants were issued during the three months ended September 30, 2019. Stock option grants for 66,000 shares were issued during the nine months ended September 30, 2020, and stock option grants for 420 shares were issued during the nine months ended September 30, 2019. The fair value of each option granted in 2020 was estimated based on the assumptions noted in the following table: For the nine months ended September 30, 2020 Expected volatility 1 22.97 % Expected dividends 2 4.75 % Expected term (in years) 3 6.50 Risk-free rate 4 0.68 % 1 Based on the monthly historical volatility of the Company’s stock price over the expected life of the options. 2 Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. 3 Based on the average of the contractual life and vesting period for the respective option. 4 Based upon an interpolated U.S. Treasury yield curve interest rate that corresponds to the contractual life of the option, in effect at the time of the grant. |
Schedule of Options Outstanding and Exercisable, by Exercise Price Range | Summary information pertaining to options outstanding at September 30, 2020 is shown below. Share and per share data have been adjusted to reflect the 5% Stock Dividend and prior stock dividends. Options Outstanding Options Exercisable Exercise Price Number of Options Outstanding Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number of Options Exercisable Weighted- Average Exercise Price $10.65 to $20.00 1,379 2.4 Years $ 13.69 1,379 $ 13.69 $20.01 to $30.00 67,103 9.7 Years 24.68 551 27.39 $30.01 to $40.00 20,820 8.4 Years 38.14 3,444 39.44 $40.01 to $42.62 57,481 7.6 Years 42.62 22,982 42.62 Total 146,783 8.7 Years $ 33.51 28,356 $ 40.53 |
Summary of Changes in the Restricted Stock Grants Outstanding | Changes in the restricted stock grants outstanding during the nine months ended September 30, 2020 are summarized below (dollars in thousands except per share data): September 30, 2020 Number of Shares Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Nonvested as of January 1, 2020 4,000 $ 36.00 $ 96 Issued 22,268 25.34 537 Vested (1,000 ) (36.00 ) (24 ) Nonvested at September 30, 2020 25,268 $ 26.60 $ 609 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019 (dollars in thousands): Fair Value Measurements at September 30, 2020 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government agencies $ 19,840 $ - $ 19,840 $ - Mortgage-backed securities/CMOs 64,158 - 64,158 - Municipal bonds 57,247 - 57,247 - Total securities available for sale $ 141,245 $ - $ 141,245 $ - Fair Value Measurements at December 31, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government agencies $ 14,952 $ - $ 14,952 $ - Corporate bonds 7,469 - 7,469 - Mortgage-backed securities/CMOs 71,732 - 71,732 - Municipal bonds 19,888 - 19,888 - Total securities available for sale $ 114,041 $ - $ 114,041 $ - |
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 September 30, 2020 and December 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at September 30, 2020 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 $ 11,672 $ 11,672 $ - $ - $ 11,672 Available for sale securities 141,245 - 141,245 - 141,245 Loans, net 631,601 - - 633,165 633,165 Bank owned life insurance 16,739 - 16,739 - 16,739 Accrued interest receivable 2,878 - 530 2,348 2,878 Liabilities Demand deposits and interest-bearing transaction, money market, and savings accounts $ 596,426 $ - $ 596,426 $ - $ 596,426 Certificates of deposit and other time deposits 98,095 - 98,995 - 98,995 Accrued interest payable 176 - 176 - 176 Fair Value Measurements at December 31, 2019 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 $ 19,085 $ 19,085 $ - $ - $ 19,085 Available for sale securities 114,041 - 114,041 - 114,041 Loans, net 535,324 - - 523,507 523,507 Bank owned life insurance 16,412 - 16,412 - 16,412 Accrued interest receivable 2,240 - 385 1,855 2,240 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 511,933 $ - $ 511,933 $ - $ 511,933 Certificates of deposit and other time deposits 109,278 - 109,848 - 109,848 Accrued interest payable 295 - 295 - 295 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Schedule of Comprehensive Income | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Available for sale securities Realized gains on sales of securities $ 91 $ 7 $ 734 $ 71 Tax effect (19 ) (1 ) (154 ) (15 ) Realized gains, net of tax $ 72 $ 6 $ 580 $ 56 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Segment information for the three and nine months ended September 30, 2020 and 2019 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of Sturman Wealth Advisors and 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 September 30, 2020 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 6,047 $ - $ - $ - $ 6,047 Provision for loan losses 224 - - - 224 Noninterest income 970 176 192 87 1,425 Noninterest expense 4,373 155 196 211 4,935 Income (loss) before income taxes 2,420 21 (4 ) (124 ) 2,313 Provision for income taxes 466 4 (1 ) (26 ) 443 Net income (loss) $ 1,954 $ 17 $ (3 ) $ (98 ) $ 1,870 Nine months ended September 30, 2020 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 17,177 $ - $ - $ - $ 17,177 Provision for loan losses 1,367 - - - 1,367 Noninterest income 3,316 516 625 263 4,720 Noninterest expense 12,147 483 668 584 13,882 Income (loss) before income taxes 6,979 33 (43 ) (321 ) 6,648 Provision for income taxes 1,355 7 (9 ) (67 ) 1,286 Net income (loss) $ 5,624 $ 26 $ (34 ) $ (254 ) $ 5,362 Three months ended September 30, 2019 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 5,474 $ - $ - $ - $ 5,474 Provision for (recovery of) loan losses (120 ) - - - (120 ) Noninterest income 786 159 314 68 1,327 Noninterest expense 3,905 155 308 193 4,561 Income (loss) before income taxes 2,475 4 6 (125 ) 2,360 Provision for income taxes 487 1 1 (26 ) 463 Net income (loss) $ 1,988 $ 3 $ 5 $ (99 ) $ 1,897 Nine months ended September 30, 2019 Bank Sturman Wealth Advisors VNB Trust & Estate Services Masonry Capital Consolidated Net interest income $ 16,503 $ - $ - $ - $ 16,503 Provision for loan losses 500 - - - 500 Noninterest income 2,496 451 1,008 131 4,086 Noninterest expense 11,777 438 918 524 13,657 Income (loss) before income taxes 6,722 13 90 (393 ) 6,432 Provision for income taxes 1,234 3 19 (82 ) 1,174 Net income (loss) $ 5,488 $ 10 $ 71 $ (311 ) $ 5,258 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liability | The following tables present information about the Company’s leases (dollars in thousands): September 30, 2020 Lease liability $ 3,783 Right-of-use asset $ 3,725 Weighted average remaining lease term 5.35 years Weighted average discount rate 2.55 % |
