Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 14, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PKKW | |
Entity Registrant Name | Parkway Acquisition Corp. | |
Entity Central Index Key | 1,657,642 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,021,376 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 6,261 | $ 6,367 |
Interest-bearing deposits with banks | 9,587 | 8,739 |
Federal funds sold | 3,802 | 7,769 |
Investment securities available for sale | 48,943 | 50,675 |
Restricted equity securities | 1,378 | 1,388 |
Loans, net of allowance for loan losses of $3,415 at March 31, 2018 and $3,453 at December 31, 2017 | 422,688 | 421,418 |
Cash value of life insurance | 17,459 | 17,348 |
Foreclosed assets | 0 | 0 |
Properties and equipment, net | 17,548 | 17,646 |
Accrued interest receivable | 1,597 | 1,737 |
Core deposit intangible | 1,975 | 2,045 |
Deferred tax assets, net | 2,748 | 2,965 |
Other assets | 9,542 | 9,864 |
Total assets | 543,528 | 547,961 |
Deposits | ||
Noninterest-bearing | 130,058 | 130,847 |
Interest-bearing | 353,629 | 357,594 |
Total deposits | 483,687 | 488,441 |
Accrued interest payable | 134 | 46 |
Other liabilities | 2,486 | 2,292 |
Total Liabilities | 486,307 | 490,779 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity | ||
Preferred stock value | ||
Common stock value | 0 | 0 |
Surplus | 26,166 | 26,166 |
Retained earnings | 33,038 | 32,526 |
Accumulated other comprehensive loss | (1,983) | (1,510) |
Total stockholders' equity | 57,221 | 57,182 |
Total liabilities and stockholders' equity | $ 543,528 | $ 547,961 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 3,415 | $ 3,453 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, issued | 5,021,376 | 5,021,376 |
Common stock, outstanding | 5,021,376 | 5,021,376 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income | ||
Loans and fees on loans | $ 5,086 | $ 5,055 |
Interest-bearing deposits in banks | 19 | 12 |
Federal funds sold | 31 | 19 |
Interest on securities: | ||
Taxable | 303 | 343 |
Exempt from federal income tax | 0 | 0 |
Dividends | 9 | 29 |
Interest and Dividend Income, Operating, Total | 5,448 | 5,458 |
Interest expense | ||
Deposits | 361 | 370 |
Interest on borrowings | 0 | 0 |
Interest Expense, Total | 361 | 370 |
Net interest income | 5,087 | 5,088 |
Provision for loan losses | 54 | 108 |
Net interest income after provision for loan losses | 5,033 | 4,980 |
Noninterest income | ||
Service charges on deposit accounts | 345 | 322 |
Other service charges and fees | 412 | 378 |
Net realized losses on securities | (4) | |
Mortgage origination fees | 77 | 45 |
Increase in cash value of life insurance | 111 | 111 |
Other income | 22 | 32 |
Non interest income | 963 | 888 |
Noninterest expenses | ||
Salaries and employee benefits | 2,531 | 2,550 |
Occupancy and equipment | 629 | 666 |
Foreclosed asset expense, net | (3) | 5 |
Data processing expense | 302 | 271 |
FDIC Assessments | 69 | 75 |
Advertising | 116 | 158 |
Bank franchise tax | 105 | 82 |
Director fees | 57 | 63 |
Merger related expenses | 198 | 315 |
Other expense | 697 | 722 |
Noninterest Expense, Total | 4,701 | 4,907 |
Net income before income taxes | 1,295 | 961 |
Income tax expense | 281 | 280 |
Net income | $ 1,014 | $ 681 |
Net income per share | $ 0.20 | $ 0.14 |
Weighted average shares outstanding | 5,021,376 | 5,021,376 |
Dividends declared per share | $ 0.10 | $ 0.08 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,014 | $ 681 |
Unrealized gains (losses) on investment securities available for sale: | ||
Unrealized gains (losses) arising during the period | (602) | 526 |
Tax related to unrealized (gains) losses | 126 | (179) |
Reclassification of net realized losses during the period | 4 | |
Tax related to realized losses | (1) | |
Total other comprehensive income (loss) | (473) | 347 |
Total comprehensive income | $ 541 | $ 1,028 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2016 | $ 55,466 | $ 26,166 | $ 30,654 | $ (1,354) | |
Beginning balance (in shares) at Dec. 31, 2016 | 5,021,376 | ||||
Net income | 681 | 681 | |||
Other comprehensive income (loss) | 347 | 347 | |||
Dividends paid | (401) | (401) | |||
Ending balance at Mar. 31, 2017 | 56,093 | 26,166 | 30,934 | (1,007) | |
Ending balance (in shares) at Mar. 31, 2017 | 5,021,376 | ||||
Beginning balance at Dec. 31, 2017 | $ 57,182 | 26,166 | 32,526 | (1,510) | |
Beginning balance (in shares) at Dec. 31, 2017 | 5,021,376 | 5,021,376 | |||
Net income | $ 1,014 | 1,014 | |||
Other comprehensive income (loss) | (473) | (473) | |||
Dividends paid | (502) | (502) | |||
Ending balance at Mar. 31, 2018 | $ 57,221 | $ 26,166 | $ 33,038 | $ (1,983) | |
Ending balance (in shares) at Mar. 31, 2018 | 5,021,376 | 5,021,376 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid per share | $ 0.10 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 1,014 | $ 681 |
Adjustments to reconcile net income to net cash provided by (used in) operations: | ||
Depreciation and amortization | 300 | 318 |
Amortization of core deposit intangible | 70 | 71 |
Accretion of loan discount and deposit premium, net | (188) | (389) |
Provision for loan losses | 54 | 108 |
Deferred income taxes | 343 | 280 |
Net realized loss on securities | 4 | |
Accretion of discount on securities, net of amortization of premiums | 138 | 181 |
Deferred compensation | 9 | (21) |
Changes in assets and liabilities: | ||
Cash value of life insurance | (111) | (165) |
Accrued interest receivable | 140 | 283 |
Other assets | 322 | (46) |
Accrued interest payable | 88 | 86 |
Other liabilities | 185 | (1,950) |
Net cash provided by (used in) operating activities | 2,368 | (563) |
Activity in available for sale securities: | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/calls/paydowns | 991 | 2,299 |
Sales (purchases) or restricted equity securities | 10 | (239) |
Net increase in loans | (1,166) | (48) |
Purchases of property and equipment, net of sales | (202) | (518) |
Net cash (used in) provided by investing activities | (367) | 1,494 |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (4,724) | 940 |
Dividends paid | (502) | (401) |
Net cash (used in) provided by financing activities | (5,226) | 539 |
Net (decrease) increase in cash and cash equivalents | (3,225) | 1,470 |
Cash and cash equivalents, beginning | 22,875 | 35,908 |
Cash and cash equivalents, ending | 19,650 | 37,378 |
Supplemental disclosure of cash flow information | ||
Interest paid | 273 | 284 |
Taxes paid | 0 | 0 |
Supplemental disclosure of noncash investing activities | ||
Effect on equity of change in net unrealized loss on available for sale securities | $ 473 | $ 347 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies Organization Parkway Acquisition Corp. (“Parkway” or the “Company”) was incorporated as a Virginia corporation on November 2, 2015. Parkway was formed as a business combination shell company for the purpose of completing a business combination transaction between Grayson Bankshares, Inc. (“Grayson”) and Cardinal Bankshares Corporation (“Cardinal”). On November 6, 2015, Grayson, Cardinal and Parkway entered into an Agreement and Plan of Merger (the “merger agreement”), providing for the combination of the three companies. Terms of the merger agreement called for Grayson and Cardinal to merge with and into Parkway, with Parkway as the surviving corporation (the “Cardinal merger”). The merger agreement established exchange ratios under which each share of Grayson common stock was converted to the right to receive 1.76 shares of common stock of Parkway, while each share of Cardinal common stock was converted to the right to receive 1.30 shares of common stock of Parkway. The exchange ratios resulted in Grayson shareholders receiving approximately 60% of the newly issued Parkway shares and Cardinal shareholders receiving approximately 40% of the newly issued Parkway shares. The Cardinal merger was completed on July 1, 2016. Grayson was considered the acquiror and Cardinal was considered the acquiree in the transaction for accounting purposes. Upon completion of the Cardinal merger, the Bank of Floyd, a wholly-owned subsidiary of Cardinal, was merged with and into Grayson National Bank (the “Bank’), a wholly-owned subsidiary of Grayson. The Bank was organized under the laws of the United States in 1900 and now serves the Virginia counties of Grayson, Floyd, Carroll, Wythe, Montgomery and Roanoke, and the North Carolina counties of Alleghany and Ashe, and the surrounding areas through seventeen full-service banking offices and one loan production office. Effective March 13, 2017, the Bank changed its name to Skyline National Bank. As an FDIC-insured national banking association, the Bank is subject to regulation by the Comptroller of the Currency and the FDIC. Parkway is regulated by the Board of Governors of the Federal Reserve System. On March 1, 2018, Parkway entered into a definitive agreement pursuant to which Parkway will acquire Great State Bank, based in Wilkesboro, North Carolina, in a stock merger valued at approximately $14.5 million at signing (the “Great State merger”). The agreement provides for the merger of Great State Bank with and into the Bank, with the Bank as the surviving bank. Each share of Great State Bank common stock will be converted into the right to receive 1.21 shares of Parkway common stock upon closing. The closing of this transaction is subject to approval by Parkway’s and Great State Bank’s shareholders, regulatory approvals and other customary closing conditions and is expected to occur in the third quarter of 2018. For purposes of this quarterly report on Form 10-Q, The consolidated financial statements as of March 31, 2018 and for the periods ended March 31, 2018 and 2017 included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the information furnished in the interim consolidated financial statements reflects all adjustments necessary to present fairly the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows for such interim periods. Management believes that all interim period adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto as of December 31, 2017, included in the Company’s Annual Report on Form 10-K Critical Accounting Policies Management believes the policies with respect to the methodology for the determination of the allowance for loan losses, and asset impairment judgments involve a higher degree of complexity and require management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could cause reported results to differ materially. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank, which is wholly owned. All significant, intercompany transactions and balances have been eliminated in consolidation. Business Segments The Company reports its activities as a single business segment. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. Business Combinations Generally, acquisitions are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and foreclosed real estate losses, management obtains independent appraisals for significant properties. Substantially all of the Bank’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions. The regional economy is diverse, but influenced to an extent by the manufacturing and agricultural segments. While management uses available information to recognize loan and foreclosed real estate losses, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as a part of their routine examination process, periodically review the Bank’s allowances for loan and foreclosed real estate losses. Such agencies may require the Bank to recognize additions to the allowances based on their judgments about information available to them at the time of their examinations. Because of these factors, it is reasonably possible that the allowances for loan and foreclosed real estate losses may change materially in the near term. The Company seeks strategies that minimize the tax effect of implementing their business strategies. As such, judgments are made regarding the ultimate consequence of long-term tax planning strategies, including the likelihood of future recognition of deferred tax benefits. The Company’s tax returns are subject to examination by both Federal and State authorities. Such examinations may result in the assessment of additional taxes, interest and penalties. As a result, the ultimate outcome, and the corresponding financial statement impact, can be difficult to predict with accuracy. Accounting for pension benefits, costs and related liabilities are developed using actuarial valuations. These valuations include key assumptions determined by management, including the discount rate and expected long-term rate of return on plan assets. Material changes in pension costs may occur in the future due to changes in these assumptions. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash and amounts due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Trading Securities The Company does not hold securities for short-term resale and therefore does not maintain a trading securities portfolio. Securities Held to Maturity Bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. The Company does not currently hold any securities classified as held to maturity. Securities Available for Sale Available for sale securities are reported at fair value and consist of bonds, notes, debentures, and certain equity securities not classified as trading securities or as held to maturity securities. Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in a separate component of accumulated other comprehensive income. Realized gains and losses on the sale of available for sale securities are determined using the specific-identification method. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Declines in the fair value of individual held to maturity and available for sale securities below cost that are other than temporary are reflected as write-downs of the individual securities to fair value. Related write-downs are included in earnings as realized losses. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received. Payments received are first applied to principal, and any remaining funds are then applied to interest. When facts and circumstances indicate the borrower has regained the ability to meet the required payments, the loan is returned to accrual status. Past due status of loans is determined based on contractual terms. Purchased Performing Loans – Purchased Credit-Impaired (“PCI”) Loans Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance, or portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous non-impaired A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. Troubled Debt Restructurings Under GAAP, the Bank is required to account for certain loan modifications or restructurings as “troubled debt restructurings” or “troubled debt restructured loans.” In general, the modification or restructuring of a debt constitutes a troubled debt restructuring if the Bank for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the Bank would not otherwise consider. Debt restructuring or loan modifications for a borrower do not necessarily always constitute a troubled debt restructuring, however, and troubled debt restructurings do not necessarily result in non-accrual Property and Equipment Land is carried at cost. Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed principally by the straight-line method over the following estimated useful lives: Years Buildings and improvements 10-40 Furniture and equipment 5-12 Foreclosed Assets Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less anticipated cost to sell at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in foreclosure expense on the consolidated statements of income. Pension Plan Prior to the Cardinal merger, both Grayson National Bank (Grayson) and Bank of Floyd (Floyd) had qualified noncontributory defined benefit pension plans in place which covered substantially all of each bank’s employees. The benefits in each plan are primarily based on years of service and earnings. Both Grayson and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. Grayson’s plan is a single-employer plan, the funded status of which is measured as the difference between the fair value of plan assets and the projected benefit obligation. Floyd’s plan is a multi-employer plan for accounting purposes and is a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Core Deposit Intangible Core deposit intangibles represent the value of long-term deposit relationships acquired in a business combination. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally twenty years on an accelerated basis). Revenue Recognition On January 1, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) 2014-9, Revenue from Contracts with Customers (“ASU Topic 606”) 2014-09 2014-09 2014-09 Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years presented is not material. Basic Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan which are also recognized as separate components of equity. The accumulated balances related to each component of other comprehensive income (loss) are as follows: (dollars in thousands) Unrealized Gains On Available for Sale Securities Defined Benefit Total Balance, December 31, 2016 $ (574 ) $ (780 ) $ (1,354 ) Other comprehensive gain before reclassifications 347 — 347 Amounts reclassified from accumulated other comprehensive gain — — — Balance March 31, 2017 $ (227 ) $ (780 ) $ (1,007 ) Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (476 ) — (476 ) Amounts reclassified from accumulated other comprehensive loss 3 — 3 Balance March 31, 2018 $ (996 ) $ (987 ) $ (1,983 ) Off-Balance In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under line of credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 8. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Reclassification Certain reclassifications have been made to the prior years’ financial statements to place them on a comparable basis with the current presentation. Net income and stockholders’ equity previously reported were not affected by these reclassifications. Recent Accounting Pronouncements The following accounting standards may affect the future financial reporting by the Company: In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance became effective for the Company for reporting periods beginning after December 15, 2017. The Company applied the guidance using a full retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues were not affected. The Company has performed an assessment of our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies will not change materially since the principles of revenue recognition from the ASU are largely consistent with existing guidance and current practices applied by our businesses. We have not identified material changes to the timing or amount of revenue recognition. Based on the updated guidance, we do anticipate changes in our disclosures associated with our revenues. We will provide qualitative disclosures of our performance obligations related to our revenue recognition and we continue to evaluate disaggregation for significant categories of revenue in the scope of the guidance. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. We expect to adopt the guidance using the modified retrospective method and practical expedients for transition. The practical expedients allow us to largely account for our existing leases consistent with current guidance except for the incremental balance sheet recognition for lessees. We have started an initial evaluation of our leasing contracts and activities. We have also started developing our methodology to estimate the right-of In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option. We are evaluating the impact of the ASU on our consolidated financial statements. We expect the ASU will result in an increase in the recorded allowance for loan losses given the change to estimated losses over the contractual life of the loans adjusted for expected prepayments. The majority of the increase results from longer duration portfolios. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the Accounting Standards Codification. The ASU incorporates into the Accounting Standards Codification recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In January 2017, the FASB amended the Goodwill and Other Topic of the Accounting Standards Codification to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2019 . In March 2017, the FASB amended the requirements in the Receivables—Nonrefundable Fees and Other Costs Topic of the Accounting Standards Codification related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In September 2017, the FASB updated the Revenue from Contracts with Customers and the Leases Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance about certain public business entities (PBEs) electing to use the non-PBE In November 2017, the FASB updated the Income Statement and Revenue from Contracts with Customers Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance related to revenue recognition. The amendments were effective upon issuance. The Company is currently evaluating the impact on revenue recognition, however it does not expect these amendments to have a material effect on its financial statements. In February 2018, the FASB amended the Financial Instruments Topic of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. 2016-01. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Income Taxes Topic of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance related to the income tax accounting implications of the Tax Cuts and Jobs Act. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 2. Investment Securities Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities and their approximate fair values at March 31, 2018 and December 31, 2017 follow: (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Available for sale: Mortgage-backed securities $ 27,799 $ — $ (1,030 ) $ 26,769 Corporate securities 3,004 — (124 ) 2,880 State and municipal securities 19,401 73 (180 ) 19,294 $ 50,204 $ 73 $ (1,334 ) $ 48,943 December 31, 2017 Available for sale: Mortgage-backed securities $ 28,780 $ — $ (626 ) $ 28,154 Corporate securities 3,016 — (80 ) 2,936 State and municipal securities 19,542 155 (112 ) 19,585 $ 51,338 $ 155 $ (818 ) $ 50,675 Restricted equity securities totaled $1.4 million at March 31, 2018 and December 31, 2017. Restricted equity securities consist of investments in stock of the Federal Home Loan Bank of Atlanta (FHLB), Community Bankers Bank, Pacific Coast Bankers Bank, and the Federal Reserve Bank of Richmond, all of which are carried at cost. All of these entities are upstream correspondents of the Bank. The FHLB requires financial institutions to make equity investments in the FHLB in order to borrow money. The Bank is required to hold that stock so long as it borrows from the FHLB. The Federal Reserve requires Banks to purchase stock as a condition for membership in the Federal Reserve System. The Bank’s stock in Community Bankers Bank and Pacific Coast Bankers Bank is restricted only in the fact that the stock may only be repurchased by the respective banks. The following tables details unrealized losses and related fair values in the Company’s held to maturity and available for sale investment securities portfolios. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2018 and December 31, 2017. Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2018 Available for sale: Mortgage-backed securities $ 14,978 $ (555 ) $ 11,789 $ (475 ) $ 26,767 $ (1,030 ) Corporate securities 1,465 (39 ) 1,415 (85 ) 2,880 (124 ) State and municipal securities 7,352 (93 ) 2,734 (87 ) 10,086 (180 ) Total securities available for sale $ 23,795 $ (687 ) $ 15,938 $ (647 ) $ 39,733 $ (1,334 ) December 31, 2017 Available for sale: Mortgage-backed securities $ 15,791 $ (324 ) $ 12,361 $ (302 ) $ 28,152 $ (626 ) Corporate securities 1,506 (10 ) 1,430 (70 ) 2,936 (80 ) State and municipal securities 5,284 (44 ) 2,758 (68 ) 8,042 (112 ) Total securities available for sale $ 22,581 $ (378 ) $ 16,549 $ (440 ) $ 39,130 $ (818 ) At March 31, 2018, 38 debt securities with unrealized losses had depreciated 3.25 percent from their total amortized cost basis. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, and the financial condition and near-term prospects of the issuer. The relative significance of these and other factors will vary on a case by case basis. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition and the issuer’s anticipated ability to pay the contractual cash flows of the investments. Since the Company intends to hold all of its investment securities until maturity, and it is more likely than not that the Company will not have to sell any of its investment securities before unrealized losses have been recovered, and the Company expects to recover the entire amount of the amortized cost basis of all its securities, none of the securities are deemed other than temporarily impaired at March 31, 2018. Management continues to monitor all of these securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of these securities are other than temporarily impaired, which could require a charge to earnings in such periods. There were no sales of investment securities available for sale for the three month periods ended March 31, 2018 or 2017. Gross realized losses for the three month period ended March 31, 2018 resulted from investment securities available for sale being called prior to their scheduled maturity date. Gross proceeds from called securities totaled $50 thousand for the three month period ended March 31, 2018. Gross realized losses for the three months ended March 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Realized gains $ — $ — Realized losses (4 ) — $ (4 ) $ — There were no securities transferred between the available for sale and held to maturity portfolios or other sales of held to maturity securities during the periods presented. In the future management may elect to classify securities as held to maturity based upon such considerations as the nature of the security, the Bank’s ability to hold the security until maturity, and general economic conditions. The scheduled maturities of securities available for sale at March 31, 2018, were as follows: (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 1,224 $ 1,225 Due after one year through five years 10,552 10,398 Due after five years through ten years 19,498 18,799 Due after ten years 18,930 18,521 $ 50,204 $ 48,943 Maturities of mortgage backed securities are based on contractual amounts. Actual maturity will vary as loans underlying the securities are prepaid. Investment securities with amortized cost of approximately $11.1 million and $11.2 million at March 31, 2018 and December 31, 2017, were pledged as collateral on public deposits and for other purposes as required or permitted by law. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable | Note 3. Loans Receivable The major components of loans in the consolidated balance sheets at March 31, 2018 and December 31, 2017 are as follows: (dollars in thousands) 2018 2017 Construction & development $ 26,338 $ 25,475 Farmland 33,770 33,353 Residential 194,141 199,120 Commercial mortgage 130,299 125,661 Commercial & agricultural 26,731 25,672 Consumer & other 14,824 15,590 Total loans 426,103 424,871 Allowance for loan losses (3,415 ) (3,453 ) Loans, net of allowance for loan losses $ 422,688 $ 421,418 As of March 31, 2018 and December 31, 2017, substantially all of the Bank’s residential 1-4 |
Allowance for Loan Losses and I
