Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | RIVER FINANCIAL CORPORATION | |
Entity Central Index Key | 0001641601 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,496,227 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 333-205986 | |
Entity Tax Identification Number | 46-1422125 | |
Entity Address, Address Line One | 2611 Legends Drive | |
Entity Address, City or Town | Prattville | |
Entity Address, State or Province | AL | |
Entity Interactive Data Current | Yes | |
Entity Address, Postal Zip Code | 36066 | |
City Area Code | 334 | |
Local Phone Number | 290-1012 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | AL |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 22,354 | $ 27,786 |
Interest-bearing deposits in banks | 13,864 | 17,669 |
Federal funds sold | 20,000 | |
Cash and cash equivalents | 56,218 | 45,455 |
Certificates of deposit in banks | 2,906 | 4,836 |
Securities available-for-sale, at fair value | 415,217 | 303,303 |
Loans held for sale | 21,468 | 6,285 |
Loans, net of unearned income and discounts | 1,191,368 | 905,784 |
Less allowance for loan losses | (16,333) | (8,679) |
Net loans | 1,175,035 | 897,105 |
Premises and equipment, net | 31,623 | 31,554 |
Accrued interest receivable | 6,091 | 3,841 |
Bank owned life insurance | 28,818 | 28,219 |
Foreclosed assets | 471 | 1,404 |
Deferred income taxes, net | 1,804 | 777 |
Core deposit intangible | 4,349 | 5,316 |
Goodwill | 27,817 | 27,817 |
Other assets | 9,807 | 8,024 |
Total assets | 1,781,624 | 1,363,936 |
Liabilities and Shareholders' Equity | ||
Noninterest-bearing deposits | 437,647 | 321,458 |
Interest-bearing deposits | 1,141,931 | 852,841 |
Total deposits | 1,579,578 | 1,174,299 |
Securities sold under agreements to repurchase | 10,266 | 8,707 |
Note payable | 21,254 | 23,773 |
Accrued interest payable and other liabilities | 8,610 | 10,128 |
Total liabilities | 1,619,708 | 1,216,907 |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,741 | 1,837 |
Stockholders' Equity | ||
Common stock ($1 par value; 10,000,000 shares authorized; 6,518,264 and 6,492,812 shares issued; 6,496,655 and 6,489,505 shares outstanding, respectively) | 6,518 | 6,493 |
Additional paid-in capital | 100,495 | 100,174 |
Retained earnings | 47,688 | 38,644 |
Accumulated other comprehensive income | 7,812 | 1,811 |
Treasury stock at cost (21,609 and 3,307 shares, respectively) | (597) | (93) |
Common stock related to 401(k) Employee Stock Ownership Plan | (1,741) | (1,837) |
Total stockholders' equity | 160,175 | 145,192 |
Total equity | 161,916 | 147,029 |
Total liabilities and stockholders' equity | $ 1,781,624 | $ 1,363,936 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 6,518,264 | 6,492,812 |
Common stock, shares outstanding | 6,496,655 | 6,489,505 |
Treasury stock, shares | 21,609 | 3,307 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income: | ||||
Loans, including fees | $ 14,328 | $ 10,192 | $ 41,285 | $ 29,853 |
Taxable securities | 1,105 | 1,104 | 3,829 | 3,347 |
Nontaxable securities | 517 | 356 | 1,451 | 1,055 |
Federal funds sold | 4 | 107 | 4 | 183 |
Other interest income | 26 | 178 | 201 | 485 |
Total interest income | 15,980 | 11,937 | 46,770 | 34,923 |
Interest expense: | ||||
Deposits | 1,667 | 1,758 | 5,446 | 4,921 |
Short-term borrowings | 2 | 11 | 14 | 35 |
Federal Home Loan Bank advances | 29 | |||
Note payable | 333 | 384 | 1,029 | 1,175 |
Total interest expense | 2,002 | 2,153 | 6,489 | 6,160 |
Net interest income | 13,978 | 9,784 | 40,281 | 28,763 |
Provision for loan losses | 2,916 | 540 | 7,798 | 1,620 |
Net interest income after provision for loan losses | 11,062 | 9,244 | 32,483 | 27,143 |
Noninterest income: | ||||
Service charges and fees | 1,269 | 1,251 | 3,673 | 3,537 |
Investment brokerage revenue | 43 | 24 | 128 | 69 |
Mortgage operations | 1,555 | 1,255 | 3,917 | 2,344 |
Bank owned life insurance income | 201 | 171 | 599 | 451 |
Net loss on sale of investment securities | (6) | (48) | (9) | |
Other noninterest income | 90 | 153 | 317 | 363 |
Total noninterest income | 3,158 | 2,848 | 8,586 | 6,755 |
Noninterest expense: | ||||
Salaries and employee benefits | 5,437 | 4,680 | 15,974 | 13,010 |
Occupancy expenses | 592 | 513 | 1,759 | 1,487 |
Equipment rentals, depreciation, and maintenance | 281 | 248 | 863 | 784 |
Telephone and communications | 116 | 99 | 361 | 268 |
Advertising and business development | 184 | 149 | 400 | 478 |
Data processing | 681 | 939 | 2,155 | 2,346 |
Foreclosed assets, net | 32 | 21 | 152 | 144 |
Federal deposit insurance and other regulatory assessments | 265 | 16 | 548 | 210 |
Legal and other professional services | 181 | 263 | 588 | 692 |
Other operating expenses | 1,299 | 1,331 | 3,944 | 3,826 |
Total noninterest expense | 9,068 | 8,259 | 26,744 | 23,245 |
Income before income taxes | 5,152 | 3,833 | 14,325 | 10,653 |
Provision for income taxes | 1,085 | 861 | 2,938 | 2,312 |
Net income | $ 4,067 | $ 2,972 | $ 11,387 | $ 8,341 |
Basic net earnings per common share | $ 0.63 | $ 0.52 | $ 1.75 | $ 1.46 |
Diluted net earnings per common share | $ 0.62 | $ 0.51 | 1.73 | 1.44 |
Dividends per common share | $ 0.36 | $ 0.33 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income - 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 | $ 4,067 | $ 2,972 | $ 11,387 | $ 8,341 |
Investment securities available-for-sale: | ||||
Net unrealized gains | 1,179 | 855 | 7,965 | 6,903 |
Income tax effect | (296) | (215) | (2,000) | (1,732) |
Reclassification adjustments for net losses realized in net income | 6 | 48 | 9 | |
Income tax effect | (2) | (12) | (2) | |
Other comprehensive income, net of tax | 883 | 644 | 6,001 | 5,178 |
Comprehensive income | $ 4,950 | $ 3,616 | $ 17,388 | $ 13,519 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Shareholders' Equity - 9 months ended Sep. 30, 2020 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Common Stock Related to KSOP |
Balance at Dec. 31, 2019 | $ 145,192 | $ 6,493 | $ 100,174 | $ 38,644 | $ 1,811 | $ (93) | $ (1,837) |
Net income | 11,387 | 11,387 | |||||
Other comprehensive income, net of tax | 6,001 | 6,001 | |||||
Exercise of stock options and warrants | 181 | 25 | 156 | ||||
Purchase of treasury stock | (700) | (700) | |||||
Sale of treasury shares | 198 | 2 | 196 | ||||
Dividends declared | (2,343) | (2,343) | |||||
Stock-based compensation expense | 163 | 163 | |||||
Change for KSOP related shares | 96 | 96 | |||||
Balance at Sep. 30, 2020 | $ 160,175 | $ 6,518 | $ 100,495 | $ 47,688 | $ 7,812 | $ (597) | $ (1,741) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Statement Of Stockholders Equity [Abstract] | |
Exercise of stock options and warrants, shares | 25,452 |
Purchase of treasury stock | 25,273 |
Sale of treasury shares | 6,971 |
Dividends declared, per share | $ / shares | $ 0.36 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows (Used For) From Operating Activities: | ||
Net income | $ 11,387 | $ 8,341 |
Adjustments to reconcile net income to net cash (used for) from operating activities: | ||
Provision for loan losses | 7,798 | 1,620 |
Provision for losses on foreclosed assets | 91 | 104 |
Amortization of securities available-for-sale | 2,898 | 1,173 |
Accretion of securities available-for-sale | (173) | (360) |
Realized net loss on securities available-for-sale | 48 | 9 |
Accretion of discount on acquired loans | (281) | (681) |
Accretion of deferred loan fees / costs | (1,811) | (1,143) |
Amortization of core deposit intangible asset | 967 | 956 |
Stock-based compensation expense | 163 | 131 |
Bank owned life insurance income | (599) | (451) |
Depreciation and amortization of premises and equipment | 1,103 | 1,004 |
(Gain) loss on sale of foreclosed assets | (2) | 12 |
Deferred income tax benefit | (3,041) | (635) |
(Increase) decrease in operating assets and (decrease) increase in operating liabilities: | ||
Loans held-for-sale | (15,183) | (7,583) |
Accrued interest receivable | (2,250) | 100 |
Other assets | (1,656) | (4,442) |
Accrued interest payable and other liabilities | (1,517) | 3,325 |
Net cash (used for) from operating activities | (2,058) | 1,480 |
Cash Flows (Used For) From Investing Activities: | ||
Maturity of certificate of deposit | 2,437 | 1,348 |
Purchase of certificate of deposit | (501) | |
Sales of securities available-for-sale | 14,499 | 28,875 |
Maturities, payments, calls of securities available-for-sale | 62,702 | 34,420 |
Purchases of securities available-for-sale | (183,880) | (64,732) |
Loan principal originations, net | (284,126) | (43,264) |
Proceeds from sale of foreclosed assets | 1,334 | 118 |
Purchases of premises and equipment | (1,172) | (2,826) |
(Purchase) sale of restricted equity securities, net | (127) | 628 |
Purchase of bank owned life insurance | (7,000) | |
Net cash used for investing activities | (388,834) | (52,433) |
Cash Flows From (Used For) Financing Activities: | ||
Net increase in deposits | 405,279 | 74,910 |
Net increase in securities sold under agreements to repurchase | 1,559 | 1,742 |
Repayment of Federal Home Loan Bank advances | (20,000) | |
Repayment of note payable | (2,519) | (2,378) |
Proceeds from exercise of common stock options and warrants | 181 | 142 |
Purchase of treasury stock | (700) | (423) |
Sale of treasury stock | 198 | 277 |
Cash dividends | (2,343) | (1,882) |
Net cash from financing activities | 401,655 | 52,388 |
Net Change In Cash And Cash Equivalents | 10,763 | 1,435 |
Cash and Cash Equivalents At Beginning Of Period | 45,455 | 47,507 |
Cash and Cash Equivalents At End Of Period | 56,218 | 48,942 |
Cash Payments For: | ||
Interest paid to depositors | 5,528 | 4,861 |
Interest paid on borrowings | 1,070 | 1,273 |
Income taxes | 7,148 | 2,055 |
Non-cash investing and financing activities: | ||
Transfer of loans to foreclosed assets | $ 490 | 855 |
Initial recognition of operating lease right-of-use assets | 2,172 | |
Initial recognition of operating lease liabilities | $ 2,237 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | General The unaudited consolidated financial statements include the accounts of River Financial Corporation (“River” or the “Company”) and its wholly owned subsidiary, River Bank & Trust (Bank). The Bank provides a full range of commercial and consumer banking services primarily in the Montgomery, Alabama metropolitan area, Autauga, Baldwin, Chilton, Coffee, Elmore, Etowah, Houston, Lee, Mobile and Tallapoosa counties and surrounding counties in Alabama. The Bank is primarily regulated by the Federal Deposit Insurance Corporation (FDIC) and undergoes periodic examinations by this regulatory agency and the Alabama Banking Department. The Company is regulated by the Federal Reserve Bank (FRB) and is also subject to periodic examinations. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly River Financial Corporation’s consolidated statements of financial condition, statements of income, statements of comprehensive income, statements of changes in stockholders’ equity and statements of cash flows for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and note disclosures normally presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been omitted or abbreviated. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes as of December 31, 2019, which are contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Estimates are used in accounting for, among other items, the allowance for loan losses, foreclosed asset valuations, useful lives for depreciation and amortization, fair value of financial instruments, deferred taxes, and contingencies. Estimates that are particularly susceptible to significant change for the Company include the determination of the allowance for loan losses, investment securities impairment, and assessment of deferred tax assets and liabilities, and therefore are critical accounting policies. Management does not anticipate any material changes to estimates in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, economic conditions in our markets, and changes in applicable banking regulations. Actual results may ultimately differ from estimates, although management does not generally believe such differences would materially affect the consolidated financial statements in any individual reporting period presented. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 – Earnings Per Share Basic earnings per common share are computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share are computed by dividing net income by the effect of the issuance of potential common shares that are dilutive and by the sum of the weighted-average number of shares of common stock outstanding. All shares owned by the Company’s 401(k) Employee Stock Ownership Plan (KSOP) are included in the earnings per share calculations. The reconciliation of the components of the basic and diluted earnings per share is as follows (amounts in thousands): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Net earnings available to common shareholders $ 4,067 $ 2,972 $ 11,387 $ 8,341 Weighted average common shares outstanding 6,498,288 5,703,921 6,498,669 5,702,026 Dilutive effect of stock options 73,452 93,780 74,759 91,549 Diluted common shares 6,571,740 5,797,701 6,573,428 5,793,575 Basic earnings per common share $ 0.63 $ 0.52 $ 1.75 $ 1.46 Diluted earnings per common share $ 0.62 $ 0.51 $ 1.73 $ 1.44 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 3 – Investment Securities Securities available-for-sale at September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2020: Securities available-for-sale: Residential mortgage-backed $ 277,988 $ 5,034 $ (398 ) $ 282,624 U.S. govt. sponsored enterprises 36,997 1,368 - 38,365 State, county, and municipal 87,120 4,428 (19 ) 91,529 Corporate debt obligations 2,662 37 - 2,699 Totals $ 404,767 $ 10,867 $ (417 ) $ 415,217 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019: Securities available-for-sale: Residential mortgage-backed $ 188,944 $ 718 $ (851 ) $ 188,811 U.S. govt. sponsored enterprises 39,355 812 (106 ) 40,061 State, county, and municipal 69,908 1,986 (143 ) 71,751 Corporate debt obligations 2,654 26 - 2,680 Totals $ 300,861 $ 3,542 $ (1,100 ) $ 303,303 Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Details concerning investment securities with unrealized losses as of September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2020: Securities available-for-sale: Residential mortgage-backed $ 59,207 $ 398 $ - $ - $ 59,207 $ 398 U.S. govt. sponsored enterprises - - - - - - State, county & municipal 3,146 19 - - 3,146 19 Corporate debt obligations - - - - - - Totals $ 62,353 $ 417 $ - $ - $ 62,353 $ 417 December 31, 2019: Securities available-for-sale: Residential mortgage-backed $ 83,964 $ 321 $ 39,881 $ 530 $ 123,845 $ 851 U.S. govt. sponsored enterprises 7,423 53 2,748 53 10,171 106 State, county & municipal 14,866 143 200 - 15,066 143 Corporate debt obligations - - - - - - Totals $ 106,253 $ 517 $ 42,829 $ 583 $ 149,082 $ 1,100 As of September 30, 2020, management does not consider securities with unrealized losses to be other-than-temporarily impaired. The unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. The Company has the ability and intent to hold its securities for a period of time sufficient to allow for a recovery in fair value. There were no other-than-temporary impairments charged to earnings during the nine months ended September 30, 2020 or 2019. The Company owned a total of 16 securities with unrealized losses of $417 thousand at September 30, 2020. As of September 30, 2020 and December 31, 2019, securities with a carrying value of approximately $121.8 million and $71.8 million, respectively, were pledged to secure public deposits as required by law. At September 30, 2020 and December 31, 2019, the carrying value of securities pledged to secure repurchase agreements was approximately $16.4 million and $14.5 million, respectively. During the nine months ended September 30, 2020, the Company sold investment securities for proceeds of $14.5 million and realized losses of $48 thousand. During the nine months ended September 30, 2019, the Company sold investment securities for proceeds of $28.9 million and realized losses of $9 thousand. The amortized cost and estimated fair value of securities available-for-sale at September 30, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities for residential mortgage backed securities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. These securities are therefore not presented by maturity classification. September 30, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) (In Thousands) Securities available-for-sale Less than 1 year $ 7,202 $ 7,281 $ 8,420 $ 8,458 1 to 5 years 35,378 36,986 37,820 38,799 5 to 10 years 20,323 20,964 19,739 20,117 After 10 years 63,876 67,362 45,938 47,118 126,779 132,593 111,917 114,492 Residential mortgage-backed securities 277,988 282,624 188,944 188,811 Totals $ 404,767 $ 415,217 $ 300,861 $ 303,303 |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses and Credit Quality | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans, Allowance for Loan Losses and Credit Quality | Major classifications of loans at September 30, 2020 and December 31, 2019 are summarized as follows (amounts in thousands): September 30, 2020 December 31, 2019 Amount % of Total Amount % of Total Residential real estate: Closed-end 1-4 family - first lien $ 244,419 20.8 % $ 211,440 23.6 % Closed-end 1-4 family - junior lien 7,646 0.7 % 7,653 0.9 % Multi-family 13,381 1.1 % 18,125 2.0 % Total residential real estate 265,446 22.6 % 237,218 26.5 % Commercial real estate: Nonfarm nonresidential 310,096 26.4 % 288,930 32.2 % Farmland 35,480 3.0 % 21,089 2.4 % Total commercial real estate 345,576 29.4 % 310,019 34.6 % Construction and land development: Residential 68,953 5.9 % 53,386 6.0 % Other 74,798 6.4 % 60,140 6.7 % Total construction and land development 143,751 12.3 % 113,526 12.7 % Home equity lines of credit 44,484 3.8 % 47,410 5.3 % Commercial loans: Other commercial loans 299,074 25.4 % 136,301 15.2 % Agricultural 34,809 3.0 % 2,826 0.3 % State, county, and municipal loans 25,773 2.2 % 22,159 2.4 % Total commercial loans 359,656 30.6 % 161,286 17.9 % Consumer loans 40,630 3.5 % 40,397 4.5 % Total gross loans 1,199,543 102.2 % 909,856 101.5 % Allowance for loan losses (16,333 ) -1.4 % (8,679 ) -1.0 % Net discounts (1,332 ) -0.1 % (2,647 ) -0.3 % Net deferred loan fees (6,843 ) -0.7 % (1,425 ) -0.2 % Net loans $ 1,175,035 100.0 % $ 897,105 100.0 % The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations located in its general trade area. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market. Relevant risk characteristics for these portfolio segments generally include debt service coverage, loan-to-value ratios and financial performance on non-consumer loans and credit scores, debt-to-income, collateral type and loan-to-value ratios for consumer loans. For purposes of the disclosures required pursuant to ASC 310, the loan portfolio was disaggregated into segments and then further disaggregated into classes for certain disclosures. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. There are three primary loan portfolio segments that include real estate, commercial, and consumer. A class is generally determined based on the initial measurement attribute, risk characteristic of the loan, and the Company’s method for monitoring and assessing credit risk. Classes within the real estate portfolio segment include residential real estate, commercial real estate, construction and land development and home equity lines of credit. The portfolio segments of non-real estate commercial loans and consumer loans have not been further segregated by class. The following describe risk characteristics relevant to each of the portfolio segments: Real estate - As discussed below, the Company offers various types of real estate loan products. All loans within this portfolio segment are particularly sensitive to the valuation of real estate: Residential real estate and home equity lines of credit are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property. Commercial real estate loans include both owner-occupied commercial real estate loans and other commercial real estate loans secured by income producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. are repaid by various means such as a borrower’s income, sale of the property, or rental income derived from the property. Construction and land development loans are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio class includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Commercial loans - The commercial loan portfolio segment includes commercial and industrial loans, agricultural loans and loans to states and municipalities. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows or tax revenues. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers’ business operations. Consumer loans - The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures. The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the periods indicated below (amounts in thousands). Acquired loans are not included in the allowance for loan losses calculation, as these loans are recorded at fair value and there has been no further indication of credit deterioration that would require an additional provision. Real Estate Mortgage Loans Construction Home Equity and Land Lines Allowance for Loan Losses Residential Commercial Development Of Credit Commercial Consumer Total Balance - December 31, 2019 $ 1,412 $ 3,601 $ 987 $ 344 $ 1,910 $ 425 $ 8,679 Provision (credit) for loan losses 175 3,008 699 (86 ) 3,936 66 7,798 Loan charge-offs (52 ) - (59 ) - (232 ) (94 ) (437 ) Loan recoveries 6 17 109 19 108 34 293 Balance - September 30, 2020 $ 1,541 $ 6,626 $ 1,736 $ 277 $ 5,722 $ 431 $ 16,333 Ending balance: Individually evaluated for impairment $ 31 $ 17 $ - $ - $ 335 $ 84 $ 467 Collectively evaluated for impairment 1,510 6,609 1,736 277 5,387 347 15,866 Total $ 1,541 $ 6,626 $ 1,736 $ 277 $ 5,722 $ 431 $ 16,333 Loans: Individually evaluated for impairment $ 1,029 $ 3,562 $ 137 $ 408 $ 440 $ 84 $ 5,660 Collectively evaluated for impairment 264,093 341,129 143,607 44,076 359,162 40,531 1,192,598 Acquired loans with deteriorated credit quality 324 885 7 - 54 15 1,285 Total $ 265,446 $ 345,576 $ 143,751 $ 44,484 $ 359,656 $ 40,630 $ 1,199,543 Real Estate Mortgage Loans Construction Home Equity and Land Lines Allowance for Loan Losses Residential Commercial Development Of Credit Commercial Consumer Total Balance - December 31, 2018 $ 1,579 $ 1,961 $ 942 $ 394 $ 1,375 $ 326 $ 6,577 Provision (credit) for loan losses 252 886 (28 ) 8 327 175 1,620 Loan charge-offs (587 ) - - - (175 ) (157 ) (919 ) Loan recoveries 7 107 15 50 98 33 310 Balance - September 30, 2019 $ 1,251 $ 2,954 $ 929 $ 452 $ 1,625 $ 377 $ 7,588 Ending balance: Individually evaluated for impairment $ 16 $ 59 $ - $ - $ 303 $ - $ 378 Collectively evaluated for impairment 1,235 2,895 929 452 1,322 377 7,210 Total $ 1,251 $ 2,954 $ 929 $ 452 $ 1,625 $ 377 $ 7,588 Loans: Individually evaluated for impairment $ 811 $ 2,324 $ 149 $ 318 $ 414 $ 27 $ 4,043 Collectively evaluated for impairment 195,038 253,831 96,328 43,201 126,866 37,356 752,620 Acquired loans with deteriorated credit quality 293 48 58 - 57 34 490 Total $ 196,142 $ 256,203 $ 96,535 $ 43,519 $ 127,337 $ 37,417 $ 757,153 Among other loans, the Bank individually evaluates for impairment all nonaccrual loans and troubled debt restructured loans. A loan is considered impaired when, based on current events and circumstances it is probable that all amounts due according to the contractual terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Management may also elect to apply an additional collective reserve to groups of impaired loans based on current economic or market factors. Interest payments received on impaired loans are generally applied as a reduction of the outstanding principal balance. All other loans are deemed to be unimpaired and are grouped into various homogeneous risk pools utilizing regulatory reporting classifications. The Bank’s historical loss factors are calculated for each of these risk pools based on the net losses experienced as a percentage of the average loans outstanding. The time periods utilized in these historical loss factor calculations are subjective and vary according to management’s estimate of the impact of current economic cycles. As every loan has a risk of loss, minimum loss factors are estimated based on long term trends for the Bank, the banking industry, and the economy. The greater of the calculated historical loss factors or the minimum loss factors are applied to the unimpaired loan amounts currently outstanding for the risk pool and included in the analysis of the allowance for loan losses. In addition, certain qualitative adjustments may be included by management as additional loss factors applied to the unimpaired loan risk pools. These adjustments may include, among other things, changes in loan policy, loan administration, loan, geographic, or industry concentrations, loan growth rates, and experience levels of our lending officers. The loss allocations for specifically impaired loans, smaller impaired loans not specifically measured for impairment, and unimpaired loans are totaled to determine the total required allowance for loan losses. This total is compared to the current allowance on the Bank’s books and adjustments made accordingly by a charge or credit to the provision for loan losses. Treatment of Pandemic-related Loan Modifications Pursuant to the CARES Act and Interagency Statement Section 4013 of the CARES Act, enacted on March 27, 2020, provides that, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), we may elect to suspend GAAP for loan modifications related to the pandemic that would otherwise be categorized as troubled debt restructurings (TDR) and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. In addition, our banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the staff of the Financial Accounting Standards Board that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or 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. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. We have received requests from our borrowers for loan and lease deferrals and modifications including the deferral of principal payments or the deferral of principal and interest payments for terms generally 90-180 days. Requests are evaluated individually and approved modifications are based on the unique circumstances of each borrower. In total, the Bank had placed approximately $131 million of loans on a loan deferral plan as part of COVID-19 modifications. Of the loans participating in the deferral program, approximately $114 million had deferrals of principal and interest for three months and approximately $17 million had deferrals of principal only for six months. As of October 31, 2020, approximately $2 million of these loans remain on deferral. In accordance with Section 4013 of the CARES Act and the interagency statement, we have not accounted for such loans as TDRs, nor have we designated them as past due or nonaccrual. The following table presents impaired loans by class of loans as of September 30, 2020 (amounts in thousands). Purchased credit-impaired loans are not included in these tables because they are carried at fair value and accordingly have no related associated allowance. Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 639 $ 639 $ 531 $ 108 $ 31 Commercial real estate 698 698 515 183 17 Construction and land development - - - - - Total mortgage loans on real estate 1,337 1,337 1,046 291 48 Home equity lines of credit 207 207 207 - - Commercial loans 132 132 - 132 132 Consumer loans 84 84 - 84 84 Total Loans $ 1,760 $ 1,760 $ 1,253 $ 507 $ 264 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 390 $ 390 $ 390 $ - $ - Commercial real estate 2,864 2,864 2,864 - - Construction and land development 201 137 137 - - Total mortgage loans on real estate 3,455 3,391 3,391 - - Home equity lines of credit 201 201 201 - - Commercial loans 308 308 105 203 203 Consumer loans - - - - - Total Loans $ 3,964 $ 3,900 $ 3,697 $ 203 $ 203 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 1,029 $ 1,029 $ 921 $ 108 $ 31 Commercial real estate 3,562 3,562 3,379 183 17 Construction and land development 201 137 137 - - Total mortgage loans on real estate 4,792 4,728 4,437 291 48 Home equity lines of credit 408 408 408 - - Commercial loans 440 440 105 335 335 Consumer loans 84 84 - 84 84 Total Loans $ 5,724 $ 5,660 $ 4,950 $ 710 $ 467 The following table presents impaired loans by class of loans as of December 31, 2019 (amounts in thousands). Purchased credit-impaired loans are not included in these tables because they are carried at fair value and accordingly have no related associated allowance. Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 114 $ 114 $ - $ 114 $ 19 Commercial real estate - - - - - Construction and land development - - - - - Total mortgage loans on real estate 114 114 - 114 19 Home equity lines of credit 214 214 214 - - Commercial loans 136 136 - 136 136 Consumer loans - - - - - Total Loans $ 464 $ 464 $ 214 $ 250 $ 155 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 479 $ 479 $ 479 $ - $ - Commercial real estate 2,304 2,304 2,014 290 7 Construction and land development 210 146 146 - - Total mortgage loans on real estate 2,993 2,929 2,639 290 7 Home equity lines of credit 100 100 100 - - Commercial loans 276 276 109 167 167 Consumer loans - - - - - Total Loans $ 3,369 $ 3,305 $ 2,848 $ 457 $ 174 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 593 $ 593 $ 479 $ 114 $ 19 Commercial real estate 2,304 2,304 2,014 290 7 Construction and land development 210 146 146 - - Total mortgage loans on real estate 3,107 3,043 2,639 404 26 Home equity lines of credit 314 314 314 - - Commercial loans 412 412 109 303 303 Consumer loans - - - - - Total Loans $ 3,833 $ 3,769 $ 3,062 $ 707 $ 329 The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans in the nine months ended September 30, 2020 and 2019 by loan category (amounts in thousands). Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Average Ending Average Ending Recorded Recorded Interest Recorded Recorded Interest Investment Investment Income Investment Investment Income Mortgage loans on real estate: Residential real estate $ 736 $ 1,029 $ 19 $ 1,501 $ 811 $ 19 Commercial real estate 2,695 3,562 115 2,262 2,324 90 Construction and land development 141 137 5 153 149 6 Total mortgage loans on real estate 3,572 4,728 139 3,916 3,284 115 Home equity lines of credit 338 408 7 266 318 5 Commercial loans 416 440 15 381 414 15 Consumer loans 21 84 - 69 27 3 Total Loans $ 4,347 $ 5,660 $ 161 $ 4,632 $ 4,043 $ 138 The following tables present the aging of loans and non-accrual loans as of September 30, 2020 and December 31, 2019, by class of loans (amounts in thousands). Accruing Loans As of September 30, 2020 Current 30-89 Days Past Due 90+ Days Past Due Nonaccrual Loans Total Loans Mortgage loans on real estate: Residential real estate $ 262,125 $ 1,907 $ 53 $ 1,361 $ 265,446 Commercial real estate 343,632 706 - 1,238 345,576 Construction and land development 143,187 564 - - 143,751 Total mortgage loans on real estate 748,944 3,177 53 2,599 754,773 Home equity lines of credit 44,207 31 - 246 44,484 Commercial loans 358,817 597 - 242 359,656 Consumer loans 39,967 393 1 269 40,630 Total Loans $ 1,191,935 $ 4,198 $ 54 $ 3,356 $ 1,199,543 Accruing Loans As of December 31, 2019 Current 30-89 Days Past Due 90+ Days Past Due Nonaccrual Loans Total Loans Mortgage loans on real estate: Residential real estate $ 235,339 $ 1,190 $ - $ 689 $ 237,218 Commercial real estate 309,051 226 - 742 310,019 Construction and land development 112,916 534 - 76 113,526 Total mortgage loans on real estate 657,306 1,950 - 1,507 660,763 Home equity lines of credit 47,003 150 - 257 47,410 Commercial loans 160,288 788 - 210 161,286 Consumer loans 40,004 142 - 251 40,397 Total Loans $ 904,601 $ 3,030 $ - $ 2,225 $ 909,856 The Bank categorizes loans in risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for its risk ratings: Special Mention - Weakness exists that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. Collateral values generally afford adequate coverage but may not be immediately marketable. Substandard - Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. Doubtful - Specific weaknesses characterized as Substandard that are severe enough to make collection in full unlikely. There is no reliable secondary source of full repayment. Loans classified as doubtful will be placed on non-accrual, analyzed and fully or partially charged-off based on review of collateral and other relevant factors. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed as of those dates, the risk category of loans by class of loans is as follows (amounts in thousands): As of September 30, 2020 Pass Special Mention Substandard Doubtful Total Mortgage loans on real estate: Residential real estate $ 264,049 $ 902 $ 495 $ - $ 265,446 Commercial real estate 345,074 232 270 - 345,576 Construction and land development 142,889 733 129 - 143,751 Total mortgage loans on real estate 752,012 1,867 894 - 754,773 Home equity lines of credit 44,356 - 128 - 44,484 Commercial loans 359,110 332 214 - 359,656 Consumer loans 39,875 357 398 - 40,630 Total Loans $ 1,195,353 $ 2,556 $ 1,634 $ - $ 1,199,543 As of December 31, 2019 Pass Special Mention Substandard Doubtful Total Mortgage loans on real estate: Residential real estate $ 232,017 $ 3,589 $ 1,612 $ - $ 237,218 Commercial real estate 298,980 7,204 3,835 - 310,019 Construction and land development 111,883 1,420 223 - 113,526 Total mortgage loans on real estate 642,880 12,213 5,670 - 660,763 Home equity lines of credit 46,994 59 357 - 47,410 Commercial loans 158,969 1,482 835 - 161,286 Consumer loans 39,564 389 444 - 40,397 Total Loans $ 888,407 $ 14,143 $ 7,306 $ - $ 909,856 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and foreclosed assets. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Fair Value Hierarchy The Company groups assets and liabilities 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. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities recorded or disclosed at fair value. Cash and cash equivalents Certificates of deposit Securities available-for-sale Restricted equity securities Loans and mortgage loans held-for-sale For disclosure purposes, the fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Mortgage loans held-for-sale are carried at cost, which is a reasonable estimate of fair value. Bank owned life insurance Accrued interest receivable Foreclosed assets Deposit liabilities Accrued interest payable Securities sold under agreements to repurchase Federal Home Loan Bank advances Federal funds purchased Note payable Commitments to extend credit and standby letters of credit Assets and liabilities measured at fair value on a recurring basis Fair Value Measurements At Reporting Date Using: September 30, 2020 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Securities available-for-sale: Residential mortgage -backed $ 282,624 $ - $ 282,624 $ - U.S. government sponsored enterprises 38,365 - 38,365 - State, county, and municipal 91,529 - 91,529 - Corporate debt obligations 2,699 - 2,699 - Totals $ 415,217 $ - $ 415,217 $ - Fair Value Measurements At Reporting Date Using: December 31, 2019 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Securities available-for-sale: Residential mortgage -backed $ 188,811 $ - $ 188,811 $ - U.S. government sponsored enterprises 40,061 - 40,061 - State, county, and municipal 71,751 - 71,751 - Corporate debt obligations 2,680 - 2,680 - Totals $ 303,303 $ - $ 303,303 $ - Assets measured at fair value on a nonrecurring basis Fair Value Measurements At Reporting Date Using: September 30, 2020 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans $ 5,193 $ - $ - $ 5,193 Foreclosed assets 471 - - 471 Totals $ 5,664 $ - $ - $ 5,664 December 31, 2019 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans $ 3,440 $ - $ - $ 3,440 Foreclosed assets 1,404 - - 1,404 Totals $ 4,844 $ - $ - $ 4,844 The Company has estimated the fair values of these assets using Level 3 inputs, specifically the appraised value of the collateral. Impaired loan balances represent those collateral dependent impaired loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the impaired loan for the amount of the credit loss. The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Estimated Fair Value September 30, 2020 Carrying Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 56,218 $ 56,218 $ - $ - Certificates of deposit in banks 2,906 - 2,906 - Securities available-for-sale 415,217 - 415,217 - Loans held-for-sale 21,468 - 21,468 - Loans receivable 1,175,035 - 1,193,420 5,193 Accrued interest receivable 6,091 - 6,091 - Bank owned life insurance 28,818 - 28,818 - Restricted equity securities 1,789 - - 1,789 Financial liabilities: Deposits 1,579,578 - 1,573,500 - Securities sold under agreements to repurchase 10,266 - 10,266 - Note payable 21,254 - 21,254 - Accrued interest payable 498 - 498 - Estimated Fair Value December 31, 2019 Carrying Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 45,455 $ 45,455 $ - $ - Certificates of deposit in banks 4,836 - 4,836 - Securities available-for-sale 303,303 - 303,303 - Loans held-for-sale 6,285 - 6,285 - Loans receivable 897,105 - 903,303 3,440 Accrued interest receivable 3,841 - 3,841 - Bank owned life insurance 28,219 - 28,219 - Restricted equity securities 1,650 - - 1,650 Financial liabilities: Deposits 1,174,299 - 1,146,130 - Securities sold under agreements to repurchase 8,707 - 8,707 - Note payable 23,773 - 23,773 - Accrued interest payable 614 - 614 - The estimated fair values of the standby letters of credit and loan commitments on which the committed interest rate is less than the current market rate are insignificant at September 30, 2020 and December 31, 2019. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change 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. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Note 6 – Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases.” . Leases In July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance will apply to most financial assets measured at amortized cost and certain other instruments including loans, debt securities held to maturity, net investments in leases and off-balance-sheet credit exposures. The guidance will replace the current incurred loss accounting model that delays recognition of a loss until it is probable a loss has been incurred with an expected loss model that reflects expected credit losses based upon a broader range of estimates including consideration of past events, current conditions and supportable forecasts. The guidance also eliminates the current accounting model for purchased credit impaired loans and debt securities. For securities available for sale, credit losses are to be recognized as allowances rather than reductions in the amortized cost of the securities, which will require re-measurement of the related allowance at each reporting period. The guidance includes enhanced disclosure requirements intended to help financial statement users better understand estimates and judgments used in estimating credit losses. The guidance was previously effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. During 2019, the FASB approved to delay the implementation date for this ASU for small SEC reporting companies, from the first quarter of 2020 to the first quarter of 2023. Our implementation efforts continued throughout 2018, assessing credit loss forecasting models and processes against the new guidance. In the first quarter of 2019 we began running the expected loss model along with our current model. While we continue to evaluate the impact the new guidance will have on our financial position and results of operations, we currently expect the new guidance may result in an increase to our allowance for credit losses given the change to estimated losses over the contractual life of the loan portfolio. The amount of any change to our allowance is still under review and will depend, in part, upon the composition of our loan portfolio at the adoption date as well as economic conditions and loss forecasts at that date. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The ASU did not have an impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to services charges on deposit accounts and credit card fees, did not change significantly from current practice. |
Defined Contribution Plan
Defined Contribution Plan | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | Note 7 – Defined Contribution Plan The Company provides a 401(k) employee stock ownership plan (KSOP), which covers substantially all of the Company’s employees who are eligible, as to age and length of service. A participant may elect to make contributions up to The Company’s KSOP includes a put option for shares of the Company’s common stock distributed from the KSOP. Shares are distributed from the KSOP primarily to separate vested participants and certain eligible participants who elect to diversify their account balances. Since the Company’s common stock is not currently traded on an established securities market, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value during two put option periods following the distribution of the shares from the KSOP. The first put option period is within sixty days following the distribution of the shares from the KSOP. The second put option period begins on the first day of the fifth month of the plan year for a sixty day period. The fair value of distributed shares subject to the put option totaled $0 as of September 30, 2020 and December 31, 2019. The cost of the KSOP shares totaled and $2.45 million |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 8 – Acquisitions On October 31, 2019, the Company completed its merger with Trinity Bancorp, Inc. (Trinity), a bank holding company headquartered in Dothan, Alabama. At that time, Trinity’s wholly-owned banking subsidiary, Trinity Bank was merged with and into RB&T. Trinity Bank had a total of three banking locations located in Dothan and Enterprise, Alabama. Upon consummation of the acquisition, Trinity was merged with and into the Company, with the Company as the surviving entity in the merger. Trinity’s common shareholders received .44627 shares of River Financial Corporation common stock and approximately $3.50 in cash in exchange for each share of Trinity’s common stock. The company paid cash totaling $6.1 million and issued 779,034 shares of River Financial Corporation common stock. On October 31, 2018, the Company completed its merger with PSB Bancshares, Inc. (PSB), a bank holding company headquartered in Clanton, Alabama. At that time, PSB’s wholly-owned banking subsidiary, Peoples Southern Bank was merged with and into RB&T. Peoples Southern Bank had a total of three banking locations located in Clanton, and Thorsby, Alabama. Upon consummation of the acquisition, PSB was merged with and into the Company, with the Company as the surviving entity in the merger. PSB’s common shareholders received sixty (60) shares of the Company’s common stock and $6,610 in cash in exchange for each share of PSB’s common stock. The Company paid cash totaling $24.5 million and issued 222,360 shares of the Company’s common stock. The aggregate estimated value of the consideration given was approximately $30.5 million. The Company recorded $8.2 million of goodwill, which is nondeductible for tax purposes, as this acquisition was a nontaxable transaction. Merger expenses of approximately $1.84 million were charged directly to other noninterest expenses. The acquisitions of Trinity and PSB were accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations |
Loans Held for Sale
Loans Held for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Loans Held For Sale [Abstract] | |
Loans Held for Sale | Note 9 – Loans Held for Sale The Company has entered into agreements with secondary market investors to deliver loans on a “best efforts delivery” basis. When a rate is committed to a borrower, it is based on the best price that day and locked with the investor for the customer for a 30-day period. In the event the loan is not delivered to the investor, the Company has no risk or exposure with the investor. The fair values of the Company’s agreements with investors and rate lock commitments to customers as September 30, 2020 and December 31, 2019, respectively, were not material. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 10 – Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) Lessee Accounting Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches and office space with terms extending through 2028. Substantially all of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. Lease Right-of-Use Assets Classification on Consolidated Statement of Condition September 30, 2020 December 31, 2019 Operating lease right-of-use assets Other Assets $ 1,706 $ 1,912 Lease Liabilities Classification on Consolidated Statement of Condition September 30, 2020 December 31, 2019 Operating lease liabilities Accrued interest payable and other liabilities $ 1,788 $ 1,987 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. September 30, 2020 December 31, 2019 Weighted-average remaining lease term for operating leases $ 6.61 7.09 Years Weighted-average discount rate for operating leases 6.00 % 6.00 % Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020 were as follows: Operating Leases October 1, 2020 - September 30, 2021 $ 363 October 1, 2021 - September 30, 2022 355 October 1, 2022 - September 30, 2023 355 October 1, 2023 - September 30, 2024 298 October 1, 2024 - September 30, 2025 184 Afterward 621 Total future minimum lease payments 2,176 Amounts representing interest (388 ) Present value of net future minimum lease payments $ 1,788 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Components of the Basic and Diluted Earnings Per Share | The reconciliation of the components of the basic and diluted earnings per share is as follows (amounts in thousands): For the Three Months For the Nine Months Ended September 30, Ended September 30, 2020 2019 2020 2019 Net earnings available to common shareholders $ 4,067 $ 2,972 $ 11,387 $ 8,341 Weighted average common shares outstanding 6,498,288 5,703,921 6,498,669 5,702,026 Dilutive effect of stock options 73,452 93,780 74,759 91,549 Diluted common shares 6,571,740 5,797,701 6,573,428 5,793,575 Basic earnings per common share $ 0.63 $ 0.52 $ 1.75 $ 1.46 Diluted earnings per common share $ 0.62 $ 0.51 $ 1.73 $ 1.44 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Securities Available for Sale | Securities available-for-sale at September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2020: Securities available-for-sale: Residential mortgage-backed $ 277,988 $ 5,034 $ (398 ) $ 282,624 U.S. govt. sponsored enterprises 36,997 1,368 - 38,365 State, county, and municipal 87,120 4,428 (19 ) 91,529 Corporate debt obligations 2,662 37 - 2,699 Totals $ 404,767 $ 10,867 $ (417 ) $ 415,217 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019: Securities available-for-sale: Residential mortgage-backed $ 188,944 $ 718 $ (851 ) $ 188,811 U.S. govt. sponsored enterprises 39,355 812 (106 ) 40,061 State, county, and municipal 69,908 1,986 (143 ) 71,751 Corporate debt obligations 2,654 26 - 2,680 Totals $ 300,861 $ 3,542 $ (1,100 ) $ 303,303 |
Schedule of Details Concerning Investment Securities with Unrealized Losses | Details concerning investment securities with unrealized losses as of September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2020: Securities available-for-sale: Residential mortgage-backed $ 59,207 $ 398 $ - $ - $ 59,207 $ 398 U.S. govt. sponsored enterprises - - - - - - State, county & municipal 3,146 19 - - 3,146 19 Corporate debt obligations - - - - - - Totals $ 62,353 $ 417 $ - $ - $ 62,353 $ 417 December 31, 2019: Securities available-for-sale: Residential mortgage-backed $ 83,964 $ 321 $ 39,881 $ 530 $ 123,845 $ 851 U.S. govt. sponsored enterprises 7,423 53 2,748 53 10,171 106 State, county & municipal 14,866 143 200 - 15,066 143 Corporate debt obligations - - - - - - Totals $ 106,253 $ 517 $ 42,829 $ 583 $ 149,082 $ 1,100 |
Schedule of Amortized Cost and Estimated Fair value of Securities Available-for-Sale | The amortized cost and estimated fair value of securities available-for-sale at September 30, 2020 and December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities for residential mortgage backed securities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. These securities are therefore not presented by maturity classification. September 30, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) (In Thousands) Securities available-for-sale Less than 1 year $ 7,202 $ 7,281 $ 8,420 $ 8,458 1 to 5 years 35,378 36,986 37,820 38,799 5 to 10 years 20,323 20,964 19,739 20,117 After 10 years 63,876 67,362 45,938 47,118 126,779 132,593 111,917 114,492 Residential mortgage-backed securities 277,988 282,624 188,944 188,811 Totals $ 404,767 $ 415,217 $ 300,861 $ 303,303 |
Loans, Allowance for Loan Los_2