Schedule of Operating Lease Expense | Three Months Ended September 30, Nine Months Ended September 30, Lease Expense 2020 2019 2020 2019 Operating lease expense $ 228 $ 203 $ 636 $ 611 Short-term lease expense 28 34 85 107 Total lease expense $ 256 $ 237 $ 721 $ 718 Cash paid for amounts included in lease liabilities $ 199 $ 196 $ 597 $ 589 |
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 September 30, 2020 Three months ending December 31, 2020 $ 218 Twelve months ending December 31, 2021 877 Twelve months ending December 31, 2022 839 Twelve months ending December 31, 2023 753 Twelve months ending December 31, 2024 544 Twelve months ending December 31, 2025 469 Thereafter 372 Total undiscounted cash flows $ 4,072 Less: Discount (289 ) Lease liability $ 3,783 |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Values of Securities Available for Sale) (Details)) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 139,726 | $ 114,095 |
Gross Unrealized Gains | 1,868 | 358 |
Gross Unrealized (Losses) | (349) | (412) |
Available for Sale, Fair Value | 141,245 | 114,041 |
Corporate bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,469 | |
Available for Sale, Fair Value | 7,469 | |
Municipal bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 56,268 | 19,656 |
Gross Unrealized Gains | 1,075 | 282 |
Gross Unrealized (Losses) | (96) | (50) |
Available for Sale, Fair Value | 57,247 | 19,888 |
U.S. Government agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,996 | 15,000 |
Gross Unrealized Gains | 3 | |
Gross Unrealized (Losses) | (159) | (48) |
Available for Sale, Fair Value | 19,840 | 14,952 |
Mortgage-backed securities/CMOs [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 63,462 | 71,970 |
Gross Unrealized Gains | 790 | 76 |
Gross Unrealized (Losses) | (94) | (314) |
Available for Sale, Fair Value | $ 64,158 | $ 71,732 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Investments [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 53,102 | $ 64,651 | |
Number of securities designated as available for sale securities having unrealized loss | item | 32 | ||
Unrealized loss of available for sale securities | $ 349 | 412 | |
Securities pledged to secure deposits and for other purposes required by law | 6,000 | 5,000 | |
Proceeds from the sales of securities | 62,200 | $ 21,100 | |
Gross realized gains on sale of securities | 882 | 114 | |
Gross realized losses on sale of securities | 147 | 43 | |
Net realized gains on sale of securities | 734 | $ 71 | |
Restricted securities, at cost | 3,436 | 1,683 | |
Municipal bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 15,266 | 5,922 | |
Number of securities designated as available for sale securities having unrealized loss | item | 12 | ||
Unrealized loss of available for sale securities | $ 96 | 50 | |
Mortgage-backed securities/CMOs [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 22,496 | 46,777 | |
Number of securities designated as available for sale securities having unrealized loss | item | 11 | ||
Unrealized loss of available for sale securities | $ 94 | 314 | |
U.S. Government agencies [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 15,340 | 11,952 | |
Number of securities designated as available for sale securities having unrealized loss | item | 9 | ||
Unrealized loss of available for sale securities | $ 159 | $ 48 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | $ 53,102 | $ 54,940 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 9,711 | |
Total, Estimated Fair value | 53,102 | 64,651 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (349) | (321) |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (91) | |
Total, Unrealized losses | (349) | (412) |
Municipal bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 15,266 | 5,922 |
Total, Estimated Fair value | 15,266 | 5,922 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (96) | (50) |
Total, Unrealized losses | (96) | (50) |
U.S. Government agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 15,340 | 9,957 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 1,995 | |
Total, Estimated Fair value | 15,340 | 11,952 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (159) | (43) |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (5) | |
Total, Unrealized losses | (159) | (48) |
Mortgage-backed securities/CMOs [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 22,496 | 39,061 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 7,716 | |
Total, Estimated Fair value | 22,496 | 46,777 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (94) | (228) |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (86) | |
Total, Unrealized losses | $ (94) | $ (314) |
Loans (Schedule of Composition
Loans (Schedule of Composition of Loan Portfolio by Loan Classification) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 636,935 | $ 539,533 |
Less: Allowance for loan losses | (5,334) | (4,209) |
Loans, net | 631,601 | 535,324 |
Commercial and industrial - organic [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 32,949 | 38,843 |
Commercial and industrial - Paycheck Protection Program [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 84,706 | |
Commercial and industrial - government guaranteed [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 32,455 | 35,347 |
Commercial and industrial - syndicated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,367 | 6,398 |
Commercial Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 156,477 | 80,588 |
Residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,597 | 2,197 |
Commercial construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,565 | 6,880 |
Land and land development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,591 | 8,063 |
Real Estate Construction and Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,753 | 17,140 |
1-4 family residential, first lien, investment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 61,656 | 44,099 |
1-4 family residential, first lien, owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 18,848 | 20,671 |
1-4 family residential, junior lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,625 | 2,520 |
1-4 family residential - purchased [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 22,368 | 33,428 |
Home equity lines of credit, first lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,827 | 10,268 |
