Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Parkway Acquisition Corp. | |
Entity Central Index Key | 0001657642 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 6,178,275 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 7,948 | $ 8,858 |
Interest-bearing deposits with banks | 11,102 | 12,159 |
Federal funds sold | 14,012 | 18,990 |
Investment securities available for sale | 41,096 | 45,428 |
Restricted equity securities | 2,054 | 2,053 |
Loans, net of allowance for loan losses of $3,818 at June 30, 2019 and $3,495 at December 31, 2018 | 546,002 | 532,970 |
Cash value of life insurance | 17,629 | 17,413 |
Foreclosed assets | 753 | |
Properties and equipment, net | 20,990 | 20,685 |
Accrued interest receivable | 2,212 | 2,084 |
Core deposit intangible | 3,455 | 3,892 |
Goodwill | 3,257 | 3,198 |
Deferred tax assets, net | 1,091 | 1,853 |
Other assets | 9,476 | 9,948 |
680,324 | 680,284 | |
Liabilities | ||
Noninterest-bearing | 161,173 | 160,166 |
Interest-bearing | 437,530 | 441,702 |
Total deposits | 598,703 | 601,868 |
Accrued interest payable | 111 | 89 |
Other liabilities | 2,469 | 2,705 |
601,283 | 604,662 | |
Commitments and contingencies (Note 8) | ||
Stockholders’ Equity | ||
Preferred stock, no par value; 5,000,000 shares authorized, none issued | ||
Common stock, no par value; 25,000,000 shares authorized, 6,193,275 and 6,213,275 issued and outstanding at June 30, 2019 and December 31, 2018, respectively | ||
Surplus | 41,425 | 41,660 |
Retained earnings | 38,583 | 35,929 |
Accumulated other comprehensive loss | (967) | (1,967) |
79,041 | 75,622 | |
$ 680,324 | $ 680,284 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 6,193,275 | 6,213,275 |
Common stock, outstanding (in shares) | 6,193,275 | 6,213,275 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income | ||||
Loans and fees on loans | $ 7,140 | $ 5,271 | $ 14,261 | $ 10,357 |
Interest-bearing deposits in banks | 40 | 16 | 98 | 35 |
Federal funds sold | 109 | 7 | 179 | 38 |
Interest on taxable securities | 264 | 294 | 540 | 597 |
Dividends | 47 | 30 | 61 | 39 |
7,600 | 5,618 | 15,139 | 11,066 | |
Interest expense | ||||
Deposits | 680 | 377 | 1,270 | 738 |
Interest on borrowings | 27 | 27 | ||
680 | 404 | 1,270 | 765 | |
Net interest income | 6,920 | 5,214 | 13,869 | 10,301 |
Provision for loan losses | 276 | 91 | 514 | 145 |
Net interest income after provision for loan losses | 6,644 | 5,123 | 13,355 | 10,156 |
Noninterest income | ||||
Net realized (losses) gains on securities | 10 | 9 | (4) | 5 |
Increase in cash value of life insurance | 108 | 111 | 216 | 222 |
Life insurance income | 229 | 229 | ||
Other income | 141 | 33 | 162 | 55 |
1,260 | 1,261 | 2,332 | 2,224 | |
Noninterest expenses | ||||
Salaries and employee benefits | 3,262 | 2,767 | 6,419 | 5,298 |
Occupancy and equipment | 714 | 627 | 1,439 | 1,256 |
Foreclosed asset expense, net | 1 | 1 | 2 | (2) |
Data processing expense | 362 | 300 | 731 | 602 |
FDIC Assessments | 72 | 69 | 144 | 138 |
Advertising | 158 | 160 | 293 | 276 |
Bank franchise tax | 111 | 105 | 222 | 210 |
Director fees | 88 | 73 | 148 | 130 |
Professional fees | 180 | 96 | 362 | 220 |
Telephone expense | 66 | 94 | 180 | 187 |
Core deposit intangible amortization | 218 | 70 | 437 | 140 |
Merger related expenses | 299 | 497 | ||
Other expense | 526 | 480 | 1,082 | 890 |
5,758 | 5,141 | 11,459 | 9,842 | |
Net income before income taxes | 2,146 | 1,243 | 4,228 | 2,538 |
Income tax expense | 411 | 244 | 828 | 525 |
Net income | $ 1,735 | $ 999 | $ 3,400 | $ 2,013 |
Net income per share (in dollars per share) | $ 0.28 | $ 0.20 | $ 0.55 | $ 0.40 |
Weighted average shares outstanding (in shares) | 6,206,022 | 5,021,376 | 6,209,629 | 5,021,376 |
Dividends declared per share (in dollars per share) | $ 0 | $ 0 | $ 0.12 | $ 0.10 |
Deposit Account [Member] | ||||
Noninterest income | ||||
Noninterest income | $ 376 | $ 374 | $ 736 | $ 719 |
Financial Service, Other [Member] | ||||
Noninterest income | ||||
Noninterest income | 499 | 438 | 1,012 | 850 |
Mortgage Banking [Member] | ||||
Noninterest income | ||||
Noninterest income | $ 126 | $ 67 | $ 210 | $ 144 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 1,735 | $ 999 | $ 3,400 | $ 2,013 |
Unrealized gains (losses) on investment securities available for sale: | ||||
Unrealized gains (losses) arising during the period | 558 | (242) | 1,261 | (844) |
Tax related to unrealized (gains) losses | (117) | 51 | (264) | 177 |
Reclassification of net realized (gains) losses during the period | (10) | (9) | 4 | (5) |
Tax related to realized gains (losses) | 2 | 2 | (1) | 1 |
Total other comprehensive income (loss) | 433 | (198) | 1,000 | (671) |
Total comprehensive income | 2,168 | 801 | 4,400 | 1,342 |
Net income | $ 1,735 | $ 999 | $ 3,400 | $ 2,013 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 5,021,376 | ||||
Balance at Dec. 31, 2017 | $ 26,166 | $ 32,526 | $ (1,510) | $ 57,182 | |
Net income | 1,014 | 1,014 | |||
Other comprehensive income (loss) | (473) | (473) | |||
Dividends paid | (502) | (502) | |||
Balance (in shares) at Mar. 31, 2018 | 5,021,376 | ||||
Balance at Mar. 31, 2018 | 26,166 | 33,038 | (1,983) | 57,221 | |
Balance (in shares) at Dec. 31, 2017 | 5,021,376 | ||||
Balance at Dec. 31, 2017 | 26,166 | 32,526 | (1,510) | 57,182 | |
Net income | 2,013 | ||||
Other comprehensive income (loss) | (671) | ||||
Balance (in shares) at Jun. 30, 2018 | 5,021,376 | ||||
Balance at Jun. 30, 2018 | 26,166 | 34,037 | (2,181) | 58,022 | |
Balance (in shares) at Mar. 31, 2018 | 5,021,376 | ||||
Balance at Mar. 31, 2018 | 26,166 | 33,038 | (1,983) | 57,221 | |
Net income | 999 | 999 | |||
Other comprehensive income (loss) | (198) | (198) | |||
Balance (in shares) at Jun. 30, 2018 | 5,021,376 | ||||
Balance at Jun. 30, 2018 | 26,166 | 34,037 | (2,181) | $ 58,022 | |
Balance (in shares) at Dec. 31, 2018 | 6,213,275 | 6,213,275 | |||
Balance at Dec. 31, 2018 | 41,660 | 35,929 | (1,967) | $ 75,622 | |
Net income | 1,665 | 1,665 | |||
Other comprehensive income (loss) | 567 | 567 | |||
Dividends paid | (746) | (746) | |||
Balance (in shares) at Mar. 31, 2019 | 6,213,275 | ||||
Balance at Mar. 31, 2019 | 41,660 | 36,848 | (1,400) | $ 77,108 | |
Balance (in shares) at Dec. 31, 2018 | 6,213,275 | 6,213,275 | |||
Balance at Dec. 31, 2018 | 41,660 | 35,929 | (1,967) | $ 75,622 | |
Net income | 3,400 | ||||
Other comprehensive income (loss) | $ 1,000 | ||||
Balance (in shares) at Jun. 30, 2019 | 6,193,275 | 6,193,275 | |||
Balance at Jun. 30, 2019 | 41,425 | 38,583 | (967) | $ 79,041 | |
Balance (in shares) at Mar. 31, 2019 | 6,213,275 | ||||
Balance at Mar. 31, 2019 | 41,660 | 36,848 | (1,400) | 77,108 | |
Net income | 1,735 | 1,735 | |||
Other comprehensive income (loss) | 433 | 433 | |||
Common stock repurchased (in shares) | (20,000) | ||||
Common stock repurchased | (235) | $ (235) | |||
Balance (in shares) at Jun. 30, 2019 | 6,193,275 | 6,193,275 | |||
Balance at Jun. 30, 2019 | $ 41,425 | $ 38,583 | $ (967) | $ 79,041 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Retained Earnings [Member] | ||
Dividends paid per share (in dollars per share) | $ 0.12 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Cash flows from operating activities | |||||||
Net income | $ 1,735 | $ 1,665 | $ 999 | $ 1,014 | $ 3,400 | $ 2,013 | |
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation and amortization | 597 | 600 | |||||
Amortization of core deposit intangible | 218 | 70 | 437 | 140 | |||
Accretion of loan discount and deposit premium, net | (1,316) | (340) | |||||
Provision for loan losses | 276 | 91 | 514 | 145 | |||
Deferred income taxes | 442 | 628 | |||||
Net realized losses (gains) on securities | (10) | (9) | 4 | (5) | |||
Accretion of discount on securities, net of amortization of premiums | 239 | 269 | |||||
Deferred compensation | (10) | 18 | |||||
Gains on sale of properties and equipment | (121) | 0 | |||||
Life insurance income | (229) | (229) | |||||
Changes in assets and liabilities: | |||||||
Cash value of life insurance | (216) | (222) | |||||
Accrued interest receivable | (128) | (76) | |||||
Other assets | 468 | (394) | |||||
Accrued interest payable | 22 | (1) | |||||
Other liabilities | (226) | ||||||
Net cash provided by operating activities | 4,106 | 2,546 | |||||
Cash flows from investing activities | |||||||
Purchases | (1,037) | ||||||
Sales | 3,950 | 525 | |||||
Maturities/calls/paydowns | 2,441 | 2,559 | |||||
Purchases of restricted equity securities | (1) | 10 | |||||
Net decrease (increase) in loans | (12,625) | (8,349) | |||||
Proceeds from life insurance contracts | 413 | ||||||
Proceeds from sale of foreclosed assets | 753 | ||||||
Purchases of property and equipment, net of sales | (781) | (815) | |||||
Net cash used in investing activities | (7,300) | (5,657) | |||||
Cash flows from financing activities | |||||||
Net decrease in deposits | (2,770) | (13,405) | |||||
Net increase in borrowings | 8,906 | ||||||
Common stock repurchased | (235) | ||||||
Dividends paid | (746) | (502) | |||||
Net cash used in financing activities | (3,751) | (5,001) | |||||
Net decrease in cash and cash equivalents | (6,945) | (8,112) | |||||
Cash and cash equivalents, beginning | $ 40,007 | $ 22,875 | 40,007 | 22,875 | $ 22,875 | ||
Cash and cash equivalents, ending | $ 33,062 | $ 14,763 | 33,062 | 14,763 | $ 40,007 | ||
Supplemental disclosure of cash flow information | |||||||
Interest paid | 1,248 | 766 | |||||
Taxes paid | 50 | 10 | |||||
Supplemental disclosure of noncash investing activities | |||||||
Effect on equity of change in net unrealized loss on available for sale securities | 1,000 | (671) | |||||
Transfers of loans to foreclosed properties | $ 410 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. Organization Parkway Acquisition Corp. (“Parkway” or the “Company”) was incorporated as a Virginia corporation on November 2, 2015. November 6, 2015, 1.76 1.30 60% 40% July 1, 2016. March 13, 2017, On March 1, 2018, July 1, 2018. 1.21 1,191,899 $15.5 The Bank was organized under the laws of the United States in 1900 twenty four For purposes of this quarterly report on Form 10 July 1, 2018 July 1, 2018 July 1, 2018 The consolidated financial statements as of June 30, 2019 six three June 30, 2019 2018 December 31, 2018, 10 December 31, 2018. six three June 30, 2019 not 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 one one not No 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 may may 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 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 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 not 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 Securities Available for Sale Available for sale securities are reported at fair value and consist of bonds, notes, debentures, and certain equity securities not 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 are reported at their outstanding principal amount adjusted for any charge-offs and the allowance for loan losses. Loan origination costs are capitalized and recognized as an adjustment to yield over the life of the related loan. 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 – The Company accounts for performing loans acquired in business combinations using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition Purchased Credit-Impaired (“PCI”) Loans – Loans purchased with evidence of credit deterioration since origination, and for which it is probable that all contractually required payments will not be collected, are considered credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as internal risk grade and past due and nonaccrual status. Purchased impaired loans generally meet the Company’s definition for nonaccrual status. PCI loans are initially measured at fair value, which reflects estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date. Any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference, and is available to absorb credit losses on those loans. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the nonaccretable difference with a positive impact on future interest income. 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 loans, which are considered impaired. A specific allowance is established when the discounted cash flows, collateral value (less disposal costs), or observable market price of the impaired loan is lower than its carrying value. The specific component of the allowance for smaller- balance loans whose terms have been modified in a troubled debt restructuring (“TDR”) is calculated on a pooled basis considering historical experience adjusted for qualitative factors. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. 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 basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for all loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. 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 not not 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 the Bank 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 the Bank and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. The Bank’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 2 3 not Goodwill and Other Intangible A ssets Goodwill arises from business combinations and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not July 1, 2019 Other intangible assets consist of core deposit intangibles that 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 seven Revenue Recognition On January 1, 2018, 2014 9, Revenue from Contracts with Customers (“ASU Topic 606” 2014 09 not 2014 09 not 2014 09 January 1, 2018 no not Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable income such as interest on state and municipal securities) and consists of taxes currently due plus deferred taxes on temporary differences in the recognition of income and expense for tax and financial statement purposes. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. 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, not 50 not 50 not not not not Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years presented is not 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 And (Losses) On Available for Sale Securities Defined Benefit Pension Items Total Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (667 ) — (667 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (4 ) — (4 ) Balance June 30, 2018 $ (1,194 ) $ (987 ) $ (2,181 ) Balance, December 31, 2018 $ (929 ) $ (1,038 ) $ (1,967 ) Other comprehensive gain before reclassifications 997 — 997 Amounts reclassified from accumulated other comprehensive gain, net of tax 3 — 3 Balance June 30, 2019 $ 71 $ (1,038 ) $ (967 ) Off-Balance Sheet Credit Related Financial Instruments 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 9. 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 Recent Accounting Pronouncements The following accounting standards may affect the future financial reporting by the Company: 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 were effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Effective January 1, 2019, we adopted 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 performed an evaluation of our leasing contracts and activities. We have developed our methodology to estimate the right-of use assets and lease liabilities, which is based on the present value of lease payments. At December 31, 2018 future minimum lease payments were approximately $334 thousand. Based on our evaluation the adoption of the guidance was immaterial to our financial position, results of operations, and cash flows. There will not be a material change to the timing of expense recognition. 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 was permitted beginning in first quarter 2019, we did not elect that option. We are currently 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 July 2019, the FASB proposed changes to the effective date of ASU No. 2016 - 13 for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. The proposal would delay the effective date to fiscal years beginning after December 31, 2022, including interim periods within those fiscal periods. As the Company is a smaller reporting company, the proposed delay would be applicable to the Company, if it is approved by the FASB. 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 . Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements. 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 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. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted ASU 2016 - 01. The Company does not expect these amendments to have a material effect on its financial statements. 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. In May 2018, the FASB amended the Financial Services—Depository and Lending Topic of the Accounting Standards Codification to remove outdated guidance related to Circular 202. The amendments were effective upon issuance and did not have a material effect on the financial statements. In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to make narrow amendments to clarify how to apply certain aspects of the new leases standard. The amendments are effective for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to give entities another option for transition and to provide lessors with a practical expedient. The amendments will be effective for the Company for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Fair Value Measurement Topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements . The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the Accounting Standards Codification to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments will be effective for the Company for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2018, the FASB issued guidance that providing narrow-scope improvements for lessors, that provides relief in the accounting for sales, use and similar taxes, the accounting for other costs paid by a lessee that may benefit a lessor, and variable payments when contracts have lease and non-lease components. The amendments will be effective for the Company for reporting 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 March 2019, the FASB issued guidance to address concerns companies had raised about an accounting exception they would lose when assessing the fair value of underlying assets under the leases standard and clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019 . Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. The amendments related to credit losses will be effective for the Company for reporting periods beginning after December 15, 2019. The amendments related to hedging will be effective for the Company for annual periods beginning after December 15, 2019, and interim periods within annual reporting periods beginning after December 15, 2020. The amendments related to recognition and measurement of financial instruments will be effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In May 2019, the FASB issued guidance to provide entities with an option to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016 - 13, Measurement of Credit Losses on Financial Instruments. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. 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. |
Note 2 - Business Combinations
Note 2 - Business Combinations | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2. On July 1, 2018, 1. 1.21 1,191,899 third not may one The following table presents the Great State assets acquired and liabilities assumed as of July 1, 2018 (dollars in thousands) As Reported by Great Statee Fair Value Adjustments As Reported by Parkway Assets Cash and cash equivalents $ 25,761 $ - - $ 25,761 Investment securities 19,630 (229 ) (a) 19,401 Restricted equity securities 523 - - 523 Loans 97,549 (2,441 ) (b) 95,108 Allowance for loan losses (1,436 ) 1,436 (c) - Property and equipment 1,207 189 (d) 1,396 Intangible assets - 2,425 (e) 2,425 Accrued interest receivable 334 - - 334 Other assets 599 (151 ) (f) 448 Total assets acquired $ 144,167 $ 1,229 $ 145,396 Liabilities Deposits $ 129,611 $ 940 (g) $ 130,551 Borrowings 2,000 - - 2,000 Accrued interest payable 40 - - 40 Other liabilities 352 17 (h) 369 Total liabilities acquired $ 132,003 $ 957 $ 132,960 Net assets acquired 12,436 Elimination of Company’s existing investment in Great State 198 Stock consideration 15,495 Goodwill $ 3,257 Explanation of fair value adjustments: (a) Reflects the opening fair value of securities portfolio, which was established as the new book basis of the portfolio. (b) Reflects the fair value adjustment based on the Company’s third (c) Existing allowance for loan losses eliminated to reflect accounting guidance. (d) Estimated adjustment to Great State’s real property based upon third (e) Reflects the recording of the estimated core deposit intangible based on the Company’s third (f) Recording of deferred tax asset generated by the net fair value adjustments (tax rate = 21% (g) Estimated fair value adjustment to time deposits based on the Company’s third (h) Reflects the fair value adjustment based on the Company’s evaluation of acquired other liabilities. The merger was accounted for under the acquisition method of accounting. The assets and liabilities of Great State have been recorded at their estimated fair values and added to those of Parkway for periods following the merger date. Valuations of acquired Great State assets and liabilities may one There are two 310 30. 310 20. In determining the fair values of acquired loans without evidence of credit deterioration at the date of acquisition, management includes (i) no To the extent that current information indicates it is probable that the Company will collect all amounts according to the contractual terms thereof, such loan is not not not Subsequent to the acquisition date, increases in cash flows expected to be received in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level-yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Supplemental Pro Forma Information (dollars in thousands except per share data) The table below presents supplemental pro forma information as if the Great State acquisition had occurred at the beginning of the earliest period presented, which was January 1, 2018. not not $497 $299 six three June 30, 2018 not Six Months ended June 30, 2019 2018 (Unaudited) (Unaudited) Net interest income $ 13,503 $ 10,619 Net income (a) $ 3,111 $ 2,264 Basic and diluted weighted average shares outstanding (b) 6,213,275 6,213,275 Basic and diluted earnings per common share $ 0.50 $ 0.36 Three Months ended June 30 , 201 9 201 8 (Unaudited) (Unaudited) Net interest income $ 6,705 $ 5,337 Net income (a) $ 1,565 $ 1,096 Basic and diluted weighted average shares outstanding (b) 6,213,275 6,213,275 Basic and diluted earnings per common share $ 0.25 $ 0.18 (a) Supplemental pro forma net income includes the impact of certain fair value adjustments. Supplemental pro forma net income does not (b) Weighted average shares outstanding includes the full effect of the common stock issued in connection with the Great State acquisition as of the earliest reporting date. |
Note 3 - Investment Securities
Note 3 - Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3 . 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 June 30, 2019 December 31, 2018 (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30 , 201 9 Available for sale: U.S. Government Agencies $ 245 $ 5 $ - $ 250 Mortgage-backed securities 23,988 56 (80 ) 23,964 Corporate securities 2,946 25 (85 ) 2,886 State and municipal securities 13,828 172 (4 ) 13,996 $ 41,007 $ 258 $ (169 ) $ 41,096 December 31, 201 8 Available for sale: U.S. Government Agencies $ 244 $ 1 $ - $ 245 Mortgage-backed securities 25,627 1 (865 ) 24,763 Corporate securities 2,970 - (181 ) 2,789 State and municipal securities 17,764 31 (164 ) 17,631 $ 46,605 $ 33 $ (1,210 ) $ 45,428 Restricted equity securities totaled $2.1 June 30, 2019 December 31, 2018, may 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 June 30, 2019 December 31, 2018. Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2019 Available for sale: Mortgage-backed securities $ - $ - $ 11,306 $ (80 ) $ 11,306 $ (80 ) Corporate securities - - 1,416 (85 ) 1,416 (85 ) State and municipal securities - - 2,131 (4 ) 2,131 (4 ) Total securities available for sale $ - $ - $ 14,853 $ (169 ) $ 14,853 $ (169 ) December 31, 2018 Available for sale: Mortgage-backed securities $ 450 $ (1 ) $ 24,227 $ (864 ) $ 24,677 $ (865 ) Corporate securities - - 2,789 (181 ) 2,789 (181 ) State and municipal securities 5,518 (19 ) 6,834 (145 ) 12,352 (164 ) Total securities available for sale $ 5,968 $ (20 ) $ 33,850 $ (1,190 ) $ 39,818 $ (1,210 ) At June 30, 2019, 17 1.13 not not none June 30, 2019. no not Proceeds from sales of investment securities available for sale were $3.95 $525 six three June 30, 2019 2018, $14 $4 six June 30, 2019 2018, $735 $50 six June 30, 2019 2018, six three June 30, 2019 2018 Six Months Ended June 30 Three Months Ended June 30 (dollars in thousands) 2019 2018 2019 2018 Realized gains $ 32 $ 9 $ 32 $ 9 Realized losses (36 ) (4 ) (22 ) - $ (4 ) $ 5 $ 10 $ 9 There were no may The scheduled maturities of securities available for sale at June 30, 2019, (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 929 $ 933 Due after one year through five years 11,595 11,695 Due after five years through ten years 16,103 16,111 Due after ten years 12,380 12,357 $ 41,007 $ 41,096 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 $13.3 $13.9 June 30, 2019 December 31, 2018, |
Note 4 - Loans Receivable
Note 4 - Loans Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 . Loans Receivable The major components of loans in the consolidated balance sheets at June 30, 2019 December 31, 2018 (dollars in thousands) 201 9 201 8 Construction & development $ 34,623 $ 33,449 Farmland 35,558 33,291 Residential 243,482 235,689 Commercial mortgage 177,846 176,192 Commercial & agricultural 39,132 37,491 Consumer & other 19,179 20,353 Total loans 549,820 536,465 Allowance for loan losses (3,818 ) (3,495 ) Loans, net of allowance for loan losses $ 546,002 $ 532,970 As of June 30, 2019 December 31, 2018, 1 4 |
Note 5 - Allowance for Loan Los