Loans, Allowance for Loan Losses and Credit Quality (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Schedule of Major Classifications of Loans | Major classifications of loans at September 30, 2020 and December 31, 2019 are summarized as follows (amounts in thousands): September 30, 2020 December 31, 2019 Amount % of Total Amount % of Total Residential real estate: Closed-end 1-4 family - first lien $ 244,419 20.8 % $ 211,440 23.6 % Closed-end 1-4 family - junior lien 7,646 0.7 % 7,653 0.9 % Multi-family 13,381 1.1 % 18,125 2.0 % Total residential real estate 265,446 22.6 % 237,218 26.5 % Commercial real estate: Nonfarm nonresidential 310,096 26.4 % 288,930 32.2 % Farmland 35,480 3.0 % 21,089 2.4 % Total commercial real estate 345,576 29.4 % 310,019 34.6 % Construction and land development: Residential 68,953 5.9 % 53,386 6.0 % Other 74,798 6.4 % 60,140 6.7 % Total construction and land development 143,751 12.3 % 113,526 12.7 % Home equity lines of credit 44,484 3.8 % 47,410 5.3 % Commercial loans: Other commercial loans 299,074 25.4 % 136,301 15.2 % Agricultural 34,809 3.0 % 2,826 0.3 % State, county, and municipal loans 25,773 2.2 % 22,159 2.4 % Total commercial loans 359,656 30.6 % 161,286 17.9 % Consumer loans 40,630 3.5 % 40,397 4.5 % Total gross loans 1,199,543 102.2 % 909,856 101.5 % Allowance for loan losses (16,333 ) -1.4 % (8,679 ) -1.0 % Net discounts (1,332 ) -0.1 % (2,647 ) -0.3 % Net deferred loan fees (6,843 ) -0.7 % (1,425 ) -0.2 % Net loans $ 1,175,035 100.0 % $ 897,105 100.0 % |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the periods indicated below (amounts in thousands). Real Estate Mortgage Loans Construction Home Equity and Land Lines Allowance for Loan Losses Residential Commercial Development Of Credit Commercial Consumer Total Balance - December 31, 2019 $ 1,412 $ 3,601 $ 987 $ 344 $ 1,910 $ 425 $ 8,679 Provision (credit) for loan losses 175 3,008 699 (86 ) 3,936 66 7,798 Loan charge-offs (52 ) - (59 ) - (232 ) (94 ) (437 ) Loan recoveries 6 17 109 19 108 34 293 Balance - September 30, 2020 $ 1,541 $ 6,626 $ 1,736 $ 277 $ 5,722 $ 431 $ 16,333 Ending balance: Individually evaluated for impairment $ 31 $ 17 $ - $ - $ 335 $ 84 $ 467 Collectively evaluated for impairment 1,510 6,609 1,736 277 5,387 347 15,866 Total $ 1,541 $ 6,626 $ 1,736 $ 277 $ 5,722 $ 431 $ 16,333 Loans: Individually evaluated for impairment $ 1,029 $ 3,562 $ 137 $ 408 $ 440 $ 84 $ 5,660 Collectively evaluated for impairment 264,093 341,129 143,607 44,076 359,162 40,531 1,192,598 Acquired loans with deteriorated credit quality 324 885 7 - 54 15 1,285 Total $ 265,446 $ 345,576 $ 143,751 $ 44,484 $ 359,656 $ 40,630 $ 1,199,543 Real Estate Mortgage Loans Construction Home Equity and Land Lines Allowance for Loan Losses Residential Commercial Development Of Credit Commercial Consumer Total Balance - December 31, 2018 $ 1,579 $ 1,961 $ 942 $ 394 $ 1,375 $ 326 $ 6,577 Provision (credit) for loan losses 252 886 (28 ) 8 327 175 1,620 Loan charge-offs (587 ) - - - (175 ) (157 ) (919 ) Loan recoveries 7 107 15 50 98 33 310 Balance - September 30, 2019 $ 1,251 $ 2,954 $ 929 $ 452 $ 1,625 $ 377 $ 7,588 Ending balance: Individually evaluated for impairment $ 16 $ 59 $ - $ - $ 303 $ - $ 378 Collectively evaluated for impairment 1,235 2,895 929 452 1,322 377 7,210 Total $ 1,251 $ 2,954 $ 929 $ 452 $ 1,625 $ 377 $ 7,588 Loans: Individually evaluated for impairment $ 811 $ 2,324 $ 149 $ 318 $ 414 $ 27 $ 4,043 Collectively evaluated for impairment 195,038 253,831 96,328 43,201 126,866 37,356 752,620 Acquired loans with deteriorated credit quality 293 48 58 - 57 34 490 Total $ 196,142 $ 256,203 $ 96,535 $ 43,519 $ 127,337 $ 37,417 $ 757,153 |
Summary of Impaired Loans by Class of Loans | The following table presents impaired loans by class of loans as of September 30, 2020 (amounts in thousands). Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 639 $ 639 $ 531 $ 108 $ 31 Commercial real estate 698 698 515 183 17 Construction and land development - - - - - Total mortgage loans on real estate 1,337 1,337 1,046 291 48 Home equity lines of credit 207 207 207 - - Commercial loans 132 132 - 132 132 Consumer loans 84 84 - 84 84 Total Loans $ 1,760 $ 1,760 $ 1,253 $ 507 $ 264 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 390 $ 390 $ 390 $ - $ - Commercial real estate 2,864 2,864 2,864 - - Construction and land development 201 137 137 - - Total mortgage loans on real estate 3,455 3,391 3,391 - - Home equity lines of credit 201 201 201 - - Commercial loans 308 308 105 203 203 Consumer loans - - - - - Total Loans $ 3,964 $ 3,900 $ 3,697 $ 203 $ 203 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 1,029 $ 1,029 $ 921 $ 108 $ 31 Commercial real estate 3,562 3,562 3,379 183 17 Construction and land development 201 137 137 - - Total mortgage loans on real estate 4,792 4,728 4,437 291 48 Home equity lines of credit 408 408 408 - - Commercial loans 440 440 105 335 335 Consumer loans 84 84 - 84 84 Total Loans $ 5,724 $ 5,660 $ 4,950 $ 710 $ 467 Nonaccruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 114 $ 114 $ - $ 114 $ 19 Commercial real estate - - - - - Construction and land development - - - - - Total mortgage loans on real estate 114 114 - 114 19 Home equity lines of credit 214 214 214 - - Commercial loans 136 136 - 136 136 Consumer loans - - - - - Total Loans $ 464 $ 464 $ 214 $ 250 $ 155 Accruing Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 479 $ 479 $ 479 $ - $ - Commercial real estate 2,304 2,304 2,014 290 7 Construction and land development 210 146 146 - - Total mortgage loans on real estate 2,993 2,929 2,639 290 7 Home equity lines of credit 100 100 100 - - Commercial loans 276 276 109 167 167 Consumer loans - - - - - Total Loans $ 3,369 $ 3,305 $ 2,848 $ 457 $ 174 Total Impaired Loans Unpaid Principal Balance Recorded Investment Impaired Loans With No Allowance Impaired Loans With Allowance Allowance for Loan Losses Mortgage loans on real estate: Residential real estate $ 593 $ 593 $ 479 $ 114 $ 19 Commercial real estate 2,304 2,304 2,014 290 7 Construction and land development 210 146 146 - - Total mortgage loans on real estate 3,107 3,043 2,639 404 26 Home equity lines of credit 314 314 314 - - Commercial loans 412 412 109 303 303 Consumer loans - - - - - Total Loans $ 3,833 $ 3,769 $ 3,062 $ 707 $ 329 |
Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans in the nine months ended September 30, 2020 and 2019 by loan category (amounts in thousands). Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Average Ending Average Ending Recorded Recorded Interest Recorded Recorded Interest Investment Investment Income Investment Investment Income Mortgage loans on real estate: Residential real estate $ 736 $ 1,029 $ 19 $ 1,501 $ 811 $ 19 Commercial real estate 2,695 3,562 115 2,262 2,324 90 Construction and land development 141 137 5 153 149 6 Total mortgage loans on real estate 3,572 4,728 139 3,916 3,284 115 Home equity lines of credit 338 408 7 266 318 5 Commercial loans 416 440 15 381 414 15 Consumer loans 21 84 - 69 27 3 Total Loans $ 4,347 $ 5,660 $ 161 $ 4,632 $ 4,043 $ 138 |
Schedule of Aging of Loans and Non-Accrual Loans | The following tables present the aging of loans and non-accrual loans as of September 30, 2020 and December 31, 2019, by class of loans (amounts in thousands). Accruing Loans As of September 30, 2020 Current 30-89 Days Past Due 90+ Days Past Due Nonaccrual Loans Total Loans Mortgage loans on real estate: Residential real estate $ 262,125 $ 1,907 $ 53 $ 1,361 $ 265,446 Commercial real estate 343,632 706 - 1,238 345,576 Construction and land development 143,187 564 - - 143,751 Total mortgage loans on real estate 748,944 3,177 53 2,599 754,773 Home equity lines of credit 44,207 31 - 246 44,484 Commercial loans 358,817 597 - 242 359,656 Consumer loans 39,967 393 1 269 40,630 Total Loans $ 1,191,935 $ 4,198 $ 54 $ 3,356 $ 1,199,543 Accruing Loans As of December 31, 2019 Current 30-89 Days Past Due 90+ Days Past Due Nonaccrual Loans Total Loans Mortgage loans on real estate: Residential real estate $ 235,339 $ 1,190 $ - $ 689 $ 237,218 Commercial real estate 309,051 226 - 742 310,019 Construction and land development 112,916 534 - 76 113,526 Total mortgage loans on real estate 657,306 1,950 - 1,507 660,763 Home equity lines of credit 47,003 150 - 257 47,410 Commercial loans 160,288 788 - 210 161,286 Consumer loans 40,004 142 - 251 40,397 Total Loans $ 904,601 $ 3,030 $ - $ 2,225 $ 909,856 |
Schedule of Risk Category of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed as of those dates, the risk category of loans by class of loans is as follows (amounts in thousands): As of September 30, 2020 Pass Special Mention Substandard Doubtful Total Mortgage loans on real estate: Residential real estate $ 264,049 $ 902 $ 495 $ - $ 265,446 Commercial real estate 345,074 232 270 - 345,576 Construction and land development 142,889 733 129 - 143,751 Total mortgage loans on real estate 752,012 1,867 894 - 754,773 Home equity lines of credit 44,356 - 128 - 44,484 Commercial loans 359,110 332 214 - 359,656 Consumer loans 39,875 357 398 - 40,630 Total Loans $ 1,195,353 $ 2,556 $ 1,634 $ - $ 1,199,543 As of December 31, 2019 Pass Special Mention Substandard Doubtful Total Mortgage loans on real estate: Residential real estate $ 232,017 $ 3,589 $ 1,612 $ - $ 237,218 Commercial real estate 298,980 7,204 3,835 - 310,019 Construction and land development 111,883 1,420 223 - 113,526 Total mortgage loans on real estate 642,880 12,213 5,670 - 660,763 Home equity lines of credit 46,994 59 357 - 47,410 Commercial loans 158,969 1,482 835 - 161,286 Consumer loans 39,564 389 444 - 40,397 Total Loans $ 888,407 $ 14,143 $ 7,306 $ - $ 909,856 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The only assets and liabilities measured at fair value on a recurring basis are our securities available-for-sale. There were no transfers between levels during the period. Information related to the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2020 and December 31, 2019 is as follows: (amounts in thousands) Fair Value Measurements At Reporting Date Using: September 30, 2020 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Securities available-for-sale: Residential mortgage -backed $ 282,624 $ - $ 282,624 $ - U.S. government sponsored enterprises 38,365 - 38,365 - State, county, and municipal 91,529 - 91,529 - Corporate debt obligations 2,699 - 2,699 - Totals $ 415,217 $ - $ 415,217 $ - Fair Value Measurements At Reporting Date Using: December 31, 2019 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Securities available-for-sale: Residential mortgage -backed $ 188,811 $ - $ 188,811 $ - U.S. government sponsored enterprises 40,061 - 40,061 - State, county, and municipal 71,751 - 71,751 - Corporate debt obligations 2,680 - 2,680 - Totals $ 303,303 $ - $ 303,303 $ - |
Schedule of Fair Value, Assets Measured on Non-Recurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2020 and December 31, 2019 (amounts in thousands): Fair Value Measurements At Reporting Date Using: September 30, 2020 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans $ 5,193 $ - $ - $ 5,193 Foreclosed assets 471 - - 471 Totals $ 5,664 $ - $ - $ 5,664 December 31, 2019 Fair Value Quoted Prices In Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans $ 3,440 $ - $ - $ 3,440 Foreclosed assets 1,404 - - 1,404 Totals $ 4,844 $ - $ - $ 4,844 |
Summary of Estimated Fair values Related to Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of September 30, 2020 and December 31, 2019 are as follows (amounts in thousands): Estimated Fair Value September 30, 2020 Carrying Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 56,218 $ 56,218 $ - $ - Certificates of deposit in banks 2,906 - 2,906 - Securities available-for-sale 415,217 - 415,217 - Loans held-for-sale 21,468 - 21,468 - Loans receivable 1,175,035 - 1,193,420 5,193 Accrued interest receivable 6,091 - 6,091 - Bank owned life insurance 28,818 - 28,818 - Restricted equity securities 1,789 - - 1,789 Financial liabilities: Deposits 1,579,578 - 1,573,500 - Securities sold under agreements to repurchase 10,266 - 10,266 - Note payable 21,254 - 21,254 - Accrued interest payable 498 - 498 - Estimated Fair Value December 31, 2019 Carrying Amount Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 45,455 $ 45,455 $ - $ - Certificates of deposit in banks 4,836 - 4,836 - Securities available-for-sale 303,303 - 303,303 - Loans held-for-sale 6,285 - 6,285 - Loans receivable 897,105 - 903,303 3,440 Accrued interest receivable 3,841 - 3,841 - Bank owned life insurance 28,219 - 28,219 - Restricted equity securities 1,650 - - 1,650 Financial liabilities: Deposits 1,174,299 - 1,146,130 - Securities sold under agreements to repurchase 8,707 - 8,707 - Note payable 23,773 - 23,773 - Accrued interest payable 614 - 614 - |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Classification of Company's ROU assets and Lease Liabilities | The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated statements of condition. Lease Right-of-Use Assets Classification on Consolidated Statement of Condition September 30, 2020 December 31, 2019 Operating lease right-of-use assets Other Assets $ 1,706 $ 1,912 Lease Liabilities Classification on Consolidated Statement of Condition September 30, 2020 December 31, 2019 Operating lease liabilities Accrued interest payable and other liabilities $ 1,788 $ 1,987 |
Weighted Average Remaining Lease Term and Discount Rate for Operating Leases | September 30, 2020 December 31, 2019 Weighted-average remaining lease term for operating leases $ 6.61 7.09 Years Weighted-average discount rate for operating leases 6.00 % 6.00 % |
Summary of Future Minimum Payments for Operating Leases | Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2020 were as follows: Operating Leases October 1, 2020 - September 30, 2021 $ 363 October 1, 2021 - September 30, 2022 355 October 1, 2022 - September 30, 2023 355 October 1, 2023 - September 30, 2024 298 October 1, 2024 - September 30, 2025 184 Afterward 621 Total future minimum lease payments 2,176 Amounts representing interest (388 ) Present value of net future minimum lease payments $ 1,788 |
Earnings Per Share - Components
Earnings Per Share - Components of the Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net earnings available to common shareholders | $ 4,067 | $ 2,972 | $ 11,387 | $ 8,341 |
Weighted average common shares outstanding | 6,498,288 | 5,703,921 | 6,498,669 | 5,702,026 |