Home equity lines of credit, junior lien [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,537 | 9,671 |
Farm [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,217 | 8,808 |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 36,113 | 27,093 |
Commercial owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 98,219 | 96,117 |
Commercial non-owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 128,999 | 118,561 |
Real Estate Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 394,409 | 371,236 |
Consumer revolving credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 19,312 | 20,081 |
Consumer all other credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,953 | 5,741 |
Student Loans Purchased [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 39,031 | 44,747 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 62,296 | $ 70,569 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)itemLoan | Dec. 31, 2019USD ($)itemLoan |
Loans And Leases Receivable Disclosure [Line Items] | |||
Unamortized premium | $ 2,000 | $ 2,000 | $ 2,500 |
Net deferred loan costs (fees) | (2,100) | (2,100) | 100 |
Charged off | $ 643 | $ 2,259 | |
Student Loans Purchased [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Extended period for repayment | 12 months | ||
Lifetime allowance period for military service | 36 months | ||
Grace period for repayment | 6 months | ||
Number of loans modified as TDRs | item | 2 | 3 | |
Charged off | $ 7 | $ 23 | |
Student Loans Purchased [Member] | Performing [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Number of Loans classified as troubled debt restructuring | item | 81 | ||
Total Troubled Debt Restructurings | $ 1,200 | ||
1-4 family residential-purchased [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Number of secured loans | Loan | 0 | 0 | |
COVID-19 [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loan deferments approved | 58,400 | $ 58,400 | |
Loan deferments approved returned to normal payment schedules | $ 48,900 | $ 48,900 | |
Percentage of loan deferments approved returned to normal payment schedules | 83.80% | ||
COVID-19 [Member] | Minimum [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loan payment deferred period | 90 days | ||
COVID-19 [Member] | Maximum [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loan payment deferred period | 180 days | ||
Small Business Administration [Member] | Paycheck Protection Program (PPP) Loans [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Deferred fees increase | $ 2,200 | ||
Amortization period of deferred fees | 24 months | ||
Small Business Administration [Member] | COVID-19 [Member] | Paycheck Protection Program (PPP) Loans [Member] | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Loans of small business administration designed to provide economic relief to small businesses adversely impacted | $ 86,900 |
Loans (Impaired Loans by Loan C
Loans (Impaired Loans by Loan Classification) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | $ 957 | $ 1,295 |
Unpaid Principal Balance, without a valuation allowance | 1,004 | 1,340 |
Average Recorded Investment, without a valuation allowance | 1,165 | 1,112 |
Interest Income Recognized, without a valuation allowance | 39 | 70 |
Recorded Investment, total | 2,159 | 2,479 |
Unpaid Principal Balance, total | 2,206 | 2,524 |
Associated Allowance, total | 4 | 21 |
Average Recorded Investment, total | 2,275 | 2,661 |
Interest Income Recognized, total | 97 | 156 |
Land and land development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 9 | 279 |
Unpaid Principal Balance, without a valuation allowance | 56 | 324 |
Average Recorded Investment, without a valuation allowance | 185 | 67 |
Interest Income Recognized, without a valuation allowance | 13 | |
1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment, without a valuation allowance | 20 | |
Interest Income Recognized, without a valuation allowance | 2 | |
1-4 family residential, junior lien [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 110 | 117 |
Unpaid Principal Balance, without a valuation allowance | 110 | 117 |
Average Recorded Investment, without a valuation allowance | 115 | 122 |
Interest Income Recognized, without a valuation allowance | 4 | 6 |
Commercial and industrial - organic [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 20 | |
Unpaid Principal Balance, without a valuation allowance | 20 | |
Average Recorded Investment, without a valuation allowance | 3 | |
Interest Income Recognized, without a valuation allowance | 1 | |
Commercial non-owner occupied [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 838 | 879 |
Unpaid Principal Balance, without a valuation allowance | 838 | 879 |
Average Recorded Investment, without a valuation allowance | 865 | 900 |
Interest Income Recognized, without a valuation allowance | 35 | 48 |
Student Loans Purchased [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, with a valuation allowance | 1,202 | 1,184 |
Unpaid Principal Balance, with a valuation allowance | 1,202 | 1,184 |
Associated Allowance, with a valuation allowance | 4 | 21 |
Average Recorded Investment, with a valuation allowance | 1,110 | 1,549 |
Interest Income Recognized, with a valuation allowance | 58 | 86 |
Impaired loans with a valuation allowance [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, with a valuation allowance | 1,202 | 1,184 |
Unpaid Principal Balance, with a valuation allowance | 1,202 | 1,184 |
Associated Allowance, with a valuation allowance | 4 | 21 |
Average Recorded Investment, with a valuation allowance | 1,110 | 1,549 |
Interest Income Recognized, with a valuation allowance | $ 58 | $ 86 |
Loans (Non-Accrual Loans by Loa
Loans (Non-Accrual Loans by Loan Classification) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total non-accrual loans | $ 9 | $ 299 |
Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total non-accrual loans | $ 9 | 279 |
Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total non-accrual loans | $ 20 |
Loans (Schedule of Troubled Deb
Loans (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands | Sep. 30, 2020USD ($)item | Dec. 31, 2019USD ($)item |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 84 | 70 |
Total Troubled Debt Restructurings | $ | $ 2,159 | $ 2,193 |
Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 83 | 69 |
Total Troubled Debt Restructurings | $ | $ 2,150 | $ 2,180 |
Performing [Member] | 1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 1 | 1 |