Note 5 - Allowance for Loan Losses and Impaired Loans | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Allowance for Credit Losses [Text Block] | Note 5 . 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 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 June 30, 2019 December 31, 2018: 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 June 30, 2019 Allowance for loan losses: Balance, March 31, 2019 $ 268 $ 407 $ 1,733 $ 697 $ 385 $ 128 $ 3,618 Charge-offs - - (20 ) - (19 ) (43 ) (82 ) Recoveries - - 1 - 2 3 6 Provision 17 133 16 155 (76 ) 31 276 Balance, June 30, 2019 $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 For the Three Months Ended June 30, 2018 Allowance for loan losses: Balance, March 31, 2018 $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 Charge-offs (8 ) - - (142 ) - (90 ) (240 ) Recoveries - - 9 - 2 4 15 Provision 17 17 (210 ) 152 14 101 91 Balance, June 30, 2018 $ 256 $ 339 $ 1,695 $ 619 $ 283 $ 89 $ 3,281 For the Six Months Ended June 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 246 $ 385 $ 1,807 $ 682 $ 281 $ 94 $ 3,495 Charge-offs - (14 ) (32 ) (41 ) (63 ) (95 ) (245 ) Recoveries - - 8 28 4 14 54 Provision 39 169 (53 ) 183 70 106 514 Balance, June 30, 2019 $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 For the Six Months Ended June 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Charge-offs (20 ) - (117 ) (142 ) - (109 ) (388 ) Recoveries - 34 19 - 4 14 71 Provision 37 (53 ) (82 ) 142 (3 ) 104 145 Balance, June 30, 2018 $ 256 $ 339 $ 1,695 $ 619 $ 283 $ 89 $ 3,281 June 30, 2019 Allowance for loan losses: Ending Balance $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 Ending balance: individually evaluated for impairment $ - $ 41 $ 6 $ - $ - $ - $ 47 Ending balance: collectively evaluated for impairment $ 285 $ 499 $ 1,724 $ 852 $ 292 $ 119 $ 3,771 Ending balance: purchased credit impaired loans $ - $ - $ - $ - $ - $ - $ - Loans outstanding: Ending Balance $ 34,623 $ 35,558 $ 243,482 $ 177,846 $ 39,132 $ 19,179 $ 549,820 Ending balance: individually evaluated for impairment $ - $ 4,267 $ 924 $ - $ - $ - $ 5,191 Ending balance: collectively evaluated for impairment $ 34,623 $ 31,291 $ 242,402 $ 177,519 $ 38,932 $ 19,179 $ 543,946 Ending balance: purchased credit impaired loans $ - $ - $ 156 $ 327 $ 200 $ - $ 683 Allowance for Loan Losses and Recorded Investment in Loans (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total December 31, 2018 Allowance for loan losses: Ending Balance $ 246 $ 385 $ 1,807 $ 682 $ 281 $ 94 $ 3,495 Ending balance: individually evaluated for impairment $ - $ 29 $ 12 $ - $ - $ - $ 41 Ending balance: collectively evaluated for impairment $ 246 $ 356 $ 1,795 $ 682 $ 281 $ 94 $ 3,454 Ending balance: purchased credit impaired loans $ - $ - $ - $ - $ - $ - $ - Loans outstanding: Ending Balance $ 33,449 $ 33,291 $ 235,689 $ 176,192 $ 37,491 $ 20,353 $ 536,465 Ending balance: individually evaluated for impairment $ - $ 4,552 $ 1,018 $ - $ - $ - $ 5,570 Ending balance: collectively evaluated for impairment $ 33,449 $ 28,739 $ 234,504 $ 175,845 $ 37,291 $ 20,353 $ 530,181 Ending balance: purchased credit impaired loans $ - $ - $ 167 $ 347 $ 200 $ - $ 714 As of June 30, 2019 December 31, 2018, no 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 not not one June 30, 2019 December 31, 2018, no The following table lists the loan grades utilized by the Bank and the corresponding total of outstanding loans in each category as of June 30, 2019 December 31, 2018: Credit Risk Profile by Internally Assigned Grades Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total June 30, 2019 Real Estate Secured: Construction & development $ 31,843 $ 1,988 $ 765 $ 27 $ 34,623 Farmland 23,670 4,756 885 6,247 35,558 Residential 221,695 18,878 1,232 1,677 243,482 Commercial mortgage 148,286 23,219 1,710 4,631 177,846 Non-Real Estate Secured: Commercial & agricultural 33,929 4,192 248 763 39,132 Consumer & other 18,826 349 - 4 19,179 Total $ 478,249 $ 53,382 $ 4,840 $ 13,349 $ 549,820 December 31, 2018 Real Estate Secured: Construction & development $ 31,237 $ 2,044 $ 147 $ 21 $ 33,449 Farmland 23,250 4,933 750 4,358 33,291 Residential 213,670 18,794 299 2,926 235,689 Commercial mortgage 148,179 23,468 1,212 3,333 176,192 Non-Real Estate Secured: Commercial & agricultural 33,537 2,908 70 976 37,491 Consumer & other 18,975 1,364 - 14 20,353 Total $ 468,848 $ 53,511 $ 2,478 $ 11,628 $ 536,465 Loans may may first The following table presents an age analysis of nonaccrual and past due loans by category as of June 30, 2019 December 31, 2018: 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 June 30, 201 9 Real Estate Secured: Construction & development $ 1 $ - $ 10 $ 11 $ 34,612 $ 34,623 $ - $ 10 Farmland 375 - 1,302 1,677 33,881 35,558 - 4,132 Residential 558 85 438 1,081 242,401 243,482 - 567 Commercial mortgage 100 - 442 542 177,304 177,846 - 442 Non-Real Estate Secured: Commercial & agricultural 26 - 245 271 38,861 39,132 - 249 Consumer & other 7 18 4 29 19,150 19,179 - 4 Total $ 1,067 $ 103 $ 2,441 $ 3,611 $ 546,209 $ 549,820 $ - $ 5,404 December 31, 2018 Real Estate Secured: Construction & development $ 29 $ - $ - $ 29 $ 33,420 $ 33,449 $ - $ - Farmland 71 100 989 1,160 32,131 33,291 - 3,914 Residential 762 145 241 1,148 234,541 235,689 - 653 Commercial mortgage - - 604 604 175,588 176,192 - 740 Non-Real Estate Secured: Commercial & agricultural 7 - 264 271 37,220 37,491 - 264 Consumer & other 12 18 8 38 20,315 20,353 - 8 Total $ 881 $ 263 $ 2,106 $ 3,250 $ 533,215 $ 536,465 $ - $ 5,579 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 not may third third may As of June 30, 2019 December 31, 2018, $9.8 $10.3 June 30, 2019 December 31, 2018, $2.7 $2.8 June 30, 2019 December 31, 2018, $3.0 $3.4 not $7.1 $7.3 June 30, 2019 December 31, 2018, The categories of non-accrual loans and impaired loans overlap, although they are not In 2015, $250,000 June 30, 2019 December 31, 2018, $4.6 $4.7 $238 $259 The following table is a summary of information related to impaired loans as of June 30, 2019 December 31, 2018: Impaired Loans Six months ended Three months ended (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 201 9 With no related allowance recorded: Construction & development $ - $ - $ - $ - $ - $ - $ - Farmland 3,022 3,022 - 3,087 9 3,022 5 Residential - - - - - - - Commercial mortgage - - - - - - - Commercial & agricultural - - - - - - - Consumer & other - - - - - - - Subtotal 3,022 3,022 - 3,087 9 3,022 5 With an allowance recorded: Construction & development 65 65 4 67 3 66 1 Farmland 1,553 1,553 51 1,565 36 1,560 17 Residential 4,892 5,042 219 5,123 135 4,909 63 Commercial mortgage 196 241 10 271 6 197 3 Commercial & agricultural 35 35 2 36 1 36 1 Consumer & other 4 4 - 4 - 4 - Subtotal 6,745 6,940 286 7,066 181 6,772 85 Totals: Construction & development 65 65 4 67 3 66 1 Farmland 4,575 4,575 51 4,652 45 4,582 22 Residential 4,892 5,042 219 5,123 135 4,909 63 Commercial mortgage 196 241 10 271 6 197 3 Commercial & agricultural 35 35 2 36 1 36 1 Consumer & other 4 4 - 4 - 4 - Total $ 9,767 $ 9,962 $ 286 $ 10,153 $ 190 $ 9,794 $ 90 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, 201 8 With no related allowance recorded: Construction & development $ - $ - $ - $ - $ - Farmland 3,284 3,284 - 3,523 23 Residential 85 85 - 448 13 Commercial mortgage - - - - - Commercial & agricultural - 24 - - - Consumer & other - - - - - Subtotal 3,369 3,393 - 3,971 36 With an allowance recorded: Construction & development 69 69 4 306 11 Farmland 1,539 1,539 38 1,568 86 Residential 5,005 5,162 241 5,348 266 Commercial mortgage 275 358 15 522 27 Commercial & agricultural 37 37 2 47 3 Consumer & other 4 4 - 4 - Subtotal 6,929 7,169 300 7,795 393 Totals: Construction & development 69 69 4 306 11 Farmland 4,823 4,823 38 5,091 109 Residential 5,090 5,247 241 5,796 279 Commercial mortgage 275 358 15 522 27 Commercial & agricultural 37 61 2 47 3 Consumer & other 4 4 - 4 - Total $ 10,298 $ 10,562 $ 300 $ 11,766 $ 429 1 Recorded investment is the loan balance, net of any charge-offs Troubled Debt Restructuring A TDR 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 The loan terms which have been modified or restructured due to a borrower’s financial difficulty, include but are not The following table sets forth information with respect to the Bank’s TDRs as of June 30, 2019 June 30, 2018: For the Six Months Ended June 30 , 201 9 (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland 1 38 38 - - - Residential 1 117 128 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 155 $ 166 - $ - $ - ( 1 30 During the six June 30, 2019, two one No twelve six June 30, 2019. For the Three Months Ended June 30 , 201 9 (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland 1 38 38 - - - Residential - - - - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 1 $ 38 $ 38 - $ - $ - ( 1 30 During the three June 30, 2019, one No twelve June 30, 2019. For the Six Months Ended June 30, 2018 (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 80 97 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 80 $ 97 - $ - $ - ( 1 30 During the six June 30, 2018, two No twelve six June 30, 2018. For the Three Months Ended June 30, 2018 (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 80 97 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 80 $ 97 - $ - $ - ( 1 30 During the three June 30, 2018, two No twelve June 30, 2018. Purchased Credit Impaired Loans During 2018, not June 30, 2019 December 31, 2018 (dollars in thousands) 2019 2018 Residential $ 156 $ 167 Commercial mortgage 327 347 Commercial & agricultural 200 200 Outstanding balance $ 683 $ 714 Carrying amount $ 683 $ 714 There was no There were no six June 30, 2019. December 31, 2018 not (dollars in thousands) 2018 Contractually required payments receivable of loans purchased during the year: Residential $ 233 Commercial mortgage 1,724 Commercial & agricultural 221 $ 2,178 Cash flows expected to be collected at acquisition $ 1,781 Fair value of acquired loans at acquisition $ 1,781 Income is not June 30, 2019 December 31, 2018 (dollars in thousands) 2019 2018 Loans at beginning of year $ 714 $ - Loans purchased during the year $ - $ 1,781 Loans at end of period $ 683 $ 714 |
Note 6 - Employee Benefit Plan
Note 6 - Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 6 . Employee Benefit Plan The Bank has a qualified noncontributory defined benefit pension plan that covers substantially all of its employees. Effective December 31, 2012, six three June 30, 2019 2018. Six Months Ended June 30, Three Months Ended June 30, (dollars in thousands) 2019 2018 2019 2018 Service cost $ - $ - $ - $ - Interest cost 92 86 46 43 Expected return on plan assets (276 ) (288 ) (138 ) (144 ) Amortization of prior service cost - - - - Recognized net loss due to settlement - - - - Recognized net actuarial (gain)/loss 20 16 10 8 Net periodic benefit cost $ (164 ) $ (186 ) $ (82 ) $ (93 ) It has been Company practice to contribute the maximum tax-deductible amount each year as determined by the plan administrator. As a result of prior year contributions exceeding the minimum requirements, a Prefunding Balance existed as of December 31, 2018 no 2019. not 2019. |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 7. Goodwill The change in goodwill during the six June 30, 2019 December 31, 2018 (dollars in thousands) June 3 0 , 2019 December 31, 2018 Beginning of year $ 3,198 $ - Acquired goodwill as result of Great State merger 59 3,198 Impairment - - End of the period $ 3,257 $ 3,198 Intangible Assets The following table presents the activity for the Company’s core deposit intangible assets, which are the only identifiable intangible assets subject to amortization. Core deposit intangibles at June 30, 2019 December 31, 2018 (dollars in thousands) June 3 0 , 2019 December 31, 2018 Balance at beginning of year, net $ 3,892 $ 2,045 Core deposit intangible as result of Great State merger - 2,425 Amortization expense (437 ) (578 ) Net book value $ 3,455 $ 3,892 Aggregate amortization expense was $437 $140 six June 30, 2019 2018, $218 $70 three June 30, 2019 2018, |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 8. 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 Financial Instruments with Off-Balance Sheet Risk The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, credit risk in excess of the amount recognized in the consolidated balance sheets. 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 sheet instruments. A summary of the Bank’s commitments at June 30, 2019 December 31, 2018 (dollars in thousands) June 3 0 , 2019 December 31, 2018 Commitments to extend credit $ 77,109 $ 76,977 Standby letters of credit 1,290 1,227 $ 78,399 $ 78,204 Commitments to extend credit are agreements to lend to a customer as long as there is no may not may Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third 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 4. not $5,000,000. |
Note 9 - Financial Instruments