Dilutive effect of stock options | 73,452 | 93,780 | 74,759 | 91,549 |
Diluted common shares | 6,571,740 | 5,797,701 | 6,573,428 | 5,793,575 |
Basic earnings per common share | $ 0.63 | $ 0.52 | $ 1.75 | $ 1.46 |
Diluted earnings per common share | $ 0.62 | $ 0.51 | $ 1.73 | $ 1.44 |
Investment Securities - Schedul
Investment Securities - Schedule of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | $ 404,767 | $ 300,861 |
Securities available-for-sale, Gross Unrealized Gains | 10,867 | 3,542 |
Securities available-for-sale, Gross Unrealized Losses | (417) | (1,100) |
Securities available-for-sale, Fair Value | 415,217 | 303,303 |
Residential Mortgage - Backed | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 277,988 | 188,944 |
Securities available-for-sale, Gross Unrealized Gains | 5,034 | 718 |
Securities available-for-sale, Gross Unrealized Losses | (398) | (851) |
Securities available-for-sale, Fair Value | 282,624 | 188,811 |
U.S. Govt. Sponsored Enterprises | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 36,997 | 39,355 |
Securities available-for-sale, Gross Unrealized Gains | 1,368 | 812 |
Securities available-for-sale, Gross Unrealized Losses | (106) | |
Securities available-for-sale, Fair Value | 38,365 | 40,061 |
State, Country and Municipal | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 87,120 | 69,908 |
Securities available-for-sale, Gross Unrealized Gains | 4,428 | 1,986 |
Securities available-for-sale, Gross Unrealized Losses | (19) | (143) |
Securities available-for-sale, Fair Value | 91,529 | 71,751 |
Corporate Debt Obligations | ||
Schedule of Available for Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 2,662 | 2,654 |
Securities available-for-sale, Gross Unrealized Gains | 37 | 26 |
Securities available-for-sale, Fair Value | $ 2,699 | $ 2,680 |
Investment Securities - Sched_2
Investment Securities - Schedule of Details Concerning Investment Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 62,353 | $ 106,253 |
Less than 12 Months, Unrealized Losses | 417 | 517 |
More Than 12 Months, Fair Value | 42,829 | |
More Than 12 Months, Unrealized Losses | 583 | |
Total, Fair Value | 62,353 | 149,082 |
Total, Unrealized Losses | 417 | 1,100 |
Residential Mortgage - Backed | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 59,207 | 83,964 |
Less than 12 Months, Unrealized Losses | 398 | 321 |
More Than 12 Months, Fair Value | 39,881 | |
More Than 12 Months, Unrealized Losses | 530 | |
Total, Fair Value | 59,207 | 123,845 |
Total, Unrealized Losses | 398 | 851 |
U.S. Govt. Sponsored Enterprises | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 7,423 | |
Less than 12 Months, Unrealized Losses | 53 | |
More Than 12 Months, Fair Value | 2,748 | |
More Than 12 Months, Unrealized Losses | 53 | |
Total, Fair Value | 10,171 | |
Total, Unrealized Losses | 106 | |
State, Country and Municipal | ||
Schedule of Available for Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 3,146 | 14,866 |
Less than 12 Months, Unrealized Losses | 19 | 143 |
More Than 12 Months, Fair Value | 200 | |
Total, Fair Value | 3,146 | 15,066 |
Total, Unrealized Losses | $ 19 | $ 143 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($)Security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||
Other-than-temporary impairments charged to earnings | $ 0 | $ 0 | |
Number of securities owned | Security | 16 | ||
Unrealized losses | $ 417,000 | $ 1,100,000 | |
Securities pledged to secure public deposits | 121,800,000 | 71,800,000 | |
Securities pledged to secure repurchase agreements | 16,400,000 | $ 14,500,000 | |
Proceeds from sales of investment securities | 14,499,000 | 28,875,000 | |
Realized investment gains (loss) | $ (48,000) | $ (9,000) |
Investment Securities - Sched_3
Investment Securities - Schedule of Amortized Cost and Estimated Fair value of Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities available-for-sale | ||
Securities available-for-sale, Less than 1 year, Amortized Cost | $ 7,202 | $ 8,420 |
Securities available-for-sale, 1 to 5 years, Amortized Cost | 35,378 | 37,820 |
Securities available-for-sale, 5 to 10 years, Amortized Cost | 20,323 | 19,739 |
Securities available-for-sale, After 10 years, Amortized Cost | 63,876 | 45,938 |
Securities available-for-sale, before Residential mortgage-backed securities | 126,779 | 111,917 |
Securities available-for-sale, Residential mortgage-backed securities | 404,767 | 300,861 |
Securities available-for-sale | ||
Securities available-for-sale, Less than 1 year, Fair Value | 7,281 | 8,458 |
Securities available-for-sale, 1 to 5 years, Fair Value | 36,986 | 38,799 |
Securities available-for-sale, 5 to 10 years, Fair Value | 20,964 | 20,117 |
Securities available-for-sale, After 10 years, Fair Value | 67,362 | 47,118 |
Securities available-for-sale, before Residential mortgage-backed securities Fair Value | 132,593 | 114,492 |
Securities available-for-sale, Fair Value | 415,217 | 303,303 |
Residential Mortgage-Backed Securities | ||
Securities available-for-sale | ||
Securities available-for-sale, Residential mortgage-backed securities | 277,988 | 188,944 |
Securities available-for-sale | ||
Securities available-for-sale, Fair Value | $ 282,624 | $ 188,811 |
Loans, Allowance for Loan Los_3
Loans, Allowance for Loan Losses and Credit Quality - Major Classifications of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 1,199,543 | $ 909,856 | $ 757,153 | |
Allowance for loan losses | (16,333) | (8,679) | (7,588) | $ (6,577) |
Net discounts | (1,332) | (2,647) | ||
Net deferred loan fees | (6,843) | (1,425) | ||
Net loans | $ 1,175,035 | $ 897,105 | ||
Total gross loans percentage | 102.20% | 101.50% | ||
Allowance for loan losses percentage | (1.40%) | (1.00%) | ||
Net discounts percentage | (0.10%) | (0.30%) | ||
Net deferred loan fees percentage | (0.70%) | (0.20%) | ||
Net loans percentage | 100.00% | 100.00% | ||
Home Equity Lines of Credit | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 44,484 | $ 47,410 | ||
Total gross loans percentage | 3.80% | 5.30% | ||
Residential Real Estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 265,446 | $ 237,218 | ||
Total gross loans percentage | 22.60% | 26.50% | ||
Residential Real Estate | Closed-end 1-4 family - first lien | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 244,419 | $ 211,440 | ||
Total gross loans percentage | 20.80% | 23.60% | ||
Residential Real Estate | Closed-end 1-4 family - junior lien | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 7,646 | $ 7,653 | ||
Total gross loans percentage | 0.70% | 0.90% | ||
Residential Real Estate | Multi-family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 13,381 | $ 18,125 | ||
Total gross loans percentage | 1.10% | 2.00% | ||
Commercial Real Estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 345,576 | $ 310,019 | ||
Total gross loans percentage | 29.40% | 34.60% | ||
Commercial Real Estate | Nonfarm nonresidential | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 310,096 | $ 288,930 | ||
Total gross loans percentage | 26.40% | 32.20% | ||
Commercial Real Estate | Farmland | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 35,480 | $ 21,089 | ||
Total gross loans percentage | 3.00% | 2.40% | ||
Construction and Land Development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 143,751 | $ 113,526 | ||
Total gross loans percentage | 12.30% | 12.70% | ||
Construction and Land Development | Residential | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 68,953 | $ 53,386 | ||
Total gross loans percentage | 5.90% | 6.00% | ||
Construction and Land Development | Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 74,798 | $ 60,140 | ||
Total gross loans percentage | 6.40% | 6.70% | ||
Commercial Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 359,656 | $ 161,286 | 127,337 | |
Allowance for loan losses | $ (5,722) | $ (1,910) | (1,625) | (1,375) |
Total gross loans percentage | 30.60% | 17.90% | ||
Commercial Loans | Other commercial loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 299,074 | $ 136,301 | ||
Total gross loans percentage | 25.40% | 15.20% | ||
Commercial Loans | Agricultural | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 34,809 | $ 2,826 | ||
Total gross loans percentage | 3.00% | 0.30% | ||
Commercial Loans | State, county, and municipal loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 25,773 | $ 22,159 | ||
Total gross loans percentage | 2.20% | 2.40% | ||
Consumer Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total gross loans | $ 40,630 | $ 40,397 | 37,417 | |
Allowance for loan losses | $ (431) | $ (425) | $ (377) | $ (326) |
Total gross loans percentage | 3.50% | 4.50% |
Loans, Allowance for Loan Los_4
Loans, Allowance for Loan Losses and Credit Quality - Additional Information (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)Segment | Oct. 31, 2020USD ($) | |
Financing Receivable Modifications [Line Items] | ||
Number of primary loan portfolio segments | Segment | 3 | |
COVID-19 | ||
Financing Receivable Modifications [Line Items] | ||
Loans placed under deferral plan | $ 131 | |
Loans with deferrals of principal and interest for three months | 114 | |
Loans with deferrals of principal for six months | $ 17 | |
COVID-19 | Subsequent Event | ||
Financing Receivable Modifications [Line Items] | ||
Loans receivable outstanding under loan deferral plan | $ 2 | |
Minimum | COVID-19 | ||
Financing Receivable Modifications [Line Items] | ||
Deferral term for principal and interest payments | 90 days | |
Maximum | COVID-19 | ||
Financing Receivable Modifications [Line Items] | ||
Deferral term for principal and interest payments | 180 days |
Loans, Allowance for Loan Los_5
Loans, Allowance for Loan Losses and Credit Quality - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Allowance for Loan Losses | |||||||
Beginning Balance | $ 8,679 | $ 6,577 | |||||
Provision (credit) for loan losses | $ 2,916 | $ 540 | 7,798 | 1,620 | |||
Loan charge-offs | (437) | (919) | |||||
Loan recoveries | 293 | 310 | |||||
Ending Balance | 16,333 | 7,588 | 16,333 | 7,588 | |||
Ending Balance, Individually evaluated for impairment | $ 467 | $ 378 | |||||
Ending Balance, Collectively evaluated for impairment | 15,866 | 7,210 | |||||
Total | 16,333 | 7,588 | 8,679 | 7,588 | 16,333 | $ 8,679 | 7,588 |
Loans, Individually evaluated for impairment | 5,660 | 4,043 | |||||
Loans, Collectively evaluated for impairment | 1,192,598 | 752,620 | |||||
Loans, Acquired loans with deteriorated credit quality | 1,285 | 490 | |||||
Total Loans | 1,199,543 | 909,856 | 757,153 | ||||
Home Equity Lines of Credit | |||||||
Allowance for Loan Losses | |||||||
Total Loans | 44,484 | 47,410 | |||||
Residential | |||||||
Allowance for Loan Losses | |||||||
Total Loans | 265,446 | 237,218 | |||||
Commercial | |||||||
Allowance for Loan Losses | |||||||
Total Loans | 345,576 | 310,019 | |||||
Construction and Land Development | |||||||
Allowance for Loan Losses | |||||||
Total Loans | 143,751 | 113,526 | |||||
Commercial Loans | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 1,910 | 1,375 | |||||
Provision (credit) for loan losses | 3,936 | 327 | |||||
Loan charge-offs | (232) | (175) | |||||
Loan recoveries | 108 | 98 | |||||
Ending Balance | 5,722 | 1,625 | 5,722 | 1,625 | |||
Ending Balance, Individually evaluated for impairment | 335 | 303 | |||||
Ending Balance, Collectively evaluated for impairment | 5,387 | 1,322 | |||||
Total | 5,722 | 1,625 | 5,722 | 1,625 | 5,722 | 1,910 | 1,625 |
Loans, Individually evaluated for impairment | 440 | 414 | |||||
Loans, Collectively evaluated for impairment | 359,162 | 126,866 | |||||
Loans, Acquired loans with deteriorated credit quality | 54 | 57 | |||||
Total Loans | 359,656 | 161,286 | 127,337 | ||||
Consumer Loans | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 425 | 326 | |||||
Provision (credit) for loan losses | 66 | 175 | |||||
Loan charge-offs | (94) | (157) | |||||
Loan recoveries | 34 | 33 | |||||
Ending Balance | 431 | 377 | 431 | 377 | |||
Ending Balance, Individually evaluated for impairment | 84 | ||||||
Ending Balance, Collectively evaluated for impairment | 347 | 377 | |||||
Total | 431 | 377 | 431 | 377 | 431 | 425 | 377 |
Loans, Individually evaluated for impairment | 84 | 27 | |||||
Loans, Collectively evaluated for impairment | 40,531 | 37,356 | |||||
Loans, Acquired loans with deteriorated credit quality | 15 | 34 | |||||
Total Loans | 40,630 | 40,397 | 37,417 | ||||
Real Estate Mortgage Loans | |||||||
Allowance for Loan Losses | |||||||
Total Loans | 754,773 | 660,763 | |||||
Real Estate Mortgage Loans | Home Equity Lines of Credit | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 344 | 394 | |||||
Provision (credit) for loan losses | (86) | 8 | |||||
Loan recoveries | 19 | 50 | |||||