Total Troubled Debt Restructurings | $ | $ 110 | $ 117 |
Performing [Member] | Commercial non-owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 1 | 1 |
Total Troubled Debt Restructurings | $ | $ 838 | $ 879 |
Performing [Member] | Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 81 | 67 |
Total Troubled Debt Restructurings | $ | $ 1,202 | $ 1,184 |
Nonperforming [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 1 | 1 |
Total Troubled Debt Restructurings | $ | $ 9 | $ 13 |
Nonperforming [Member] | Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of loans | item | 1 | 1 |
Total Troubled Debt Restructurings | $ | $ 9 | $ 13 |
Loans (Schedule of Loans Modifi
Loans (Schedule of Loans Modified Under the Terms of a TDR) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | item | 9 | 10 | 15 | 12 |
Pre-Modification Recorded Balance | $ 119 | $ 78 | $ 168 | $ 133 |
Post-Modification Recorded Balance | $ 119 | $ 78 | $ 168 | $ 133 |
Student Loans Purchased [Member] | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | item | 9 | 10 | 15 | 12 |
Pre-Modification Recorded Balance | $ 119 | $ 78 | $ 168 | $ 133 |
Post-Modification Recorded Balance | $ 119 | $ 78 | $ 168 | $ 133 |
Allowance for Loan Losses (Loan
Allowance for Loan Losses (Loan Portfolio Designated by the Internal Risk Ratings Assigned to Each Credit) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 636,935 | $ 539,533 |
Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,949 | 38,843 |
Commercial and industrial - Paycheck Protection Program [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 84,706 | |
Commercial and industrial - government guaranteed [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,455 | 35,347 |
Commercial and industrial - syndicated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,367 | 6,398 |
Residential construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,597 | 2,197 |
Commercial construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 15,565 | 6,880 |
Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,591 | 8,063 |
1-4 family residential, first lien, investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 61,656 | 44,099 |
1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 18,848 | 20,671 |
1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,625 | 2,520 |
1-4 family residential - purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 22,368 | 33,428 |
Home equity lines of credit, first lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,827 | 10,268 |
Home equity lines of credit, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,537 | 9,671 |
Farm [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,217 | 8,808 |
Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 36,113 | 27,093 |
Commercial owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,219 | 96,117 |
Commercial non-owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 128,999 | 118,561 |
Consumer revolving credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 19,312 | 20,081 |
Consumer all other credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,953 | 5,741 |
Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 39,031 | 44,747 |
Excellent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 124,727 | 42,288 |
Excellent [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,313 | 6,463 |
Excellent [Member] | Commercial and industrial - Paycheck Protection Program [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 84,706 | |
Excellent [Member] | Commercial and industrial - government guaranteed [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,455 | 35,347 |
Excellent [Member] | Consumer revolving credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 844 | 279 |
Excellent [Member] | Consumer all other credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 409 | 199 |
Good [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 36,230 | 40,664 |
Good [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14,985 | 16,453 |
Good [Member] | Consumer revolving credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 18,218 | 19,176 |
Good [Member] | Consumer all other credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,027 | 5,035 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 453,786 | 430,445 |
Pass [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 11,084 | 14,257 |
Pass [Member] | Commercial and industrial - syndicated [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,367 | 6,398 |
Pass [Member] | Residential construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,597 | 2,197 |
Pass [Member] | Commercial construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 15,565 | 6,880 |
Pass [Member] | Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,375 | 7,563 |
Pass [Member] | 1-4 family residential, first lien, investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 58,089 | 39,641 |
Pass [Member] | 1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,633 | 19,578 |
Pass [Member] | 1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,471 | 2,029 |
Pass [Member] | 1-4 family residential - purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 22,368 | 33,428 |
Pass [Member] | Home equity lines of credit, first lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,827 | 9,591 |
Pass [Member] | Home equity lines of credit, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,371 | 9,357 |
Pass [Member] | Farm [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,650 | 6,149 |
Pass [Member] | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 35,720 | 26,690 |
Pass [Member] | Commercial owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 88,810 | 86,884 |
Pass [Member] | Commercial non-owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 126,754 | 116,092 |
Pass [Member] | Consumer revolving credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 250 | 606 |
Pass [Member] | Consumer all other credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 516 | 507 |
Pass [Member] | Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 37,339 | 42,598 |
Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,560 | 17,714 |
Watch [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,493 | |
Watch [Member] | Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 207 | |
Watch [Member] | 1-4 family residential, first lien, investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,349 | 4,076 |