Allowance for Loan Losses and Impaired Loans | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Impaired Loans | Note 4. Allowance for Loan Losses and Impaired Loans Allowance for Loan Losses The allowance for loan losses is maintained at a level believed to be sufficient to provide for estimated loan losses based on evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management’s comprehensive analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the amount and composition of the loan portfolio, delinquency levels, actual loss experience, current economic conditions, and detailed analysis of individual loans for which the full collectability may not be assured. The detailed analysis includes methods to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific and general components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous A provision for loan losses is charged against operations and is added to the allowance for loan losses based on quarterly comprehensive analyses of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. The following table presents activity in the allowance by loan category and information on the loans evaluated individually for impairment and collectively evaluated for impairment as of March 31, 2018 and December 31, 2017: Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total For the Three Months Ended March 31, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Charge-offs (12 ) — (117 ) — — (19 ) (148 ) Recoveries — 34 10 — 2 10 56 Provision 20 (70 ) 128 (10 ) (17 ) 3 54 Balance, March 31, 2018 $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 For the Three Months Ended March 31, 2017 Allowance for loan losses: Balance, December 31, 2016 $ 319 $ 342 $ 1,841 $ 600 $ 210 $ 108 $ 3,420 Charge-offs — — — (42 ) — (15 ) (57 ) Recoveries 56 — 15 — 27 7 105 Provision (26 ) 59 24 86 (7 ) (28 ) 108 Balance, March 31, 2017 $ 349 $ 401 $ 1,880 $ 644 $ 230 $ 72 $ 3,576 March 31, 2018 Allowance for loan losses: Ending Balance $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 Ending balance: individually evaluated for impairment $ — $ 39 $ 33 $ — $ — $ — $ 72 Ending balance: collectively evaluated for impairment $ 247 $ 283 $ 1,863 $ 609 $ 267 $ 74 $ 3,343 Loans outstanding: Ending Balance $ 26,338 $ 33,770 $ 194,141 $ 130,299 $ 26,731 $ 14,824 $ 426,103 Ending balance: individually evaluated for impairment $ — $ 4,751 $ 1,455 $ — $ — $ — $ 6,206 Ending balance: collectively evaluated for impairment $ 26,338 $ 29,019 $ 192,686 $ 130,299 $ 26,731 $ 14,824 $ 419,897 December 31, 2017 Allowance for loan losses: Ending Balance $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Ending balance: individually evaluated for impairment $ — $ 49 $ 42 $ — $ — $ — $ 91 Ending balance: collectively evaluated for impairment $ 239 $ 309 $ 1,833 $ 619 $ 282 $ 80 $ 3,362 Loans outstanding: Ending Balance $ 25,475 $ 33,353 $ 199,120 $ 125,661 $ 25,672 $ 15,590 $ 424,871 Ending balance: individually evaluated for impairment $ — $ 5,069 $ 1,556 $ — $ — $ — $ 6,625 Ending balance: collectively evaluated for impairment $ 25,475 $ 28,284 $ 197,564 $ 125,661 $ 25,672 $ 15,590 $ 418,246 As of March 31, 2018 and December 31, 2017, the Bank had no unallocated reserves included in the allowance for loan losses. Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help grade the quality of the Bank’s loan portfolio. The Bank’s loan ratings coincide with the “Substandard,” “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Generally, an asset is considered Substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. Substandard assets include those characterized by the distinct possibility that the insured financial institution will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all the weaknesses inherent in assets classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Assets classified as Loss are those considered uncollectible, and of such little value that its continuance on the books is not warranted. Assets that do not currently expose the insured financial institutions to sufficient risk to warrant classification in one of the aforementioned categories but otherwise possess weaknesses are designated “Special Mention.” Management also maintains a listing of loans designated “Watch”. These loans represent borrowers with declining earnings, strained cash flow, increasing leverage and/or weakening market fundamentals that indicate above average risk. As of March 31, 2018 and December 31, 2017, respectively, the Bank had no loans graded “Doubtful” or “Loss” included in the balance of total loans outstanding. The following table lists the loan grades utilized by the Bank and the corresponding total of outstanding loans in each category as of March 31, 2018 and December 31, 2017: Credit Risk Profile by Internally Assigned Grades Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total March 31, 2018 Real Estate Secured: Construction & development $ 25,279 $ 861 $ — $ 198 $ 26,338 Farmland 24,548 5,523 74 3,625 33,770 Residential 178,153 12,931 509 2,548 194,141 Commercial mortgage 111,115 15,911 683 2,590 130,299 Non-Real Commercial & agricultural 23,781 2,304 142 504 26,731 Consumer & other 14,418 323 — 83 14,824 Total $ 377,294 $ 37,853 $ 1,408 $ 9,548 $ 426,103 December 31, 2017 Real Estate Secured: Construction & development $ 24,612 $ 652 $ — $ 211 $ 25,475 Farmland 23,935 4,895 74 4,449 33,353 Residential 183,543 12,464 200 2,913 199,120 Commercial mortgage 106,102 15,291 1,611 2,657 125,661 Non-Real Commercial & agricultural 22,446 2,057 649 520 25,672 Consumer & other 15,262 328 — — 15,590 Total $ 375,900 $ 35,687 $ 2,534 $ 10,750 $ 424,871 Loans may be placed in nonaccrual status when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received. Payments received are first applied to principal, and any remaining funds are then applied to interest. Loans are removed from nonaccrual status when they are deemed a loss and charged to the allowance, transferred to foreclosed assets, or returned to accrual status based upon performance consistent with the original terms of the loan or a subsequent restructuring thereof. The following table presents an age analysis of nonaccrual and past due loans by category as of March 31, 2018 and December 31, 2017: Analysis of Past Due and Nonaccrual Loans (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90+ Days Past Due and Still Accruing Nonaccrual Loans March 31, 2018 Real Estate Secured: Construction & development $ — $ — $ 214 $ 214 $ 26,124 $ 26,338 $ — $ 214 Farmland — 592 — 592 33,178 33,770 — 3,170 Residential 479 248 459 1,186 192,955 194,141 — 955 Commercial mortgage 41 — 194 235 130,064 130,299 — 194 Non-Real Commercial & agricultural 2 6 23 31 26,700 26,731 — 89 Consumer & other 22 2 — 24 14,800 14,824 — — Total $ 544 $ 848 $ 890 $ 2,282 $ 423,821 $ 426,103 $ — $ 4,622 December 31, 2017 Real Estate Secured: Construction & development $ — $ — $ 227 $ 227 $ 25,248 $ 25,475 $ — $ 226 Farmland 188 — 308 496 32,857 33,353 — 3,610 Residential 395 334 710 1,439 197,681 199,120 — 1,211 Commercial mortgage — — 194 194 125,467 125,661 — 194 Non-Real Commercial & agricultural 70 — 23 93 25,579 25,672 — 94 Consumer & other 2 24 — 26 15,564 15,590 — — Total $ 655 $ 358 $ 1,462 $ 2,475 $ 422,396 $ 424,871 $ — $ 5,335 Impaired Loans A loan is considered impaired when it is probable that the Bank will be unable to collect all contractual principal and interest payments due in accordance with the original or modified terms of the loan agreement. Smaller balance homogenous loans may be collectively evaluated for impairment. Non-homogenous As of March 31, 2018 and December 31, 2017, respectively, the recorded investment in impaired loans totaled $11.6 million and $12.3 million. The total amount of collateral-dependent impaired loans at March 31, 2018 and December 31, 2017, respectively, was $3.3 million and $3.7 million. As of March 31, 2018 and December 31, 2017, respectively, $3.3 million and $3.7 million of the recorded investment in impaired loans did not have a related allowance. The Bank had $8.3 million and $8.6 million in troubled debt restructured loans included in impaired loans at March 31, 2018 and December 31, 2017, respectively. The categories of non-accrual non-accrual In 2015, management began collectively evaluating performing TDRs with a loan balance of $250,000 or less for impairment. As of March 31, 2018 and December 31, 2017, respectively, $5.4 million and $5.7 million of TDRs included in the following table were evaluated collectively for impairment and were deemed to have $289 thousand and $303 thousand of related allowance. The following table is a summary of information related to impaired loans as of March 31, 2018 and December 31, 2017: Impaired Loans Three months ended (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2018 With no related allowance recorded: Construction & development $ — $ — $ — $ — $ — Farmland 3,119 3,119 — 3,271 1 Residential 213 299 — 256 2 Commercial mortgage — — — — — Commercial & agricultural — 26 — — 8 Consumer & other — — — — — Subtotal 3,332 3,444 — 3,527 11 With an allowance recorded: Construction & development 357 357 16 359 3 Farmland 1,917 1,917 48 1,926 26 Residential 5,381 5,573 261 5,612 72 Commercial mortgage 596 680 33 599 5 Commercial & agricultural 51 51 3 53 1 Consumer & other — — — — — Subtotal 8,302 8,578 361 8,549 107 Totals: Construction & development 357 357 16 359 3 Farmland 5,036 5,036 48 5,197 27 Residential 5,594 5,872 261 5,868 74 Commercial mortgage 596 680 33 599 5 Commercial & agricultural 51 77 3 53 9 Consumer & other — — — — — Total $ 11,634 $ 12,022 $ 361 $ 12,076 $ 118 1 Recorded investment is the loan balance, net of any charge-offs (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Construction & development $ — $ — $ — $ — $ — Farmland 3,422 3,456 — 3,774 10 Residential 300 300 — 300 8 Commercial mortgage — — — — — Commercial & agricultural — 26 — 27 — Consumer & other — — — — 2 Subtotal 3,722 3,782 — 4,101 20 With an allowance recorded: Construction & development 361 361 16 718 111 Farmland 1,936 1,936 58 2,224 135 Residential 5,647 5,832 284 6,209 290 Commercial mortgage 602 737 33 1,020 54 Commercial & agricultural 55 55 3 89 13 Consumer & other — — — 2 — Subtotal 8,601 8,921 394 10,262 603 Totals: Construction & development 361 361 16 718 111 Farmland 5,358 5,392 58 5,998 145 Residential 5,947 6,132 284 6,509 298 Commercial mortgage 602 737 33 1,020 54 Commercial & agricultural 55 81 3 116 13 Consumer & other — — — 2 2 Total $ 12,323 $ 12,703 $ 394 $ 14,363 $ 623 1 Recorded investment is the loan balance, net of any charge-offs Troubled Debt Restructuring A troubled debt restructured loan is a loan for which the Bank, for reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Bank would not otherwise consider. The loan terms which have been modified or restructured due to a borrower’s financial difficulty, include but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, The following table sets forth information with respect to the Bank’s troubled debt restructurings as of March 31, 2018 and March 31, 2017: TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment March 31, 2018 Construction & development — $ — $ — — $ — $ — Farmland — — — — — — Residential — — — — — — Commercial mortgage — — — — — — Commercial & agricultural — — — — — — Consumer & other — — — — — — Total — $ — $ — — $ — $ — (1) Loans past due 30 days or more are considered to be in default. During the three months ended March 31, 2018, no loans were modified that were considered to be TDRs. No TDRs identified in the last twelve months subsequently defaulted in the quarter ended March 31, 2018. TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment March 31, 2017 Construction & development — $ — $ — — $ — $ — Farmland 1 150 150 — — — Residential — — — — — — Commercial mortgage — — — — — — Commercial & agricultural — — — — — — Consumer & other — — — — — — Total 1 $ 150 $ 150 — $ — $ — (1) Loans past due 30 days or more are considered to be in default. During the three months ended March 31, 2017, one loan was modified that was considered to be TDRs. Term concession only was granted and no additional funds were advanced. No TDRs identified in the last twelve months subsequently defaulted in the quarter ended March 31, 2017. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Note 5. Employee Benefit Plan The Bank has a qualified noncontributory defined benefit pension plan that covers substantially all of its employees. Effective December 31, 2012, the pension plan was amended to freeze benefit accruals for all eligible employees. The following is a summary of net periodic pension costs for the three-month periods ended March 31, 2018 and 2017. Three Months Ended March 31, (dollars in thousands) 2018 2017 Service cost $ — $ — Interest cost 43 48 Expected return on plan assets (144 ) (138 ) Amortization of prior service cost — — Recognized net loss due to settlement — — Recognized net actuarial (gain)/loss 8 7 Net periodic benefit cost $ (93 ) $ (83 ) It has been Company practice to contribute the maximum tax-deductible |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. Intangible Assets The following table presents the gross carrying amount and accumulated amortization for the Company’s core deposit intangible assets, which are the only identifiable intangible assets subject to amortization. Core deposit intangibles at March 31, 2018 and December 31, 2017 are as follows: (dollars in thousands) March 31, December 31, Gross carrying amount $ 2,469 $ 2,469 Accumulated amortization 494 424 Net book value $ 1,975 $ 2,045 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies Litigation In the normal course of business the Bank is involved in various legal proceedings. After consultation with legal counsel, management believes that any liability resulting from such proceedings will not be material to the consolidated financial statements. Financial Instruments with Off-Balance The Bank is party to financial instruments with off-balance The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as for on-balance March 31, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 54,169 $ 56,912 Standby letters of credit 1,043 1,106 $ 55,212 $ 58,018 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances which the Bank deems necessary. Concentrations of Credit Risk Substantially all of the Bank’s loans, commitments to extend credit, and standby letters of credit have been granted to customers in the Bank’s market area and such customers are generally depositors of the Bank. Investments in state and municipal securities involve governmental entities within and outside the Bank’s market area. The concentrations of credit by type of loan are set forth in Note 3. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. The Bank’s primary focus is toward small business and consumer transactions, and accordingly, it does not have a significant number of credits to any single borrower or group of related borrowers in excess of $5,000,000. The Bank has cash and cash equivalents on deposit with financial institutions which exceed federally insured limits. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | Note 8. Financial Instruments The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of March 31, 2018 and December 31, 2017. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable For loans, the carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016-01, Fair Value Measurements (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2018 Financial Instruments – Assets Net Loans $ 422,688 $ 420,400 $ — $ — $ 420,400 Financial Instruments – Liabilities Time Deposits 144,498 140,369 — 140,369 — December 31, 2017 Financial Instruments – Assets Net Loans $ 421,418 $ 417,229 $ — $ 416,426 $ 803 Financial Instruments – Liabilities Time Deposits 147,725 144,656 — 144,656 — The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale and derivatives 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 loans or foreclosed assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Fair Value Hierarchy Under FASB ASC 820, “Fair Value Measurements and Disclosures”, 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 may include the 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 at fair value. Investment Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. If a loan is identified as individually impaired, management measures impairment in accordance with applicable accounting guidance. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2018, a small percentage of the total impaired loans were evaluated based on the fair value of the collateral. In accordance with accounting standards, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price the Company records the impaired loan as nonrecurring Level 2. When the fair value is based on either an external or internal appraisal and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. Foreclosed Assets Foreclosed assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price the Company records the foreclosed asset as nonrecurring Level 2. When the fair value of the collateral is based on either an external or internal appraisal and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Assets Recorded at Fair Value on a Recurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2018 Investment securities available for sale Mortgage-backed securities $ 26,769 $ — $ 26,769 $ — Corporate securities 2,880 — 2,880 — State and municipal securities 19,294 — 19,294 — Total assets at fair value $ 48,943 $ — $ 48,943 $ — December 31, 2017 Investment securities available for sale Mortgage-backed securities $ 28,154 $ — $ 28,154 $ — Corporate securities 2,936 — 2,936 — State and municipal securities 19,585 — 19,585 — Total assets at fair value $ 50,675 $ — $ 50,675 $ — No liabilities were recorded at fair value on a recurring basis as of March 31, 2018 and December 31, 2017. There were no significant transfers between levels during the three month period ended March 31, 2018 and the year ended December 31, 2017. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets and liabilities that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. No liabilities were recorded at fair value on a nonrecurring basis at March 31, 2018 and December 31, 2017. Assets measured at fair value on a nonrecurring basis are included in the table below. (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2018 Impaired loans $ 503 $ — $ — $ 503 Foreclosed assets — — — — Total assets at fair value $ 503 $ — $ — $ 503 Assets Recorded at Fair Value on a Nonrecurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2017 Impaired loans $ 803 $ — $ — $ 803 Foreclosed assets — — — — Total assets at fair value $ 803 $ — $ — $ 803 For Level 3 assets measured at fair value on a recurring or non-recurring Fair Value at Fair Value at Valuation Technique Significant Inputs General Range Impaired Loans $ 503 $ 803 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 10 % Other Real Estate Owned $ — $ — Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10 % |
Capital Requirements
Capital Requirements | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Capital Requirements | Note 9. Capital Requirements The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank’s actual capital amounts and ratios are presented in the following table as of March 31, 2018 and December 31, 2017, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2018 Total Capital (to risk weighted assets) $ 57,353 13.11 % $ 34,998 8.00 % $ 43,748 10.00 % Tier 1 Capital (to risk weighted assets) $ 53,908 12.32 % $ 26,249 6.00 % $ 34,998 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 53,908 12.32 % $ 19,686 4.50 % $ 28,436 6.50 % Tier 1 Capital (to average total assets) $ 53,908 10.00 % $ 21,557 4.00 % $ 26,947 5.00 % December 31, 2017 Total Capital (to risk weighted assets) $ 56,962 13.14 % $ 34,688 8.00 % $ 43,360 10.00 % Tier 1 Capital (to risk weighted assets) $ 53,483 12.33 % $ 26,016 6.00 % $ 34,688 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 53,483 12.33 % $ 19,512 4.50 % $ 28,184 6.50 % Tier 1 Capital (to average total assets) $ 53,483 9.81 % $ 21,808 4.00 % $ 27,260 5.00 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized |
Organization and Summary of S19
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Critical Accounting Policies | Critical Accounting Policies Management believes the policies with respect to the methodology for the determination of the allowance for loan losses, and asset impairment judgments involve a higher degree of complexity and require management to make difficult and subjective judgments which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could cause reported results to differ materially. These critical policies and their application are periodically reviewed with the Audit Committee and the Board of Directors. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and the Bank, which is wholly owned. All significant, intercompany transactions and balances have been eliminated in consolidation. |
Business Segments | Business Segments The Company reports its activities as a single business segment. In determining the appropriateness of segment definition, the Company considers components of the business about which financial information is available and regularly evaluated relative to resource allocation and performance assessment. |
Business Combinations | Business Combinations Generally, acquisitions are accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan and foreclosed real estate losses, management obtains independent appraisals for significant properties. Substantially all of the Bank’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate are susceptible to changes in local market conditions. The regional economy is diverse, but influenced to an extent by the manufacturing and agricultural segments. While management uses available information to recognize loan and foreclosed real estate losses, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as a part of their routine examination process, periodically review the Bank’s allowances for loan and foreclosed real estate losses. Such agencies may require the Bank to recognize additions to the allowances based on their judgments about information available to them at the time of their examinations. Because of these factors, it is reasonably possible that the allowances for loan and foreclosed real estate losses may change materially in the near term. The Company seeks strategies that minimize the tax effect of implementing their business strategies. As such, judgments are made regarding the ultimate consequence of long-term tax planning strategies, including the likelihood of future recognition of deferred tax benefits. The Company’s tax returns are subject to examination by both Federal and State authorities. Such examinations may result in the assessment of additional taxes, interest and penalties. As a result, the ultimate outcome, and the corresponding financial statement impact, can be difficult to predict with accuracy. Accounting for pension benefits, costs and related liabilities are developed using actuarial valuations. These valuations include key assumptions determined by management, including the discount rate and expected long-term rate of return on plan assets. Material changes in pension costs may occur in the future due to changes in these assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash and amounts due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. |
Trading Securities | Trading Securities The Company does not hold securities for short-term resale and therefore does not maintain a trading securities portfolio. |
Securities Held to Maturity | Securities Held to Maturity Bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. The Company does not currently hold any securities classified as held to maturity. |
Securities Available for Sale | Securities Available for Sale Available for sale securities are reported at fair value and consist of bonds, notes, debentures, and certain equity securities not classified as trading securities or as held to maturity securities. Unrealized holding gains and losses, net of tax, on available for sale securities are reported as a net amount in a separate component of accumulated other comprehensive income. Realized gains and losses on the sale of available for sale securities are determined using the specific-identification method. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Declines in the fair value of individual held to maturity and available for sale securities below cost that are other than temporary are reflected as write-downs of the individual securities to fair value. Related write-downs are included in earnings as realized losses. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received. Payments received are first applied to principal, and any remaining funds are then applied to interest. When facts and circumstances indicate the borrower has regained the ability to meet the required payments, the loan is returned to accrual status. Past due status of loans is determined based on contractual terms. Purchased Performing Loans – Purchased Credit-Impaired (“PCI”) Loans |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance, or portion thereof, is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous non-impaired A loan is considered impaired when, based on current information and events, it is probable that we will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement. |
Troubled Debt Restructurings | Troubled Debt Restructurings Under GAAP, the Bank is required to account for certain loan modifications or restructurings as “troubled debt restructurings” or “troubled debt restructured loans.” In general, the modification or restructuring of a debt constitutes a troubled debt restructuring if the Bank for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the Bank would not otherwise consider. Debt restructuring or loan modifications for a borrower do not necessarily always constitute a troubled debt restructuring, however, and troubled debt restructurings do not necessarily result in non-accrual |
Property and Equipment | Property and Equipment Land is carried at cost. Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed principally by the straight-line method over the following estimated useful lives: Years Buildings and improvements 10-40 Furniture and equipment 5-12 |
Foreclosed Assets | Foreclosed Assets Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less anticipated cost to sell at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in foreclosure expense on the consolidated statements of income. |
Pension Plan | Pension Plan Prior to the Cardinal merger, both Grayson National Bank (Grayson) and Bank of Floyd (Floyd) had qualified noncontributory defined benefit pension plans in place which covered substantially all of each bank’s employees. The benefits in each plan are primarily based on years of service and earnings. Both Grayson and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. Grayson’s plan is a single-employer plan, the funded status of which is measured as the difference between the fair value of plan assets and the projected benefit obligation. Floyd’s plan is a multi-employer plan for accounting purposes and is a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Core Deposit Intangible | Core Deposit Intangible Core deposit intangibles represent the value of long-term deposit relationships acquired in a business combination. Core deposit intangibles are amortized over the estimated useful lives of the deposit accounts acquired (generally twenty years on an accelerated basis). |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) 2014-9, Revenue from Contracts with Customers (“ASU Topic 606”) 2014-09 2014-09 2014-09 |
Income Taxes | Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