Ending Balance | 277 | 452 | 277 | 452 | |||
Ending Balance, Collectively evaluated for impairment | 277 | 452 | |||||
Total | 277 | 452 | 277 | 452 | 277 | 344 | 452 |
Loans, Individually evaluated for impairment | 408 | 318 | |||||
Loans, Collectively evaluated for impairment | 44,076 | 43,201 | |||||
Total Loans | 44,484 | 43,519 | |||||
Real Estate Mortgage Loans | Residential | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 1,412 | 1,579 | |||||
Provision (credit) for loan losses | 175 | 252 | |||||
Loan charge-offs | (52) | (587) | |||||
Loan recoveries | 6 | 7 | |||||
Ending Balance | 1,541 | 1,251 | 1,541 | 1,251 | |||
Ending Balance, Individually evaluated for impairment | 31 | 16 | |||||
Ending Balance, Collectively evaluated for impairment | 1,510 | 1,235 | |||||
Total | 1,541 | 1,251 | 1,541 | 1,251 | 1,541 | 1,412 | 1,251 |
Loans, Individually evaluated for impairment | 1,029 | 811 | |||||
Loans, Collectively evaluated for impairment | 264,093 | 195,038 | |||||
Loans, Acquired loans with deteriorated credit quality | 324 | 293 | |||||
Total Loans | 265,446 | 237,218 | 196,142 | ||||
Real Estate Mortgage Loans | Commercial | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 3,601 | 1,961 | |||||
Provision (credit) for loan losses | 3,008 | 886 | |||||
Loan recoveries | 17 | 107 | |||||
Ending Balance | 6,626 | 2,954 | 6,626 | 2,954 | |||
Ending Balance, Individually evaluated for impairment | 17 | 59 | |||||
Ending Balance, Collectively evaluated for impairment | 6,609 | 2,895 | |||||
Total | 6,626 | 2,954 | 6,626 | 2,954 | 6,626 | 3,601 | 2,954 |
Loans, Individually evaluated for impairment | 3,562 | 2,324 | |||||
Loans, Collectively evaluated for impairment | 341,129 | 253,831 | |||||
Loans, Acquired loans with deteriorated credit quality | 885 | 48 | |||||
Total Loans | 345,576 | 310,019 | 256,203 | ||||
Real Estate Mortgage Loans | Construction and Land Development | |||||||
Allowance for Loan Losses | |||||||
Beginning Balance | 987 | 942 | |||||
Provision (credit) for loan losses | 699 | (28) | |||||
Loan charge-offs | (59) | ||||||
Loan recoveries | 109 | 15 | |||||
Ending Balance | 1,736 | 929 | 1,736 | 929 | |||
Ending Balance, Collectively evaluated for impairment | 1,736 | 929 | |||||
Total | $ 1,736 | $ 929 | $ 1,736 | $ 929 | 1,736 | 987 | 929 |
Loans, Individually evaluated for impairment | 137 | 149 | |||||
Loans, Collectively evaluated for impairment | 143,607 | 96,328 | |||||
Loans, Acquired loans with deteriorated credit quality | 7 | 58 | |||||
Total Loans | $ 143,751 | $ 113,526 | $ 96,535 |
Loans, Allowance for Loan Los_6
Loans, Allowance for Loan Losses and Credit Quality - Summary of Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | $ 5,724 | $ 3,833 | |
Recorded Investment | 5,660 | 3,769 | $ 4,043 |
Impaired Loans With No Allowance | 4,950 | 3,062 | |
Impaired Loans With Allowance | 710 | 707 | |
Allowance for Loan Losses | 467 | 329 | |
Home Equity Lines of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 408 | 314 | |
Recorded Investment | 408 | 314 | 318 |
Impaired Loans With No Allowance | 408 | 314 | |
Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 440 | 412 | |
Recorded Investment | 440 | 412 | 414 |
Impaired Loans With No Allowance | 105 | 109 | |
Impaired Loans With Allowance | 335 | 303 | |
Allowance for Loan Losses | 335 | 303 | |
Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 84 | ||
Recorded Investment | 84 | 27 | |
Impaired Loans With Allowance | 84 | ||
Allowance for Loan Losses | 84 | ||
Mortgage Loans on Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 4,792 | 3,107 | |
Recorded Investment | 4,728 | 3,043 | 3,284 |
Impaired Loans With No Allowance | 4,437 | 2,639 | |
Impaired Loans With Allowance | 291 | 404 | |
Allowance for Loan Losses | 48 | 26 | |
Mortgage Loans on Real Estate | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 1,029 | 593 | |
Recorded Investment | 1,029 | 593 | 811 |
Impaired Loans With No Allowance | 921 | 479 | |
Impaired Loans With Allowance | 108 | 114 | |
Allowance for Loan Losses | 31 | 19 | |
Mortgage Loans on Real Estate | Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 3,562 | 2,304 | |
Recorded Investment | 3,562 | 2,304 | 2,324 |
Impaired Loans With No Allowance | 3,379 | 2,014 | |
Impaired Loans With Allowance | 183 | 290 | |
Allowance for Loan Losses | 17 | 7 | |
Mortgage Loans on Real Estate | Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 201 | 210 | |
Recorded Investment | 137 | 146 | $ 149 |
Impaired Loans With No Allowance | 137 | 146 | |
Nonaccruing Impaired Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 1,760 | 464 | |
Recorded Investment | 1,760 | 464 | |
Impaired Loans With No Allowance | 1,253 | 214 | |
Impaired Loans With Allowance | 507 | 250 | |
Allowance for Loan Losses | 264 | 155 | |
Nonaccruing Impaired Loans | Home Equity Lines of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 207 | 214 | |
Recorded Investment | 207 | 214 | |
Impaired Loans With No Allowance | 207 | 214 | |
Nonaccruing Impaired Loans | Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 132 | 136 | |
Recorded Investment | 132 | 136 | |
Impaired Loans With Allowance | 132 | 136 | |
Allowance for Loan Losses | 132 | 136 | |
Nonaccruing Impaired Loans | Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 84 | ||
Recorded Investment | 84 | ||
Impaired Loans With Allowance | 84 | ||
Allowance for Loan Losses | 84 | ||
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 1,337 | 114 | |
Recorded Investment | 1,337 | 114 | |
Impaired Loans With No Allowance | 1,046 | ||
Impaired Loans With Allowance | 291 | 114 | |
Allowance for Loan Losses | 48 | 19 | |
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 639 | 114 | |
Recorded Investment | 639 | 114 | |
Impaired Loans With No Allowance | 531 | ||
Impaired Loans With Allowance | 108 | 114 | |
Allowance for Loan Losses | 31 | 19 | |
Nonaccruing Impaired Loans | Mortgage Loans on Real Estate | Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 698 | ||
Recorded Investment | 698 | ||
Impaired Loans With No Allowance | 515 | ||
Impaired Loans With Allowance | 183 | ||
Allowance for Loan Losses | 17 | ||
Accruing Impaired Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 3,964 | 3,369 | |
Recorded Investment | 3,900 | 3,305 | |
Impaired Loans With No Allowance | 3,697 | 2,848 | |
Impaired Loans With Allowance | 203 | 457 | |
Allowance for Loan Losses | 203 | 174 | |
Accruing Impaired Loans | Home Equity Lines of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 201 | 100 | |
Recorded Investment | 201 | 100 | |
Impaired Loans With No Allowance | 201 | 100 | |
Accruing Impaired Loans | Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 308 | 276 | |
Recorded Investment | 308 | 276 | |
Impaired Loans With No Allowance | 105 | 109 | |
Impaired Loans With Allowance | 203 | 167 | |
Allowance for Loan Losses | 203 | 167 | |
Accruing Impaired Loans | Mortgage Loans on Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 3,455 | 2,993 | |
Recorded Investment | 3,391 | 2,929 | |
Impaired Loans With No Allowance | 3,391 | 2,639 | |
Impaired Loans With Allowance | 290 | ||
Allowance for Loan Losses | 7 | ||
Accruing Impaired Loans | Mortgage Loans on Real Estate | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 390 | 479 | |
Recorded Investment | 390 | 479 | |
Impaired Loans With No Allowance | 390 | 479 | |
Accruing Impaired Loans | Mortgage Loans on Real Estate | Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 2,864 | 2,304 | |
Recorded Investment | 2,864 | 2,304 | |
Impaired Loans With No Allowance | 2,864 | 2,014 | |
Impaired Loans With Allowance | 290 | ||
Allowance for Loan Losses | 7 | ||
Accruing Impaired Loans | Mortgage Loans on Real Estate | Construction and Land Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Unpaid Principal Balance | 201 | 210 | |
Recorded Investment | 137 | 146 | |
Impaired Loans With No Allowance | $ 137 | $ 146 |
Loans, Allowance for Loan Los_7
Loans, Allowance for Loan Losses and Credit Quality - Summary of Average Recorded Investment and Interest Income recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | $ 4,347 | $ 4,632 | |
Impaired loans, Ending recorded investment | 5,660 | 4,043 | $ 3,769 |
Impaired loans, Interest income | 161 | 138 | |
Home Equity Lines of Credit | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 338 | 266 | |
Impaired loans, Ending recorded investment | 408 | 318 | 314 |
Impaired loans, Interest income | 7 | 5 | |
Commercial Loans | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 416 | 381 | |
Impaired loans, Ending recorded investment | 440 | 414 | 412 |
Impaired loans, Interest income | 15 | 15 | |
Consumer Loans | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 21 | 69 | |
Impaired loans, Ending recorded investment | 84 | 27 | |
Impaired loans, Interest income | 3 | ||
Mortgage Loans on Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 3,572 | 3,916 | |
Impaired loans, Ending recorded investment | 4,728 | 3,284 | 3,043 |
Impaired loans, Interest income | 139 | 115 | |
Mortgage Loans on Real Estate | Residential Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 736 | 1,501 | |
Impaired loans, Ending recorded investment | 1,029 | 811 | 593 |
Impaired loans, Interest income | 19 | 19 | |
Mortgage Loans on Real Estate | Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 2,695 | 2,262 | |
Impaired loans, Ending recorded investment | 3,562 | 2,324 | 2,304 |
Impaired loans, Interest income | 115 | 90 | |
Mortgage Loans on Real Estate | Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans, Average recorded investment | 141 | 153 | |
Impaired loans, Ending recorded investment | 137 | 149 | $ 146 |
Impaired loans, Interest income | $ 5 | $ 6 |
Loans, Allowance for Loan Los_8
Loans, Allowance for Loan Losses and Credit Quality - Summary of Aging of Loans and Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | $ 1,191,935 | $ 904,601 | |
Nonaccrual Loans | 3,356 | 2,225 | |
Total Loans | 1,199,543 | 909,856 | $ 757,153 |
Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 4,198 | 3,030 | |
Past Due 90 Days or More | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 54 | ||
Home Equity Lines of Credit | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 44,207 | 47,003 | |
Nonaccrual Loans | 246 | 257 | |
Total Loans | 44,484 | 47,410 | |
Home Equity Lines of Credit | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 31 | 150 | |
Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 345,576 | 310,019 | |
Construction and Land Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 143,751 | 113,526 | |
Commercial Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 358,817 | 160,288 | |
Nonaccrual Loans | 242 | 210 | |
Total Loans | 359,656 | 161,286 | 127,337 |
Commercial Loans | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 597 | 788 | |
Consumer Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 39,967 | 40,004 | |
Nonaccrual Loans | 269 | 251 | |
Total Loans | 40,630 | 40,397 | 37,417 |
Consumer Loans | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 393 | 142 | |
Consumer Loans | Past Due 90 Days or More | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 1 | ||
Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 265,446 | 237,218 | |
Mortgage Loans on Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 748,944 | 657,306 | |
Nonaccrual Loans | 2,599 | 1,507 | |
Total Loans | 754,773 | 660,763 | |
Mortgage Loans on Real Estate | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 3,177 | 1,950 | |
Mortgage Loans on Real Estate | Past Due 90 Days or More | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 53 | ||
Mortgage Loans on Real Estate | Home Equity Lines of Credit | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans | 44,484 | 43,519 | |
Mortgage Loans on Real Estate | Commercial Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 343,632 | 309,051 | |
Nonaccrual Loans | 1,238 | 742 | |
Total Loans | 345,576 | 310,019 | 256,203 |
Mortgage Loans on Real Estate | Commercial Real Estate | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 706 | 226 | |
Mortgage Loans on Real Estate | Construction and Land Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 143,187 | 112,916 | |
Nonaccrual Loans | 76 | ||
Total Loans | 143,751 | 113,526 | 96,535 |
Mortgage Loans on Real Estate | Construction and Land Development | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 564 | 534 | |
Mortgage Loans on Real Estate | Residential Real Estate | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Current | 262,125 | 235,339 | |
Nonaccrual Loans | 1,361 | 689 | |
Total Loans | 265,446 | 237,218 | $ 196,142 |