Watch [Member] | 1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,012 | 1,040 |
Watch [Member] | 1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 30 | 33 |
Watch [Member] | Home equity lines of credit, first lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 677 | |
Watch [Member] | Home equity lines of credit, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 84 | 232 |
Watch [Member] | Farm [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 302 | 318 |
Watch [Member] | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 228 | 403 |
Watch [Member] | Commercial owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,153 | 5,928 |
Watch [Member] | Commercial non-owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 995 | 1,558 |
Watch [Member] | Consumer revolving credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 20 | |
Watch [Member] | Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,407 | 1,729 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,330 | 1,942 |
Special Mention [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 37 | |
Special Mention [Member] | 1-4 family residential, first lien, investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 544 | |
Special Mention [Member] | 1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 640 | |
Special Mention [Member] | 1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14 | 17 |
Special Mention [Member] | Commercial owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,677 | |
Special Mention [Member] | Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 132 | 211 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 13,302 | 6,480 |
Substandard [Member] | Commercial and industrial - organic [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 567 | 140 |
Substandard [Member] | Land and land development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 216 | 293 |
Substandard [Member] | 1-4 family residential, first lien, investment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 674 | 382 |
Substandard [Member] | 1-4 family residential, first lien, owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 563 | 53 |
Substandard [Member] | 1-4 family residential, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 110 | 441 |
Substandard [Member] | Home equity lines of credit, junior lien [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 82 | 82 |
Substandard [Member] | Farm [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,265 | 2,341 |
Substandard [Member] | Multifamily [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 165 | |
Substandard [Member] | Commercial owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,256 | 1,628 |
Substandard [Member] | Commercial non-owner occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,250 | 911 |
Substandard [Member] | Consumer all other credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1 | |
Substandard [Member] | Student Loans Purchased [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 153 | $ 209 |
Allowance for Loan Losses (Narr
Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance For Loan Losses [Abstract] | ||
Impaired loans | $ 2,159 | $ 2,479 |
Individually evaluated for impairment | $ 4 | $ 21 |
Allowance for Loan Losses (Summ
Allowance for Loan Losses (Summary of Transactions in Allowance for Loan Losses by Loan Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Allowance for Loan Losses: | |||||
Beginning Balance | $ 4,209 | $ 4,891 | $ 4,891 | ||
Charge-offs | (643) | (2,259) | |||
Recoveries | 401 | 202 | |||
Provision for (recovery of) loan losses | $ 224 | $ (120) | 1,367 | 500 | 1,375 |
Ending Balance | 5,334 | 5,334 | 4,209 | ||
Ending balance: Individually evaluated for impairment | 4 | 4 | 21 | ||
Ending balance: Collectively evaluated for impairment | 5,330 | 5,330 | 4,188 | ||
Loans: | |||||
Individually evaluated for impairment | 2,159 | 2,159 | 2,479 | ||
Collectively evaluated for impairment | 634,776 | 634,776 | 537,054 | ||
Ending Balance | 636,935 | 636,935 | 539,533 | ||
Commercial Loans [Member] | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 302 | 811 | 811 | ||
Charge-offs | (482) | ||||
Recoveries | 23 | 51 | |||
Provision for (recovery of) loan losses | (86) | (78) | |||
Ending Balance | 239 | 239 | 302 | ||
Ending balance: Collectively evaluated for impairment | 239 | 239 | 302 | ||
Loans: | |||||
Individually evaluated for impairment | 20 | ||||
Collectively evaluated for impairment | 156,477 | 156,477 | 80,568 | ||
Ending Balance | 156,477 | 156,477 | 80,588 | ||
Real Estate Construction and Land [Member] | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 109 | 119 | 119 | ||
Recoveries | 1 | ||||
Provision for (recovery of) loan losses | 65 | (11) | |||
Ending Balance | 174 | 174 | 109 | ||
Ending balance: Collectively evaluated for impairment | 174 | 174 | 109 | ||
Loans: | |||||
Individually evaluated for impairment | 9 | 9 | 279 | ||
Collectively evaluated for impairment | 23,744 | 23,744 | 16,861 | ||
Ending Balance | 23,753 | 23,753 | 17,140 | ||
Real Estate Mortgages [Member] | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 2,684 | 2,611 | 2,611 | ||
Recoveries | 14 | ||||
Provision for (recovery of) loan losses | 997 | 59 | |||
Ending Balance | 3,681 | 3,681 | 2,684 | ||
Ending balance: Collectively evaluated for impairment | 3,681 | 3,681 | 2,684 | ||
Loans: | |||||
Individually evaluated for impairment | 948 | 948 | 996 | ||
Collectively evaluated for impairment | 393,461 | 393,461 | 370,240 | ||
Ending Balance | 394,409 | 394,409 | 371,236 | ||
Consumer Loans [Member] | |||||
Allowance for Loan Losses: | |||||
Beginning Balance | 1,114 | $ 1,350 | 1,350 | ||
Charge-offs | (643) | (1,777) | |||
Recoveries | 378 | 136 | |||
Provision for (recovery of) loan losses | 391 | 1,405 | |||
Ending Balance | 1,240 | 1,240 | 1,114 | ||
Ending balance: Individually evaluated for impairment | 4 | 4 | 21 | ||
Ending balance: Collectively evaluated for impairment | 1,236 | 1,236 | 1,093 | ||
Loans: | |||||
Individually evaluated for impairment | 1,202 | 1,202 | 1,184 | ||
Collectively evaluated for impairment | 61,094 | 61,094 | 69,385 | ||
Ending Balance | $ 62,296 | $ 62,296 | $ 70,569 |
Allowance for Loan Losses (Sche
Allowance for Loan Losses (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Past Due and Non-Accrual Loans | ||
Total Past Due | $ 1,477 | $ 3,610 |
Current | 635,458 | 535,923 |
Total Loans | 636,935 | 539,533 |
90 Days Past Due and Still Accruing | 61 | 771 |
30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 696 | 2,054 |