Advertising Expense | Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years presented is not material. |
Basic Earnings per Share | Basic Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan which are also recognized as separate components of equity. The accumulated balances related to each component of other comprehensive income (loss) are as follows: (dollars in thousands) Unrealized Gains On Available for Sale Securities Defined Benefit Total Balance, December 31, 2016 $ (574 ) $ (780 ) $ (1,354 ) Other comprehensive gain before reclassifications 347 — 347 Amounts reclassified from accumulated other comprehensive gain — — — Balance March 31, 2017 $ (227 ) $ (780 ) $ (1,007 ) Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (476 ) — (476 ) Amounts reclassified from accumulated other comprehensive loss 3 — 3 Balance March 31, 2018 $ (996 ) $ (987 ) $ (1,983 ) |
Off-Balance Sheet Credit Related Financial Instruments | Off-Balance In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under line of credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 8. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Reclassification | Reclassification Certain reclassifications have been made to the prior years’ financial statements to place them on a comparable basis with the current presentation. Net income and stockholders’ equity previously reported were not affected by these reclassifications. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following accounting standards may affect the future financial reporting by the Company: In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance became effective for the Company for reporting periods beginning after December 15, 2017. The Company applied the guidance using a full retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of our revenues were not affected. The Company has performed an assessment of our revenue contracts related to revenue streams that are within the scope of the standard. Our accounting policies will not change materially since the principles of revenue recognition from the ASU are largely consistent with existing guidance and current practices applied by our businesses. We have not identified material changes to the timing or amount of revenue recognition. Based on the updated guidance, we do anticipate changes in our disclosures associated with our revenues. We will provide qualitative disclosures of our performance obligations related to our revenue recognition and we continue to evaluate disaggregation for significant categories of revenue in the scope of the guidance. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. We expect to adopt the guidance using the modified retrospective method and practical expedients for transition. The practical expedients allow us to largely account for our existing leases consistent with current guidance except for the incremental balance sheet recognition for lessees. We have started an initial evaluation of our leasing contracts and activities. We have also started developing our methodology to estimate the right-of In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company will apply the amendments to the ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option. We are evaluating the impact of the ASU on our consolidated financial statements. We expect the ASU will result in an increase in the recorded allowance for loan losses given the change to estimated losses over the contractual life of the loans adjusted for expected prepayments. The majority of the increase results from longer duration portfolios. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the Accounting Standards Codification. The ASU incorporates into the Accounting Standards Codification recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In January 2017, the FASB amended the Goodwill and Other Topic of the Accounting Standards Codification to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2019 . In March 2017, the FASB amended the requirements in the Receivables—Nonrefundable Fees and Other Costs Topic of the Accounting Standards Codification related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In September 2017, the FASB updated the Revenue from Contracts with Customers and the Leases Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance about certain public business entities (PBEs) electing to use the non-PBE In November 2017, the FASB updated the Income Statement and Revenue from Contracts with Customers Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance related to revenue recognition. The amendments were effective upon issuance. The Company is currently evaluating the impact on revenue recognition, however it does not expect these amendments to have a material effect on its financial statements. In February 2018, the FASB amended the Financial Instruments Topic of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU 2016-01. 2016-01. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In March 2018, the FASB updated the Income Taxes Topic of the Accounting Standards Codification. The amendments incorporate into the Accounting Standards Codification recent SEC guidance related to the income tax accounting implications of the Tax Cuts and Jobs Act. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. |
Organization and Summary of S20
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Property and Equipment, Estimated Useful Lives | Land is carried at cost. Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed principally by the straight-line method over the following estimated useful lives: Years Buildings and improvements 10-40 Furniture and equipment 5-12 |
Accumulated Balances Related Component of Other Comprehensive Income (Loss) | The accumulated balances related to each component of other comprehensive income (loss) are as follows: (dollars in thousands) Unrealized Gains On Available for Sale Securities Defined Benefit Total Balance, December 31, 2016 $ (574 ) $ (780 ) $ (1,354 ) Other comprehensive gain before reclassifications 347 — 347 Amounts reclassified from accumulated other comprehensive gain — — — Balance March 31, 2017 $ (227 ) $ (780 ) $ (1,007 ) Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (476 ) — (476 ) Amounts reclassified from accumulated other comprehensive loss 3 — 3 Balance March 31, 2018 $ (996 ) $ (987 ) $ (1,983 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Aggregate Fair Value of Available for Sale Securities | The amortized cost of securities and their approximate fair values at March 31, 2018 and December 31, 2017 follow: (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Available for sale: Mortgage-backed securities $ 27,799 $ — $ (1,030 ) $ 26,769 Corporate securities 3,004 — (124 ) 2,880 State and municipal securities 19,401 73 (180 ) 19,294 $ 50,204 $ 73 $ (1,334 ) $ 48,943 December 31, 2017 Available for sale: Mortgage-backed securities $ 28,780 $ — $ (626 ) $ 28,154 Corporate securities 3,016 — (80 ) 2,936 State and municipal securities 19,542 155 (112 ) 19,585 $ 51,338 $ 155 $ (818 ) $ 50,675 |
Unrealized Losses and Related Fair Values in Company's Held to Maturity and Available for Sale Investment Securities Portfolios | The following tables details unrealized losses and related fair values in the Company’s held to maturity and available for sale investment securities portfolios. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2018 and December 31, 2017. Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2018 Available for sale: Mortgage-backed securities $ 14,978 $ (555 ) $ 11,789 $ (475 ) $ 26,767 $ (1,030 ) Corporate securities 1,465 (39 ) 1,415 (85 ) 2,880 (124 ) State and municipal securities 7,352 (93 ) 2,734 (87 ) 10,086 (180 ) Total securities available for sale $ 23,795 $ (687 ) $ 15,938 $ (647 ) $ 39,733 $ (1,334 ) December 31, 2017 Available for sale: Mortgage-backed securities $ 15,791 $ (324 ) $ 12,361 $ (302 ) $ 28,152 $ (626 ) Corporate securities 1,506 (10 ) 1,430 (70 ) 2,936 (80 ) State and municipal securities 5,284 (44 ) 2,758 (68 ) 8,042 (112 ) Total securities available for sale $ 22,581 $ (378 ) $ 16,549 $ (440 ) $ 39,130 $ (818 ) |
Gross Realized Losses on Sale of Investment Securities | Gross realized losses for the three months ended March 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Realized gains $ — $ — Realized losses (4 ) — $ (4 ) $ — |
Scheduled Maturities of Securities Available for Sale | The scheduled maturities of securities available for sale at March 31, 2018, were as follows: (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 1,224 $ 1,225 Due after one year through five years 10,552 10,398 Due after five years through ten years 19,498 18,799 Due after ten years 18,930 18,521 $ 50,204 $ 48,943 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Major Components of Loans in Consolidated Balance Sheets | The major components of loans in the consolidated balance sheets at March 31, 2018 and December 31, 2017 are as follows: (dollars in thousands) 2018 2017 Construction & development $ 26,338 $ 25,475 Farmland 33,770 33,353 Residential 194,141 199,120 Commercial mortgage 130,299 125,661 Commercial & agricultural 26,731 25,672 Consumer & other 14,824 15,590 Total loans 426,103 424,871 Allowance for loan losses (3,415 ) (3,453 ) Loans, net of allowance for loan losses $ 422,688 $ 421,418 |
Allowance for Loan Losses and23
Allowance for Loan Losses and Impaired Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Recorded Investment in Loans | The following table presents activity in the allowance by loan category and information on the loans evaluated individually for impairment and collectively evaluated for impairment as of March 31, 2018 and December 31, 2017: Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total For the Three Months Ended March 31, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Charge-offs (12 ) — (117 ) — — (19 ) (148 ) Recoveries — 34 10 — 2 10 56 Provision 20 (70 ) 128 (10 ) (17 ) 3 54 Balance, March 31, 2018 $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 For the Three Months Ended March 31, 2017 Allowance for loan losses: Balance, December 31, 2016 $ 319 $ 342 $ 1,841 $ 600 $ 210 $ 108 $ 3,420 Charge-offs — — — (42 ) — (15 ) (57 ) Recoveries 56 — 15 — 27 7 105 Provision (26 ) 59 24 86 (7 ) (28 ) 108 Balance, March 31, 2017 $ 349 $ 401 $ 1,880 $ 644 $ 230 $ 72 $ 3,576 March 31, 2018 Allowance for loan losses: Ending Balance $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 Ending balance: individually evaluated for impairment $ — $ 39 $ 33 $ — $ — $ — $ 72 Ending balance: collectively evaluated for impairment $ 247 $ 283 $ 1,863 $ 609 $ 267 $ 74 $ 3,343 Loans outstanding: Ending Balance $ 26,338 $ 33,770 $ 194,141 $ 130,299 $ 26,731 $ 14,824 $ 426,103 Ending balance: individually evaluated for impairment $ — $ 4,751 $ 1,455 $ — $ — $ — $ 6,206 Ending balance: collectively evaluated for impairment $ 26,338 $ 29,019 $ 192,686 $ 130,299 $ 26,731 $ 14,824 $ 419,897 December 31, 2017 Allowance for loan losses: Ending Balance $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Ending balance: individually evaluated for impairment $ — $ 49 $ 42 $ — $ — $ — $ 91 Ending balance: collectively evaluated for impairment $ 239 $ 309 $ 1,833 $ 619 $ 282 $ 80 $ 3,362 Loans outstanding: Ending Balance $ 25,475 $ 33,353 $ 199,120 $ 125,661 $ 25,672 $ 15,590 $ 424,871 Ending balance: individually evaluated for impairment $ — $ 5,069 $ 1,556 $ — $ — $ — $ 6,625 Ending balance: collectively evaluated for impairment $ 25,475 $ 28,284 $ 197,564 $ 125,661 $ 25,672 $ 15,590 $ 418,246 |
Credit Risk Profile by Internally Assigned Grades | The following table lists the loan grades utilized by the Bank and the corresponding total of outstanding loans in each category as of March 31, 2018 and December 31, 2017: Credit Risk Profile by Internally Assigned Grades Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total March 31, 2018 Real Estate Secured: Construction & development $ 25,279 $ 861 $ — $ 198 $ 26,338 Farmland 24,548 5,523 74 3,625 33,770 Residential 178,153 12,931 509 2,548 194,141 Commercial mortgage 111,115 15,911 683 2,590 130,299 Non-Real Commercial & agricultural 23,781 2,304 142 504 26,731 Consumer & other 14,418 323 — 83 14,824 Total $ 377,294 $ 37,853 $ 1,408 $ 9,548 $ 426,103 December 31, 2017 Real Estate Secured: Construction & development $ 24,612 $ 652 $ — $ 211 $ 25,475 Farmland 23,935 4,895 74 4,449 33,353 Residential 183,543 12,464 200 2,913 199,120 Commercial mortgage 106,102 15,291 1,611 2,657 125,661 Non-Real Commercial & agricultural 22,446 2,057 649 520 25,672 Consumer & other 15,262 328 — — 15,590 Total $ 375,900 $ 35,687 $ 2,534 $ 10,750 $ 424,871 |
Analysis of Nonaccrual and Past Due Loans | The following table presents an age analysis of nonaccrual and past due loans by category as of March 31, 2018 and December 31, 2017: Analysis of Past Due and Nonaccrual Loans (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Current Total Loans 90+ Days Past Due and Still Accruing Nonaccrual Loans March 31, 2018 Real Estate Secured: Construction & development $ — $ — $ 214 $ 214 $ 26,124 $ 26,338 $ — $ 214 Farmland — 592 — 592 33,178 33,770 — 3,170 Residential 479 248 459 1,186 192,955 194,141 — 955 Commercial mortgage 41 — 194 235 130,064 130,299 — 194 Non-Real Commercial & agricultural 2 6 23 31 26,700 26,731 — 89 Consumer & other 22 2 — 24 14,800 14,824 — — Total $ 544 $ 848 $ 890 $ 2,282 $ 423,821 $ 426,103 $ — $ 4,622 December 31, 2017 Real Estate Secured: Construction & development $ — $ — $ 227 $ 227 $ 25,248 $ 25,475 $ — $ 226 Farmland 188 — 308 496 32,857 33,353 — 3,610 Residential 395 334 710 1,439 197,681 199,120 — 1,211 Commercial mortgage — — 194 194 125,467 125,661 — 194 Non-Real Commercial & agricultural 70 — 23 93 25,579 25,672 — 94 Consumer & other 2 24 — 26 15,564 15,590 — — Total $ 655 $ 358 $ 1,462 $ 2,475 $ 422,396 $ 424,871 $ — $ 5,335 |