Mortgage Loans on Real Estate | Residential Real Estate | Past Due 30-89 Days | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | 1,907 | $ 1,190 | |
Mortgage Loans on Real Estate | Residential Real Estate | Past Due 90 Days or More | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Accruing Loans, Past Due | $ 53 |
Loans, Allowance for Loan Los_9
Loans, Allowance for Loan Losses and Credit Quality - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 1,199,543 | $ 909,856 | $ 757,153 |
Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,195,353 | 888,407 | |
Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 2,556 | 14,143 | |
Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,634 | 7,306 | |
Home Equity Lines of Credit | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 44,484 | 47,410 | |
Home Equity Lines of Credit | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 44,356 | 46,994 | |
Home Equity Lines of Credit | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 59 | ||
Home Equity Lines of Credit | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 128 | 357 | |
Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 265,446 | 237,218 | |
Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 345,576 | 310,019 | |
Construction and Land Development | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 143,751 | 113,526 | |
Commercial Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 359,656 | 161,286 | 127,337 |
Commercial Loans | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 359,110 | 158,969 | |
Commercial Loans | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 332 | 1,482 | |
Commercial Loans | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 214 | 835 | |
Consumer Loans | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 40,630 | 40,397 | 37,417 |
Consumer Loans | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 39,875 | 39,564 | |
Consumer Loans | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 357 | 389 | |
Consumer Loans | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 398 | 444 | |
Mortgage Loans on Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 754,773 | 660,763 | |
Mortgage Loans on Real Estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 752,012 | 642,880 | |
Mortgage Loans on Real Estate | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,867 | 12,213 | |
Mortgage Loans on Real Estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 894 | 5,670 | |
Mortgage Loans on Real Estate | Home Equity Lines of Credit | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 44,484 | 43,519 | |
Mortgage Loans on Real Estate | Residential Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 265,446 | 237,218 | 196,142 |
Mortgage Loans on Real Estate | Residential Real Estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 264,049 | 232,017 | |
Mortgage Loans on Real Estate | Residential Real Estate | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 902 | 3,589 | |
Mortgage Loans on Real Estate | Residential Real Estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 495 | 1,612 | |
Mortgage Loans on Real Estate | Commercial Real Estate | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 345,576 | 310,019 | 256,203 |
Mortgage Loans on Real Estate | Commercial Real Estate | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 345,074 | 298,980 | |
Mortgage Loans on Real Estate | Commercial Real Estate | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 232 | 7,204 | |
Mortgage Loans on Real Estate | Commercial Real Estate | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 270 | 3,835 | |
Mortgage Loans on Real Estate | Construction and Land Development | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 143,751 | 113,526 | $ 96,535 |
Mortgage Loans on Real Estate | Construction and Land Development | Pass | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 142,889 | 111,883 | |
Mortgage Loans on Real Estate | Construction and Land Development | Special Mention | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 733 | 1,420 | |
Mortgage Loans on Real Estate | Construction and Land Development | Substandard | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 129 | $ 223 |
Fair Value Measurement and Disc
Fair Value Measurement and Disclosures - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Recurring Basis | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value transfers between levels transfers amount | $ 0 |
Fair Value Measurement and Di_2
Fair Value Measurement and Disclosures - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 415,217 | $ 303,303 |
U.S. Government Sponsored Enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 38,365 | 40,061 |
State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 91,529 | 71,751 |
Corporate Debt Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,699 | 2,680 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 415,217 | 303,303 |
Recurring Basis | Residential Mortgage -Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 282,624 | 188,811 |
Recurring Basis | U.S. Government Sponsored Enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 38,365 | 40,061 |
Recurring Basis | State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 91,529 | 71,751 |
Recurring Basis | Corporate Debt Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 2,699 | 2,680 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 415,217 | 303,303 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Residential Mortgage -Backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 282,624 | 188,811 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | U.S. Government Sponsored Enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 38,365 | 40,061 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | State, Country and Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | 91,529 | 71,751 |
Recurring Basis | Significant Other Observable Inputs (Level 2) | Corporate Debt Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available-for-sale | $ 2,699 | $ 2,680 |
Fair Value Measurement and Di_3
Fair Value Measurement and Disclosures - Schedule of Fair Value, Assets Measured on Non-Recurring Basis (Details) - Non-Recurring Basis - 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 | $ 5,664 | $ 4,844 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 5,664 | 4,844 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 5,193 | 3,440 |
Impaired Loans | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 5,193 | 3,440 |
Foreclosed Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 471 | 1,404 |
Foreclosed Assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 471 | $ 1,404 |
Fair Value Measurement and Di_4
Fair Value Measurement and Disclosures - Summary of Estimated Fair Values Related to Carrying or Notional Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Securities available-for-sale | $ 415,217 | $ 303,303 |
Accrued interest receivable | 6,091 | 3,841 |
Bank owned life insurance | 28,818 | 28,219 |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 10,266 | 8,707 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 56,218 | 45,455 |
Certificates of deposit in banks | 2,906 | 4,836 |
Securities available-for-sale | 415,217 | 303,303 |
Loans held-for-sale | 21,468 | 6,285 |
Loans receivable | 1,175,035 | 897,105 |
Accrued interest receivable | 6,091 | 3,841 |
Bank owned life insurance | 28,818 | 28,219 |
Restricted equity securities | 1,789 | 1,650 |
Financial liabilities: | ||
Deposits | 1,579,578 | 1,174,299 |
Securities sold under agreements to repurchase | 10,266 | 8,707 |
Note payable | 21,254 | 23,773 |
Accrued interest payable | 498 | 614 |
Estimate Fair Value | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 56,218 | 45,455 |
Estimate Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Certificates of deposit in banks | 2,906 | 4,836 |
Securities available-for-sale | 415,217 | 303,303 |
Loans held-for-sale | 21,468 | 6,285 |
Loans receivable | 1,193,420 | 903,303 |
Accrued interest receivable | 6,091 | 3,841 |
Bank owned life insurance | 28,818 | 28,219 |
Financial liabilities: | ||
Deposits | 1,573,500 | 1,146,130 |
Securities sold under agreements to repurchase | 10,266 | 8,707 |
Note payable | 21,254 | 23,773 |
Accrued interest payable | 498 | 614 |
Estimate Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans receivable | 5,193 | 3,440 |
Restricted equity securities | $ 1,789 | $ 1,650 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, number of common stock outstanding, shares | 6,496,655 | 6,489,505 | |
Employee Stock Ownership Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, description | The Company makes contributions up to 3% of each participant’s annual compensation and the Company matches 50% of the next 2% contributed by the employee. | ||
Maximum annual contributions amount per employee | $ 19,500 | $ 19,000 | |
Maximum annual contributions percentage per employee | 3.00% | ||
Employer matching percentage of compensation contributed | 50.00% | ||
Employer matching percentage of employees compensation contributed | 2.00% | ||
Contributions by company | $ 401,000 | $ 318,000 | |
Common stock related to 401(k) Employee Stock Ownership Plan | 1,740,000 | $ 1,840,000 | |
Fair Value of Common stock related to 401(k) Employee Stock Ownership Plan | $ 2,320,000 | 2,450,000 | |
Employee Stock Ownership Plan | Defined Benefit Plans Adjustment | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Number of periods available to purchase shares following distribution | 2 | ||
Fair Value of Common stock related to 401(k) Employee Stock Ownership Plan | $ 0 | $ 0 | |
Stock Compensation Plan | Employee Stock Ownership Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, number of common stock outstanding, shares | 83,747 | 88,366 | |
Defined contribution plan, number of common stock outstanding, shares unallocated | 0 | 0 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | Oct. 31, 2019USD ($)Locationshares | Oct. 31, 2018USD ($)Locationshares | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill, nondeductible for tax purposes | $ 27,817,000 | $ 27,817,000 | ||
Trinity Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Number of banking locations | Location | 3 | |||
Outstanding common stock exchanged for shares of company common stock | shares | 0.44627 | |||
Cash received in exchange of each share | $ 3.50 | |||
Cash payments for acquisition | $ 6,100,000 | |||
Stock issued for acquisition | shares | 779,034 | |||
Aggregate estimated value of the consideration | $ 27,100,000 | |||
Goodwill, nondeductible for tax purposes | 9,500,000 | |||
Merger expenses | $ 1,420,000 | |||
Period in which fair values are subject to refinement | 1 year | |||
PSB Bancshares, Inc | ||||
Business Acquisition [Line Items] | ||||
Number of banking locations | Location | 3 | |||
Outstanding common stock exchanged for shares of company common stock | shares | 60 | |||
Cash received in exchange of each share | $ 6,610 | |||
Cash payments for acquisition | $ 24,500,000 | |||
Stock issued for acquisition | shares | 222,360 | |||
Aggregate estimated value of the consideration | $ 30,500,000 | |||
Goodwill, nondeductible for tax purposes | 8,200,000 | |||
Merger expenses | $ 1,840,000 | |||
Period in which fair values are subject to refinement | 1 year |
Leases - Classification of Comp
Leases - Classification of Company's ROU assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets And Liabilities Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 1,706 | $ 1,912 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating lease liabilities | $ 1,788 | $ 1,987 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilities | us-gaap:AccountsPayableAndOtherAccruedLiabilities |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate for Operating Leases (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Lessor Operating Lease Description [Abstract] | ||
Weighted-average remaining lease term for operating leases | 6 years 7 months 9 days | 7 years 1 month 2 days |
Weighted-average discount rate for operating leases | 6.00% | 6.00% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Payments for Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Operating Leases, October 1, 2020 - September 30, 2021 | $ 363 | |
Operating Leases, October 1, 2021 - September 30, 2022 | 355 | |
Operating Leases, October 1, 2022 - September 30, 2023 | 355 | |
Operating Leases, October 1, 2023 - September 30, 2024 | 298 | |
Operating Leases, October 1, 2024 - September 30, 2025 | 184 | |
Operating Leases, Afterward | 621 | |
Operating Leases, Total future minimum lease payments | 2,176 | |
Operating Leases, Amounts representing interest | (388) | |
Present value of net future minimum lease payments | $ 1,788 | $ 1,987 |