Note 9 - Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Financial Instruments Disclosure [Text Block] | Note 9 . Financial Instruments The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not June 30, 2019 December 31, 2018. no 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, June 30, 2019 December 31, 2018 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) June 30, 201 9 Financial Instruments – Assets Net Loans $ 546,002 $ 535,187 $ - $ 534,983 $ 204 Financial Instruments – Liabilities Time Deposits 184,004 183,669 - 183,669 - December 31, 201 8 Financial Instruments – Assets Net Loans $ 532,970 $ 529,155 $ - $ 528,784 $ 371 Financial Instruments – Liabilities Time Deposits 180,143 176,188 - 176,188 - 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 Fair Value Hierarchy Under FASB ASC 820, three Level 1 Level 2 not Level 3 one not may 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 1 2 3 Loans The Company does not not one not June 30, 2019, 2. no 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. no 3. Assets Recorded at Fair Value on a Recurring Basis (dollars in thousands) Total Level 1 Level 2 Level 3 June 3 0 , 2019 Investment securities available for sale U.S. Government Agencies $ 250 $ - $ 250 $ - Mortgage-backed securities 23,964 - 23,964 - Corporate securities 2,886 - 2,886 - State and municipal securities 13,996 - 13,996 - Total assets at fair value $ 41,096 $ - $ 41,096 $ - December 31, 201 8 Investment securities available for sale U.S. Government Agencies $ 245 $ - $ 245 $ - Mortgage-backed securities 24,763 - 24,763 - Corporate securities 2,789 - 2,789 - State and municipal securities 17,631 - 17,631 - Total assets at fair value $ 45,428 $ - $ 45,428 $ - No June 30, 2019 December 31, 2018. no six three June 30, 2019 December 31, 2018. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may No June 30, 2019 December 31, 2018. (dollars in thousands) Total Level 1 Level 2 Level 3 June 30 , 201 9 Impaired loans $ 204 $ - $ - $ 204 Foreclosed assets - - - - Total assets at fair value $ 204 $ - $ - $ 204 (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 201 8 Impaired loans $ 371 $ - $ - $ 371 Foreclosed assets 753 - - 753 Total assets at fair value $ 1,124 $ - $ - $ 1,124 Assets Recorded at Fair Value on a Nonrecurring Basis For Level 3 June 30, 2019 December 31, 2018, Fair Value at June 30, 2019 Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 204 $ 371 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 $ - $ 753 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10% |
Note 10 - Capital Requirements
Note 10 - Capital Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 10 . 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, and is not June 30, 2019 December 31, 2018, January 1, 2015. Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio June 30, 20 1 9 Total Capital (to risk weighted assets) $ 75,061 13.53 % $ 44,398 8.00 % $ 55,497 10.00 % Tier 1 Capital (to risk weighted assets) $ 71,213 12.83 % $ 33,298 6.00 % $ 44,398 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 71,213 12.83 % $ 24,974 4.50 % $ 36,073 6.50 % Tier 1 Capital (to average total assets) $ 71,213 10.65 % $ 26,753 4.00 % $ 33,442 5.00 % December 31, 201 8 Total Capital (to risk weighted assets) $ 71,424 13.00 % $ 43,943 8.00 % $ 54,929 10.00 % Tier 1 Capital (to risk weighted assets) $ 67,899 12.36 % $ 32,958 6.00 % $ 43,943 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 67,899 12.36 % $ 24,718 4.50 % $ 35,704 6.50 % Tier 1 Capital (to average total assets) $ 67,899 10.08 % $ 26,932 4.00 % $ 33,664 5.00 % |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 1 1 . 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 subsequent events are events that provide evidence about conditions that did not no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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. |
Consolidation, Policy [Policy Text Block] | 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. |
Segment Reporting, Policy [Policy Text Block] | 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 Policy [Policy Text Block] | 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 one one not No |
Use of Estimates, Policy [Policy Text Block] | 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 may may 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 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 |
Cash and Cash Equivalents, Policy [Policy Text Block] | 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. |
Marketable Securities, Trading Securities [Policy Text Block] | Trading Securities The Company does not not |
Marketable Securities, Held-to-maturity Securities [Policy Text Block] | 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 |
Marketable Securities, Available-for-sale Securities [Policy Text Block] | Securities Available for Sale Available for sale securities are reported at fair value and consist of bonds, notes, debentures, and certain equity securities not 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. |
Policy Loans Receivable, Policy [Policy Text Block] | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal amount adjusted for any charge-offs and the allowance for loan losses. Loan origination costs are capitalized and recognized as an adjustment to yield over the life of the related loan. 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 first Purchased Performing Loans – no Purchased Credit-Impaired (“PCI”) Loans not may not |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | 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 The allowance consists of specific, general and unallocated components. The specific component is calculated on an individual basis for larger-balance, non-homogeneous loans, which are considered impaired. A specific allowance is established when the discounted cash flows, collateral value (less disposal costs), or observable market price of the impaired loan is lower than its carrying value. The specific component of the allowance for smaller- balance loans whose terms have been modified in a troubled debt restructuring (“TDR”) is calculated on a pooled basis considering historical experience adjusted for qualitative factors. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. 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 Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Bank does not |
Troubled Debt Restructuring [Policy Text Block] | 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 not not |
Property, Plant and Equipment, Policy [Policy Text Block] | 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 |
Financing Receivable, Held-for-investment, Foreclosed Asset [Policy Text Block] | 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 and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | Pension Plan Prior to the Cardinal merger, both the Bank 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 the Bank and Floyd plans were amended to freeze benefit accruals for all eligible employees prior to the effective date of the Cardinal merger. The Bank’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 |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block] | 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 2 3 not |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible A ssets Goodwill arises from business combinations and is generally determined as the excess of fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquire, over the fair value of the nets assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not July 1, 2019 Other intangible assets consist of core deposit intangibles that 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 seven |
Revenue [Policy Text Block] | Revenue Recognition On January 1, 2018, 2014 9, Revenue from Contracts with Customers (“ASU Topic 606” 2014 09 not 2014 09 not 2014 09 January 1, 2018 no not |
Income Tax, Policy [Policy Text Block] | Income Taxes Provision for income taxes is based on amounts reported in the statements of income (after exclusion of non-taxable income such as interest on state and municipal securities) and consists of taxes currently due plus deferred taxes on temporary differences in the recognition of income and expense for tax and financial statement purposes. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. 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, not 50 not 50 not not not not |
Advertising Cost [Policy Text Block] | Advertising Expense The Company expenses advertising costs as they are incurred. Advertising expense for the years presented is not |
Earnings Per Share, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | 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 Defined Benefit Total Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (667 ) — (667 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (4 ) — (4 ) Balance June 30, 2018 $ (1,194 ) $ (987 ) $ (2,181 ) Balance, December 31, 2018 $ (929 ) $ (1,038 ) $ (1,967 ) Other comprehensive gain before reclassifications 997 — 997 Amounts reclassified from accumulated other comprehensive gain, net of tax 3 — 3 Balance June 30, 2019 $ 71 $ (1,038 ) $ (967 ) |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Off-Balance Sheet Credit Related Financial Instruments 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, Policy [Policy Text Block] | 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 9. |
Reclassification, Policy [Policy Text Block] | 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 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements The following accounting standards may In February 2016, December 15, 2018, Effective January 1, 2019, December 31, 2018 $334 not In June 2016, December 15, 2019. 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 was permitted beginning in first 2019, not July 2019, No. 2016 13 December 31, 2022, In January 2017, 11.M, not In January 2017, not 2 not December 15, 2019 . January 1, 2017. not In March 2017, December 15, 2018. not In February 2018, 2016 01. December 15, 2017, June 15, 2018. may December 15, 2017, 2016 01. not In March 2018, not In March 2018, not In May 2018, 202. not In July 2018, December 15, 2018. not In July 2018, December 15, 2018. not In August 2018, Conceptual Framework for Financial Reporting—Chapter 8: December 15, 2019. not In August 2018, December 15, 2019. not In December 2018, may December 15, 2018. not In March 2019, December 15, 2019 . not In April 2019, December 15, 2019. December 15, 2019, December 15, 2020. December 15, 2019, not In May 2019, 2016 13, December 15, 2019. not Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not |
Note 1 - Organization and Sum_2
Note 1 - Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Years Buildings and improvements 10-40 Furniture and equipment 5-12 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (dollars in thousands) Unrealized Gains And (Losses) On Available for Sale Securities Defined Benefit Pension Items Total Balance, December 31, 2017 $ (523 ) $ (987 ) $ (1,510 ) Other comprehensive loss before reclassifications (667 ) — (667 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (4 ) — (4 ) Balance June 30, 2018 $ (1,194 ) $ (987 ) $ (2,181 ) Balance, December 31, 2018 $ (929 ) $ (1,038 ) $ (1,967 ) Other comprehensive gain before reclassifications 997 — 997 Amounts reclassified from accumulated other comprehensive gain, net of tax 3 — 3 Balance June 30, 2019 $ 71 $ (1,038 ) $ (967 ) |
Note 2 - Business Combinations
Note 2 - Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (dollars in thousands) As Reported by Great Statee Fair Value Adjustments As Reported by Parkway Assets Cash and cash equivalents $ 25,761 $ - - $ 25,761 Investment securities 19,630 (229 ) (a) 19,401 Restricted equity securities 523 - - 523 Loans 97,549 (2,441 ) (b) 95,108 Allowance for loan losses (1,436 ) 1,436 (c) - Property and equipment 1,207 189 (d) 1,396 Intangible assets - 2,425 (e) 2,425 Accrued interest receivable 334 - - 334 Other assets 599 (151 ) (f) 448 Total assets acquired $ 144,167 $ 1,229 $ 145,396 Liabilities Deposits $ 129,611 $ 940 (g) $ 130,551 Borrowings 2,000 - - 2,000 Accrued interest payable 40 - - 40 Other liabilities 352 17 (h) 369 Total liabilities acquired $ 132,003 $ 957 $ 132,960 Net assets acquired 12,436 Elimination of Company’s existing investment in Great State 198 Stock consideration 15,495 Goodwill $ 3,257 |
Business Acquisition, Pro Forma Information [Table Text Block] | Six Months ended June 30, 2019 2018 (Unaudited) (Unaudited) Net interest income $ 13,503 $ 10,619 Net income (a) $ 3,111 $ 2,264 Basic and diluted weighted average shares outstanding (b) 6,213,275 6,213,275 Basic and diluted earnings per common share $ 0.50 $ 0.36 Three Months ended June 30 , 201 9 201 8 (Unaudited) (Unaudited) Net interest income $ 6,705 $ 5,337 Net income (a) $ 1,565 $ 1,096 Basic and diluted weighted average shares outstanding (b) 6,213,275 6,213,275 Basic and diluted earnings per common share $ 0.25 $ 0.18 |
Note 3 - Investment Securities
Note 3 - Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | (dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30 , 201 9 Available for sale: U.S. Government Agencies $ 245 $ 5 $ - $ 250 Mortgage-backed securities 23,988 56 (80 ) 23,964 Corporate securities 2,946 25 (85 ) 2,886 State and municipal securities 13,828 172 (4 ) 13,996 $ 41,007 $ 258 $ (169 ) $ 41,096 December 31, 201 8 Available for sale: U.S. Government Agencies $ 244 $ 1 $ - $ 245 Mortgage-backed securities 25,627 1 (865 ) 24,763 Corporate securities 2,970 - (181 ) 2,789 State and municipal securities 17,764 31 (164 ) 17,631 $ 46,605 $ 33 $ (1,210 ) $ 45,428 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Less Than 12 Months 12 Months or More Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2019 Available for sale: Mortgage-backed securities $ - $ - $ 11,306 $ (80 ) $ 11,306 $ (80 ) Corporate securities - - 1,416 (85 ) 1,416 (85 ) State and municipal securities - - 2,131 (4 ) 2,131 (4 ) Total securities available for sale $ - $ - $ 14,853 $ (169 ) $ 14,853 $ (169 ) December 31, 2018 Available for sale: Mortgage-backed securities $ 450 $ (1 ) $ 24,227 $ (864 ) $ 24,677 $ (865 ) Corporate securities - - 2,789 (181 ) 2,789 (181 ) State and municipal securities 5,518 (19 ) 6,834 (145 ) 12,352 (164 ) Total securities available for sale $ 5,968 $ (20 ) $ 33,850 $ (1,190 ) $ 39,818 $ (1,210 ) |
Schedule of Realized Gain (Loss) [Table Text Block] | Six Months Ended June 30 Three Months Ended June 30 (dollars in thousands) 2019 2018 2019 2018 Realized gains $ 32 $ 9 $ 32 $ 9 Realized losses (36 ) (4 ) (22 ) - $ (4 ) $ 5 $ 10 $ 9 |