Impaired Loans | The following table is a summary of information related to impaired loans as of March 31, 2018 and December 31, 2017: Impaired Loans Three months ended (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2018 With no related allowance recorded: Construction & development $ — $ — $ — $ — $ — Farmland 3,119 3,119 — 3,271 1 Residential 213 299 — 256 2 Commercial mortgage — — — — — Commercial & agricultural — 26 — — 8 Consumer & other — — — — — Subtotal 3,332 3,444 — 3,527 11 With an allowance recorded: Construction & development 357 357 16 359 3 Farmland 1,917 1,917 48 1,926 26 Residential 5,381 5,573 261 5,612 72 Commercial mortgage 596 680 33 599 5 Commercial & agricultural 51 51 3 53 1 Consumer & other — — — — — Subtotal 8,302 8,578 361 8,549 107 Totals: Construction & development 357 357 16 359 3 Farmland 5,036 5,036 48 5,197 27 Residential 5,594 5,872 261 5,868 74 Commercial mortgage 596 680 33 599 5 Commercial & agricultural 51 77 3 53 9 Consumer & other — — — — — Total $ 11,634 $ 12,022 $ 361 $ 12,076 $ 118 1 Recorded investment is the loan balance, net of any charge-offs (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Construction & development $ — $ — $ — $ — $ — Farmland 3,422 3,456 — 3,774 10 Residential 300 300 — 300 8 Commercial mortgage — — — — — Commercial & agricultural — 26 — 27 — Consumer & other — — — — 2 Subtotal 3,722 3,782 — 4,101 20 With an allowance recorded: Construction & development 361 361 16 718 111 Farmland 1,936 1,936 58 2,224 135 Residential 5,647 5,832 284 6,209 290 Commercial mortgage 602 737 33 1,020 54 Commercial & agricultural 55 55 3 89 13 Consumer & other — — — 2 — Subtotal 8,601 8,921 394 10,262 603 Totals: Construction & development 361 361 16 718 111 Farmland 5,358 5,392 58 5,998 145 Residential 5,947 6,132 284 6,509 298 Commercial mortgage 602 737 33 1,020 54 Commercial & agricultural 55 81 3 116 13 Consumer & other — — — 2 2 Total $ 12,323 $ 12,703 $ 394 $ 14,363 $ 623 1 Recorded investment is the loan balance, net of any charge-offs |
Troubled Debt Restructurings | The following table sets forth information with respect to the Bank’s troubled debt restructurings as of March 31, 2018 and March 31, 2017: TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment March 31, 2018 Construction & development — $ — $ — — $ — $ — Farmland — — — — — — Residential — — — — — — Commercial mortgage — — — — — — Commercial & agricultural — — — — — — Consumer & other — — — — — — Total — $ — $ — — $ — $ — (1) Loans past due 30 days or more are considered to be in default. During the three months ended March 31, 2018, no loans were modified that were considered to be TDRs. No TDRs identified in the last twelve months subsequently defaulted in the quarter ended March 31, 2018. TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulted (1) (dollars in thousands) Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment Number of contracts Pre- modification outstanding recorded investment Post- modification outstanding recorded investment March 31, 2017 Construction & development — $ — $ — — $ — $ — Farmland 1 150 150 — — — Residential — — — — — — Commercial mortgage — — — — — — Commercial & agricultural — — — — — — Consumer & other — — — — — — Total 1 $ 150 $ 150 — $ — $ — (1) Loans past due 30 days or more are considered to be in default. |
Employee Benefit Plan (Tables)
Employee Benefit Plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | The following is a summary of net periodic pension costs for the three-month periods ended March 31, 2018 and 2017. Three Months Ended March 31, (dollars in thousands) 2018 2017 Service cost $ — $ — Interest cost 43 48 Expected return on plan assets (144 ) (138 ) Amortization of prior service cost — — Recognized net loss due to settlement — — Recognized net actuarial (gain)/loss 8 7 Net periodic benefit cost $ (93 ) $ (83 ) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Core Deposit Intangible Assets | The following table presents the gross carrying amount and accumulated amortization for the Company’s core deposit intangible assets, which are the only identifiable intangible assets subject to amortization. Core deposit intangibles at March 31, 2018 and December 31, 2017 are as follows: (dollars in thousands) March 31, December 31, Gross carrying amount $ 2,469 $ 2,469 Accumulated amortization 494 424 Net book value $ 1,975 $ 2,045 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Bank's Commitments | A summary of the Bank’s commitments at March 31, 2018 and December 31, 2017 is as follows: March 31, December 31, (dollars in thousands) 2018 2017 Commitments to extend credit $ 54,169 $ 56,912 Standby letters of credit 1,043 1,106 $ 55,212 $ 58,018 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of Carrying Amount, Fair Value, and Placement in Fair Value Hierarchy of Company's Financial Instruments, Excluding Financial Instruments, which the Carrying Amount Approximates Fair Value | For loans, the carrying amount is net of unearned income and the allowance for loan losses. In accordance with the prospective adoption of ASU No. 2016-01, Fair Value Measurements (dollars in thousands) Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2018 Financial Instruments – Assets Net Loans $ 422,688 $ 420,400 $ — $ — $ 420,400 Financial Instruments – Liabilities Time Deposits 144,498 140,369 — 140,369 — December 31, 2017 Financial Instruments – Assets Net Loans $ 421,418 $ 417,229 $ — $ 416,426 $ 803 Financial Instruments – Liabilities Time Deposits 147,725 144,656 — 144,656 — |
Schedule of Assets Recorded at Fair Value on Recurring Basis | Assets Recorded at Fair Value on a Recurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2018 Investment securities available for sale Mortgage-backed securities $ 26,769 $ — $ 26,769 $ — Corporate securities 2,880 — 2,880 — State and municipal securities 19,294 — 19,294 — Total assets at fair value $ 48,943 $ — $ 48,943 $ — December 31, 2017 Investment securities available for sale Mortgage-backed securities $ 28,154 $ — $ 28,154 $ — Corporate securities 2,936 — 2,936 — State and municipal securities 19,585 — 19,585 — Total assets at fair value $ 50,675 $ — $ 50,675 $ — |
Schedule of Assets Recorded at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below. (dollars in thousands) Total Level 1 Level 2 Level 3 March 31, 2018 Impaired loans $ 503 $ — $ — $ 503 Foreclosed assets — — — — Total assets at fair value $ 503 $ — $ — $ 503 Assets Recorded at Fair Value on a Nonrecurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 2017 Impaired loans $ 803 $ — $ — $ 803 Foreclosed assets — — — — Total assets at fair value $ 803 $ — $ — $ 803 |
Schedule of Assets Recorded at Fair Value on Recurring and Nonrecurring Basis | For Level 3 assets measured at fair value on a recurring or non-recurring Fair Value at Fair Value at Valuation Technique Significant Inputs General Range Impaired Loans $ 503 $ 803 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 10 % Other Real Estate Owned $ — $ — Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10 % |
Capital Requirements (Tables)
Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table as of March 31, 2018 and December 31, 2017, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2018 Total Capital (to risk weighted assets) $ 57,353 13.11 % $ 34,998 8.00 % $ 43,748 10.00 % Tier 1 Capital (to risk weighted assets) $ 53,908 12.32 % $ 26,249 6.00 % $ 34,998 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 53,908 12.32 % $ 19,686 4.50 % $ 28,436 6.50 % Tier 1 Capital (to average total assets) $ 53,908 10.00 % $ 21,557 4.00 % $ 26,947 5.00 % December 31, 2017 Total Capital (to risk weighted assets) $ 56,962 13.14 % $ 34,688 8.00 % $ 43,360 10.00 % Tier 1 Capital (to risk weighted assets) $ 53,483 12.33 % $ 26,016 6.00 % $ 34,688 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 53,483 12.33 % $ 19,512 4.50 % $ 28,184 6.50 % Tier 1 Capital (to average total assets) $ 53,483 9.81 % $ 21,808 4.00 % $ 27,260 5.00 % |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 01, 2018USD ($) | Jul. 01, 2016USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Date of incorporation | Nov. 2, 2015 | |||
Date of merger agreement entered | Nov. 6, 2015 | |||
Refinement period | 1 year | |||
Future minimum lease payments | $ 135,000 | |||
Purchased Performing Loans | ||||
Business Acquisition [Line Items] | ||||
Allowance for loan losses | $ 0 | |||
Merger Agreement [Member] | ||||
Business Acquisition [Line Items] | ||||
Allowance for loan losses | $ 0 | |||
Grayson Bankshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Exchange ratio | 1.76 | |||
Grayson Bankshares, Inc. | Parkway Acquisition Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage in newly issued shares | 60.00% | |||
Cardinal Bankshares Corporation | ||||
Business Acquisition [Line Items] | ||||
Exchange ratio | 1.30 | |||
Cardinal Bankshares Corporation | Parkway Acquisition Corporation [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage in newly issued shares | 40.00% | |||
Great State Bank | ||||
Business Acquisition [Line Items] | ||||
Stock merger valuation | $ 14,500,000 | |||
Common stock shares converted into right to receive shares | 1.21 |
Organization and Summary of S30
Organization and Summary of Significant Accounting Policies (Property and Equipment, Estimated Useful Lives) (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Minimum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 10 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 40 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 12 years |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies (Accumulated Balances Related Component of Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 57,182 | $ 55,466 |
Ending balance | 57,221 | 56,093 |
Unrealized Gains and (Losses) on Available for Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (523) | (574) |
Other comprehensive gain (loss) before reclassifications | (476) | 347 |
Amounts reclassified from accumulated other comprehensive loss | 3 | |
Ending balance | (996) | (227) |
Defined Benefit Pension Items | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (987) | (780) |
Ending balance | (987) | (780) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (1,510) | (1,354) |
Other comprehensive gain (loss) before reclassifications | (476) | 347 |
Amounts reclassified from accumulated other comprehensive loss | 3 | |
Ending balance | $ (1,983) | $ (1,007) |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Aggregate Fair Value of Available for Sale Securities) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | $ 50,204 | $ 51,338 |
Available for sale, unrealized gains | 73 | 155 |
Available for sale, unrealized losses | (1,334) | (818) |
Available for sale, fair value | 48,943 | 50,675 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 27,799 | 28,780 |
Available for sale, unrealized losses | (1,030) | (626) |
Available for sale, fair value | 26,769 | 28,154 |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 3,004 | 3,016 |
Available for sale, unrealized losses | (124) | (80) |
Available for sale, fair value | 2,880 | 2,936 |
State and municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 19,401 | 19,542 |
Available for sale, unrealized gains | 73 | 155 |
Available for sale, unrealized losses | (180) | (112) |
Available for sale, fair value | $ 19,294 | $ 19,585 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Securities | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Restricted equity securities | $ 1,378,000 | $ 1,388,000 | |
Percentage of debt securities with unrealized losses depreciated | 3.25% | ||
Number of debt securities | Securities | 38 | ||
Proceeds from sales of investment securities available for sale | $ 0 | $ 0 | |
Gross proceeds from called securities | 50,000 | ||
Securities transferred from held to maturity portfolios or other sales of held to maturity securities to available for sale | 0 | ||
Investment securities, pledged as collateral on public deposits and for other purposes | $ 11,100,000 | $ 11,200,000 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Losses and Related Fair Values in Company's Held to Maturity and Available for Sale Investment Securities Portfolios) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 23,795 | $ 22,581 |
Less than 12 months, unrealized losses | (687) | (378) |
12 months or more, fair value | 15,938 | 16,549 |
12 months or more, unrealized losses | (647) | (440) |
Total, fair value | 39,733 | 39,130 |
Total, unrealized losses | (1,334) | (818) |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 14,978 | 15,791 |
Less than 12 months, unrealized losses | (555) | (324) |
12 months or more, fair value | 11,789 | 12,361 |
12 months or more, unrealized losses | (475) | (302) |
Total, fair value | 26,767 | 28,152 |
Total, unrealized losses | (1,030) | (626) |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 1,465 | 1,506 |
Less than 12 months, unrealized losses | (39) | (10) |
12 months or more, fair value | 1,415 | 1,430 |
12 months or more, unrealized losses | (85) | (70) |
Total, fair value | 2,880 | 2,936 |
Total, unrealized losses | (124) | (80) |
State and municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 7,352 | 5,284 |
Less than 12 months, unrealized losses | (93) | (44) |
12 months or more, fair value | 2,734 | 2,758 |
12 months or more, unrealized losses | (87) | (68) |
Total, fair value | 10,086 | 8,042 |
Total, unrealized losses | $ (180) | $ (112) |
Investment Securities (Gross Lo
Investment Securities (Gross Losses on Sale of Investment Securities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized gains | $ 0 | $ 0 |
Realized losses | (4) | |
Gross realized losses on securities | $ (4) |
Investment Securities (Schedule
Investment Securities (Scheduled Maturities of Securities Available for Sale) (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Available for sale securities, amortized cost | |