60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 720 | 519 |
90 Days or More Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 61 | 1,037 |
Commercial and industrial - organic [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 624 | |
Current | 32,949 | 38,219 |
Total Loans | 32,949 | 38,843 |
Commercial and industrial - organic [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 604 | |
Commercial and industrial - organic [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 20 | |
Commercial and industrial - Paycheck Protection Program [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 84,706 | |
Total Loans | 84,706 | |
Commercial and industrial - government guaranteed [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 491 | 548 |
Current | 31,964 | 34,799 |
Total Loans | 32,455 | 35,347 |
90 Days Past Due and Still Accruing | 548 | |
Commercial and industrial - government guaranteed [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 491 | |
Commercial and industrial - government guaranteed [Member] | 90 Days or More Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 548 | |
Commercial and industrial - syndicated [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 6,367 | 6,398 |
Total Loans | 6,367 | 6,398 |
Residential construction [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 1,597 | 2,197 |
Total Loans | 1,597 | 2,197 |
Commercial construction [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 15,565 | 6,880 |
Total Loans | 15,565 | 6,880 |
Land and land development [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 12 | 281 |
Current | 6,579 | 7,782 |
Total Loans | 6,591 | 8,063 |
90 Days Past Due and Still Accruing | 14 | |
Land and land development [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 1 | |
Land and land development [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 12 | |
Land and land development [Member] | 90 Days or More Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 280 | |
1-4 family residential, first lien, investment [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 75 | 188 |
Current | 61,581 | 43,911 |
Total Loans | 61,656 | 44,099 |
1-4 family residential, first lien, investment [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 188 | |
1-4 family residential, first lien, investment [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 75 | |
1-4 family residential, first lien, owner occupied [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 123 | |
Current | 18,848 | 20,548 |
Total Loans | 18,848 | 20,671 |
1-4 family residential, first lien, owner occupied [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 123 | |
1-4 family residential, junior lien [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 2,625 | 2,520 |
Total Loans | 2,625 | 2,520 |
1-4 family residential - purchased [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 500 | 659 |
Current | 21,868 | 32,769 |
Total Loans | 22,368 | 33,428 |
1-4 family residential - purchased [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 501 | |
1-4 family residential - purchased [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 500 | 158 |
Home equity lines of credit, first lien [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 9,827 | 10,268 |
Total Loans | 9,827 | 10,268 |
Home equity lines of credit, junior lien [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 8,537 | 9,671 |
Total Loans | 8,537 | 9,671 |
Farm [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 7,217 | 8,808 |
Total Loans | 7,217 | 8,808 |
Multifamily [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 36,113 | 27,093 |
Total Loans | 36,113 | 27,093 |
Commercial owner occupied [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 98,219 | 96,117 |
Total Loans | 98,219 | 96,117 |
Commercial non-owner occupied [Member] | ||
Past Due and Non-Accrual Loans | ||
Current | 128,999 | 118,561 |
Total Loans | 128,999 | 118,561 |
Consumer revolving credit [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 20 | |
Current | 19,312 | 20,061 |
Total Loans | 19,312 | 20,081 |
Consumer revolving credit [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 20 | |
Consumer all other credit [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 43 | |
Current | 3,953 | 5,698 |
Total Loans | 3,953 | 5,741 |
Consumer all other credit [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 43 | |
Student Loans Purchased [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 399 | 1,124 |
Current | 38,632 | 43,623 |
Total Loans | 39,031 | 44,747 |
90 Days Past Due and Still Accruing | 61 | 209 |
Student Loans Purchased [Member] | 30-59 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 205 | 697 |
Student Loans Purchased [Member] | 60-89 Days Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | 133 | 218 |
Student Loans Purchased [Member] | 90 Days or More Past Due [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Past Due | $ 61 | $ 209 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - $ / shares | Jun. 13, 2019 | May 21, 2014 | Sep. 30, 2020 | Sep. 30, 2019 |
Earnings Per Share [Line Items] | ||||
Dividends payable date declared | Jun. 13, 2019 | |||
Common stock dividends percentage | 5.00% | 5.00% | 5.00% | |
Common stock dividend declared per share | $ 0.05 | |||
Dividends payable date to be paid | Jul. 5, 2019 | |||
Dividends payable date of record | Jun. 26, 2019 | |||
Equity Option [Member] | ||||
Earnings Per Share [Line Items] | ||||
Securities considered to be anti-dilutive and excluded from earnings per share calculation | 145,404 | 66,301 |
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 | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic net income per share | ||||||||
Net Income | $ 1,870 | $ 2,088 | $ 1,404 | $ 1,897 | $ 2,115 | $ 1,246 | $ 5,362 | $ 5,258 |
Weighted Average Shares | 2,714,273 | 2,689,092 | 2,705,730 | 2,685,134 | ||||
Per Share Amount | $ 0.69 | $ 0.71 | $ 1.98 | $ 1.96 | ||||
Effect of dilutive stock options | 624 | 1,022 | 708 | 3,627 | ||||
Diluted net income per share | ||||||||
Net Income | $ 1,870 | $ 2,088 | $ 1,404 | $ 1,897 | $ 2,115 | $ 1,246 | $ 5,362 | $ 5,258 |
Weighted Average Shares | 2,714,897 | 2,690,114 | 2,706,438 | 2,688,761 | ||||
Per Share Amount | $ 0.69 | $ 0.71 | $ 1.98 | $ 1.96 |
Stock Incentive Plans (Plan dur
Stock Incentive Plans (Plan duration - Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 13, 2019 | Feb. 20, 2019 | May 21, 2014 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock dividends percentage | 5.00% | 5.00% | 5.00% | |||||||||