Investments Classified by Contractual Maturity Date [Table Text Block] | (dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 929 $ 933 Due after one year through five years 11,595 11,695 Due after five years through ten years 16,103 16,111 Due after ten years 12,380 12,357 $ 41,007 $ 41,096 |
Note 4 - Loans Receivable (Tabl
Note 4 - Loans Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (dollars in thousands) 201 9 201 8 Construction & development $ 34,623 $ 33,449 Farmland 35,558 33,291 Residential 243,482 235,689 Commercial mortgage 177,846 176,192 Commercial & agricultural 39,132 37,491 Consumer & other 19,179 20,353 Total loans 549,820 536,465 Allowance for loan losses (3,818 ) (3,495 ) Loans, net of allowance for loan losses $ 546,002 $ 532,970 |
Note 5 - Allowance for Loan L_2
Note 5 - Allowance for Loan Losses and Impaired Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total For the Three Months Ended June 30, 2019 Allowance for loan losses: Balance, March 31, 2019 $ 268 $ 407 $ 1,733 $ 697 $ 385 $ 128 $ 3,618 Charge-offs - - (20 ) - (19 ) (43 ) (82 ) Recoveries - - 1 - 2 3 6 Provision 17 133 16 155 (76 ) 31 276 Balance, June 30, 2019 $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 For the Three Months Ended June 30, 2018 Allowance for loan losses: Balance, March 31, 2018 $ 247 $ 322 $ 1,896 $ 609 $ 267 $ 74 $ 3,415 Charge-offs (8 ) - - (142 ) - (90 ) (240 ) Recoveries - - 9 - 2 4 15 Provision 17 17 (210 ) 152 14 101 91 Balance, June 30, 2018 $ 256 $ 339 $ 1,695 $ 619 $ 283 $ 89 $ 3,281 For the Six Months Ended June 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 246 $ 385 $ 1,807 $ 682 $ 281 $ 94 $ 3,495 Charge-offs - (14 ) (32 ) (41 ) (63 ) (95 ) (245 ) Recoveries - - 8 28 4 14 54 Provision 39 169 (53 ) 183 70 106 514 Balance, June 30, 2019 $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 For the Six Months Ended June 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 239 $ 358 $ 1,875 $ 619 $ 282 $ 80 $ 3,453 Charge-offs (20 ) - (117 ) (142 ) - (109 ) (388 ) Recoveries - 34 19 - 4 14 71 Provision 37 (53 ) (82 ) 142 (3 ) 104 145 Balance, June 30, 2018 $ 256 $ 339 $ 1,695 $ 619 $ 283 $ 89 $ 3,281 June 30, 2019 Allowance for loan losses: Ending Balance $ 285 $ 540 $ 1,730 $ 852 $ 292 $ 119 $ 3,818 Ending balance: individually evaluated for impairment $ - $ 41 $ 6 $ - $ - $ - $ 47 Ending balance: collectively evaluated for impairment $ 285 $ 499 $ 1,724 $ 852 $ 292 $ 119 $ 3,771 Ending balance: purchased credit impaired loans $ - $ - $ - $ - $ - $ - $ - Loans outstanding: Ending Balance $ 34,623 $ 35,558 $ 243,482 $ 177,846 $ 39,132 $ 19,179 $ 549,820 Ending balance: individually evaluated for impairment $ - $ 4,267 $ 924 $ - $ - $ - $ 5,191 Ending balance: collectively evaluated for impairment $ 34,623 $ 31,291 $ 242,402 $ 177,519 $ 38,932 $ 19,179 $ 543,946 Ending balance: purchased credit impaired loans $ - $ - $ 156 $ 327 $ 200 $ - $ 683 (dollars in thousands) Construction & Development Farmland Residential Commercial Mortgage Commercial & Agricultural Consumer & Other Total December 31, 2018 Allowance for loan losses: Ending Balance $ 246 $ 385 $ 1,807 $ 682 $ 281 $ 94 $ 3,495 Ending balance: individually evaluated for impairment $ - $ 29 $ 12 $ - $ - $ - $ 41 Ending balance: collectively evaluated for impairment $ 246 $ 356 $ 1,795 $ 682 $ 281 $ 94 $ 3,454 Ending balance: purchased credit impaired loans $ - $ - $ - $ - $ - $ - $ - Loans outstanding: Ending Balance $ 33,449 $ 33,291 $ 235,689 $ 176,192 $ 37,491 $ 20,353 $ 536,465 Ending balance: individually evaluated for impairment $ - $ 4,552 $ 1,018 $ - $ - $ - $ 5,570 Ending balance: collectively evaluated for impairment $ 33,449 $ 28,739 $ 234,504 $ 175,845 $ 37,291 $ 20,353 $ 530,181 Ending balance: purchased credit impaired loans $ - $ - $ 167 $ 347 $ 200 $ - $ 714 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Loan Grades (dollars in thousands) Pass Watch Special Mention Substandard Total June 30, 2019 Real Estate Secured: Construction & development $ 31,843 $ 1,988 $ 765 $ 27 $ 34,623 Farmland 23,670 4,756 885 6,247 35,558 Residential 221,695 18,878 1,232 1,677 243,482 Commercial mortgage 148,286 23,219 1,710 4,631 177,846 Non-Real Estate Secured: Commercial & agricultural 33,929 4,192 248 763 39,132 Consumer & other 18,826 349 - 4 19,179 Total $ 478,249 $ 53,382 $ 4,840 $ 13,349 $ 549,820 December 31, 2018 Real Estate Secured: Construction & development $ 31,237 $ 2,044 $ 147 $ 21 $ 33,449 Farmland 23,250 4,933 750 4,358 33,291 Residential 213,670 18,794 299 2,926 235,689 Commercial mortgage 148,179 23,468 1,212 3,333 176,192 Non-Real Estate Secured: Commercial & agricultural 33,537 2,908 70 976 37,491 Consumer & other 18,975 1,364 - 14 20,353 Total $ 468,848 $ 53,511 $ 2,478 $ 11,628 $ 536,465 |
Financing Receivable, Past Due [Table Text Block] | (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 June 30, 201 9 Real Estate Secured: Construction & development $ 1 $ - $ 10 $ 11 $ 34,612 $ 34,623 $ - $ 10 Farmland 375 - 1,302 1,677 33,881 35,558 - 4,132 Residential 558 85 438 1,081 242,401 243,482 - 567 Commercial mortgage 100 - 442 542 177,304 177,846 - 442 Non-Real Estate Secured: Commercial & agricultural 26 - 245 271 38,861 39,132 - 249 Consumer & other 7 18 4 29 19,150 19,179 - 4 Total $ 1,067 $ 103 $ 2,441 $ 3,611 $ 546,209 $ 549,820 $ - $ 5,404 December 31, 2018 Real Estate Secured: Construction & development $ 29 $ - $ - $ 29 $ 33,420 $ 33,449 $ - $ - Farmland 71 100 989 1,160 32,131 33,291 - 3,914 Residential 762 145 241 1,148 234,541 235,689 - 653 Commercial mortgage - - 604 604 175,588 176,192 - 740 Non-Real Estate Secured: Commercial & agricultural 7 - 264 271 37,220 37,491 - 264 Consumer & other 12 18 8 38 20,315 20,353 - 8 Total $ 881 $ 263 $ 2,106 $ 3,250 $ 533,215 $ 536,465 $ - $ 5,579 |
Impaired Financing Receivables [Table Text Block] | Six months ended Three months ended (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 201 9 With no related allowance recorded: Construction & development $ - $ - $ - $ - $ - $ - $ - Farmland 3,022 3,022 - 3,087 9 3,022 5 Residential - - - - - - - Commercial mortgage - - - - - - - Commercial & agricultural - - - - - - - Consumer & other - - - - - - - Subtotal 3,022 3,022 - 3,087 9 3,022 5 With an allowance recorded: Construction & development 65 65 4 67 3 66 1 Farmland 1,553 1,553 51 1,565 36 1,560 17 Residential 4,892 5,042 219 5,123 135 4,909 63 Commercial mortgage 196 241 10 271 6 197 3 Commercial & agricultural 35 35 2 36 1 36 1 Consumer & other 4 4 - 4 - 4 - Subtotal 6,745 6,940 286 7,066 181 6,772 85 Totals: Construction & development 65 65 4 67 3 66 1 Farmland 4,575 4,575 51 4,652 45 4,582 22 Residential 4,892 5,042 219 5,123 135 4,909 63 Commercial mortgage 196 241 10 271 6 197 3 Commercial & agricultural 35 35 2 36 1 36 1 Consumer & other 4 4 - 4 - 4 - Total $ 9,767 $ 9,962 $ 286 $ 10,153 $ 190 $ 9,794 $ 90 (dollars in thousands) Recorded Investment 1 Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 201 8 With no related allowance recorded: Construction & development $ - $ - $ - $ - $ - Farmland 3,284 3,284 - 3,523 23 Residential 85 85 - 448 13 Commercial mortgage - - - - - Commercial & agricultural - 24 - - - Consumer & other - - - - - Subtotal 3,369 3,393 - 3,971 36 With an allowance recorded: Construction & development 69 69 4 306 11 Farmland 1,539 1,539 38 1,568 86 Residential 5,005 5,162 241 5,348 266 Commercial mortgage 275 358 15 522 27 Commercial & agricultural 37 37 2 47 3 Consumer & other 4 4 - 4 - Subtotal 6,929 7,169 300 7,795 393 Totals: Construction & development 69 69 4 306 11 Farmland 4,823 4,823 38 5,091 109 Residential 5,090 5,247 241 5,796 279 Commercial mortgage 275 358 15 522 27 Commercial & agricultural 37 61 2 47 3 Consumer & other 4 4 - 4 - Total $ 10,298 $ 10,562 $ 300 $ 11,766 $ 429 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland 1 38 38 - - - Residential 1 117 128 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 155 $ 166 - $ - $ - (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland 1 38 38 - - - Residential - - - - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 1 $ 38 $ 38 - $ - $ - (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 80 97 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 80 $ 97 - $ - $ - (dollars in thousands) TDRs identified during the period TDRs identified in the last twelve months that subsequently defaulte d (1) 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 Construction & development - $ - $ - - $ - $ - Farmland - - - - - - Residential 2 80 97 - - - Commercial mortgage - - - - - - Commercial & agricultural - - - - - - Consumer & other - - - - - - Total 2 $ 80 $ 97 - $ - $ - |
Schedule of Business Acquisition, Carrying Amount of Acquired Loans [Table Text Block] | (dollars in thousands) 2019 2018 Residential $ 156 $ 167 Commercial mortgage 327 347 Commercial & agricultural 200 200 Outstanding balance $ 683 $ 714 Carrying amount $ 683 $ 714 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | (dollars in thousands) 2018 Contractually required payments receivable of loans purchased during the year: Residential $ 233 Commercial mortgage 1,724 Commercial & agricultural 221 $ 2,178 Cash flows expected to be collected at acquisition $ 1,781 Fair value of acquired loans at acquisition $ 1,781 |
Carrying Amount of Purchased Credit Impaired Loans [Table Text Block] | (dollars in thousands) 2019 2018 Loans at beginning of year $ 714 $ - Loans purchased during the year $ - $ 1,781 Loans at end of period $ 683 $ 714 |
Note 6 - Employee Benefit Plan
Note 6 - Employee Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Six Months Ended June 30, Three Months Ended June 30, (dollars in thousands) 2019 2018 2019 2018 Service cost $ - $ - $ - $ - Interest cost 92 86 46 43 Expected return on plan assets (276 ) (288 ) (138 ) (144 ) Amortization of prior service cost - - - - Recognized net loss due to settlement - - - - Recognized net actuarial (gain)/loss 20 16 10 8 Net periodic benefit cost $ (164 ) $ (186 ) $ (82 ) $ (93 ) |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | (dollars in thousands) June 3 0 , 2019 December 31, 2018 Beginning of year $ 3,198 $ - Acquired goodwill as result of Great State merger 59 3,198 Impairment - - End of the period $ 3,257 $ 3,198 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | (dollars in thousands) June 3 0 , 2019 December 31, 2018 Balance at beginning of year, net $ 3,892 $ 2,045 Core deposit intangible as result of Great State merger - 2,425 Amortization expense (437 ) (578 ) Net book value $ 3,455 $ 3,892 |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | (dollars in thousands) June 3 0 , 2019 December 31, 2018 Commitments to extend credit $ 77,109 $ 76,977 Standby letters of credit 1,290 1,227 $ 78,399 $ 78,204 |
Note 9 - Financial Instruments
Note 9 - Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | 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) June 30, 201 9 Financial Instruments – Assets Net Loans $ 546,002 $ 535,187 $ - $ 534,983 $ 204 Financial Instruments – Liabilities Time Deposits 184,004 183,669 - 183,669 - December 31, 201 8 Financial Instruments – Assets Net Loans $ 532,970 $ 529,155 $ - $ 528,784 $ 371 Financial Instruments – Liabilities Time Deposits 180,143 176,188 - 176,188 - |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (dollars in thousands) Total Level 1 Level 2 Level 3 June 3 0 , 2019 Investment securities available for sale U.S. Government Agencies $ 250 $ - $ 250 $ - Mortgage-backed securities 23,964 - 23,964 - Corporate securities 2,886 - 2,886 - State and municipal securities 13,996 - 13,996 - Total assets at fair value $ 41,096 $ - $ 41,096 $ - December 31, 201 8 Investment securities available for sale U.S. Government Agencies $ 245 $ - $ 245 $ - Mortgage-backed securities 24,763 - 24,763 - Corporate securities 2,789 - 2,789 - State and municipal securities 17,631 - 17,631 - Total assets at fair value $ 45,428 $ - $ 45,428 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | (dollars in thousands) Total Level 1 Level 2 Level 3 June 30 , 201 9 Impaired loans $ 204 $ - $ - $ 204 Foreclosed assets - - - - Total assets at fair value $ 204 $ - $ - $ 204 (dollars in thousands) Total Level 1 Level 2 Level 3 December 31, 201 8 Impaired loans $ 371 $ - $ - $ 371 Foreclosed assets 753 - - 753 Total assets at fair value $ 1,124 $ - $ - $ 1,124 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Fair Value at June 30, 2019 Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 204 $ 371 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 $ - $ 753 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 10% |
Note 10 - Capital Requirements
Note 10 - Capital Requirements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual For Capital Adequacy Purposes To Be Well- Capitalized Amount Ratio Amount Ratio Amount Ratio June 30, 20 1 9 Total Capital (to risk weighted assets) $ 75,061 13.53 % $ 44,398 8.00 % $ 55,497 10.00 % Tier 1 Capital (to risk weighted assets) $ 71,213 12.83 % $ 33,298 6.00 % $ 44,398 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 71,213 12.83 % $ 24,974 4.50 % $ 36,073 6.50 % Tier 1 Capital (to average total assets) $ 71,213 10.65 % $ 26,753 4.00 % $ 33,442 5.00 % December 31, 201 8 Total Capital (to risk weighted assets) $ 71,424 13.00 % $ 43,943 8.00 % $ 54,929 10.00 % Tier 1 Capital (to risk weighted assets) $ 67,899 12.36 % $ 32,958 6.00 % $ 43,943 8.00 % Common Equity Tier 1 (to risk weighted assets) $ 67,899 12.36 % $ 24,718 4.50 % $ 35,704 6.50 % Tier 1 Capital (to average total assets) $ 67,899 10.08 % $ 26,932 4.00 % $ 33,664 5.00 % |