Due in one year or less, amortized cost | $ 1,224 |
Due after one year through five years, amortized cost | 10,552 |
Due after five years through ten years, amortized cost | 19,498 |
Due after ten years, amortized cost | 18,930 |
Available for sale securities, amortized cost | 50,204 |
Available for sale securities, fair value | |
Due in one year or less, fair value | 1,225 |
Due after one year through five years, fair value | 10,398 |
Due after five years through ten years, fair value | 18,799 |
Due after ten years, fair value | 18,521 |
Available for sale securities, fair value | $ 48,943 |
Loans Receivable (Major Compone
Loans Receivable (Major Components of Loans in Consolidated Balance Sheets) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 426,103 | $ 424,871 | ||
Allowance for loan losses | (3,415) | (3,453) | $ (3,576) | $ (3,420) |
Loans, net of allowance for loan losses | 422,688 | 421,418 | ||
Construction and Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 26,338 | 25,475 | ||
Allowance for loan losses | (247) | (239) | (349) | (319) |
Farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 33,770 | 33,353 | ||
Allowance for loan losses | (322) | (358) | (401) | (342) |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 194,141 | 199,120 | ||
Allowance for loan losses | (1,896) | (1,875) | (1,880) | (1,841) |
Commercial Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 130,299 | 125,661 | ||
Allowance for loan losses | (609) | (619) | (644) | (600) |
Commercial & agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 26,731 | 25,672 | ||
Allowance for loan losses | (267) | (282) | (230) | (210) |
Consumer & Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 14,824 | 15,590 | ||
Allowance for loan losses | $ (74) | $ (80) | $ (72) | $ (108) |
Allowance for Loan Losses and38
Allowance for Loan Losses and Impaired Loans (Allowance for Loan Losses and Recorded Investment in Loans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | $ 3,453 | $ 3,420 | ||
Charge-offs | (148) | (57) | ||
Recoveries | 56 | 105 | ||
Provision | 54 | 108 | ||
Allowance for loan losses, ending balance | 3,415 | 3,576 | ||
Allowance for loan losses, ending balance | 3,415 | 3,576 | $ 3,415 | $ 3,453 |
Allowance for loan losses, ending balance: individually evaluated for impairment | 72 | 91 | ||
Allowance for loan losses, ending balance: collectively evaluated for impairment | 3,343 | 3,362 | ||
Loans outstanding, ending balance | 426,103 | 424,871 | ||
Loans outstanding, ending balance: individually evaluated for impairment | 6,206 | 6,625 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 419,897 | 418,246 | ||
Construction and Development | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 239 | 319 | ||
Charge-offs | (12) | |||
Recoveries | 56 | |||
Provision | 20 | (26) | ||
Allowance for loan losses, ending balance | 247 | 349 | ||
Allowance for loan losses, ending balance | 247 | 349 | 247 | 239 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 247 | 239 | ||
Loans outstanding, ending balance | 26,338 | 25,475 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 26,338 | 25,475 | ||
Farmland | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 358 | 342 | ||
Recoveries | 34 | |||
Provision | (70) | 59 | ||
Allowance for loan losses, ending balance | 322 | 401 | ||
Allowance for loan losses, ending balance | 322 | 401 | 322 | 358 |
Allowance for loan losses, ending balance: individually evaluated for impairment | 39 | 49 | ||
Allowance for loan losses, ending balance: collectively evaluated for impairment | 283 | 309 | ||
Loans outstanding, ending balance | 33,770 | 33,353 | ||
Loans outstanding, ending balance: individually evaluated for impairment | 4,751 | 5,069 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 29,019 | 28,284 | ||
Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 1,875 | 1,841 | ||
Charge-offs | (117) | |||
Recoveries | 10 | 15 | ||
Provision | 128 | 24 | ||
Allowance for loan losses, ending balance | 1,896 | 1,880 | ||
Allowance for loan losses, ending balance | 1,896 | 1,880 | 1,896 | 1,875 |
Allowance for loan losses, ending balance: individually evaluated for impairment | 33 | 42 | ||
Allowance for loan losses, ending balance: collectively evaluated for impairment | 1,863 | 1,833 | ||
Loans outstanding, ending balance | 194,141 | 199,120 | ||
Loans outstanding, ending balance: individually evaluated for impairment | 1,455 | 1,556 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 192,686 | 197,564 | ||
Commercial Mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 619 | 600 | ||
Charge-offs | (42) | |||
Provision | (10) | 86 | ||
Allowance for loan losses, ending balance | 609 | 644 | ||
Allowance for loan losses, ending balance | 609 | 644 | 609 | 619 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 609 | 619 | ||
Loans outstanding, ending balance | 130,299 | 125,661 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 130,299 | 125,661 | ||
Commercial & agricultural | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 282 | 210 | ||
Recoveries | 2 | 27 | ||
Provision | (17) | (7) | ||
Allowance for loan losses, ending balance | 267 | 230 | ||
Allowance for loan losses, ending balance | 267 | 230 | 267 | 282 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 267 | 282 | ||
Loans outstanding, ending balance | 26,731 | 25,672 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | 26,731 | 25,672 | ||
Consumer & Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning balance | 80 | 108 | ||
Charge-offs | (19) | (15) | ||
Recoveries | 10 | 7 | ||
Provision | 3 | (28) | ||
Allowance for loan losses, ending balance | 74 | 72 | ||
Allowance for loan losses, ending balance | $ 74 | $ 72 | 74 | 80 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 74 | 80 | ||
Loans outstanding, ending balance | 14,824 | 15,590 | ||
Loans outstanding, ending balance: collectively evaluated for impairment | $ 14,824 | $ 15,590 |
Allowance for Loan Losses and39
Allowance for Loan Losses and Impaired Loans - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017Loan | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total of outstanding loans | $ 426,103,000 | $ 424,871,000 | |||
Investment in impaired loans | [1] | 11,634,000 | 12,323,000 | ||
Investment in impaired loans, with no related allowance | [1] | 3,332,000 | 3,722,000 | ||
Loans collectively evaluated for impairment | 419,897,000 | 418,246,000 | |||
Troubled debt restructured loans, related allowance | $ 289,000 | 303,000 | |||
Loans modified that considered to be TDRs | Loan | 0 | 1 | |||
Unallocated Financing Receivables | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Provision for loan losses | $ 0 | 0 | |||
Collateral Pledged | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Investment in impaired loans | 3,300,000 | 3,700,000 | |||
Doubtful | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total of outstanding loans | 0 | 0 | |||
Loss | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total of outstanding loans | 0 | 0 | |||
Maximum | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Troubled debt restructured loans | $ 250,000 | ||||
TDRs Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans collectively evaluated for impairment | 5,400,000 | 5,700,000 | |||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Troubled debt restructured loans | $ 8,300,000 | $ 8,600,000 | |||
[1] | Recorded investment is the loan balance, net of any charge-offs |
Allowance for Loan Losses and40
Allowance for Loan Losses and Impaired Loans (Credit Risk Profile by Internally Assigned Grades) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | $ 426,103 | $ 424,871 |
Construction and Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 26,338 | 25,475 |
Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 33,770 | 33,353 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 194,141 | 199,120 |
Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 130,299 | 125,661 |
Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 26,731 | 25,672 |
Consumer & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 14,824 | 15,590 |
Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 26,338 | 25,475 |
Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 33,770 | 33,353 |
Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 194,141 | 199,120 |
Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 130,299 | 125,661 |
Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 26,731 | 25,672 |
Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 14,824 | 15,590 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 377,294 | 375,900 |
Pass | Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 25,279 | 24,612 |
Pass | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 24,548 | 23,935 |
Pass | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 178,153 | 183,543 |
Pass | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 111,115 | 106,102 |
Pass | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 23,781 | 22,446 |
Pass | Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 14,418 | 15,262 |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 37,853 | 35,687 |
Watch | Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 861 | 652 |
Watch | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 5,523 | 4,895 |
Watch | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 12,931 | 12,464 |
Watch | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 15,911 | 15,291 |
Watch | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 2,304 | 2,057 |
Watch | Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 323 | 328 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 1,408 | 2,534 |
Special Mention | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 74 | 74 |
Special Mention | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 509 | 200 |
Special Mention | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 683 | 1,611 |
Special Mention | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 142 | 649 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 9,548 | 10,750 |
Substandard | Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 198 | 211 |
Substandard | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 3,625 | 4,449 |
Substandard | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 2,548 | 2,913 |
Substandard | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 2,590 | 2,657 |
Substandard | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | 504 | $ 520 |
Substandard | Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total of outstanding loans | $ 83 |
Allowance for Loan Losses and41
Allowance for Loan Losses and Impaired Loans (Analysis of Nonaccrual and Past Due Loans) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 2,282 | $ 2,475 |
Current | 423,821 | 422,396 |
Total loans | 426,103 | 424,871 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 4,622 | 5,335 |
Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 26,338 | 25,475 |
Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 33,770 | 33,353 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 194,141 | 199,120 |
Commercial Mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 130,299 | 125,661 |
Commercial & agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 26,731 | 25,672 |
Consumer & Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 14,824 | 15,590 |
Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 214 | 227 |
Current | 26,124 | 25,248 |
Total loans | 26,338 | 25,475 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 214 | 226 |
Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 592 | 496 |
Current | 33,178 | 32,857 |
Total loans | 33,770 | 33,353 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 3,170 | 3,610 |
Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,186 | 1,439 |
Current | 192,955 | 197,681 |
Total loans | 194,141 | 199,120 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 955 | 1,211 |
Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 235 | 194 |
Current | 130,064 | 125,467 |
Total loans | 130,299 | 125,661 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 194 | 194 |
Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 31 | 93 |
Current | 26,700 | 25,579 |
Total loans | 26,731 | 25,672 |
90+ Days Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 89 | 94 |
Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 24 | 26 |
Current | 14,800 | 15,564 |
Total loans | 14,824 | 15,590 |
90+ Days Past Due and Still Accruing | 0 | 0 |
30 to 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 544 | 655 |
30 to 59 Days Past Due | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 188 | |
30 to 59 Days Past Due | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 479 | 395 |
30 to 59 Days Past Due | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 41 | |
30 to 59 Days Past Due | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2 | 70 |
30 to 59 Days Past Due | Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 22 | 2 |
60 to 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 848 | 358 |
60 to 89 Days Past Due | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 592 | |
60 to 89 Days Past Due | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 248 | 334 |
60 to 89 Days Past Due | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 6 | |
60 to 89 Days Past Due | Non-Real Estate Secured | Consumer & Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2 | 24 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 890 | 1,462 |
90 Days or More Past Due | Real Estate Secured | Construction and Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 214 | 227 |
90 Days or More Past Due | Real Estate Secured | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 308 | |
90 Days or More Past Due | Real Estate Secured | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 459 | 710 |