Stock grant expense, restricted | $ 96 | $ 3 | ||||||||||
Employee Stock Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | 88 | $ 71 | ||||||||||
Unrecognized compensation expense related to the non-vested awards | $ 432 | $ 432 | ||||||||||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2025 | |||||||||||
Option Issued | 40,000 | 0 | 66,000 | 420 | ||||||||
Unrestricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | $ 318 | |||||||||||
Stock grants awarded | 0 | |||||||||||
Market price | $ 38.65 | |||||||||||
Compensation expense | $ 424 | |||||||||||
Unrestricted Stock [Member] | Non-Employee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock dividends percentage | 5.00% | |||||||||||
Stock grants awarded | 11,535 | |||||||||||
Unrestricted Stock [Member] | Certain Members of Executive Management [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock dividends percentage | 5.00% | |||||||||||
Stock grants awarded | 11,535 | |||||||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation expense related to the non-vested awards | $ 599 | $ 599 | ||||||||||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2025 | |||||||||||
Stock grants awarded | 22,268 | |||||||||||
Stock grant expense, restricted | $ 42 | $ 3 | $ 96 | $ 3 | ||||||||
Restricted Stock [Member] | Non-Employee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock grants awarded | 10,368 | |||||||||||
Vesting period | 4 years | |||||||||||
Restricted Stock [Member] | Certain Members of Executive Management [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock grants awarded | 10,000 | 4,000 | ||||||||||
Vesting period | 4 years | 4 years | ||||||||||
Restricted Stock [Member] | Lenders [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock grants awarded | 1,900 | |||||||||||
Vesting period | 5 years | |||||||||||
Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Plan duration | 10 years | |||||||||||
2014 Stock Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock authorized for issuance | 275,625 | 275,625 | 275,625 | |||||||||
Common stock available for grant | 75,775 | 75,775 | ||||||||||
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 | 9 Months Ended | |
Sep. 30, 2020 | May 21, 2014 | |
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 |
Total vested and unvested shares | 1,379 | |
Fully vested shares | 1,379 | |
2005 Stock Plan [Member] | Unrestricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | 0 | |
2005 Stock Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | 0 | |
2005 Stock Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share | $ 13.69 | |
2005 Stock Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share | $ 13.69 | |
2014 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 275,625 | 275,625 |
Options issued, net of forfeited and expired options | (162,047) | |
Cancelled due to Plan expiration | 0 | |
Remaining available for grant | 75,775 | |
Total vested and unvested shares | 145,404 | |
Fully vested shares | 26,977 | |
2014 Stock Plan [Member] | Unrestricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (11,535) | |
2014 Stock Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (26,268) | |
2014 Stock Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share | $ 23.75 | |
2014 Stock Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share | $ 42.62 |
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 | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Options | ||||
Outstanding, at the beginning | 80,783 | |||
Issued | 40,000 | 0 | 66,000 | 420 |
Outstanding, at the end | 146,783 | 146,783 | ||
Options Exercisable | 28,356 | 28,356 | ||
Weighted Average Exercise Price | ||||
Outstanding, at the beginning | $ 40.76 | |||
Issued | 24.64 | |||
Outstanding, at the end | $ 33.51 | 33.51 | ||
Exercisable | $ 40.53 | $ 40.53 | ||
Aggregate Intrinsic Value | ||||
Outstanding, Aggregate Intrinsic Value | $ 28 | $ 28 | ||
Exercisable | $ 14 | $ 14 |
Stock Incentive Plans (Summar_2
Stock Incentive Plans (Summary Information Pertaining to Options Outstanding) (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Expected volatility | 22.97% |
Expected dividends | 4.75% |
Expected term (in years) | 6 years 6 months |
Risk-free rate | 0.68% |
Options Outstanding | shares | 146,783 |
Weighted-Average Remaining Contractual Life | 8 years 8 months 12 days |
Weighted Average Exercise Price | $ 33.51 |
Options Exercisable | shares | 28,356 |
Weighted-Average Exercise Price | $ 40.53 |
$10.65 to 20.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 10.65 |
Exercise Price, Maximum | $ 20 |
Options Outstanding | shares | 1,379 |
Weighted-Average Remaining Contractual Life | 2 years 4 months 24 days |
Weighted Average Exercise Price | $ 13.69 |
Options Exercisable | shares | 1,379 |
Weighted-Average Exercise Price | $ 13.69 |
$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 | 67,103 |
Weighted-Average Remaining Contractual Life | 9 years 8 months 12 days |
Weighted Average Exercise Price | $ 24.68 |
Options Exercisable | shares | 551 |
Weighted-Average Exercise Price | $ 27.39 |
$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 | 20,820 |
Weighted-Average Remaining Contractual Life | 8 years 4 months 24 days |
Weighted Average Exercise Price | $ 38.14 |
Options Exercisable | shares | 3,444 |
Weighted-Average Exercise Price | $ 39.44 |
$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 | 7 years 7 months 6 days |
Weighted Average Exercise Price | $ 42.62 |
Options Exercisable | shares | 22,982 |
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 | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Number of Shares/Options | |
Non-vested Outstanding, at the beginning | shares | 4,000 |
Issued | shares | 22,268 |
Vested | shares | (1,000) |
Non-vested Outstanding, at the end | shares | 25,268 |
Weighted Average Grant Date Fair Value Per Share/Exercise Price | |
Non-vested Outstanding, at the beginning | $ / shares | $ 36 |
Issued | $ / shares | 25.34 |
Vested | $ / shares | (36) |
Non-vested Outstanding, at the end | $ / shares | $ 26.60 |
Aggregate Intrinsic Value | |
Non-vested Outstanding, at the beginning | $ | $ 96 |
Issued | $ | 537 |
Vested | $ | (24) |
Non-vested Outstanding, Aggregate Intrinsic Value | $ | $ 609 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 141,245 | $ 114,041 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 7,469 | |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 57,247 | 19,888 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 141,245 | 114,041 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 7,469 | |