Note 1 - Organization and Sum_3
Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Jul. 01, 2018USD ($)shares | Jul. 01, 2016 | Jun. 30, 2019 | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Total | $ 334 | |||
Core Deposits [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Grayson Bankshares, Inc [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.76 | |||
Grayson Bankshares, Inc [Member] | Parkway Acquisition Corp. [Member] | ||||
Ownership Percentage in Newly Issued Shares | 60.00% | |||
Cardinal Bankshares Corporation [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.3 | |||
Cardinal Bankshares Corporation [Member] | Parkway Acquisition Corp. [Member] | ||||
Ownership Percentage in Newly Issued Shares | 40.00% | |||
Great State Bank [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.21 | |||
Stock Issued During Period, Shares, Acquisitions | shares | 1,191,899 | |||
Stock Issued During Period, Value, Acquisitions | $ 15,500 |
Note 1 - Organization and Sum_4
Note 1 - Organization and Summary of Significant Accounting Policies - Property and Equipment Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 40 years |
Furniture and Equipment [Member] | Minimum [Member] | |
Property and equipment useful life (Year) | 5 years |
Furniture and Equipment [Member] | Maximum [Member] | |
Property and equipment useful life (Year) | 12 years |
Note 1 - Organization and Sum_5
Note 1 - Organization and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Balance | $ 75,622 | $ 57,182 |
Balance | 79,041 | 58,022 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | ||
Balance | (929) | (523) |
Other comprehensive loss before reclassifications | 997 | (667) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 3 | (4) |
Balance | 71 | (1,194) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Balance | (1,038) | (987) |
Other comprehensive loss before reclassifications | ||
Amounts reclassified from accumulated other comprehensive loss, net of tax | ||
Balance | (1,038) | (987) |
AOCI Attributable to Parent [Member] | ||
Balance | (1,967) | (1,510) |
Other comprehensive loss before reclassifications | 997 | (667) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 3 | (4) |
Balance | $ (967) | $ (2,181) |
Note 2 - Business Combination_2
Note 2 - Business Combinations (Details Textual) $ in Thousands | Jul. 01, 2018shares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Business Combination, Acquisition Related Costs | $ | $ 299 | $ 497 | |||
Great State Bank [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 1.21 | ||||
Stock Issued During Period, Shares, Acquisitions | shares | 1,191,899 |
Note 2 - Business Combination_3
Note 2 - Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | $ 3,257 | $ 3,198 | |||
Great State Bank [Member] | |||||
Cash and cash equivalents | $ 25,761 | ||||
Investment securities | 19,401 | ||||
Restricted equity securities | 523 | ||||
Loans | 95,108 | ||||
Allowance for loan losses | |||||
Property and equipment | [1] | 1,396 | |||
Intangible assets | 2,425 | ||||
Accrued interest receivable | 334 | ||||
Other assets | 448 | ||||
Total assets acquired | 145,396 | ||||
Deposits | 130,551 | ||||
Borrowings | 2,000 | ||||
Accrued interest payable | 40 | ||||
Other liabilities | 369 | ||||
Total liabilities acquired | 132,960 | ||||
Net assets acquired | 12,436 | ||||
Elimination of Company’s existing investment in Great State | 198 | ||||
Stock consideration | 15,495 | ||||
Goodwill | 3,257 | ||||
Great State Bank [Member] | Reported Value by Acquiree [Member] | |||||
Cash and cash equivalents | 25,761 | ||||
Investment securities | 19,630 | ||||
Restricted equity securities | 523 | ||||
Loans | 97,549 | ||||
Allowance for loan losses | (1,436) | ||||
Property and equipment | [1] | 1,207 | |||
Intangible assets | |||||
Accrued interest receivable | 334 | ||||
Other assets | 599 | ||||
Total assets acquired | 144,167 | ||||
Deposits | 129,611 | ||||
Borrowings | 2,000 | ||||
Accrued interest payable | 40 | ||||
Other liabilities | 352 | ||||
Total liabilities acquired | 132,003 | ||||
Great State Bank [Member] | Fair Value Adjustments [Member] | |||||
Cash and cash equivalents | |||||
Investment securities | [2] | (229) | |||
Restricted equity securities | |||||
Loans | [3] | (2,441) | |||
Allowance for loan losses | [4] | 1,436 | |||
Property and equipment | [1] | 189 | |||
Intangible assets | [5] | 2,425 | |||
Accrued interest receivable | |||||
Other assets | [6] | (151) | |||
Total assets acquired | 1,229 | ||||
Deposits | [7] | 940 | |||
Borrowings | |||||
Accrued interest payable | |||||
Other liabilities | [8] | 17 | |||
Total liabilities acquired | $ 957 | ||||
[1] | Estimated adjustment to Great State's real property based upon third-party appraisals and the Company's evaluation of equipment and other fixed assets. | ||||
[2] | Reflects the opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | ||||
[3] | Reflects the fair value adjustment based on the Company's third party valuation report. | ||||
[4] | Existing allowance for loan losses eliminated to reflect accounting guidance. | ||||
[5] | Reflects the recording of the estimated core deposit intangible based on the Company's third party valuation report. | ||||
[6] | Recording of deferred tax asset generated by the net fair value adjustments (tax rate = 21%). | ||||
[7] | Estimated fair value adjustment to time deposits based on the Company's third party valuation report on deposits assumed. | ||||
[8] | Reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. |
Note 2 - Business Combination_4
Note 2 - Business Combinations - Pro Forma Information (Details) - Great State Bank [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net interest income | $ 6,705 | $ 5,337 | $ 13,503 | $ 10,619 | |
Net income (a) | [1] | $ 1,565 | $ 1,096 | $ 3,111 | $ 2,264 |
Basic and diluted weighted average shares outstanding (b) (in shares) | [2] | 6,213,275 | 6,213,275 | 6,213,275 | 6,213,275 |
Basic and diluted earnings per common share (in dollars per share) | $ 0.25 | $ 0.18 | $ 0.50 | $ 0.36 | |
[1] | Supplemental pro forma net income includes the impact of certain fair value adjustments. Supplemental pro forma net income does not include assumptions on cost savings or the impact of merger-related expenses. | ||||
[2] | Weighted average shares outstanding includes the full effect of the common stock issued in connection with the Great State acquisition as of the earliest reporting date. |
Note 3 - Investment Securitie_2
Note 3 - Investment Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Restricted Investments | $ 2,054 | $ 2,054 | $ 2,053 | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 17 | 17 | |||
Percentage of Debt Securities with Unrealized Losses Depreciated | 1.13% | 1.13% | |||
Proceeds from Sale of Available-for-sale Securities, Equity | $ 525 | $ 525 | $ 3,950 | $ 3,950 | |
Available for Sale Securities Called, Gross Realized Losses | 14 | 4 | |||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale, Total | 735 | $ 50 | |||
Deposit Liabilities, Collateral Issued, Financial Instruments | $ 13,300 | $ 13,300 | $ 13,900 |
Note 3 - Investment Securitie_3
Note 3 - Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized cost | $ 41,007 | $ 46,605 |
Unrealized gains | 258 | 33 |
Unrealized losses | (169) | (1,210) |
Investment securities available for sale | 41,096 | 45,428 |
US Government Agencies Debt Securities [Member] | ||
Amortized cost | 245 | 244 |
Unrealized gains | 5 | 1 |
Unrealized losses | ||
Investment securities available for sale | 250 | 245 |
Collateralized Mortgage Backed Securities [Member] | ||
Amortized cost | 23,988 | 25,627 |
Unrealized gains | 56 | 1 |
Unrealized losses | (80) | (865) |
Investment securities available for sale | 23,964 | 24,763 |
Corporate Debt Securities [Member] | ||
Amortized cost | 2,946 | 2,970 |
Unrealized gains | 25 | |
Unrealized losses | (85) | (181) |
Investment securities available for sale | 2,886 | 2,789 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost | 13,828 | 17,764 |
Unrealized gains | 172 | 31 |
Unrealized losses | (4) | (164) |
Investment securities available for sale | $ 13,996 | $ 17,631 |
Note 3 - Investment Securitie_4
Note 3 - Investment Securities - Continuous Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Less than 12 months, fair value | $ 5,968 | |
Less than 12 months, unrealized losses | (20) | |
12 months or more, fair value | 14,853 | 33,850 |
12 months or more, unrealized losses | (169) | (1,190) |
Fair value | 14,853 | 39,818 |
Unrealized losses | (169) | (1,210) |
Collateralized Mortgage Backed Securities [Member] | ||
Less than 12 months, fair value | 450 | |
Less than 12 months, unrealized losses | (1) | |
12 months or more, fair value | 11,306 | 24,227 |
12 months or more, unrealized losses | (80) | (864) |
Fair value | 11,306 | 24,677 |
Unrealized losses | (80) | (865) |
Corporate Debt Securities [Member] | ||
Less than 12 months, fair value | ||
Less than 12 months, unrealized losses | ||
12 months or more, fair value | 1,416 | 2,789 |
12 months or more, unrealized losses | (85) | (181) |
Fair value | 1,416 | 2,789 |
Unrealized losses | (85) | (181) |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, fair value | 5,518 | |
Less than 12 months, unrealized losses | (19) | |
12 months or more, fair value | 2,131 | 6,834 |
12 months or more, unrealized losses | (4) | (145) |
Fair value | 2,131 | 12,352 |
Unrealized losses | $ (4) | $ (164) |
Note 3 - Investment Securitie_5
Note 3 - Investment Securities - Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized gains | $ 32 | $ 9 | $ 32 | $ 9 |
Realized losses | (22) | (36) | (4) | |
$ 10 | $ 9 | $ (4) | $ 5 |
Note 3 - Investment Securitie_6
Note 3 - Investment Securities - Maturities of Securities Available for Sale (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Due in one year or less, amortized cost | $ 929 |
Due in one year or less, fair value | 933 |
Due after one year through five years, amortized cost | 11,595 |
Due after one year through five years, fair value | 11,695 |
Due after five years through ten years, amortized cost | 16,103 |
Due after five years through ten years, fair value | 16,111 |
Due after ten years, amortized cost | 12,380 |
Due after ten years, fair value | 12,357 |
Amortized cost | 41,007 |
Fair value | $ 41,096 |
Note 4 - Loans Receivable - Com
Note 4 - Loans Receivable - Components of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans receivable | $ 549,820 | $ 536,465 | ||||
Allowance for loan losses | (3,818) | $ (3,618) | (3,495) | $ (3,281) | $ (3,415) | $ (3,453) |
Loans, net of allowance for loan losses | 546,002 | 532,970 | ||||
Construction and Development Loan [Member] | ||||||
Loans receivable | 34,623 | 33,449 | ||||
Allowance for loan losses | (285) | (268) | (246) | (256) | (247) | (239) |
Farmland Loan [Member] | ||||||
Loans receivable | 35,558 | 33,291 | ||||
Allowance for loan losses | (540) | (407) | (385) | (339) | (322) | (358) |
Residential Loan [Member] | ||||||
Loans receivable | 243,482 | 235,689 | ||||
Allowance for loan losses | (1,730) | (1,733) | (1,807) | (1,695) | (1,896) | (1,875) |
Commercial Mortgage Loan [Member] | ||||||
Loans receivable | 177,846 | 176,192 | ||||
Allowance for loan losses | (852) | (697) | (682) | (619) | (609) | (619) |
Commercial and Agricultural Loan [Member] | ||||||
Loans receivable | 39,132 | 37,491 | ||||
Allowance for loan losses | (292) | (385) | (281) | (283) | (267) | (282) |
Consumer and Other Loan [Member] | ||||||
Loans receivable | 19,179 | 20,353 | ||||
Allowance for loan losses | $ (119) | $ (128) | $ (94) | $ (89) | $ (74) | $ (80) |
Note 5 - Allowance for Loan L_3
Note 5 - Allowance for Loan Losses and Impaired Loans (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018 | Jun. 30, 2019USD ($) | Jun. 30, 2018 | Dec. 31, 2018USD ($) | |
Loans and Leases Receivable, Gross, Total | $ 549,820 | $ 549,820 | $ 536,465 | ||
Impaired Financing Receivable, Recorded Investment, Total | 9,767 | 9,767 | 10,298 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,022 | 3,022 | 3,369 | ||
Financing Receivable, Troubled Debt Restructuring | 7,100 | 7,100 | 7,300 | ||
Financing Receivable, Troubled Debt Restructuring, Collectively Evaluated for impairment | 4,600 | 4,600 | 4,700 | ||
Financing Receivable, Troubled Debt Restructuring, Related Allowance | $ 238 | $ 238 | 259 | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 2 | 2 | 2 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | 0 | 0 | 0 | 0 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Ending Balance | $ 0 | $ 0 | |||
Purchase Credit Impaired Loans | 0 | ||||
Collateral Pledged [Member] | |||||
Impaired Financing Receivable, Recorded Investment, Total | 2,700 | 2,700 | 2,800 | ||
Doubtful [Member] | |||||
Loans and Leases Receivable, Gross, Total | 0 | 0 | 0 | ||
Unlikely to be Collected Financing Receivable [Member] | |||||
Loans and Leases Receivable, Gross, Total | $ 0 | $ 0 | $ 0 |
Note 5 - Allowance for Loan L_4
Note 5 - Allowance for Loan Losses and Impaired Loans - Allowance for Loan Losses and Recorded Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Balance | $ 3,618 | $ 3,415 | $ 3,495 | $ 3,453 | ||
Charge-offs | (82) | (240) | (245) | (388) | ||
Recoveries | 6 | 15 | 54 | 71 | ||
Provision | 276 | 91 | 514 | 145 | ||
Balance | 3,818 | 3,281 | 3,818 | 3,281 | ||
Ending balance: individually evaluated for impairment | $ 47 | $ 41 | ||||