90 Days or More Past Due | Real Estate Secured | Commercial Mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 194 | 194 |
90 Days or More Past Due | Non-Real Estate Secured | Commercial & agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 23 | $ 23 |
Allowance for Loan Losses and42
Allowance for Loan Losses and Impaired Loans (Impaired Loans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment, with no related allowance | [1] | $ 3,332 | $ 3,722 |
Unpaid principal balance, with no related allowance | 3,444 | 3,782 | |
Average recorded investment, with no related allowance | 3,527 | 4,101 | |
Interest income recognized, with no related allowance | 11 | 20 | |
Recorded investment, with allowance | [1] | 8,302 | 8,601 |
Unpaid principal balance, with allowance | 8,578 | 8,921 | |
Related allowance | 361 | 394 | |
Average recorded investment, with allowance | 8,549 | 10,262 | |
Interest income recognized, with allowance | 107 | 603 | |
Recorded investment, totals | [1] | 11,634 | 12,323 |
Unpaid principal balance, totals | 12,022 | 12,703 | |
Related allowance, totals | 361 | 394 | |
Average recorded investment, totals | 12,076 | 14,363 | |
Interest income recognized, totals | 118 | 623 | |
Construction and Development | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment, with allowance | [1] | 357 | 361 |
Unpaid principal balance, with allowance | 357 | 361 | |
Related allowance | 16 | 16 | |
Average recorded investment, with allowance | 359 | 718 | |
Interest income recognized, with allowance | 3 | 111 | |
Recorded investment, totals | [1] | 357 | 361 |
Unpaid principal balance, totals | 357 | 361 | |
Related allowance, totals | 16 | 16 | |
Average recorded investment, totals | 359 | 718 | |
Interest income recognized, totals | 3 | 111 | |
Farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment, with no related allowance | [1] | 3,119 | 3,422 |
Unpaid principal balance, with no related allowance | 3,119 | 3,456 | |
Average recorded investment, with no related allowance | 3,271 | 3,774 | |
Interest income recognized, with no related allowance | 1 | 10 | |
Recorded investment, with allowance | [1] | 1,917 | 1,936 |
Unpaid principal balance, with allowance | 1,917 | 1,936 | |
Related allowance | 48 | 58 | |
Average recorded investment, with allowance | 1,926 | 2,224 | |
Interest income recognized, with allowance | 26 | 135 | |
Recorded investment, totals | [1] | 5,036 | 5,358 |
Unpaid principal balance, totals | 5,036 | 5,392 | |
Related allowance, totals | 48 | 58 | |
Average recorded investment, totals | 5,197 | 5,998 | |
Interest income recognized, totals | 27 | 145 | |
Residential | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment, with no related allowance | [1] | 213 | 300 |
Unpaid principal balance, with no related allowance | 299 | 300 | |
Average recorded investment, with no related allowance | 256 | 300 | |
Interest income recognized, with no related allowance | 2 | 8 | |
Recorded investment, with allowance | [1] | 5,381 | 5,647 |
Unpaid principal balance, with allowance | 5,573 | 5,832 | |
Related allowance | 261 | 284 | |
Average recorded investment, with allowance | 5,612 | 6,209 | |
Interest income recognized, with allowance | 72 | 290 | |
Recorded investment, totals | [1] | 5,594 | 5,947 |
Unpaid principal balance, totals | 5,872 | 6,132 | |
Related allowance, totals | 261 | 284 | |
Average recorded investment, totals | 5,868 | 6,509 | |
Interest income recognized, totals | 74 | 298 | |
Commercial Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment, with allowance | [1] | 596 | 602 |
Unpaid principal balance, with allowance | 680 | 737 | |
Related allowance | 33 | 33 | |
Average recorded investment, with allowance | 599 | 1,020 | |
Interest income recognized, with allowance | 5 | 54 | |
Recorded investment, totals | [1] | 596 | 602 |
Unpaid principal balance, totals | 680 | 737 | |
Related allowance, totals | 33 | 33 | |
Average recorded investment, totals | 599 | 1,020 | |
Interest income recognized, totals | 5 | 54 | |
Commercial & agricultural | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance, with no related allowance | 26 | 26 | |
Average recorded investment, with no related allowance | 27 | ||
Interest income recognized, with no related allowance | 8 | ||
Recorded investment, with allowance | [1] | 51 | 55 |
Unpaid principal balance, with allowance | 51 | 55 | |
Related allowance | 3 | 3 | |
Average recorded investment, with allowance | 53 | 89 | |
Interest income recognized, with allowance | 1 | 13 | |
Recorded investment, totals | [1] | 51 | 55 |
Unpaid principal balance, totals | 77 | 81 | |
Related allowance, totals | 3 | 3 | |
Average recorded investment, totals | 53 | 116 | |
Interest income recognized, totals | $ 9 | 13 | |
Consumer & Other | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized, with no related allowance | 2 | ||
Average recorded investment, with allowance | 2 | ||
Average recorded investment, totals | 2 | ||
Interest income recognized, totals | $ 2 | ||
[1] | Recorded investment is the loan balance, net of any charge-offs |
Allowance for Loan Losses and43
Allowance for Loan Losses and Impaired Loans (Troubled Debt Restructurings) (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | ||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified during the period, number of contracts | Loan | 0 | 1 | |
TDRs identified during the period, pre-modification outstanding recorded investment | $ 150 | ||
TDRs identified during the period, post-modification outstanding recorded investment | $ 150 | ||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Construction and Development | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Farmland | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified during the period, number of contracts | Loan | 1 | ||
TDRs identified during the period, pre-modification outstanding recorded investment | $ 150 | ||
TDRs identified during the period, post-modification outstanding recorded investment | $ 150 | ||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Residential | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Commercial Mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Commercial & agricultural | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
Consumer & Other | |||
Financing Receivable, Modifications [Line Items] | |||
TDRs identified in last twelve months that subsequently defaulted, number of contracts | Loan | 0 | [1] | 0 |
TDRs identified in last twelve months that subsequently defaulted, pre-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
TDRs identified in last twelve months that subsequently defaulted, post-modification outstanding recorded investment | $ 0 | [1] | $ 0 |
[1] | Loans past due 30 days or more are considered to be in default. |
Allowance for Loan Losses and44
Allowance for Loan Losses and Impaired Loans (Troubled Debt Restructurings) (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
TDRs identified in last twelve months that subsequently defaulted, period to consider the loan to be default | 30 days | 30 days |
Employee Benefit Plan (Componen
Employee Benefit Plan (Components of Net Periodic Pension Cost) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 43 | 48 |
Expected return on plan assets | (144) | (138) |
Amortization of prior service cost | 0 | 0 |
Recognized net loss due to settlement | 0 | 0 |
Recognized net actuarial (gain)/loss | 8 | 7 |
Net periodic benefit cost | $ (93) | $ (83) |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) | Dec. 31, 2017USD ($) |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, contributions by employer for 2018 | $ 0 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Core Deposit Intangible Assets) (Detail) - Core Deposits - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,469 | $ 2,469 |
Accumulated amortization | 494 | 424 |
Net book value | $ 1,975 | $ 2,045 |
Commitments and Contingencies48
Commitments and Contingencies (Summary of Bank's Commitments) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off balance sheet risk | $ 55,212 | $ 58,018 |
Standby Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off balance sheet risk | 1,043 | 1,106 |
Commitments to Extend Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off balance sheet risk | $ 54,169 | $ 56,912 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum potential credits | $ 5,000,000 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Carrying Amount, Fair Value, and Placement in Fair Value Hierarchy of Company's Financial Instruments, Excluding Financial Instruments, which the Carrying Amount Approximates Fair Value) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments - Assets | ||
Net Loans | $ 422,688 | $ 421,418 |
Financial Instruments - Liabilities | ||
Time Deposits | 144,498 | 147,725 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Net Loans | 420,400 | 417,229 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Time Deposits | 140,369 | 144,656 |
Significant Other Observable Inputs (Level 2) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Net Loans | 416,426 | |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Time Deposits | 140,369 | 144,656 |
Significant Unobservable Inputs (Level 3) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Net Loans | $ 420,400 | $ 803 |
Financial Instruments (Schedu51
Financial Instruments (Schedule of Assets Recorded at Fair Value on Recurring Basis) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | $ 48,943 | $ 50,675 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 26,769 | 28,154 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 2,880 | 2,936 |
State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 19,294 | 19,585 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 48,943 | 50,675 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 26,769 | 28,154 |
Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | 2,880 | 2,936 |
Significant Other Observable Inputs (Level 2) | State and municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, recurring basis | $ 19,294 | $ 19,585 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Transfers From (To) Parent [Abstract] | ||
Fair value of liabilities, recurring basis | $ 0 | $ 0 |
Fair value assets transfer from level 1 to level 2 | 0 | 0 |
Fair value assets transfer from level 2 to level 1 | 0 | 0 |
Fair value of liabilities, recurring basis | $ 0 | $ 0 |
Financial Instruments (Schedu53
Financial Instruments (Schedule of Assets Recorded at Fair Value on Nonrecurring Basis) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, nonrecurring basis | $ 503 | $ 803 |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, nonrecurring basis | 503 | 803 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, nonrecurring basis | 503 | 803 |
Significant Unobservable Inputs (Level 3) | Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets, nonrecurring basis | $ 503 | $ 803 |
Financial Instruments (Assets M
Financial Instruments (Assets Measured at Fair Value on a Recurring or Non-Recurring Basis and Significant Unobservable Inputs Used in Fair Value Measurements) (Detail) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Appraised Value/Discounted Cash Flows/Market Value of Note | |
Significant Unobservable Inputs | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | |
Fair Value | $ 503 | $ 803 |
Impaired Loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
General Range of Significant Unobservable Input Values | 0.00% | |
Impaired Loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
General Range of Significant Unobservable Input Values | 10.00% | |
Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Appraised Value/Comparable Sales/Other Estimates from Independent Sources | |
Significant Unobservable Inputs | Discounts to reflect current market conditions and estimated costs to sell | |
Other Real Estate Owned | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
General Range of Significant Unobservable Input Values | 0.00% | |
Other Real Estate Owned | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
General Range of Significant Unobservable Input Values | 10.00% |
Capital Requirements (Actual Ca
Capital Requirements (Actual Capital Amounts and Ratios) (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Total Capital to Risk Weighted Assets, Actual Amount | $ 57,353 | $ 56,962 |
Total Capital to Risk Weighted Assets, Actual Ratio | 13.11% | 13.14% |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | $ 34,998 | $ 34,688 |
Total Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Amount | $ 43,748 | $ 43,360 |
Total Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 Capital to Risk Weighted Assets, Actual Amount | $ 53,908 | $ 53,483 |
Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 12.32% | 12.33% |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | $ 26,249 | $ 26,016 |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Amount | $ 34,998 | $ 34,688 |
Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual Amount | $ 53,908 | $ 53,483 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual Ratio | 12.32% | 12.33% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Amount | $ 19,686 | $ 19,512 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Amount | $ 28,436 | $ 28,184 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum To Be Well Capitalized Ratio | 6.50% | 6.50% |
Tier 1 Capital to Average Assets, Actual Amount | $ 53,908 | $ 53,483 |
Tier 1 Capital to Average Assets, Actual Ratio | 10.00% | 9.81% |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Amount | $ 21,557 | $ 21,808 |
Tier 1 Capital to Average Assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum To Be Well Capitalized Under Amount | $ 26,947 | $ 27,260 |
Tier 1 Capital to Average Assets, Minimum To Be Well Capitalized Ratio | 5.00% | 5.00% |