Significant Other Observable Inputs (Level 2) [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 57,247 | 19,888 |
U.S. Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 19,840 | 14,952 |
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] | ||
Assets measured at fair value | 19,840 | 14,952 |
Mortgage-backed securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 64,158 | 71,732 |
Mortgage-backed securities/CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 64,158 | $ 71,732 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($)Property | Dec. 31, 2019USD ($)Property |
Fair Value Disclosures [Abstract] | ||
Number of other real estate owned properties | Property | 0 | 0 |
Recorded Investment, total | $ | $ 2,159 | $ 2,479 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Assets | ||
Cash and cash equivalent | $ 11,672 | $ 19,085 |
Available for sale securities | 141,245 | 114,041 |
Loans, net | 631,601 | 535,324 |
Bank owned life insurance | 16,739 | 16,412 |
Accrued interest receivable | 2,878 | 2,240 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market, and savings accounts | 596,426 | 511,933 |
Certificates of deposit and other time deposits | 98,095 | 109,278 |
Accrued interest payable | 176 | 295 |
Fair Value [Member] | ||
Assets | ||
Cash and cash equivalent | 11,672 | 19,085 |
Available for sale securities | 141,245 | 114,041 |
Loans, net | 633,165 | 523,507 |
Bank owned life insurance | 16,739 | 16,412 |
Accrued interest receivable | 2,878 | 2,240 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market, and savings accounts | 596,426 | 511,933 |
Certificates of deposit and other time deposits | 98,995 | 109,848 |
Accrued interest payable | 176 | 295 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash and cash equivalent | 11,672 | 19,085 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Available for sale securities | 141,245 | 114,041 |
Bank owned life insurance | 16,739 | 16,412 |
Accrued interest receivable | 530 | 385 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market, and savings accounts | 596,426 | 511,933 |
Certificates of deposit and other time deposits | 98,995 | 109,848 |
Accrued interest payable | 176 | 295 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Loans, net | 633,165 | 523,507 |
Accrued interest receivable | $ 2,348 | $ 1,855 |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Available-for-sale securities | ||||
Realized gains on sales of securities | $ 91 | $ 7 | $ 734 | $ 71 |
Tax effect | (19) | (1) | (154) | (15) |
Realized gains, net of tax | $ 72 | $ 6 | $ 580 | $ 56 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | item | 4 | |||
VNB Wealth [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Management fees | $ | $ 25 | $ 25 | $ 75 | $ 75 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||
Net interest income | $ 6,047 | $ 5,474 | $ 17,177 | $ 16,503 | |||||
Provision for (recovery of) loan losses | 224 | (120) | 1,367 | 500 | $ 1,375 | ||||
Noninterest income | 1,425 | 1,327 | 4,720 | 4,086 | |||||
Noninterest expense | 4,935 | 4,561 | 13,882 | 13,657 | |||||
Income (loss) before income taxes | 2,313 | 2,360 | 6,648 | 6,432 | |||||
Provision for income taxes | 443 | 463 | 1,286 | 1,174 | |||||
Net income | 1,870 | $ 2,088 | $ 1,404 | 1,897 | $ 2,115 | $ 1,246 | 5,362 | 5,258 | |
Bank [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income | 6,047 | 5,474 | 17,177 | 16,503 | |||||
Provision for (recovery of) loan losses | 224 | (120) | 1,367 | 500 | |||||
Noninterest income | 970 | 786 | 3,316 | 2,496 | |||||
Noninterest expense | 4,373 | 3,905 | 12,147 | 11,777 | |||||
Income (loss) before income taxes | 2,420 | 2,475 | 6,979 | 6,722 | |||||
Provision for income taxes | 466 | 487 | 1,355 | 1,234 | |||||
Net income | 1,954 | 1,988 | 5,624 | 5,488 | |||||
Sturman Wealth Advisors [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Noninterest income | 176 | 159 | 516 | 451 | |||||
Noninterest expense | 155 | 155 | 483 | 438 | |||||
Income (loss) before income taxes | 21 | 4 | 33 | 13 | |||||
Provision for income taxes | 4 | 1 | 7 | 3 | |||||
Net income | 17 | 3 | 26 | 10 | |||||
VNB Trust & Estate Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Noninterest income | 192 | 314 | 625 | 1,008 | |||||
Noninterest expense | 196 | 308 | 668 | 918 | |||||
Income (loss) before income taxes | (4) | 6 | (43) | 90 | |||||
Provision for income taxes | (1) | 1 | (9) | 19 | |||||
Net income | (3) | 5 | (34) | 71 | |||||
Masonry Capital [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Noninterest income | 87 | 68 | 263 | 131 | |||||
Noninterest expense | 211 | 193 | 584 | 524 | |||||
Income (loss) before income taxes | (124) | (125) | (321) | (393) | |||||
Provision for income taxes | (26) | (26) | (67) | (82) | |||||
Net income | $ (98) | $ (99) | $ (254) | $ (311) |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Liability) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Lease liability | $ 3,783 |
Right-of-use asset | $ 3,725 |
Weighted average remaining lease term | 5 years 4 months 6 days |
Weighted average discount rate | 2.55% |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 228 | $ 203 | $ 636 | $ 611 |
Short-term lease expense | 28 | 34 | 85 | 107 |
Total lease expense | 256 | 237 | 721 | 718 |
Cash paid for amounts included in lease liabilities | $ 199 | $ 196 | $ 597 | $ 589 |
Leases (Schedule of Operating_3
Leases (Schedule of Operating Lease Liabilities And Reconciliation of Undiscounted Cash Flows) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Three months ending December 31, 2020 | $ 218 |
Twelve months ending December 31, 2021 | 877 |
Twelve months ending December 31, 2022 | 839 |
Twelve months ending December 31, 2023 | 753 |
Twelve months ending December 31, 2024 | 544 |
Twelve months ending December 31, 2025 | 469 |
Thereafter | 372 |
Total undiscounted cash flows | 4,072 |
Less: Discount | (289) |
Lease liability | $ 3,783 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - Fauquier Bankshares, Inc [Member] - Subsequent Event [Member] | Oct. 01, 2020shares |
Subsequent Event [Line Items] | |
Equity interest issued or issuable share ratio | 0.675 |
Acquirer expected stockholders equity interest ownership percentage | 51.40% |
Acquiree expected stockholders equity interest ownership percentage | 48.60% |