Ending balance: collectively evaluated for impairment | 3,771 | 3,454 | ||||
Ending balance: purchased credit impaired loans | 3,818 | 3,415 | 3,818 | 3,281 | 3,818 | 3,495 |
Ending Balance | 549,820 | 536,465 | ||||
Ending balance: individually evaluated for impairment | 5,191 | 5,570 | ||||
Ending balance: collectively evaluated for impairment | 543,946 | 530,181 | ||||
Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | 683 | 714 | ||||
Construction and Development Loan [Member] | ||||||
Balance | 268 | 247 | 246 | 239 | ||
Charge-offs | (8) | (20) | ||||
Recoveries | ||||||
Provision | 17 | 17 | 39 | 37 | ||
Balance | 285 | 256 | 285 | 256 | ||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 285 | 246 | ||||
Ending balance: purchased credit impaired loans | 268 | 247 | 285 | 256 | 285 | 246 |
Ending Balance | 34,623 | 33,449 | ||||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 34,623 | 33,449 | ||||
Construction and Development Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | ||||||
Farmland Loan [Member] | ||||||
Balance | 407 | 322 | 385 | 358 | ||
Charge-offs | (14) | |||||
Recoveries | 34 | |||||
Provision | 133 | 17 | 169 | (53) | ||
Balance | 540 | 339 | 540 | 339 | ||
Ending balance: individually evaluated for impairment | 41 | 29 | ||||
Ending balance: collectively evaluated for impairment | 499 | 356 | ||||
Ending balance: purchased credit impaired loans | 407 | 322 | 540 | 339 | 540 | 385 |
Ending Balance | 35,558 | 33,291 | ||||
Ending balance: individually evaluated for impairment | 4,267 | 4,552 | ||||
Ending balance: collectively evaluated for impairment | 31,291 | 28,739 | ||||
Farmland Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | ||||||
Residential Loan [Member] | ||||||
Balance | 1,733 | 1,896 | 1,807 | 1,875 | ||
Charge-offs | (20) | (32) | (117) | |||
Recoveries | 1 | 9 | 8 | 19 | ||
Provision | 16 | (210) | (53) | (82) | ||
Balance | 1,730 | 1,695 | 1,730 | 1,695 | ||
Ending balance: individually evaluated for impairment | 6 | 12 | ||||
Ending balance: collectively evaluated for impairment | 1,724 | 1,795 | ||||
Ending balance: purchased credit impaired loans | 1,733 | 1,896 | 1,730 | 1,695 | 1,730 | 1,807 |
Ending Balance | 243,482 | 235,689 | ||||
Ending balance: individually evaluated for impairment | 924 | 1,018 | ||||
Ending balance: collectively evaluated for impairment | 242,402 | 234,504 | ||||
Residential Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | 156 | 167 | ||||
Commercial Mortgage Loan [Member] | ||||||
Balance | 697 | 609 | 682 | 619 | ||
Charge-offs | (142) | (41) | (142) | |||
Recoveries | 28 | |||||
Provision | 155 | 152 | 183 | 142 | ||
Balance | 852 | 619 | 852 | 619 | ||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 852 | 682 | ||||
Ending balance: purchased credit impaired loans | 697 | 609 | 852 | 619 | 852 | 682 |
Ending Balance | 177,846 | 176,192 | ||||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 177,519 | 175,845 | ||||
Commercial Mortgage Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | 327 | 347 | ||||
Commercial and Agricultural Loan [Member] | ||||||
Balance | 385 | 267 | 281 | 282 | ||
Charge-offs | (19) | (63) | ||||
Recoveries | 2 | 2 | 4 | 4 | ||
Provision | (76) | 14 | 70 | (3) | ||
Balance | 292 | 283 | 292 | 283 | ||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 292 | 281 | ||||
Ending balance: purchased credit impaired loans | 385 | 267 | 292 | 283 | 292 | 281 |
Ending Balance | 39,132 | 37,491 | ||||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 38,932 | 37,291 | ||||
Commercial and Agricultural Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance | 200 | 200 | ||||
Consumer and Other Loan [Member] | ||||||
Balance | 128 | 74 | 94 | 80 | ||
Charge-offs | (43) | (90) | (95) | (109) | ||
Recoveries | 3 | 4 | 14 | 14 | ||
Provision | 31 | 101 | 106 | 104 | ||
Balance | 119 | 89 | 119 | 89 | ||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 119 | 94 | ||||
Ending balance: purchased credit impaired loans | 128 | $ 74 | 119 | $ 89 | 119 | 94 |
Ending Balance | 19,179 | 20,353 | ||||
Ending balance: individually evaluated for impairment | ||||||
Ending balance: collectively evaluated for impairment | 19,179 | 20,353 | ||||
Consumer and Other Loan [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||||
Balance | ||||||
Balance | ||||||
Ending balance: purchased credit impaired loans | ||||||
Ending Balance |
Note 5 - Allowance for Loan L_5
Note 5 - Allowance for Loan Losses and Impaired Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans receivable | $ 549,820 | $ 536,465 |
Construction and Development Loan [Member] | ||
Loans receivable | 34,623 | 33,449 |
Farmland Loan [Member] | ||
Loans receivable | 35,558 | 33,291 |
Residential Loan [Member] | ||
Loans receivable | 243,482 | 235,689 |
Commercial Mortgage Loan [Member] | ||
Loans receivable | 177,846 | 176,192 |
Commercial and Agricultural Loan [Member] | ||
Loans receivable | 39,132 | 37,491 |
Consumer and Other Loan [Member] | ||
Loans receivable | 19,179 | 20,353 |
Pass [Member] | ||
Loans receivable | 478,249 | 468,848 |
Pass [Member] | Construction and Development Loan [Member] | ||
Loans receivable | 31,843 | 31,237 |
Pass [Member] | Farmland Loan [Member] | ||
Loans receivable | 23,670 | 23,250 |
Pass [Member] | Residential Loan [Member] | ||
Loans receivable | 221,695 | 213,670 |
Pass [Member] | Commercial Mortgage Loan [Member] | ||
Loans receivable | 148,286 | 148,179 |
Pass [Member] | Commercial and Agricultural Loan [Member] | ||
Loans receivable | 33,929 | 33,537 |
Pass [Member] | Consumer and Other Loan [Member] | ||
Loans receivable | 18,826 | 18,975 |
Watch [Member] | ||
Loans receivable | 53,382 | 53,511 |
Watch [Member] | Construction and Development Loan [Member] | ||
Loans receivable | 1,988 | 2,044 |
Watch [Member] | Farmland Loan [Member] | ||
Loans receivable | 4,756 | 4,933 |
Watch [Member] | Residential Loan [Member] | ||
Loans receivable | 18,878 | 18,794 |
Watch [Member] | Commercial Mortgage Loan [Member] | ||
Loans receivable | 23,219 | 23,468 |
Watch [Member] | Commercial and Agricultural Loan [Member] | ||
Loans receivable | 4,192 | 2,908 |
Watch [Member] | Consumer and Other Loan [Member] | ||
Loans receivable | 349 | 1,364 |
Special Mention [Member] | ||
Loans receivable | 4,840 | 2,478 |
Special Mention [Member] | Construction and Development Loan [Member] | ||
Loans receivable | 765 | 147 |
Special Mention [Member] | Farmland Loan [Member] | ||
Loans receivable | 885 | 750 |
Special Mention [Member] | Residential Loan [Member] | ||
Loans receivable | 1,232 | 299 |
Special Mention [Member] | Commercial Mortgage Loan [Member] | ||
Loans receivable | 1,710 | 1,212 |
Special Mention [Member] | Commercial and Agricultural Loan [Member] | ||
Loans receivable | 248 | 70 |
Special Mention [Member] | Consumer and Other Loan [Member] | ||
Loans receivable | ||
Substandard [Member] | ||
Loans receivable | 13,349 | 11,628 |
Substandard [Member] | Construction and Development Loan [Member] | ||
Loans receivable | 27 | 21 |
Substandard [Member] | Farmland Loan [Member] | ||
Loans receivable | 6,247 | 4,358 |
Substandard [Member] | Residential Loan [Member] | ||
Loans receivable | 1,677 | 2,926 |
Substandard [Member] | Commercial Mortgage Loan [Member] | ||
Loans receivable | 4,631 | 3,333 |
Substandard [Member] | Commercial and Agricultural Loan [Member] | ||
Loans receivable | 763 | 976 |
Substandard [Member] | Consumer and Other Loan [Member] | ||
Loans receivable | $ 4 | $ 14 |
Note 5 - Allowance for Loan L_6
Note 5 - Allowance for Loan Losses and Impaired Loans - Analysis of Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Past due | $ 3,611 | $ 3,250 |
Current | 546,209 | 533,215 |
Loans receivable | 549,820 | 536,465 |
Past due and still accruing | ||
Nonaccrual loans | 5,404 | 5,579 |
Construction and Development Loan [Member] | ||
Past due | 11 | 29 |
Current | 34,612 | 33,420 |
Loans receivable | 34,623 | 33,449 |
Past due and still accruing | ||
Nonaccrual loans | 10 | |
Farmland Loan [Member] | ||
Past due | 1,677 | 1,160 |
Current | 33,881 | 32,131 |
Loans receivable | 35,558 | 33,291 |
Past due and still accruing | ||
Nonaccrual loans | 4,132 | 3,914 |
Residential Loan [Member] | ||
Past due | 1,081 | 1,148 |
Current | 242,401 | 234,541 |
Loans receivable | 243,482 | 235,689 |
Past due and still accruing | ||
Nonaccrual loans | 567 | 653 |
Commercial Mortgage Loan [Member] | ||
Past due | 542 | 604 |
Current | 177,304 | 175,588 |
Loans receivable | 177,846 | 176,192 |
Past due and still accruing | ||
Nonaccrual loans | 442 | 740 |
Commercial and Agricultural Loan [Member] | ||
Past due | 271 | 271 |
Current | 38,861 | 37,220 |
Loans receivable | 39,132 | 37,491 |
Past due and still accruing | ||
Nonaccrual loans | 249 | 264 |
Consumer and Other Loan [Member] | ||
Past due | 29 | 38 |
Current | 19,150 | 20,315 |
Loans receivable | 19,179 | 20,353 |
Past due and still accruing | ||
Nonaccrual loans | 4 | 8 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Past due | 1,067 | 881 |
Financial Asset, 30 to 59 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Past due | 1 | 29 |
Financial Asset, 30 to 59 Days Past Due [Member] | Farmland Loan [Member] | ||
Past due | 375 | 71 |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Loan [Member] | ||
Past due | 558 | 762 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Past due | 100 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Past due | 26 | 7 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Past due | 7 | 12 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Past due | 103 | 263 |
Financial Asset, 60 to 89 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Past due | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Farmland Loan [Member] | ||
Past due | 100 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Loan [Member] | ||
Past due | 85 | 145 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Past due | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Past due | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Past due | 18 | 18 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Past due | 2,441 | 2,106 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction and Development Loan [Member] | ||
Past due | 10 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Farmland Loan [Member] | ||
Past due | 1,302 | 989 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Loan [Member] | ||
Past due | 438 | 241 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Mortgage Loan [Member] | ||
Past due | 442 | 604 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial and Agricultural Loan [Member] | ||
Past due | 245 | 264 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer and Other Loan [Member] | ||
Past due | $ 4 | $ 8 |
Note 5 - Allowance for Loan L_7
Note 5 - Allowance for Loan Losses and Impaired Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Recorded investment with no related allowance | $ 3,022 | $ 3,022 | $ 3,369 |
Unpaid principal balance with no related allowance | 3,022 | 3,022 | 3,393 |
Average recorded investment with no related allowance | 3,022 | 3,087 | 3,971 |
Interest income recognized with no related allowance | 5 | 9 | 36 |
Recorded investment with related allowance | 6,745 | 6,745 | 6,929 |
Unpaid principal balance with related allowance | 6,940 | 6,940 | 7,169 |
Related allowance | 286 | 286 | 300 |
Average recorded investment with related allowance | 6,772 | 7,066 | 7,795 |
Interest income recognized with related allowance | 85 | 181 | 393 |
Recorded investment | 9,767 | 9,767 | 10,298 |
Unpaid principal balance | 9,962 | 9,962 | 10,562 |
Average recorded investment | 9,794 | 10,153 | 11,766 |
Interest income recognized | 90 | 190 | 429 |
Construction and Development Loan [Member] | |||
Recorded investment with no related allowance | |||
Unpaid principal balance with no related allowance | |||
Average recorded investment with no related allowance | |||
Interest income recognized with no related allowance | |||
Recorded investment with related allowance | 65 | 65 | 69 |
Unpaid principal balance with related allowance | 65 | 65 | 69 |
Related allowance | 4 | 4 | 4 |
Average recorded investment with related allowance | 66 | 67 | 306 |
Interest income recognized with related allowance | 1 | 3 | 11 |
Recorded investment | 65 | 65 | 69 |
Unpaid principal balance | 65 | 65 | 69 |
Average recorded investment | 66 | 67 | 306 |
Interest income recognized | 1 | 3 | 11 |
Farmland Loan [Member] | |||
Recorded investment with no related allowance | 3,022 | 3,022 | 3,284 |
Unpaid principal balance with no related allowance | 3,022 | 3,022 | 3,284 |
Average recorded investment with no related allowance | 3,022 | 3,087 | 3,523 |
Interest income recognized with no related allowance | 5 | 9 | 23 |
Recorded investment with related allowance | 1,553 | 1,553 | 1,539 |
Unpaid principal balance with related allowance | 1,553 | 1,553 | 1,539 |
Related allowance | 51 | 51 | 38 |
Average recorded investment with related allowance | 1,560 | 1,565 | 1,568 |
Interest income recognized with related allowance | 17 | 36 | 86 |
Recorded investment | 4,575 | 4,575 | 4,823 |
Unpaid principal balance | 4,575 | 4,575 | 4,823 |
Average recorded investment | 4,582 | 4,652 | 5,091 |
Interest income recognized | 22 | 45 | 109 |
Residential Loan [Member] | |||
Recorded investment with no related allowance | 85 | ||
Unpaid principal balance with no related allowance | 85 | ||
Average recorded investment with no related allowance | 448 | ||
Interest income recognized with no related allowance | 13 | ||
Recorded investment with related allowance | 4,892 | 4,892 | 5,005 |
Unpaid principal balance with related allowance | 5,042 | 5,042 | 5,162 |
Related allowance | 219 | 219 | 241 |
Average recorded investment with related allowance | 4,909 | 5,123 | 5,348 |
Interest income recognized with related allowance | 63 | 135 | 266 |
Recorded investment | 4,892 | 4,892 | 5,090 |
Unpaid principal balance | 5,042 | 5,042 | 5,247 |
Average recorded investment | 4,909 | 5,123 | 5,796 |
Interest income recognized | 63 | 135 | 279 |
Commercial Mortgage Loan [Member] | |||
Recorded investment with no related allowance | |||
Unpaid principal balance with no related allowance | |||
Average recorded investment with no related allowance | |||
Interest income recognized with no related allowance | |||
Recorded investment with related allowance | 196 | 196 | 275 |
Unpaid principal balance with related allowance | 241 | 241 | 358 |
Related allowance | 10 | 10 | 15 |
Average recorded investment with related allowance | 197 | 271 | 522 |
Interest income recognized with related allowance | 3 | 6 | 27 |
Recorded investment | 196 | 196 | 275 |
Unpaid principal balance | 241 | 241 | 358 |
Average recorded investment | 197 | 271 | 522 |
Interest income recognized | 3 | 6 | 27 |
Commercial and Agricultural Loan [Member] | |||
Recorded investment with no related allowance | |||
Unpaid principal balance with no related allowance | 24 | ||
Average recorded investment with no related allowance | |||
Interest income recognized with no related allowance | |||
Recorded investment with related allowance | 35 | 35 | 37 |
Unpaid principal balance with related allowance | 35 | 35 | 37 |
Related allowance | 2 | 2 | 2 |
Average recorded investment with related allowance | 36 | 36 | 47 |
Interest income recognized with related allowance | 1 | 1 | 3 |
Recorded investment | 35 | 35 | 37 |
Unpaid principal balance | 35 | 35 | 61 |
Average recorded investment | 36 | 36 | 47 |
Interest income recognized | 1 | 1 | 3 |
Consumer and Other Loan [Member] | |||
Recorded investment with no related allowance | |||
Unpaid principal balance with no related allowance | |||
Average recorded investment with no related allowance | |||
Interest income recognized with no related allowance | |||
Recorded investment with related allowance | 4 | 4 | 4 |
Unpaid principal balance with related allowance | 4 | 4 | 4 |
Related allowance | |||
Average recorded investment with related allowance | 4 | 4 | 4 |
Interest income recognized with related allowance | |||
Recorded investment | 4 | 4 | 4 |
Unpaid principal balance | 4 | 4 | 4 |
Average recorded investment | 4 | 4 | 4 |
Interest income recognized |
Note 5 - Allowance for Loan L_8
Note 5 - Allowance for Loan Losses and Impaired Loans - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | ||
Number of contracts | 1 | 2 | 2 | 2 | |
Premodification | $ 38 | $ 80 | $ 155 | $ 80 | |
Postmodification | $ 38 | $ 97 | $ 166 | $ 97 | |
Number of contracts, subsequently defaulted | 0 | 0 | 0 | 0 | |
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Construction and Development Loan [Member] | |||||
Number of contracts | |||||
Premodification | |||||
Postmodification | |||||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Farmland Loan [Member] | |||||
Number of contracts | 1 | 1 | |||
Premodification | $ 38 | $ 38 | |||
Postmodification | $ 38 | $ 38 | |||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Residential Loan [Member] | |||||
Number of contracts | 2 | 1 | 2 | ||
Premodification | $ 80 | $ 117 | $ 80 | ||
Postmodification | $ 97 | $ 128 | $ 97 | ||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Commercial Mortgage Loan [Member] | |||||
Number of contracts | |||||
Premodification | |||||
Postmodification | |||||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Commercial and Agricultural Loan [Member] | |||||
Number of contracts | |||||
Premodification | |||||
Postmodification | |||||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
Consumer and Other Loan [Member] | |||||
Number of contracts | |||||
Premodification | |||||
Postmodification | |||||
Number of contracts, subsequently defaulted | [1] | ||||
Premodification, subsequently defaulted | [1] | ||||
Postmodification, subsequently defaulted | [1] | ||||
[1] | Loans past due 30 days or more are considered to be in default. |
Note 5 - Allowance for Loan L_9
Note 5 - Allowance for Loan Losses and Impaired Loans - Carrying Amount of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Outstanding balance | $ 683 | $ 714 |
Carrying amount | 683 | 714 |
Residential Loan [Member] | ||
Outstanding balance | 156 | 167 |
Commercial Mortgage Loan [Member] | ||
Outstanding balance | 327 | 347 |
Commercial and Agricultural Loan [Member] | ||
Outstanding balance | $ 200 | $ 200 |
Note 5 - Allowance for Loan _10
Note 5 - Allowance for Loan Losses and Impaired Loans - Purchased Credit Impaired Loans (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Contractually required payments receivable of loans | $ 2,178 |
Cash flows expected to be collected at acquisition | 1,781 |
Fair value of acquired loans at acquisition | 1,781 |
Residential Loan [Member] | |
Contractually required payments receivable of loans | 233 |
Commercial Mortgage Loan [Member] | |
Contractually required payments receivable of loans | 1,724 |
Commercial and Agricultural Loan [Member] | |
Contractually required payments receivable of loans | $ 221 |
Note 5 - Allowance for Loan _11
Note 5 - Allowance for Loan Losses and Impaired Loans - Summary of Carrying Amount of Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Loans at beginning of year | $ 714 | |
Loans at end of period | 683 | $ 714 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Loans at beginning of year | 714 | |
Loans purchased during the year | 1,781 | |
Loans at end of period | $ 683 | $ 714 |
Note 6 - Employee Benefit Pla_2
Note 6 - Employee Benefit Plan (Details Textual) $ in Thousands | Jun. 30, 2019USD ($) |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0 |
Note 6 - Employee Benefit Pla_3
Note 6 - Employee Benefit Plan - Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Service cost | ||||
Interest cost | 46 | 43 | 92 | 86 |
Expected return on plan assets | (138) | (144) | (276) | (288) |
Amortization of prior service cost | ||||
Recognized net loss due to settlement | ||||
Recognized net actuarial (gain)/loss | 10 | 8 | 20 | 16 |
Net periodic benefit cost | $ (82) | $ (93) | $ (164) | $ (186) |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of Intangible Assets, Total | $ 218 | $ 70 | $ 437 | $ 140 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Change in Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Beginning of year | $ 3,198 | |
Acquired goodwill as result of Great State merger | 59 | 3,198 |
Impairment | ||
End of the period | $ 3,257 | $ 3,198 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Balance at beginning of year, net | $ 3,892 | ||||
Amortization expense | $ (218) | $ (70) | (437) | $ (140) | |
Net book value | 3,455 | 3,455 | $ 3,892 | ||
Core Deposits [Member] | |||||
Balance at beginning of year, net | 3,892 | $ 2,045 | 2,045 | ||
Core deposit intangible as result of Great State merger | 2,425 | ||||
Amortization expense | (437) | (578) | |||
Net book value | $ 3,455 | $ 3,455 | $ 3,892 |
Note 8 - Commitments and Cont_3
Note 8 - Commitments and Contingencies (Details Textual) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 5,000,000 |
Note 8 - Commitments and Cont_4
Note 8 - Commitments and Contingencies - Summary of Bank's Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial instruments with off balance sheet risk | $ 78,399 | $ 78,204 |
Commitments to Extend Credit [Member] | ||
Financial instruments with off balance sheet risk | 77,109 | 76,977 |
Standby Letters of Credit [Member] | ||
Financial instruments with off balance sheet risk | $ 1,290 | $ 1,227 |
Note 9 - Financial Instrument_2
Note 9 - Financial Instruments (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Recurring [Member] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value, Nonrecurring [Member] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Note 9 - Financial Instrument_3
Note 9 - Financial Instruments - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Reported Value Measurement [Member] | ||
Net Loans | $ 546,002 | $ 532,970 |
Time Deposits | 184,004 | 180,143 |
Estimate of Fair Value Measurement [Member] | ||
Net Loans | 535,187 | 529,155 |
Time Deposits | 183,669 | 176,188 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Net Loans | ||
Time Deposits | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 534,983 | 528,784 |
Time Deposits | 183,669 | 176,188 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | 204 | 371 |
Time Deposits |
Note 9 - Financial Instrument_4
Note 9 - Financial Instruments - Assets Recorded at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment securities available for sale | $ 41,096 | $ 45,428 |
Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale | ||
Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 41,096 | 45,428 |
Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale | ||
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale | 250 | 245 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale | ||
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 250 | 245 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale | ||
Collateralized Mortgage Backed Securities [Member] | ||
Investment securities available for sale | 23,964 | 24,763 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 23,964 | 24,763 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale | ||
Corporate Debt Securities [Member] | ||
Investment securities available for sale | 2,886 | 2,789 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 2,886 | 2,789 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale | 13,996 | 17,631 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investment securities available for sale | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investment securities available for sale | 13,996 | 17,631 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investment securities available for sale |
Note 9 - Financial Instrument_5
Note 9 - Financial Instruments - Assets Recorded at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired Loans [Member] | ||
Assets at fair value | $ 204 | $ 371 |
Fair Value, Nonrecurring [Member] | ||
Assets at fair value | 204 | 1,124 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | 204 | 1,124 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | ||
Assets at fair value | 204 | 371 |
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | 204 | 371 |
Fair Value, Nonrecurring [Member] | Foreclosed Assets [Member] | ||
Assets at fair value | 753 | |
Fair Value, Nonrecurring [Member] | Foreclosed Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Foreclosed Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets at fair value | ||
Fair Value, Nonrecurring [Member] | Foreclosed Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets at fair value | $ 753 |
Note 9 - Financial Instrument_6
Note 9 - Financial Instruments - Significant Unobservable Inputs Used Fair Value Measurements (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||
Impaired loans, significant unobservable inputs | 0 | |
Other real estate owned, significant unobservable inputs | 0 | |
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||
Impaired loans, significant unobservable inputs | 0.1 | |
Other real estate owned, significant unobservable inputs | 0.1 | |
Impaired Loans [Member] | ||
Assets at fair value | $ 204 | $ 371 |
Other Real Estate Owned [Member] | ||
Assets at fair value | $ 753 |
Note 10 - Capital Requirement_2
Note 10 - Capital Requirements - Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Capital | $ 75,061 | $ 71,424 |
Capital, ratio | 13.53% | 13.00% |
Capital required for capital adequacy | $ 44,398 | $ 43,943 |
Capital required for capital adequacy, ratio | 8.00% | 8.00% |
Capital required to be well capitalized | $ 55,497 | $ 54,929 |
Capital required to be well capitalized, ratio | 10.00% | 10.00% |
Tier 1 capital risk | $ 71,213 | $ 67,899 |
Tier 1 capital risk, raio | 12.83% | 12.36% |
Tier 1 Capital risk required for capital adequacy | $ 33,298 | $ 32,958 |
Tier 1 Capital risk required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 Capital risk required to be well capitalized | $ 44,398 | $ 43,943 |
Tier 1 Capital risk required to be well capitalized, ratio | 8.00% | 8.00% |
Common equity Tier 1 | $ 71,213 | $ 67,899 |
Common equity Tier 1, raio | 12.83% | 12.36% |
Common equity Tier 1 required for capital adequacy | $ 24,974 | $ 24,718 |
Common equity Tier 1 required for capital adequacy, raio | 4.50% | 4.50% |
Common equity Tier 1 required to be well capitalized | $ 36,073 | $ 35,704 |
Common equity Tier 1 required to be well capitalized, ratio | 6.50% | 6.50% |
Tier 1 capital average | $ 71,213 | $ 67,899 |
Tier 1 capital average, ratio | 10.65% | 10.08% |
Tier 1 capital average required for capital adequacy | $ 26,753 | $ 26,932 |
Tier 1 capital average required for capital adequacy, ratio | 4.00% | 4.00% |
Tier 1 capital average required to be well capitalized | $ 33,442 | $ 33,664 |
Tier 1 capital average required to be well capitalized, ratio | 5.00% | 5.00% |